Argentina Passes the ‘Solidarity’ Law to Confiscate Wealth

Argentina has approved the wealth tax that will impose a tariff on people with large fortunes in an attempt to boost its revenue. The third-largest economy in Latin America struggling with high inflation and an increase in poverty is heading into its third year of recession.

The “Social Solidarity and Productive Reactivation” Bill was already passed by the lower house and late on Friday, Senators also gave its nod with 42 votes in favor and 26 against.

“This law will allow Argentina to move forward because the situation is really serious,” the Committee on Budget and Finance president Carlos Caserio said. “The emergency declaration is the way to get out of this problem quickly.”

It involves a one-time tax of at least 2% on individuals with assets of more than 200 million pesos ($2.45 million), through which the government aims to collect about $3.7 billion.

“We must find points of connection between those who have the most to contribute and those who are in need,” said ruling party Senator Anabel Fernandez Sagasti on Twitter.

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“When QE is no more sufficient, seize it directly from the people. All in the name of Covid,” wrote one Bitcoiner on Twitter.

The proceeds from the tax will be used for medical supplies (20%), SMEs (20%), “social developments” (15%), student scholarships (20%), and natural gas development programs (25%).

“Bitcoin is the only exit door from this nonsense,” added the crypto enthusiast.

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Author: AnTy

Bitcoin Driving Wealth Creation, Even a Small Position Goes a Long Way

We have entered a point in the Bitcoin market where wealth is created as BTC’s price continues to climb to new highs. Although we aren’t at a place yet where people are getting hilariously rich, things have indeed started.

As one Bitcoiner @HODLAMERICAN615 shared on Twitter, BTC helps him turn around his mother in law’s finances. “She now has over 100k in savings for the first time in her life,” he said.

With an aggressive savings plan, he put everything into Bitcoin. And by the time the Bitcoin peaks, he is expecting her to become a millionaire. He added,

“A woman who makes 28k a year working at a pre school who was flat broke 3 years ago will literally be a millionaire.”

Bitcoin has been the best performing asset of the last decade. Continuing this trend, the digital asset beats traditional assets, stocks, and precious metals in 2020.

Up nearly 150% YTD, BTC went as high as $18,500 this week, a level that was last seen in December 2017. We aren’t much far off from the all-time high of $20,000.

“Markets are drawn to round numbers,” said Antoni Trenchev, co-founder of Nexo. “Since we passed $16,000, the next stop was $18,000. Now it’s $20,000.”

The gold of this century, Bitcoin is a better investment option for returns and being censorship-resistant and, of course, portable.

Another good thing about BTC is that one doesn’t have to buy an entire coin; instead, a fraction of it can be purchased. Satoshi aka sat is the smallest Bitcoin unit, one hundred millionths of one full BTC (1 BTC = 100,000,000 Satoshis).

With BTC prices surging higher and higher, these small units also continue to represent higher value. 1 Satoshi is currently equal to 0.0001801493 USD.

Even Rapper Logic said that he bought $6 million worth of BTC last month. If we go back one month exactly, pure speculation on when he purchased, the price would have been around $12,000, which would give him about 500 BTC. Of course, he could have bought at a higher price or lower than that as well.

“A small position in Bitcoin can go a long way,” Hugo Rogers, chief investment officer at Deltec Bank & Trust, who bought BTC when it traded around $9,300 in June, told Bloomberg. He said,

“There’s a lack of an alternative in real assets that can show a comparable return. If you’re going to diversify your portfolio anyway, this is a good place to go.”

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Author: AnTy

Swiss Private Banking Giant Julius Baer Adds Digital Asset Trading And Crypto Custody Services

The major Swiss wealth management and private banking group Julius Baer just launched, in partnership with Seba, its new custodial and trading cryptocurrency services.

The announcement was made on January 21, after the minority equity stake acquisition from 2018 and the partnership closed with Seba Bank AG, which happened back in February 2019. According to the announcement, Julius Baer’s entrance into the crypto space has been postponed because Seba had to be regulated.

Julius Baer Says Crypto Services Are in Increasing Demand

While not too many details on the offering have been given yet, it’s very likely Seba’s capabilities and platform are going to be used. In order to meet the rising need, Julius Baer will offer services such as crypto transaction solutions, custody of digital assets and overviews on a consolidated portfolio for both digital and traditional assets. According to their security, liquidity and technical robustness, the bank is going to select the most important cryptocurrencies. It hasn’t yet mentioned anything about the offered assets.

Seba is Fully Regulated

Seba was given its FINMA license at the same time with Sygnum. Back in December 2019, it started offering services to accredited and institutional investors from 9 new countries. It provides a wallet app plus banking and card facilities for more than 5 of the most important cryptocurrencies, such as Bitcoin (BTC), Litecoin (LTC), Ether (ETH), Ether Classic (ETC) and Stellar (XLM).

Seba investors are also offered crypto to fiat and crypto to crypto conversion services. Furthermore, the bank gives enterprise accounts to blockchain companies and their employees. As reported, Sygnum is too looking to expand globally, as it’s in talk with regulators to obtain a license for banking in Singapore.

Blockchain Technology Can Change the Financial Services Game

Back in the fall of 2019, the chief strategist and head of research and investment solutions at Julius Baer, Christian Gattiker-Ericsson, said cryptocurrencies are in a “Darwinian” selection process, with the winner remaining to be determined. He also noted that blockchain technology can change the game when it comes to financial services.

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Author: Oana Ularu

BlockFi to launch BTC Rewards Credit Card and Add Support for Litecoin & USDC

  • BlockFi working to make wealth management simple and accessible
  • Their new product will allow users to earn a BTC cash-back rate on every transaction via BTC rewards credit card
  • Support for USD Coin (USDC) and Litecoin (LTC) is also coming in few weeks

BlockFi, a cryptocurrency lending service backed by Winklevoss Capital, Galaxy Capital and ConSenSys Ventures among others will be coming with its newest product, the BTC rewards credit card, announced the company in its letter from founders where it reflects on 2019 and what to expect in 2020.

The company will be working on developing a product that allows users to spend money on their BTC rewards credit card. But instead of earning a cash back or airline miles, you will earn a BTC cash-back rate on every transaction that you may make with that card.

This BlockFi says is “a way to add value to crypto OGs as well as a novel way to introduce crypto to non-owners in an easy, familiar way.”

Apart from working on the BTC reward credit card, BlockFi will be adding support for USD Coin (USDC) and Litecoin (LTC) in the first few weeks at the “most competitive interest rates in the market.”

Currently, it offers a 6.2% annual percentage yield (APY) on less than 10 BTC deposits and 2.2% on more than 10 BTC. On less than 1000 Ether, BlockFi offers 4.1% APY and 0.5% on the amount exceeding 1000 ETH. On GUSD, there is a standard 8.6% APY.

Expanding the Use of crypto on a global scale

Last year has been a “breakout year” for BlockFi when it launched USD loans secured by crypto, BlockFi trading, and BlockFi Interest Account (BIA). While with BlockFi Trading one can buy and sell crypto pairs with no fees, with BIA you can diversify your crypto portfolio without having to purchase crypto and also earn passive income.

BlockFi also secured $18.3 million in Series A funding led by Peter Theil’s Valar Ventures with participation from Morgan Creek Digital, Winklevoss Capital, and Akuna Capital with ConsenSys and Galaxy being the earlier backers in Q3 of 2019.

At that time, the founder Zach Prince said BlockFi has been seeing its monthly revenue grow over 10 times since January.

Now in 2020, the company’s vision is to “to build upon our current suite of financial products in a way that makes wealth management simple and accessible.”

The goal, they say, is to “further expand the use of crypto on a global scale.”

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Author: AnTy