Russian oligarch Deripaska blasts Bank of Russia for ignoring Bitcoin

Russian industrial tycoon Oleg Deripaska is the latest figure to criticize the Bank of Russia’s stance on cryptocurrency regulation in the country. Deripaska took to his official Telegram channel on Thursday to blast the Russian central bank for pressuring the crypto industry to avoid getting involved into cryptocurrencies like Bitcoin (BTC). The Russian oligarch pointed out that even small countries like El Salvador have moved into Bitcoin by recognizing it as legal tender: “Even poor El Salvador, known for being close to oft-mentioned Honduras, has realized the need for digital…

Denmark’s largest bank cautious on crypto, but won’t interfere

Danske Bank, the largest bank in Denmark, laid out its official position on cryptocurrencies on June 17, when it published a four-point notice describing reasons to be careful when trading in digital assets. While the bank urged users to exercise caution, it stopped short of taking any practical stance against cryptocurrency. The bank stated that it won’t offer any cryptocurrency services to its customers itself, but also that it wouldn’t interfere with transactions coming from crypto platforms. “For customers that deposit funds that stem from investments in cryptocurrencies, we will…

Mark Cuban calls for stablecoin regulation in wake of Iron Finance ‘bank run’

Billionaire investor and DeFi proponent Mark Cuban has called for stablecoin regulation after losing money on what he dubbed as a “rug pull” on the Iron Finance protocol. According to Iron Finance, the partially collateralized stablecoin project was the subject of a “historical bank run” that resulted in the price of the IRON stablecoin moving off peg. As a consequence, the price of Iron’s native token TITAN crashed by almost 100% over two days from its all-time high of $64.04. Speaking with Bloomberg on June 17, Cuban blamed himself for…

World Bank refuses El Salvador’s request for help on BTC transition

The World Bank has refused El Salvador’s request for help on the country’s transition to adopting Bitcoin as legal tender. It cited issues with Bitcoin’s environmental impact and transparency as reasons why it will not support El Salvador move to adopt Bitcoin as an officially accepted currency . “While the government did approach us for assistance on Bitcoin, this is not something the World Bank can support given the environmental and transparency shortcomings, ” a World Bank spokesperson said. The World Bank did note however that it can help El…

Indonesia’s central bank marshals staff to enforce crypto payments ban

Indonesia’s central bank governor, Perry Warjiyo, is mobilizing official supervisors to enforce the country’s ban on financial institutions using crypto assets as a means of payment. During a virtual seminar on Tuesday, June 15, Warjiyo reiterated that local financial firms and payment provided are prohibited from facilitating the use of cryptocurrency to settle payments or as an instrument used in other financial services. The central bank governor emphasized that crypto assets are “not legitimate payment instruments under the constitution, Bank Indonesia Law, and Currency Law,” noting that field supervisors will…

Digital euro could drain 8% of bank deposits, Morgan Stanley says

Analysts at the American multinational investment bank Morgan Stanley have estimated the likely changes in eurozone banks’ deposits should a digital euro be widely adopted. According to the analysts, a European Union central bank digital currency (CBDC) could suck away 8% of customer deposits from eurozone banks, Reuters reports Wednesday. This share may be far higher in smaller countries like Latvia, Lithuania, Estonia, Slovakia, Slovenia and Greece, they said. The analysts’ estimates were based on a “bear case” scenario where all euro area citizens above the age of 15 sent…

Russian central bank ‘short-sighted’ regarding crypto, lawmaker says

A Russian State Duma member has blasted the central bank’s tough stance on the cryptocurrency industry for ignoring the growing demand for crypto in the country. Fedot Tumusov, a member of the “A Just Russia” party representing the Siberian region of Yakutsk, has criticized the Bank of Russia’s approach to regulating the crypto industry following a Tuesday plenary meeting of the State Duma. In a June 15 Telegram post, Tumusov outlined the growing need to create an ecosystem that allows Russian residents to purchase cryptocurrencies like Bitcoin (BTC) amid increasing…

Tanzanian president urges central bank to prepare for crypto

Tanzania appears to be the latest emerging economy poised to embrace Bitcoin and crypto assets. On June 14, Tanzanian president Samia Suluhu Hassan urged the country’s central bank to begin exploring crypto assets. Hassan emphasized the increasing impact of digital assets on global finance, stating: “We have witnessed the emergence of a new journey through the internet.” She highlighted the lack of crypto adoption and development in the East African region, stating: “Throughout the region, including Tanzania, they have not accepted or started using these routes.” “My call to the…

Nigeria’s central bank plans CBDC pilot launch before the end of 2021

Rakiya Mohammed, an IT specialist at the Central Bank of Nigeria (CBN) has announced that the apex bank is making efforts to float a central bank digital currency in the country. According to a report by People’s Gazette, Mohammed made this known after the Bankers Committee meeting held in Abuja on Thursday, telling reporters: “Before the end of the year, the Central Bank will be making a special announcement and possibly launching a pilot scheme in order to be able to provide this kind of currency to the populace.” Back…

Bitcoin part of highest risk category in Basel’s new bank capital plan

The Basel Committee on Banking Supervision (BCBS), a global committee of banking supervisors and central banks, has proposed new requirements for banks that want to hold cryptocurrencies like Bitcoin (BTC). In a consultation paper published Thursday, the committee provided preliminary proposals for the prudential treatment of crypto exposure by banks. The paper built on the contents of the committee’s 2019 discussion paper and responses received from various stakeholders and international industry figures. Crypto’s perceived volatility and potential for illicit use led the BCBS to recommend a 1,250% risk weight to…