Monthly Archives: July 2021

Explained: How cryptocurrency turbocharged the cybercrime racket – Business Standard

Posted: July 7, 2021 at 2:27 pm

Cyberattacks using ransomware are increasing in frequency, and ransom payments made to the hackers are swelling as well. Cryptocurrency and the exchanges where digital currency can be traded anonymously have emerged as key tools for the cyber extortionists. The vast sums being paid by corporations to regain control of their computers would have been near-impossible to move in any other legitimate currency market, experts say.

How is crypto used in cybercrime?

A typical ransomware attack on a company or organisation might proceed like this: Executives realise their business website is down or systems inaccessible, and administrator overrides dont work. A ransom demand arrives via email, providing a Bitcoin address where the payment must go if the company wants its systems operational again, along with a deadline. The victim calls up the Bitcoin address, which is 26 to 34 characters in length, when signing onto a cryptocurrency exchange to make the deposit.

What makes crypto attractive to criminals?

The anonymity built into the digital ledger system known as blockchain, which forms the foundation of cybercurrencies, can be leveraged through a variety of maneuvers. A ransom paid in Bitcoin can be swiftly run through a so-called cryptocurrency mixer, which obscures the trail of ownership by pooling it with other peoples holdings. (While the practice itself is not considered illegal, mixer operators can get into trouble if found to have laundered illegally gotten money.) Another option is to convert the ransom payment to a different cryptocurrency via a crypto exchange. So-called money mules can be recruited on dark web forums and directed to withdraw Bitcoins out of certain accounts.

How much has been stolen this way?

Ransomware attacks took off in 2020, when victims paid more than $406 million in cryptocurrency to attackers, according to blockchain analysis firm Chainanalysis Inc. This year, groups had taken at least $81 million from victims as of May, the firm said. Cybersecurity firms say companies have paid many millions of dollars more in ransoms that have been kept quiet. Being insured against cybercrime may make victims more willing to pay ransoms if they are covered under the insurance policy. Hackers who specialise in ransomware are said to be actively seeking out targets that have insurance.

What did cyber thieves do before Bitcoin?

There have always been myriad ways to launder money that is, to obscure its roots in illegal activity. In the past, ransomware payments were delivered by money transfers through services like Western Union, prepaid gift cards, wiring of funds into above-board bank accounts that are quickly transfered out by the criminals, even cash in duffle bags left at designated areas for pickup.

Can payments made in cryptocurrency be traced?

Yes, at least at first. All Bitcoin transactions, while anonymous, are available for anyone to see, so someone tracking a particular Bitcoin wallet can observe when cash arrives. But accessing the money inside the wallet requires a private key, essentially a password, and thats something ransomware groups do not normally share with anyone outside their operation.

Have any ransomware payments been foiled?

Yes. The US Federal Bureau of Investigation managed to recoup 63.7 of the 75 Bitcoins paid by Colonial Pipeline Co, operator of the biggest US gasoline pipeline, to a Russian-linked ransomware operation because it was able to track the money as it went through over a dozen transactions, and importantly, came into possession of the private key the hackers had used. (The 63.7 Bitcoins were worth about $2.3 million at the time of the FBI action.) In the warrant it issued to seize funds, the FBI did not say how its agents acquired the private key.

Can anything else be done?

Regulation may be coming. In April, the Ransomware Task Force, a private-public partnership created by the Institute for Security and Technology, published an 81-page report with recommendations for how governments can protect against and deal with ransomware attacks. The group urged governments to extend Know Your Customer (KYC), Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) requirements which national and international authorities enforce against banks around the world to crypto exchanges, kiosks (cryptos version of automated teller machines) and over-the-counter trading desks. Calls to ban Bitcoin altogether have been quieted by the currencys gradual acceptance by the financial industry.

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Posted in Cryptocurrency | Comments Off

Millions of Australians trading cryptocurrency on their phones – NEWS.com.au

Posted: at 2:27 pm

There are 2.9 million Aussies already trading cryptocurrency from their phones with many believing that bitcoin will become a currency that can be spent in everyday life.

New research revealed that one in three Australians believe bitcoin will eventually be transacted more than traditional currency, according to comparison website Finder.

But the Finder survey also found three in four Aussies think bitcoin is a bubble that will eventually burst, particularly among Baby Boomers.

Gen Z (those born between the mid to late 1990s and the early 2010s) are the most likely to believe bitcoin will outstrip centralised currency in popularity, followed by Millennials.

Recent research from Binance found about one third of Aussies surveyed derive income from crypto and for 6 per cent its a primary source, while 29 per cent use it to top up their earnings.

RELATED: Elon Musk hypes new dogecoin spin-off

Binance Australia chief operating officer Sam Teoh said Australian crypto users tend to be subversive types people who have lost faith in old systems.

In fact, Australian investors are among the most sceptical in the world, with less institutional trust than countries like the Philippines, India and Nigeria, he said.

Down under theres a big appetite for bitcoin. Australians were among the earliest and most enthusiastic investors, but now they tend to take a more vanilla, conservative approach to their trade portfolio. Over 70 per cent say theyre invested as part long-term saving strategy, which is 16 per cent more than the global average.

A bubble set to burst

But the Finder survey also found three in four Aussies think Bitcoin is a bubble that will eventually burst, particularly among Baby Boomers.

Respondents were split down the middle as to the legitimacy of bitcoin, with 50 per cent agreeing bitcoin is a worthy investment.

Yet, nearly two-thirds think bitcoin is purely speculative.

The majority of Aussies are still on the fence about cryptocurrency, and yet more than a third agree bitcoin will one day become more popular than traditional currency, said Finder money expert Kate Browne.

Despite only 17 per cent of Aussies owning cryptocurrency, more than double that amount believe cryptocurrency has a major role to play in the future of currency.

RELATED: Bitcoin billionaire dead, fears for fortune

According to the research, 15 per cent of Australians have an app that lets them trade cryptocurrency, and a further 12 per cent intend to get one, which is the equivalent of 2.9 million people.

Men are twice as likely as women to be using a cryptocurrency trading app.

Cryptocurrency trading apps are appealing because they are easy to use and a simple way to buy and sell coins without needing to be an expert, added Ms Browne.

Around 62 per cent of Aussies consider crypto a hobby, compared to just 14 per cent of people globally, according to the Binance Australia research.

Excerpt from:
Millions of Australians trading cryptocurrency on their phones - NEWS.com.au

Posted in Cryptocurrency | Comments Off

A new reality show is casting participants desperate to regain access to their locked cryptocurrency wallets – Markets Insider

Posted: at 2:26 pm

Paul Ratje/For The Washington Post via Getty Images

A recent casting call is seeking individuals who want to be on a reality show about people locked out of their cryptocurrency wallets and

A casting director on Linkedin posted that the producers of Alone and Queer Eye are creating a "new major cable network series" about people on the verge of losing their cryptocurrency. The show is looking for people of all ages who are locked out of their cryptocurrency wallets.

"We're on a nationwide search for people who are currently locked out of their crypto wallets and on the verge of losing their money. If you've tried everything to remember your password but are running out of password attempts...and you'd love the help of trained experts to give you guidance and help...we'd love to hear your story," the post reads.

The post asks anyone interested to email the casting director as soon as possible and detail their story. It also asks interested participants how many password attempts they have left and if they are willing to allow the shows "experts" to help them use their remaining password attempts.

There are no further details about the experts and how they will recover the passwords, but it does ask interested participants if they are ready to recovery their crypto wallet password "by an legal means necessary."

Recovering cryptocurrency out of a locked wallet is an incredibly difficult feat for those who have forgotten their password. German-born programmer Stefan Thomas made headlines earlier this year after a lost password rendered his bitcoin stash worth $220 million inaccessible.

In January, The New York Times reported that around 20% of the existing 18.5 million bitcoins are in stranded locked wallets, citing data from cryptocurrency firm Chainalysis.

Visit link:
A new reality show is casting participants desperate to regain access to their locked cryptocurrency wallets - Markets Insider

Posted in Cryptocurrency | Comments Off

Is Now The Time To Buy Ethereum (ETH) Cryptocurrency? – Benzinga – Benzinga

Posted: at 2:26 pm

Ethereum (CRYPTO: ETH) is trading in the green on Wednesday, outperforming the wider cryptocurrency market, amid a couple of bullish stances taken by analysts.

What Happened: Ethereumcould shoot past Bitcoin (CRYPTO: BTC) to emerge as the dominant store of value in the cryptocurrency sphere, according to a Goldman Sachs note, reported Business Insider.

The global investment bank said in its note that ETH currently looks like the cryptocurrency with the highest real use potential as Ethereum, the platform on which it is the native digital currency, is the most popular development platform for smart contract applications.

Why is Modder restoring the look and feel of Cyberpunk 2018? – Illinoisnewstoday.com

Posted: at 2:25 pm

This city always has a promise to you, V first soliloquy. Cyberpunk 2077 trailer. It may be a lie, an illusion, but its just around the corner, and it keeps you going.

In the years before cyberpunk was released, potential players had a similar sense of promise. Until CD Projekt Reds ambitious eight-year bet came to fruition, it existed as a pure possibility for fans. It is a spiritual space where you can realize your dreams, guided by a trailer. In addition to the technologically advanced future setting, the premise that seems to link GTAs free-form chaos with the choice of The Witchers branching RPG proved to be a powerful fuel for imagination.

View on youtube

CDPR could have given players a huge robot arm, eyes that fire small beams, and hand modding that allows them to climb buildings like Spider-Man, said a modder named Crazy Potato. Say to. The amount of possibilities is endless.

For a subset of Cyberpunk 2077 modders, and thousands of fans downloading their work, that bohemian space is what they want to regain. Like the Greek mythological lotus eaters, they forget their disappointments and want to live in a night city that hasnt been hurt by contact with reality. In return.

In most cases you dont need a huge robot arm and laser eye. Many players are looking for souvenirs that are exciting objects to return to the busy days of E3 2018. For example, Spookie CLs Samurai Jacket mod, which recreates the leather coat with LED lights worn by V in the first cyberpunk release, has been downloaded. 3,804 times. I like the original trailer and saw it so many times that many details stuck to me, says Spooky. The final product jacket was different and didnt suit my taste, so it was just right, so I chose the original look. Many people feel the same.

Meanwhile, Crazy Potato discovered a feminine V unused mesh model and texture file when it first appeared on the E3 show. When restored, it was downloaded 11,991 times. I wanted at least to bring it back to life and have a lot of people enjoy it, even the little ones that were brought out by CDPR for some reason, says Crazy.

Some asset exchanges also change the atmosphere of cyberpunk. WT3WD spent days chasing the magnificent lights and beautiful clouds of the first E3 demo, tweaking the game lights. Many people now claim that the colors are getting better, says WT3WD. There is no neon blue anymore, [it] It no longer tires the eyes, yes, they even said they were grateful for removing the yellow urine color.

As the Nexus Mods Cyberpunk E3 fix catalog grows, some are inspired by the feeling that it will help expand the communitys efforts. The Joell560 has reworked the feminine V outfit shown in the early demo footage of the game, and has been filled with belt chains since the glorious era of nu metal, making it a 12,345 download song. I thought I could use all these mods together to experience some sort of E3 experience, says Joel. Looking at the response to the mod and getting others to help me, I knew I was making the right decision.

It is important to note that there is no community consensus on what is missing in the final cyberpunk. Some of the mods I talked to now complain about lack of features such as wall running and hacking into NPCs (both shown in early footage) and lack of branching options. did. Others had more detailed concerns, such as not being able to get in-game haircuts or lighting that didnt change well between regions. One talked about the elusive soul that was missing. What we finally got is a bigger game shell that is now sadly lost over time, says Crazy.

But overall, the cyberpunk mods I interviewed liked the game. Some are optimistic about its future. Im completely convinced that CD Projekt Red can change the criticism of the game and the stigma of being a buggy mess by listening to the viewers, says Spookie. By actually modifying the game as before and releasing important, high-quality story / gameplay content that further meets that desire.

We have to wait until we release the free DLC and expansion packs proposed by CDPR and see if we can restore some of the content we exhibited, restores the pink tank top shown in the E3 2018 demo. Says The Arcane Eagle. Downloaded 4,726 times. For now, Modder seems to be two steps ahead of them in providing some important fixes that should have been there since launch.

In the past, ambitious E3 demos caused a strong backlash, and developers had to weather for years to come.But such an urge Cyberpunk remodeling The community is softened by an accurate understanding of what the E3 demo is. The modders I spoke to early realized that the cyberpunk presentation was likely to be a vertical slice representing the purpose of CD Projekt, rather than the true picture of the game as a whole.

I think a lot of people were expecting something different from what they received at the retail store. The E3 version was real and lied, Joel says. But in reality, it was just to generate hype for the next release. It could have been wasted, but in a game of this size, something will definitely be overlooked.

The E3 version is aimed at increasing interest in the game, so it always keeps the game in top shape, adds The Arcane Eagle. Now no one should be surprised if for some reason its significantly different at launch. At the same time, its always hard to look back at whats displayed and understand whats done, so restore certain elements. If possible, I cant blame the player for wanting to play the E3 version.

Perhaps the mods are practitioners by their nature, and people are determined to make the most of what they have. And if a cyberpunk journey teaches them to reduce their expectations, its a useful lesson they can apply to their own work.

I know why people want to play theE3 version, but it doesnt exist, says Joel. All that remains is unused files in the archive for use by modder.

See the rest here:

Why is Modder restoring the look and feel of Cyberpunk 2018? - Illinoisnewstoday.com

Posted in Cyberpunk | Comments Off

Carol Anderson: The 2nd Amendment Is A Weapon To Keep Black Americans Powerless – Texas Public Radio

Posted: at 2:23 pm

TUESDAY on "The Source" In her new book "The Second: Race and Guns in a Fatally Unequal America," award-winning author Carol Anderson asserts that the U.S. right to bear arms is engineered to negatively impact the citizenship rights and human rights of African Americans.

Are there hidden biases in the language and applicability of the Second Amendment?

When the amendment was first written, Black people were enslaved, denied the right to freedoms enjoyed by white Americans at that time, and not considered U.S. citizens, so who exactly was the "right to bear arms" designed for? Who is really protected by it?

July 6 marks the fifth anniversary of the death of Philando Castile, who was pulled over by police in Minnesota and asked for his identification. Despite following the National Rifle Association's guidelines to alert the officer that he had a licensed gun in the vehicle, Castile was shot to death when it was revealed.

There are several pro-gun groups formed by people of color and more Black Americans are buying guns amid a nationwide surge in firearm sales.

Why do they choose to carry guns, and do they feel safe doing so? Do Black gun owners agree with Anderson's premise about the Second Amendment's history and impact in Black communities?

Guests:

"The Source" is a live call-in program airing Mondays through Thursdays from 12-1 p.m. Leave a message before the program at (210) 615-8982. During the live show, call 833-877-8255, email thesource@tpr.org or tweet @TPRSource.

*This interview was recorded on Tuesday, July 6.

Follow this link:
Carol Anderson: The 2nd Amendment Is A Weapon To Keep Black Americans Powerless - Texas Public Radio

Posted in Second Amendment | Comments Off

Legislation proposed to make Ky. Second Amendment sanctuary state – Times Tribune of Corbin

Posted: at 2:23 pm

FRANKFORT, Ky. (KT) Kentucky would become a Second Amendment sanctuary state if legislation being proposed for the 2022 General Assembly is enacted.

The measure, which will be sponsored by Rep. Josh Bray, R-Mt. Vernon, would bar state and local law enforcement agencies from enforcing federal restrictions on the Second Amendments right to bear arms. It would also prohibit local governments and other public agencies from allocating public resources or money in the enforcement of federal firearm bans. It includes firearms themselves, ammunition and firearm accessories.

President Biden has declared gun control a priority for his administration, and we know that if he doesnt get what he wants from Congress, he will abuse his executive authority through rulemaking, said Bray, who represents all of Garrard and Rockcastle counties and a portion of Madison County. This sends a clear message that Kentucky is a Second Amendment sanctuary and that there is no question we will defend the Second Amendment against any attempt to infringe upon it.

Bray says his proposal would further strengthen a statewide movement, as fiscal courts in almost every Kentucky county have approved similar language, and cities across the state have declared themselves Second Amendment sanctuaries.

Firearms play an enormous role in our states history and our lifestyle today. Kentuckians want to enjoy the outdoors and pass along the tradition of hunting and sportsmanship. However, we also recognize that the Second Amendment was crafted to ensure we can protect not only country, but also ourselves, he noted.

The proposal comes in response to a plan revealed by the Biden administration last week, which they call a comprehensive strategy to combat gun violence and other violent crime.

According to the White House, it implements preventative measures that are proven to reduce violent crime and attacks the root causes, including the flow of firearms used to commit crimes.

It will use ARPA funds to help state and local governments put more police officers on the beat, with resources, training and accountability needed to engage in effective community policing; plus supporting proven community violence intervention programs, summer employment opportunities and other investments to reduce crime and make neighborhoods safer.

The White House says it will also address the direct link between gun violence and the rise in violent crime by taking immediate steps to keep guns out of the wrong hands by strengthening ATFs efforts to stem the flow of firearms used in crimes and by launching multijurisdictional firearms trafficking strike forces to stop illegal gun trafficking across state lines.

Brays measure, which is currently designated Bill Request 171, would be retroactive to January 1, 2021, if enacted into law.

The full text of BR 171 can be foundhere, or by visiting the Legislative Research Commissions website atwww.legislature.ky.gov, which is where you can also see all legislation that is being proposed for the upcoming session.

Lawmakers will convene on Jan. 4.

We are making critical coverage of the coronavirus available for free. Please consider subscribing so we can continue to bring you the latest news and information on this developing story.

Read the rest here:
Legislation proposed to make Ky. Second Amendment sanctuary state - Times Tribune of Corbin

Posted in Second Amendment | Comments Off

Mayor Bronson declares Anchorage a Second Amendment sanctuary city – Must Read Alaska

Posted: at 2:23 pm

Anchorage Mayor Dave Bronson today said he will ask the Anchorage Assembly for $15 million to pay for a transition center, where homeless people will be given shelter and customized assistance to establishing permanent stable lives, homes, and a path forward in their lives. The location where he wants to put the temporary tensioned fabric structure is on Tudor Road near the Alaska Native Medical Center, a plan he has been discussing with members of the Assembly in recent weeks.

The mayor also said he would also sign an executive mayoral order making Anchorage a Second Amendment sanctuary city, and said that any federal laws that would require law enforcement officers to go door-to-door to register guns, tax guns, or confiscate guns is the kind of thing that would put officers lives in danger, and this concerns law enforcement professionals.

Second Amendment sanctuary cities are places where unconstitutional gun laws are not enforced. The definition of sanctuary cities (or counties) is not fixed. But President Joe Biden has made gun control one of his priorities, so this executive order is to get ahead of the president.

Alaska is considered a Second Amendment sanctuary state. In 2010, GovernorSean Parnellsigned the Alaska Firearms Freedom Act, which said certain firearms and accessories are exempt from federal regulation. In 2013, Parnell signed HB 69, which expanded the Firearms Freedom Act.

The Kenai Borough is a Second Amendment sanctuary after the Borough Assembly passed an ordinance last July reaffirming its support for Americans right to bear arms.

Bronson will also sign an executive order on Thursday pertaining to mandatory face masks, vaccines, and the opening of municipal offices to the public. Two other orders have to do with creating a task force on efficiencies and regulatory reform, and economy and diversification.

Like Loading...

Read the original post:
Mayor Bronson declares Anchorage a Second Amendment sanctuary city - Must Read Alaska

Posted in Second Amendment | Comments Off

Protecting Our Second Amendment Is Essential to Liberty – American Center for Law and Justice

Posted: at 2:23 pm

Many on the radical Left, who have a dream spokesperson in President Biden, are pulling out a familiar playbook regarding gun control. The ongoing surge in crime, especially violent crime, is being used by the current Administration as an excuse to crack down on gun ownership, rather than as a clear reason to empower our police departments and assert the rule of law.

In times such as these, we should recognize what our Founders knew when they wrote the Constitution: that liberty necessarily depends on self-defense. That is as true today as it was then, and it applies both on a national level and an individual level. Just as America cannot be a free nation without the ability to competently defend itself against its enemies, so too its people cannot be free if they have no rights enabling their own self-defense. That is why such a freedom was placed squarely in our Bill of Rights second only to the freedoms of speech, religion, press, and assembly thereby protecting it from government infringement because the right to bear arms is essential to preserving our freedom as individuals.

Alexander Hamilton stated in Federalist No. 28 that our Founders also saw the right to bear arms as that original right of self-defense which is paramount to all positive forms of government and essential to the preservation of the freedom of the American people against the risk of an overbearing, or even tyrannical, government at home.

As a young officer in the U.S. Army, I was stationed in then-West Germany prior to the fall of the Berlin Wall. You can bet that nowhere on the other side of that wall and beyond, in the Soviet Unions evil empire, were the people permitted to own firearms.

This remains true today of repressive regimes worldwide. As Secretary of State, I led Americas diplomats in our dealings with our most powerful adversaries authoritarian states such as China, Iran, North Korea, and others. It should come as no surprise, and serve as a powerful reminder of the necessity of our Second Amendment, that in those nations controlled by authoritarian regimes, people are denied the right to bear arms. This is because the right to bear arms empowers a people and is the last safeguard of their liberties the necessary freedom allowing for self-defense and the ultimate check on authoritarianism. That is why I have been a proud member of the NRA for many years, and why I am committed to working with the ACLJ on this important issue.

When terrible instances of gun violence are committed, we hear a common refrain from the far Left. They claim such tragedies prove that guns cannot be trusted in the hands of the American people, and that if guns were made illegal either totally or de facto through ever-stricter reforms under the guise of gun control such violence would cease to occur. But this is plainly wrong-headed. You cannot legislate away the darker sides of human nature. All this legislation would ever accomplish is taking a vital means of self-defense out of the hands of legal gun owners committed to owning them safely and responsibly, while those who wish to obtain guns by illegal means would continue to do so, inflicting their malevolence on a now weaker populace.

To curb gun violence, we need to empower law enforcement and the American people, not defund the police and take away the ability of the American people to defend themselves and their families against violent criminals. Yet, sadly, this misguided logic is a hallmark of the radical Left today.

The current surge in violent crime was created by the far Lefts insistence on delegitimizing our police and turning a blind eye to looting and rioting for an entire year in an effort to score political points with their base, who by and large do not suffer the consequences of these broken policies.

Now, in response to the crisis they created, they want to take even further steps to infringe on the rights of responsible, law-abiding Americans. We cannot let this happen. Our Founders considered the right to bear arms a personal and fundamental right. The threats this freedom now faces cannot be overstated. We should heed the wisdom of our Founders by electing officials at the federal, state, and local level who are committed to defending the Second Amendment, and by supporting those civil organizations and institutions dedicated to keeping this crucial liberty uninfringed.

Mike Pompeo is the former Secretary of State and former Director of the Central Intelligence Agency (CIA).

Support the work of the ACLJ, as we continue to bring you expert analysis on the issues that matter most.

Continued here:
Protecting Our Second Amendment Is Essential to Liberty - American Center for Law and Justice

Posted in Second Amendment | Comments Off

Why El Salvador Is Giving Every Citizen $30 in Bitcoin …

Posted: at 2:22 pm

Bitcoin (CRYPTO:BTC) bears find it difficult to see how Bitcoin might be widely adopted in developed nations. After all, the developed world's modern financial infrastructure is fairly efficient, especially with fintech companies improving the system by the day.

Making things more difficult, Bitcoin is still highly volatile, as this year has shown, and double-digit-percentage daily moves are a regular occurrence. That makes it a dubious store of value or medium of exchange, versus more stable currencies such as the dollar.

Of course, not everyone lives in developed nations, and if you lived in hyperinflationary countries such as Yugoslavia in the early '90s, Zimbabwe in 2007-2008, or even Venezuela or Argentina in more recent years, Bitcoin may actually look like a pretty attractive option.

In that spirit, one developing nation is currently pulling out all the stops to make Bitcoin an alternative legal currency. The most recent step includes giving away $30 in Bitcoin to all adult citizens.

El Salvador is giving away bitcoin to its citizens. Image source: Getty Images.

There is, perhaps, no head of state more enthusiastic about Bitcoin than Nayib Bukele, the young and recently elected president of El Salvador. At a recent Bitcoin conference, Bukele said he would push the legislature to make Bitcoin a legal tender in El Salvador. The Salvadoran Congress followed through on the promise shortly thereafter.

Now, Bukele and El Salvadoran officials are taking things a step further, offering every citizen 18 and older $30 in Bitcoin, provided they open accounts with the government's official Bitcoin wallet called Chivo. Salvadorans will be able to transact in both Bitcoin and U.S. dollars through Chivo, once the Bitcoin law is implemented on Sept. 7.

In addition, El Salvador has hired Chicago-based company Athena to roll out 1,500 Bitcoin ATMs throughout the country. "Bitcoin ATMs" are portals where consumers can either buy Bitcoin with dollars or sell them for dollars. This is because only 45% of Salvadorans have internet access and 70% don't even have a bank account. So Bukele is not only establishing an alternative to the dollar, but also building out a more modern financial infrastructure.

It may be surprising that El Salvador is the first country to officially back Bitcoin and encourage its use as an alternative currency, since El Salvador uses the U.S. dollar and not its own currency, which may prove more vulnerable to hyperinflation.

El Salvador officially adopted the dollar in 2001 and phased out its prior currency shortly thereafter. This was because the country had an outsized trade relationship with the United States, which accounted for a majority of its exports.

Furthermore, after years of conflict and civil war in the 1980s and 1990s, many El Salvadorans emigrated to the U.S. Today, there are a huge number of remittances flowing into the country from the U.S. In 2016, remittances from the U.S. made up a whopping 17 percent of El Salvador's entire gross domestic product (GDP).

Fixed-fee crypto remittances have the potential to be faster and cheaper than existing alternatives, which can be costly and time-consuming. Beyond remittances, some local politicians believe the use of the dollar may be a cause of El Salvador's slower economic growth relative to some neighbors. Salvadoran officials may also desire more independence from U.S. influence, in general, since under the dollar, El Salvadoran economic outcomes are at least somewhat affected by the U.S. Federal Reserve and U.S. spending policies, which are out of its control.

Not everyone is on-board with this Bitcoin experiment, of course. The World Bank has declined to help with El Salvador's Bitcoin implementation, and the International Monetary Fund (IMF) has also expressed concern over the program. That's important because El Salvador is in discussions with the IMF about a $1 billion loan program, so this Bitcoin gambit could complicate those talks.

Bulls and bears have a wide divergence of opinion on Bitcoin. Bears believe the cryptocurrency is worthless, but bulls like Cathie Wood believe the alternative currency could be worth up to $500,000 or more.

Whether or not Bitcoin has any value will likely be determined by its utility as a medium of exchange or store of value, and the El Salvador experiment could be a crucial proving ground for those two theoretical criteria. If El Salvador's experiment works, or at least doesn't cause severely adverse outcomes, it could be a big boost for the world's leading cryptocurrency. If the experiment fails, it would be a setback for Bitcoin adoption, and likely, its dollar value.

This summer, Bitcoin investors may want to take their focus off China's recent mining crackdown and focus instead on the relatively small country of El Salvador. The results of its landmark experiment could shape the trajectory of Bitcoin's value and standing in the world in the near to medium term.

This article represents the opinion of the writer, who may disagree with the official recommendation position of a Motley Fool premium advisory service. Were motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

See original here:
Why El Salvador Is Giving Every Citizen $30 in Bitcoin ...

Posted in Bitcoin | Comments Off

Monthly Archives: July 2021

Explained: How cryptocurrency turbocharged the cybercrime racket – Business Standard

Millions of Australians trading cryptocurrency on their phones – NEWS.com.au

A new reality show is casting participants desperate to regain access to their locked cryptocurrency wallets – Markets Insider

Is Now The Time To Buy Ethereum (ETH) Cryptocurrency? – Benzinga – Benzinga

Why is Modder restoring the look and feel of Cyberpunk 2018? – Illinoisnewstoday.com

Carol Anderson: The 2nd Amendment Is A Weapon To Keep Black Americans Powerless – Texas Public Radio

Legislation proposed to make Ky. Second Amendment sanctuary state – Times Tribune of Corbin

Mayor Bronson declares Anchorage a Second Amendment sanctuary city – Must Read Alaska

Protecting Our Second Amendment Is Essential to Liberty – American Center for Law and Justice

Why El Salvador Is Giving Every Citizen $30 in Bitcoin …

The Prometheus League

Breaking News and Updates

Prometheism

Forbidden Fruit

The Evolutionary Perspective

Transtopia Menu

Library Updates

Library Books

Future Euvolution

Lucid Dreams from Childhood

Genetic Revolution

Speciation + Self-Directed Evolution