China Trials Its Central Bank Currency, The Digital Yuan, In Shenzhen’s Gas Stations

China’s Central Bank assists Shenzhen citizens in using its digital currency as payments to refuel their motor vehicles. The community in the tech hub of China (Shenzhen) received $1.5 million in digital Yuan, airdropped to gear up the project, 11 gas stations are now accepting digital currency as payments, reported Economic Information Daily.

A leading agency, Guangdong Petroleum conducting tests and unveiled its pilot this week on 13 October. To make a transaction, QR codes are available at stations to scan and work the same as commercial payment apps like Apple Pay.

The community experienced best practices and gave positive feedback yet, as it completes transactions in a few seconds. Alongside, all the services in a station’s boundary like stores or kiosks are integrated and support digital payment methods.

The digital yuan application characteristic that makes it distinct is it doesn’t need a phone signal to transmit. Likewise, it allows users to utilize the service until the phone battery ends.

Meanwhile, other cashless payment apps like ‘WeChat’ use a different structure. It requires an internet connection to proceed and charge a transaction fee, too.

Per a report, Guangdong Petroleum is in the process of extending its boundaries to over 110 gas stations to fix the self-operated ecosystem in Shenzhen within a month. China’s digital yuan has yet another milestone to achieve, Digital Currency Electronic Payment (DCEP). It falls in the country’s Five-Year-Plan brackets to develop and deploy the world’s advanced technologies such as blockchain and artificial intelligence.

In 2019, the Chinese Parliament declared to complete the digital yuan project before the Winter Olympics in 2022. In September, China decided to position the DCEP project as a workable option to reduce its dependency on the US dollar. This plan has become a hot topic.

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Author: Hank Klinger

Spanish Govt Embarks on Bill to Requires Crypto Investors to Disclose Holdings and Income

The Spanish government has embarked on a bill that may require its citizens to disclose their crypto income or holdings with the country’s tax agency. Reuters, which first reported on this development, noted that the bill in question aims at tracking down tax fraud/evasion amongst Spain’s crypto investors or users.

According to Spain’s government spokeswoman, Maria Jesus Montero, this piece of legislation is currently in progress and set to play a major role in harmonizing crypto tax reporting. If passed into law, crypto holders in Spain will have to disclose their crypto exposures within the rules of holding the burgeoning digital assets.

While the details of the proposed legislation are still scanty, this is not the first time Spanish authorities are making an effort to narrow down on crypto reporting. In 2018, they had embarked on similar efforts with the focus being identification; Montero highlighted that the Spanish government wanted to gain ‘identification of the holders and the balances contributed by these virtual currencies.’

She also touched on the tax issue at the time, although not much practicality on implementation followed later,

“It is stated as mandatory that people and companies inform the Tax Agency about this operation.”

However, the newly proposed legislation presents an opportunity to straighten out the ambiguity in Spain’s crypto tax reporting. Concurrently, tax cheats will be nabbed and taken into account based on an established regulatory framework.

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Author: Edwin Munyui

Second US Stimulus Package of $1,200 on the Way as Bitcoin Bulls Gain Momentum

A second stimulus check is on the way for American citizens, according to the White House’s economic advisor, Larry Kudlow. He confirmed this position during an interview with CNN’s Jake Tapper on July 26, signaling that the Fed’s printers might soon be busy again. This news coincides with strong crypto market bulls that have since pushed Bitcoin past $10,360 as of press time.

Earlier, BEG reported that the first stimulus round might have helped Bitcoin recover from black Thursday, given that quite a large number of Americans invested in Bitcoin. Could this new stimulus round push BTC further? A lot is clearly in play, but an injection by the Fed will likely result in a BTC rally, just like other markets have started to recover.

The European Union also recently announced plans to initiate a second Euro stimulus, aiming to distribute close to 1 billion Euros. While a direct correlation has yet to be linked to Bitcoin’s price surge following the announcement last week, speculators see the move by the EU may have contributed to Bitcoin’s price movement. The leading crypto asset had been stable for quite a while, ranging between $9k and $9.3k, but this resistance has since been broken over the past week.

Bitcoin Investors Gained over 40% ROI Since April.

With most of the stimulus payment processes clearing in April, investors who got into the market at the time are now over 45% in profit.

As the March economic downturn took a heavy toll on all sectors, the price of BTC dipped to lows below $4,000, but then eventually climbed back to almost $7,000 at the beginning of April. Looking at these stats, Americans who opted to buy Bitcoin with their stimulus money can cash out with around 40% gains depending on at which point they bought into the market.

Though considered volatile, digital assets such as Bitcoin are proving to be lucrative as fundamentals make inroads to the retail space. No wonder applications like Jack Dorsey’s Cash App are fast catching up with this trend.

The platform recently moved to allows Bitcoin purchases, including an automatic feature for such executions to grow revenue through Bitcoin’s demand. It is quite noteworthy that most of Cash App’s Q1 revenue this year came from Bitcoin purchases, a trend that might replicate itself in an even bigger way should more Americans decide to spend their stimulus on Bitcoin.

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Author: Edwin Munyui

Creditplus Bank AG Report: Three of Four German Citizens Do Not Approve Libra Coin’s Launch

Facebook-backed cryptocurrency, Libra, rejected by most German citizens according to a recent survey on people over the age of 16.

The percentage of “no-Libra” choice non-surprisingly increases with age as the older population still try to get their heads around decentralized technologies.

Over 73% of Germans won’t use Libra

According to a report released by Toluna, a market research institute, for WirtschaftsWoche and Creditplus Bank AG, on over 2000 German citizens aged 16 and over, Libra remains unpopular in the country – only 27% of the population claim they would use the stable coin for transactions, both locally and cross border.

In the comprehensive report, 42% of the respondents claimed they would not use Libra due to Facebook’s privacy issues. Furthermore, 31% of the respondents have faith in their state controlled currencies and would not switch to the stable coin.

Younger generations more open to Libra

As expected, the percentage of respondents rejecting adoption and use of Libra aged 35 and above is significantly higher than the younger population. Over 85% of Germans in the higher age groups (over 35) claim they would not use the cryptocurrency with 42% of respondents between the age 22-35 accepting the token.

In a test carried out on young Americans by Cint, a markets research firm, close to 70% of respondents in the survey are against cryptocurrencies in general. Almost 53% of the respondents do not want anything to do with the cryptocurrency mostly due to regulatory struggles and privacy control issues in the industry.

Regulators against Libra launch

Despite its homely welcome in neutral Switzerland, Libra is under fire across the European Union (EU) – Germany’s finance minister, Olaf Scholz is leading the pack. In an interview earlier in the month, Olaf urged the EU to regulate Libra and work towards launching their own stable coins or else they would lag behind other powerful states building their own digital assets.

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Author: Lujan Odera

Cubans Are Avoiding US Trade Embargo With Crypto; Global Marketplace Access And Remittances

BTC trading has helped open new trading avenues for Cuba citizens. The communist country has been isolated financially for many years under a siege that was started by the embargo placed on it by the United States.

According to a news report released by a U.S media company, it appears that the arrival of mobile internet in Cuba has helped many Cubans get access to cryptocurrencies. The residents are now resorting to the use of crypto assets to trade, invest, and make online purchases.

Retail Shopping

While many users lack access to credit and debit cards that they can use for global shopping, crypto-enabled purchases have become a welcome relief for many consumers. Jason Sanchez, a local resident, was interviewed a by U.S news outlet on the role that cryptocurrency was placing in their lives.

He stated that using cryptocurrency had helped open retail doors for many Cubans. The thirty-five-year-old Cuban went on to state that he was now in a position to buy accessories and spare parts for his mobile phone repair business located in Havana. Many of his purchases were sourced from an online store located in Chinese. He added that he normally used BTC to make all his payments.

The founder of CubaCripto, a Cuban Telegram channel, known as Alex Sobrino estimated that there were about a thousand Cubans who relied on cryptocurrency to perform retail shopping. While expressing his views on the topic, he stated that the local residents were using cryptocurrencies to buy airtime for their cellphones. Others were relying on the digital assets to make online purchases as well as reserve hotel rooms.

For those who do not have friends or relatives abroad, they have no option but to turn to the use of social media, such as Telegram channels. Another option involves the use of exchanges where residents get to personally swap cash for Bitcoin. A laptop or internet-enabled handset is required for this swap to occur.

Financial Exclusion and Available Solutions

It is estimated that there are about 1,300 local residents using Fusyona, a Cuban based cryptocurrency exchange platform. It is a platform that makes it possible for individuals who are abroad to remit money to Cuba. They can also use the platform to invest in up to 9 different cryptocurrencies through the use of a larger crypto exchange. The platform charges a fee of up to ten percent for all its services.

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Author: Daniel W

Expert Believes Petro Cryptocurrency Is Helping Venezuelan People Bypass Sanctions

Expert Believes Petro Cryptocurrency Is Helping Venezuelan People Bypass Sanctions
  • Cryptocurrency adoption is steadily increasing in Venezuela.
  • The South American nation’s citizens have suffering from one of the worst economic crises in history with the Bolivar becoming practically worthless.

Venezuelan Petro Moves Towards A New Phase

The Petro is now accepted in many shops in the country, according to Ricardo Baptista, the director of the Latin American Cryptoeconomy Corporation, the Venezuelan government wants to help the economy by promoting the use of virtual currencies, including the government-backed Petro.

The goal is to solve the many problems that the current Venezuelan economy is experiencing.

Using Virtual Currencies In Order to Circumvent International Sanctions

Mr. Baptista explained that the government of Venezuela is currently promoting the use of virtual currencies in order to improve its economy. The main goal is to avoid the negative effects of a massive blockade on the Venezuelan economy. Using virtual currencies, the country is able to evade these sanctions.

He has also mentioned that virtual currencies are now being used by the Venezuelan population and are starting to think in a different way the financial culture they have.

On the matter, he commented:

“Our currency, the bolivar, has been hit hard and what we are looking for is that financial technology is that the bolivar has a value, not on paper, but as a digital asset.”

During a conversation with the radio show “A tiempo,” which is broadcasted by Unión Radio, he said that cryptocurrency adoption was growing in the country due to the proliferation of different businesses and content distribution companies. Indeed, digital assets are currently being used for online payments, purchases and more.

The country is experiencing a very hard crisis in which individuals are not able to have access to basic goods and other services. Cryptocurrencies could have a positive effect on the economy and the population that is living in a very difficult situation.

The government has decided to create a digital currency called The Petro that tried to diminish the effects of these sanctions on the population. Although it has not been used for a long period of time and many experts believe that it was never going to be used by people in the country, it seems that there are some individuals already using it.

As reported by José Antonio Lanz, a Venezuelan crypto journalist, there are some businesses that have implemented the currency and it can be traded in six local exchanges. At the moment it is not possible to provide a positive future for the digital currency since the United States has imposed strict sanctions against those who deal with the virtual currency.

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Author: Carl T