Venezuela tested keeping cryptocurrencies in the bank

Venezuela’s central bank conducts many tests to see if it can keep cryptocurrencies in the treasury, while Venezuela’s largest oil company wants to pay suppliers with bitcoin and ethereum.

According to Bloomberg, a source said it was an effort at the request of Petroleos de Venezuela (PDVSA), a state-owned oil and natural gas company. PDVSA is seeking to send bitcoin and ethereum to the central bank and wants the monetary authority to pay its suppliers in cryptocurrency.

In addition, Venezuelan central bank members also studied the proposal to allow cryptocurrencies to be included in international reserves. The international reserves of the South American nation are near the lowest level in three decades, at US $ 7.9 billion.

The sanctions imposed by the US on the regime of Venezuelan President Nicolas Maduro largely isolated Venezuela from the international financial system, exacerbating one of the world’s most severe economic crises, forcing gender. The organization must use skillful methods to transfer money.

Continued use of cryptocurrencies after a failed private cryptocurrency launch shows how desperate Venezuela is in finding a way to circumvent sanctions.

It’s unclear why PDVSA owns bitcoin and ethereum, and it’s unclear how much cryptocurrency the company holds. Oil producers have struggled to get customers to pay through regular channels because many large banks are reluctant to do business with a punitive entity.

Last month, the company received most of the $ 700 million payment in yuan after parties had difficulty finding financial institutions to facilitate transactions.

PDVSA may be hesitant to sell the cryptocurrencies they currently have on the open market as this requires businesses to register with an exchange and be tested. Therefore, it wants the central bank, where officials are less likely to be exposed to potential bans, to use cryptocurrencies to pay debt to the parties it owes.

Bitcoin and ethereum use decentralized, online ledgers called blockchains to verify and record transactions. In some cases, this practice allows for relatively anonymous transfers without intermediaries. Very few banks involve cryptocurrencies because of money laundering regulations and many other legal compliance issues.

As of early morning 27.9, the price of bitcoin was 7,960 USD while ethereum reached 160.5 USD, according to Coinmarketcap.

For Venezuela, in order to protect itself from sanctions, the government considers switching to Russia’s international payment messaging system, created to replace the Inter-bank Telecommunications Association and the national finance. (SWIFT) that most financial institutions are using.

Bitcoin Price Is Fluctuating More Than Ever

Over the past few weeks, the price of virtual currency Bitcoin has fluctuated greatly, soaring to nearly $ 14,000 on June 26 before returning to about $ 9,000 on July 2. Since the beginning of the year, this virtual currency has recovered nearly 70% of the value. Since the beginning of the year, this virtual currency has recovered nearly 70% of the value.

According to Naeem Aslam, head of market analysis of ThinkMarkets FX, an increase over the $ 10,000 mark of Bitcoin on June 21 has sent a strong signal to retail investors that Bitcoin has returned. This is the first time this virtual currency has surpassed the price of $ 10,000 since March 2018. Some other virtual money like Ethereum, XRP, Litecoin and EOS also increased, CNN said.

Lennon Sweeting, institutional investor manager for Coinsquare Capital Markets, said major investors are taking advantage of the short-term volatility of the virtual currency. Some big investors are still holding lots of Bitcoin and can have a big impact on the market.

Analysts say that the recent unexpected volatility of Bitcoin has some fundamental causes. According to Aslam, the social network Facebook plans to release virtual currency called Libra is a cause. He said it would not be surprising to see Amazon e-commerce company or other technology and retail giants want to enter the virtual money market.

However, Facebook’s Libra is also controversial, especially when the social network is still addressing the question of turning roles in global elections over the past few years and the spread. of fake news on its platform.

Sweeting said many investors were excited about the effects Libra brought to Bitcoin. However, he stressed that the difference between blockchain and Bitcoin is worth noting. The Libra push is likely to promote the widespread adoption of blockchain but does not mean the same thing for Bitcoin virtual currency.

Facebook’s “seismic” virtual currency

Facebook, on June 18, said it would release the Libra virtual currency, scheduled for official trading from early 2020. Described as a global financial-monetary infrastructure, Libra was affirmed by Facebook’s leader “not created for the purpose of replacing major central banks”. However, this currency is evaluated by analysts to create a global seismic in the financial industry.

With more than 2.4 billion Facebook users every month, Libra has the ability to change the face of the financial market, according to The Guardian. Bloomberg in the recent article said that if successful, Libra could turn Facebook into a ‘big player’ in the financial industry.

Compared to the rest of the money market built on blockchain technology, Libra has two distinct characteristics: how to manage and operate.

Unlike other virtual currencies that are also based on the Blockchain, Libra is not created by “digging”, but this currency is issued based on a real amount of collateral. Simply put, this digital currency is created in the same way that central banks around the world issue paper money.

In the newly published White Paper, Facebook claims Libra is a “stable currency”, due to its value attached to real assets. Basically, the only way to increase the number of circulating Libra is that users use other currencies, such as US dollars, euros, yuan or yen to buy Libra and this amount is considered “assets.” guarantee “the amount of Libra this person owns.

“Facebook introduced Libra at the moment as a turning point for the company’s operations and the money market,” said Mark Mahaney, an analyst at RBC Capital Markets. “In terms of size and importance, we believe this new financial platform may be similar to the time Apple introduced the IOS operating system for developers more than a decade ago.”

The amount of Libra collateral will be placed in banks or invested in low-risk lucrative assets, such as US government bonds, but the profits are not distributed to Libra owners. used for the operation of this currency management organization, such as funding for research activities or social activities.

This pre-system is also managed by an organization called Libra Association – an independent, non-profit organization based in Geneva, Switzerland. The organization has two main functions: authenticating transactions using Blockchain Libra and managing Libra volumes related to social purposes.

Companies that contribute at least $ 10 million are considered to be founding members of Libra Association, and there are now 27 technology companies that claim to be partners with Facebook, including some big names like Paypal, Ebay, Spotify, Uber, Lyft, Visa, Mastercard …

However, with the influence of social networks of 2.4 billion users, Facebook may face many barriers before bringing Libra to consumers.

According to Bloomberg, the new announcement from Facebook immediately faced opposition in Europe, with a call to adopt stricter regulations.

French Finance Minister Bruno Le Maire said Libra should not be considered a replacement for traditional currencies. At the same time, the head of the French financial agency called on the group of 7 central bank governors to prepare to report on this project right in the July meeting.

“Libra has undoubtedly become a legal currency,” Le Maire said in an interview with Europe 1. “This is an impossible and impossible problem.”

In the context that Facebook is suffering from numerous criticisms of privacy violations, the new move in the financial sector also draws attention from regulators and privacy advocates worldwide. gender. According to The Guardian, the US and UK authorities have expressed concern about the plan to encroach on Facebook’s financial sector.

In May, members of the US Senate Committee on Banking, Housing and Urban Issues wrote to Facebook CEO Mark Zuckerberg asking for questions regarding privacy and regulations. finance.

“It is important to understand how large social platforms use data available in ways that affect the financial life of consumers,” the content of the letter is written. “More importantly, understand how large social platforms use financial data to profile and select target customers.”

Facebook plans to release GlobalCoin cryptocurrency in 2020

Facebook’s virtual money is expected to help users pay across borders safely and at a cheap cost without a bank account,.. .

According to BBC sources, Facebook plans to release its own cryptocurrency called GlobalCoin in the first quarter of 2020, after internal testing later this year. This cryptocurrency will be released in dozens of countries around the world, helping users to make payment transactions securely and at cheaper costs without having a bank account.

To be able to launch, this virtual money will need to overcome many technical and logical barriers. Last month, Facebook’s chief executive Mark Zuckerberg met with central bank governor Mark Carney to discuss the opportunities and risks of issuing virtual currency. Facebook also works with the US Treasury and money transfer companies like Western Union, to discuss legal and operational issues related to crypto.

Facebook plans to release cryptocurrency for the first time at the end of last year. Accordingly, Facebook will partner with banks and brokers to allow users to convert dollars and other legal currencies into virtual currency. ? Facebook is also negotiating with online providers to accept this virtual currency, in exchange for lower transaction costs.

In March, Barclays’ Internet analyst Ross Sandler forecast GlobalCoin cryptocurrency could bring in revenue of up to $ 19 billion by 2021 in Facebook.

GlobalCoin marks Facebook’s second attempt at virtual currency, nearly 10 years later, Facebook Credits – cryptocurrency allows users to buy products on the system of this social network. Facebook Credits was “killed” after only 2 years of operation due to the failure of liquidity.

However, to launch GlobalCoin, Facebook has many problems to be solved in the context of the scandal of user data and regulations from authorities in recent years. The question posed by officials is how Facebook’s cryptocurrency will work and how the company will protect its customers and their personal information.

Information about GlobalCoin helped price many cryptocurrencies on the market increased on 24/5. Bitcoin rose 5% in value, trading at about $ 7,960, Bitcoin Cash and Ethereum copper both rose 7%, and Litecoin increased 11%.

Prospects of digital currencies in 2019

Some experts said that after a hot development period, the digital money market will have a reorganization and elimination of inappropriate currencies in the coming time.

Market is not quiet

The digital money market in general and Bitcoin in particular had 1 year of unfavorable transactions. The value of Bitcoin has fallen from the peak of nearly $ 20,000 / BTC in early 2018 transactions to $3,500 in the last trading session of 2018. Thus, within nearly a year, Bitcoin lost nearly 80% of the value.
Similarly, many other digital currencies also have strong corrections. The second popular Ether – electronic currency after Bitcoin also dropped from $1,432 / Ether in January 2018 to about $150 / Ether at the moment.

Besides, 2018 also witnessed the failure of Bitcoin Cash. Contrary to the expectation of outstanding growth in early 2018 with the ability to replace the Bitcoin, this digital currency also experienced a sharp decline in the last months of 2018.

The prospects

Judging by the prospects of digital currencies in 2019, many experts think this may be a year of growth again. However, the Bitcoin currency may continue to lose against other currencies. The recent lackluster development of Bitcoin and the lack of technical support in general will lead to the collapse of this currency. As technology companies invest in Blockchain technology and spend the time and energy needed to nurture new digital currencies, some experts believe that Bitcoin will not be able to grow in keeping with the growth of other digital currencies.
According to Samuel Leach, virtual money expert and founder of Yield Coin, Bitcoin may not be able to follow the upward trend of cryptocurrency in 2019, even when some countries recognize the value of money. The main reason lies in investors’ apprehension before the strong fluctuation of this currency in recent years.

The most likely possibility for Bitcoin is that the currency will continue to receive recognition from a number of portfolio swaps (ETFs) and futures markets. Bitcoin will remain a highly speculative trading instrument for some, but will not become a popular means of trading and storing value, Leach added.

Meanwhile, compared to Bitcoin, other currencies appear to be ripple, often with a team of solid engineers standing behind to support constantly, help develop and ensure the stability of currencies in the future.

In addition, in that context, stable currencies (stablecoin) that are designed to counter strong volatility and unstable prices in the electronic money market will quickly rise to dominate market share. Previously, Bitcoin failed to become a stablecoin due to unpredictable fluctuations and strong price fluctuations in a short period of time. The value of bitcoin fluctuates according to the speculation trend and the purpose that traders are willing to buy and sell.

Is Bitcoin Really the Future of Money?

The craze around the most popular cryptocurrency has introduced just about everyone to an entirely new concept for anything from earning through to digital money and even blockchain. Over the last ten years, the currency has shown incredible growth, making just about everyone want to get in on the huge earning potential by mining or by taking advantage of the currency as an investment.

If you follow social media, you would’ve seen some posts about people turning into millions from small investments, even teenagers becoming instant millions by investing money they got from their parents for birthdays.

There’s no doubt about it, the huge increase in value around Bitcoin has made it amazingly popular, especially with the huge price spikes in the last few years. First, it started at less than $0.10 per coin, and by the time most have heard about the coin, it was close to the $20,000 mark, making instant millionaires out of everyone who was brave enough to invest a $100 or more. Not long off to the massive price increase, the coin had a rather serious dip, causing the currency to decrease by more than 50%. However, it still remains well over $5,000, making it the most valuable currency in the world.

As some of you would know, the currency was created to cut out all the middlemen, meaning banks and other financial institutes that control our money and benefit from it. With blockchain technology and a decentralised platform, the Bitcoin system works only with the users involved with it, which is simply the basics of it.

With everything in place, will Bitcoin really become the next international currency?


When we look at the overall state of Bitcoin, we can see that it’s becoming less and less popular with businesses around the world, especially after the major dip in value not so long ago. It’s also important to remember that the value of Bitcoin isn’t regulated, and it can be extremely volatile, making it a difficult currency to work with, especially when it comes to businesses.

Since the major dip in value, more and more businesses that used to accept Bitcoin as a payment option now avoid it, which isn’t just related to the value of the currency, but the scams around it as well. If you keep up with Bitcoin news, you would’ve heard about many different scams, people losing thousands by purchasing fake coins.

For these reasons and many other economical reasons, it’s unlikely that the current state of Bitcoin would become the standard international currency. Sure, there are still many international retailers and online stores accepting Bitcoin, but it’s become harder to use the currency, due to the scammers.

Bitcoin is completely anonymous, allowing scammers to get away with stealing much easier, especially for people who aren’t clued up with hacking and tracking someone down. Even then, Bitcoin scammers aren’t easy to track down, making the currency risky for the everyday user.

Cryptocurrency 10 years after Bitcoin

Cryptocurrency 10 years after Bitcoin

Cryptocurrency 10 years after BitcoinThe value of money is controlled by the Central Bank, you can physically see it and hold it and you can exchange it for services and commodities. Even though you can also send and receive it digitally, the fact remains that it is physical currency. Bitcoin, originally meant to be a peer-to-peer electronic cash system to prevent double spending, and not currency per say, was launched in late 2008, early 2009, by its inventor Satoshi Nakamoto, though not his real name. Bitcoin is not controlled by any entity or server, it does not have a physical form so you cannot hold it or see it, but it can be exchanged for goods and services digitally. It is digital currency and it is the world’s first form of cryptocurrency.

The turn of the 21st century brought the new age of digitalizing every aspect you can think of, seeking new ways to become untraceable. Cryptocurrency created just that. An anonymous way to transact business, virtually untraceable in most cases due to its uncrackable code, and secure enough that it may be the new future for money. The blockchain technology used for cryptocurrency transactions is basically a digital ledger which cannot be hacked, has no single point of failure and it is completely transparent. The question is, how is blockchain so secure in a world where hacking is becoming an increasingly popular career choice for most, bringing down entire economies at times?

Blockchain technology uses cryptography keys which creates your digital signature in the form of a private key that identifies with you, allowing you to digitally sign and authorize transactions, as well as a public key which does not give away your identity, only pointing the person you are conducting the transaction with to the address of your wallet where your cryptocurrency is stored, to be used for completing the transaction. Of course, if anyone has access to both your keys, then they can access all your digital assets, so private keys are meant to be kept safely.  Once a transaction is completed, it is added to the digital ledger of the blockchain and includes a digital signature, a public key, a unique ID and a timestamp. The public key is always random and it changes each time you do a transaction, making your identity virtually untraceable.

Transacting currency digitally is becoming progressively popular where persons now pay bills directly from their bank accounts, purchase commodities and transfer funds, all in the digital realm. With cryptocurrency, there is no middle man, that is, the banks. You are responsible for your own assets and you transact business with the person directly, albeit, without knowing who exactly you are transacting with. Nevertheless, blockchain technology would reduce costs and boost efficiency dramatically, and may even be the answer to reducing global poverty. All transactions are recorded and cannot be duplicated or changed since it is broadcasted to every node, thus lowering the rate of cyber-fraud and hacking. A cashless society is emerging and it all started from the Bitcoin invention a decade ago.