News
A Battle Lost or a War Yet to be Won?
In a recent speech, Agustin Carstens, the head of the Bank for International Settlements, declared that cryptocurrency has “lost the battle” against fiat currency. But is it really game over for digital currencies, or is there still hope for crypto in the ongoing war against fiat?
The Challenge of Widespread Adoption and Government Backing
A crucial challenge facing cryptocurrency is the issue of widespread adoption. While digital currencies like Bitcoin and Ethereum have gained significant popularity in recent years, they still represent a small fraction of the global financial system.
Governments back and widely accept fiat currencies like the US dollar and the euro. This government backing gives them an air of legitimacy and trust cryptocurrency finds difficult to match.
The Potential Benefits of Cryptocurrency
Despite the challenges of widespread adoption and government backing, cryptocurrency has a number of potential benefits. In particular, cryptocurrency can reduce transaction costs and increase financial inclusion. Underdeveloped and inaccessible traditional banking systems have been the greatest beneficiaries.
Besides, the decentralized nature of many cryptocurrencies means that they can operate outside of traditional financial systems, providing resilience to market shocks and economic crises.
Cryptocurrency: The Drawbacks
However, the lack of stability and perceived susceptibility to fraud remain key drawbacks of cryptocurrency. The market is notoriously volatile, with prices fluctuating wildly based on a range of factors, from government regulations to media coverage. What’s more, the decentralized nature of many cryptocurrencies means that they can be used for illicit purposes, such as money laundering and terrorist financing.
But in reality, fiat currency is the overwhelming choice of criminals.
Money Laundering: Fiat is Used 800x More than Crypto
Despite claims that cryptocurrency is the go-to currency for money laundering, recent research suggests otherwise. In fact, fiat currency is used for money laundering 800 times more than cryptocurrency according to analytics firm Messari. While cryptocurrency is not entirely free from illegal activity, it’s clear that fiat currency remains the preferred choice for money laundering.
The Global Laundromat
There have been numerous high-profile cases of fiat currency being used for large-scale money laundering. One of the most famous examples is the “Global Laundromat” scandal, which saw over $20 billion laundered through a network of shell companies and banks around the world.
Another example is the “Panama Papers” leak, which exposed the use of offshore accounts and shell companies to hide wealth and avoid paying taxes. In both of these cases, people primarily used fiat currency for money laundering.
And lest we forget Bernie Madoff, an American financier who ran the largest Ponzi scheme in history, defrauding thousands of investors out of over $65 billion in cash.
The Truth: Cryptocurrency and Money Laundering
Despite the evidence to the contrary, there is a misconception that cryptocurrency is the preferred currency for money laundering due to its perceived anonymity.
Although some cryptocurrencies provide more privacy than traditional financial systems, it’s also a fact that cryptocurrency transactions are recorded on a public ledger, which makes them traceable.
Physical cash remains the preferred mode of payment in criminal activities and money laundering, as it is challenging to trace. Cash leaves no paper trail behind as it passes from hand to hand.
In comparison, Bitcoin is relatively easy to trace, particularly when compared to cash.
The Future of Crypto vs Fiat
As the cryptocurrency market continues to evolve, it is unknown whether digital currencies will be able to overcome these challenges and compete with fiat currency on a global scale.
Cryptocurrency could potentially gain ground in developing countries, where traditional financial systems are often underdeveloped or inaccessible. By offering an alternative to traditional banking, cryptocurrency could help to increase financial inclusion and reduce poverty in these areas.
Another potential area of growth for cryptocurrency is in the area of cross-border payments. Traditional methods of international money transfer can be slow and expensive, with high fees and lengthy processing times.
Could Cryptocurrency Replace Western Union?
The global remittance market ($626 billion) is long overdue for disruption, and several cryptocurrency projects are vying to take over the role of established players like Western Union.
Cryptocurrencies have the potential to be faster, more efficient, and cheaper than traditional money transfer services, which could make them more attractive to consumers.
One of the most promising use cases for NEAR is in the remittance market. NEAR has the potential to offer faster and cheaper transactions than traditional remittance services like Western Union.
- Stellar is a crypto project that can disrupt the remittance market. It’s a blockchain-based payment network that transfers any currency, fast and with low fees.
- Ripple is a blockchain-based payment protocol that is designed to be a faster, cheaper, and more efficient alternative to traditional remittance services. Ripple’s platform is designed to be used by banks and other financial institutions, making it an ideal choice for the global remittance market.
In addition to being faster and more efficient than traditional remittance services, cryptocurrencies offer other advantages. One reason is that they offer more transparency, as they record every transaction on a public ledger. This makes it easier to track and prevent fraud and money laundering.
Decentralization characterizes cryptocurrencies, enabling them to bypass the government regulations and restrictions applied to traditional remittance services. This increases accessibility to people in countries with limited or nonexistent traditional banking services.
Challenges
However, there are also some challenges that cryptocurrencies face in the remittance market. One of the biggest challenges is the lack of widespread adoption. The number of people using cryptocurrencies is growing. Yet, more people still use traditional remittance services than cryptocurrencies.
Additionally, there is still some uncertainty and volatility in the cryptocurrency market. Which could make some consumers hesitant to use cryptocurrencies for remittances.
Despite these hurdles, the potential benefits of using cryptocurrencies for remittances are too significant to ignore. As awareness of cryptocurrency advantages grows, adoption of remittances should increase.
Given that cryptocurrency faces struggles in terms of adoption and legitimacy, it also has a number of potential benefits that could make it an attractive alternative to traditional banking systems.
Cryptocurrency is a new and promising financial system that could change the world by offering greater financial freedom and security. Leveling the playing field and granting them more control over their lives.
Cryptocurrency is a promising solution for underserved and excluded individuals in developing countries with limited access to banking services. Providing a way to participate in the global economy and access financial services.
Banking the Unbanked
Cardano has emerged as a leader in providing financial services to the unbanked in Africa. Providing innovative solutions in recent years. By leveraging the power of blockchain technology, Cardano is helping to bring about greater financial inclusion and economic empowerment.
Final Thoughts
So has cryptocurrency really lost the battle against fiat currency? Today the answer is less than clear-cut. At least in the short-term, fiat currency has the upper hand.
Governments back and widely accept fiat, making it advantageous. Thus providing a level of trust and stability. It is also easy to use and widely available, with physical cash being accessible to almost everyone.
Additionally, it is generally less volatile than cryptocurrencies and is less susceptible to market fluctuations. Fiat currency allows central banks to manage monetary policy and control inflation, stabilizing the economy.
Cryptocurrency is a promising alternative to the legacy financial system. Despite resistance from central banks and governments, cryptocurrencies offer clear benefits. They are gaining utility and adoption, although it may take time to become a mainstream solution.
Disclaimer
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
We only source and collect valueable knowledge and information and do display it for public good (under the freedom of information act)
All image + text copyrights belong to their respectful owner, we do NOT claim any rights over those.
Nigerians are increasingly using digital currency for transactions due to banknote storage, driving e-Naira’s adoption months after its debut.
According to recent reports, eNaira transactions increased by 63% in 2023 to 22 billion naira (~$47.7 million).
e-Naira Gets a Push After 18 Months
The e-Naira launched in October 2021 after the website for Nigeria’s central bank’s digital currency went live in September. Since then, approximately 13 million users have signed up for e-wallets, according to the report. Godwin Emefiele, governor of the Central Bank of Nigeria (CBN), said it is a more than 12-fold rise since its October launch.
The official stated,
“We have seen good progress in the adoption of the eNaira. We are happy that as we try to move more and more towards financial inclusion, and get people away from being excluded in the financial system, the naira remains one of the very portable options for all to adopt.”
After a sluggish start, e-Naira usage appears to finally be gaining steam in the country. Data indicated that adoption levels remained modest in the fourth quarter of 2022. However, Nigerians have been subject to a cash withdrawal cap since January. The government’s demonetization operation to replace currency notes last year has reportedly left ATMs dry. Additionally, restrictions on over-the-counter cash withdrawals have also pushed people online.
The governor claims that after efforts to reduce access liquidity, the amount of physical money in circulation decreased to about 1 trillion naira from 3.2 trillion naira in September.
According to Emefiele, about 3.4 billion of the more than 10 billion minted digital e-naira is in circulation.
He also credited the government for using eNaira for welfare programs. He explained that the increased adoption of the currency is due to the opening of 4 million new e-wallets by scheme beneficiaries.
“The eNaira has emerged as the electronic payment channel of choice for financial inclusion and executing social interventions,” the governor said.
CBDCs Part of a Global Conversation
The Central Bank of the United Arab Emirates (CBUAE) is closer to launching a digital dirham as it recently introduced the central bank digital currency (CBDC) strategy.
Gulf Times confirmed in its report that CBUAE had signed an agreement with G42 Cloud and R3 to provide the necessary technology and infrastructure to implement a CBDC strategy. The strategy comes under CBUAE’s Financial Infrastructure Transformation (FIT) Programme.
In contrast, Florida Governor Ron DeSantis wishes to outlaw CBDCs in the US.
According to the press release from Monday, DeSantis proposed outlawing the use of both Fed-issued and foreign CBDC as currency. He has urged other states to follow suit by including similar prohibitions in their uniform commercial codes.
“The Biden administration’s efforts to inject a centralized bank digital currency is about surveillance and control,” DeSantis stated.
Disclaimer
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.
We only source and collect valueable knowledge and information and do display it for public good (under the freedom of information act)
All image + text copyrights belong to their respectful owner, we do NOT claim any rights over those.
Monero founder Riccardo Spagni has quashed claims that he has been an informant who helped Interpol and other federal agencies trace funds.
Crypto Influencer James Edwards claimed in a thread that Spagni outed himself as an informant for Interpol after U.S. Marshals detained him pending extradition.
Spagni Alleged to Be Interpol Mole
In a tweet on March 20, James Edwards shared reports from 2021. Based on the reports, he inferred Monero founder Riccardo Spagni could be an Interpol informant.
He said, “Evidence strongly suggests he helped them track Monero.”
Riccardo “Fluffypony” Spagni was captured in the United States in August 2021. The well-known cryptocurrency personality was detained after being accused of crimes that first surfaced in 2009. He was reportedly fleeing fraud charges in South Africa.
Former employer Cape Cookies accused Spagni of fraud by forging invoices. According to court records, Fluffypony allegedly stole $100,000 between October 2009 and June 2011.
Edwards based some of his arguments on this case. Spagni’s attorney postponed the trial and mentioned COVID-19 risks in response to South Africa’s extradition request. Prior to the March 2021 hearing, Edwards alleged that Spagni and his wife fled South Africa. In addition, he claimed that their dread of the virus only prevented them from traveling to South Africa and not to Bermuda. Edwards noted that their journey included an unnatural stopover in the U.S.
Based on the asset tracing requests, Edwards said, “I exposed @mymonero (project founded by @fluffypony) was a “wallet” that stole funds and deanonymized users (en masse).”
Notably, the crypto commentator has used GPT-4 to draw some of these inferences.
Meanwhile, author and analyst Nassim Nicholas Taleb retweeted the assertions. The “Black Swam” author claimed that if Monero’s chief maintainer turns out to be an Interpol informant, his claim that every Bitcoin transaction can be traced could be accurate.
Monero Founder Hits Back Denying Claims
Monero founder ‘fluffypony’ responded to the allegations by calling James Edward “brain dead.” With regard to the allegations, Spagni said, “This nonsense post is unsurprising, coming from a known scammer.”
He also took a jibe at the influencer for using ChatGPT’s GPT-4 to “analyse” the reports. Denying all claims, the Monero founder said, “At no point have I ever met with and/or helped a law enforcement agency, or a government, or an individual, or a government agency, or a company, or ANYONE to trace Monero.”
The founder defended Monero’s cryptography, saying he could not assist the government with “privileged access.” He said, “I have no privileged access to Monero’s code, GitHub repo, website, Twitter account, DNS records, donated funds, or anything else.”
That said, Spagni agreed on Edwards’ thread that Interpol did ask him for assistance but “never followed up with what they needed assistance with.”
In defense, the founder stated, “They never responded with any details, they never reached out and told me what the request was with. It might not even have had anything to do with Monero, I have literally no idea what it was about.”
According to Crunchbase, Spagni founded Monero in 2014 and registered it in Australia. Monero underwent a hard fork in August last year to bring many privacy upgrades. In October 2022, Monero developers were speculated to be behind an attack on Zcash.
At press time, Monero’s privacy-focused coin XMR is trading at $152 after a muted performance this week.
Disclaimer
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.
We only source and collect valueable knowledge and information and do display it for public good (under the freedom of information act)
All image + text copyrights belong to their respectful owner, we do NOT claim any rights over those.
Artificial Intelligence (AI) and blockchain technologies are rapidly transforming industries worldwide. By integrating these technologies, innovative and ethical solutions can be developed to address some of the most pressing global challenges. Here are five global issues that AI and blockchain can tackle today.
In a world full of complex challenges, AI and blockchain technologies unlock sustainable, effective solutions.
Combating Climate Change
AI and blockchain can play a pivotal role in mitigating the effects of climate change. By analyzing vast amounts of environmental data, AI can identify patterns. And predict future trends, recommending effective measures for reducing greenhouse gas emissions.
Additionally, blockchain technology can ensure transparency and traceability in carbon credit trading and natural resource management, promoting accountability and sustainable practices.
Algorand, a scalable and decentralized blockchain platform, has partnered with various organizations to develop solutions for carbon credit management and other environmental initiatives.
For instance, Algorand has partnered with ClimateTrade, a leading carbon offsetting platform, to streamline the carbon credit market. By utilizing Algorand’s blockchain technology, ClimateTrade enables businesses and individuals to offset their carbon emissions transparently and efficiently.
This partnership simplifies purchasing and tracking carbon credits, increasing accessibility and affordability for a wider audience. Algorand and ClimateTrade thus support global efforts to reduce emissions and combat climate change.
PlanetWatch utilizes Algorand’s blockchain to securely store and verify environmental data from numerous air quality sensors.
This data is used to track pollution levels, identify sources of contamination, and develop targeted solutions to improve air quality. By providing a decentralized and tamper-proof system for environmental data management, Algorand plays a vital role in promoting transparency and accountability in environmental monitoring and protection.
Tackling Poverty and Inequality
AI-powered platforms can enhance the efficiency and effectiveness of poverty alleviation programs by identifying areas of need. And optimizing resource allocation. Blockchain solutions can ensure the traceability of funds, promoting transparency and trust in these initiatives.
For example, Cardano has been involved in projects addressing social issues such as digital identity solutions and agricultural supply chain management. Which can add to poverty reduction and greater equality.
Under Charles Hoskinson’s leadership, Cardano actively pursues projects in Africa, focusing on sustainable, accessible, and transparent solutions. Their commitment transcends individual projects, aiming to empower communities and foster long-term, positive change.
Cardano aims to foster a prosperous, advanced, and sustainable future in Africa through training, education, and infrastructure support.
Improving Healthcare Delivery
Moreover, AI can revolutionize healthcare by enabling the development of personalized treatment plans, improving diagnostic accuracy, and optimizing resource allocation. Concurrently, blockchain technology can secure patient data. Ensuring privacy and data integrity while allowing authorized parties to access critical information. Together, this combination of technologies can enhance the quality and accessibility of healthcare.
Strengthening Disaster Relief Efforts
Natural disasters and humanitarian crises require swift, coordinated responses to save lives and support affected communities. AI assists emergency responders by analyzing real-time data. Blockchain technology can facilitate secure and transparent donations for disaster relief efforts, fostering trust and encouraging support for global projects.
Giveth, a community focused on building the future of giving, is one example of an organization leveraging these technologies to facilitate donations and support disaster relief efforts.
By using Ethereum’s blockchain technology, Giveth provides an open, transparent, and accessible environment for donors, recipients, and communities. Through its platform, donors can support projects directly, track the impact of their contributions, and remain engaged with the causes they care about.
By streamlining the donation process and promoting transparency, Giveth seeks a future where giving is more efficient and rewarding for all parties.
Furthermore, AI and blockchain can revolutionize education by offering personalized learning experiences, tracking student progress, and identifying skill gaps. Because AI can analyze data to recommend tailored learning pathways. Blockchain can securely store and share educational records and achievements.
So, these technologies can help bridge the digital divide. Providing access to quality education and skill development opportunities for individuals in remote or underserved areas.
Harnessing the Potential of AI and Blockchain
Additionally, AI and blockchain technologies hold immense potential for addressing pressing global issues. By leveraging their capabilities in a responsible and ethical manner, we can harness their power to drive sustainable solutions. And foster trust and transparency, to create a more equitable world.
As the adoption of these technologies grows, we must remain mindful of potential risks and challenges. And ensure the use of AI and blockchain promotes the greater good.
Disclaimer
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
We only source and collect valueable knowledge and information and do display it for public good (under the freedom of information act)
All image + text copyrights belong to their respectful owner, we do NOT claim any rights over those.
-
News9 months agoCartesi As A Leading Layer-2 Platform For The Development Of Smart Contracts
-
News7 months agoBinance Hires Former Brazilian Economy Minister as an Adviser
-
Uncategorized9 months ago
Hello world!
-
News9 months agoNairaEx Calls for Industry Policies, FlexID Secures Funding & More
-
News9 months agoBinance Partners with Ronaldo to Launch NFTs & More
-
News9 months agoCan You Win Real Money by Playing Crypto Slots?
-
News9 months agoBinance Partners with The Weeknd & More
-
News9 months agoDouble Your Crypto with 100% Bonus at JackpotCrypto Casino