Seeds of Wisdom RV and Economics Updates Sunday Evening 7-7-24 — Dinar Recaps (2024)

Where Is Cryptocurrency Legal?
Cryptocurrency is currently legal in 119 countries and four British Overseas Territories. This means more than half of the world's countries have legalized cryptocurrency. 64.7% of countries that have legalized crypto are emerging and developing countries from the Asian and African continents. However, out of the 119 countries that legalized cryptocurrency, 20 (16.8%) have imposed bank bans. These bans restrict financial institutions from interacting with cryptocurrency exchanges or users.

Europe Leads With 39 Countries Recognizing Crypto’s Legitimacy
Europe is at the forefront of global cryptocurrency legalization, with 39 (95.1%) out of 41 analyzed countries acknowledging its legitimacy. North Macedonia is the only European country where cryptocurrency is illegal, while Moldova's status remains unclear.

Out of 31 countries inthe Americas, 24 (77.4%) countries recognize cryptocurrency as legal. Bolivia stands as the sole exception, deeming cryptocurrency illegal. Six American countries - Guatemala, Guyana, Haiti, Nicaragua, Paraguay, and Uruguay - have yet to establish their official stance on cryptocurrency.

In Africa, only 17 out of 44 (38.6%) countries have legalized cryptocurrency, while 35 (77.7%) out of 45 countries in Asia recognize cryptocurrency as legal.

How Many Countries Have Defined Crypto Laws?
Only 62 (52.1%) of the 119 countries where cryptocurrency is legal have comprehensive regulations. This number has gone up by 53.2% since 2018 when only 33 jurisdictions had cryptocurrency regulations.

Among the 62 countries with established regulations, 36 (58.0%) are individual countries, 22 (35.5%) are part of the European Union (EU), and 4 (6.5%) are British Overseas Territories. Notably, half of these countries are advanced economies, while the remaining half are emerging and developing economies.

Half of the countries that have legalized cryptocurrency have yet to implement robust regulatory frameworks. This gap between legalization and full regulation raises potential concerns about investor protection and clarity for businesses operating in the cryptocurrency space in those countries.

Instead, several countries have taken the approach of adapting existing regulatory frameworks to encompass cryptocurrencies, rather than establishing entirely new regulations. This approach often involves applying established tax laws and anti-money laundering and counter-financing of terrorism (AML/CFT) laws to cryptocurrency transactions and activities.

Major advanced economies, includingFrance, Japan, and Germany, have successfully established regulatory frameworks for cryptocurrencies.
In contrast, other major advanced economies, such asItaly, the United States, Canada, and the United Kingdom, face challenges in implementing comprehensive cryptocurrency regulations. Multiple governments and financial regulatory bodies in these countries contribute to the complexity of the regulatory process.

EU member states,on the other hand, adhere to EU-wide regulations regarding crypto assets. These regulations provide a more harmonized approach to cryptocurrency regulation within the bloc.

Which Countries Use Cryptocurrency as Legal Tender?
Onlytwo countries, El Salvador and the Central African Republic (CAR), have adopted cryptocurrency as legal tender. Of which, El Salvador remains the only country actively using cryptocurrency as legal tender today.

El Salvador made history in August 2021 by legalizing Bitcoin through the Bitcoin Law. This landmark legislation cementedBitcoin's acceptance as legal tenderwith automatic conversion to US dollars.In January 2023, El Salvador took another step towards embracing Bitcoin by passing the Digital Securities Law. This law classifies Bitcoin as a "digital commodity" and all other crypto assets as "securities."

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Labour's plan acknowledges the growing case for a state-backed digital pound and emphasizes the need for financial products to reach underserved communities.

"The landslide victory of the UK’s Labour Party in the general election saw little to no mention of Bitcoin, blockchain, or digital assets. However, Labour’s previous statements and plans suggest a cautious yet open stance toward blockchain technology. "

Labour backs Digital Pound, but what could it look like?

“Labour’s financial services plan, “Financing Growth,” acknowledges the growing case for a state-backed digital pound and emphasizes the need for “financial products to reach underserved communities.

“Embrace innovation and fintech as the future of financial services by becoming a global standard-setter for the use of AI in FS, delivering the next phase of Open Banking, defining a roadmap for Open Finance, embracing securities tokenisation and a central bank digital currency, and establishing a regulatory sandbox for financial products to reach underserved communities.”

“The party has fully supported the Bank of England’s ongoing work in this area, indicating acommitment to continue exploring and developing a CBDC.”

The Labour party has “highlighted the importance of addressingkey concerns such as privacy, financial inclusion, and stability in designing any potential CBDC.” This indicates Labour “prioritizes public interest and economic stability.”

“Labour’s plan also emphasizes theimportance of making the UK a global hub for securities tokenization” and exploring the tokenization of securities. "

"Labour has expressed intentions to advance open banking initiatives, explore the potential of open finance, and establish regulatory sandboxes to test financial products aimed at underserved communities. "

Healthy Skepticism for CBDCs

"As with any attempt to deliver a CBDC,it’s important to remain skeptical due to its potential for governmental overreach and abuse."However, "as one of the few ‘Left Wing’ governments to oversee a CBDC, Labour could offer a unique take on its design."

“Labour’s support for CBDC exploration does not equate to an immediate implementation plan.The party has emphasized the need for thorough consultation and careful consideration of potential impacts” such as privacy concerns associated with CBDCs. “It is clear that FIAT, in its current form, is failing.”

A positive CBDC design would include:
More transparency over government spending
More accessible access to finance for the unbanked
Cheaper and faster international transfers
Reduced costs of Central Bank printing
Increased privacy
A reduction in financial crime

“However, designing a CBDC to offer all these things without the more Orwellian alternatives may require too much of a leap of faith for most. A party with socialist origins, with a forward-thinking and modern technology focus, in the 2024 United Kingdomcould theoretically adopt the best of what blockchain offerswithout overreaching if app priately advised by those in the digital assets industry.”

“We would have one shot at this, and it would have to be designed so that a future government could not alter it to take advantage of its citizens.”

"The coming months and years will be critical in determining whether the UK under Labour leadership can successfully navigate the complex landscape of digital currencies, balancing innovation with stability and public interest. If successful, the UK could emerge as a global leader in the responsible development and implementation of CBDCs, setting a precedent for other nations to follow."

@ Newshound News™

Read more:CryptoSlate



"As Congress struggles to resolve big issues like funding for Ukraine and Israel, the debate over legislation to regulate stablecoins seems like small potatoes. But there is a connection, which is thatstablecoins could have national security implications: Unless we strengthen their regulation, they could undermine our ability to use sanctions to advance our national interests.

This was illustrated recently by news that Russian smugglers have used Tether, the largest stablecoin, to avoid Western sanctions and purchase billions of dollars worth of weapons."

"Stablecoins are a type of cryptocurrency that is far more useful as a means of payment than Bitcoin. 1 That is becausestablecoins are designed to maintain a constant pricein terms of another asset. 2Stablecoins pegged to the U.S. dollarare more “money-like” than other cryptocurrencies.

They can be used to move value across borders without going through banks, and it is the banking system—and in particular the role of U.S. banks—that is key to the implementation and efficacy of sanctions."

"Stablecoins are in some respects similar to Eurodollars, a financial innovation that helped to create the financial plumbing used to implement sanctions.Both stablecoins and Eurodollars are U.S. dollar-based liabilitiesthat had their origins outside the regulated banking system...

It is the global dominance of the dollar, coupled with the role of U.S. banks in facilitating dollar payments, that gives the U.S. its tremendous financial leverage."

"Could stablecoins undermine that leverage?As with the early days of the Eurodollar market, stablecoin use is minimal today, and so their national security risk may also be minimal. But just as Eurodollar use grew quickly and unexpectedly, stablecoins could also grow.

While they are used principally to trade other crypto assets today, they could become a more widespread means of payment. They have also become popular as a means for people in countries with weak currencies to acquire a dollar substitute.

Moreover, that growth could come even if the U.S. does not take action. That is becausemany other jurisdictions are creating frameworks to license stablecoins, including Europe, the U.K., Japan, Singapore and the U.A.E. While those frameworks may lead to stablecoins in native currencies, they could also give rise to new dollar-based stablecoins.

@ Newshound News™

Read more: BrookingsEdu


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