Blackrock, Fidelity to Invest in Crypto Firm Circle’s $400 Million Funding Round

Blackrock, Fidelity, Marshall Wace, and Fin Capital are investing in crypto firm Circle. In addition, Blackrock, the world’s largest asset manager, has entered into a broader strategic partnership with the crypto firm.

Blackrock, Fidelity, Marshall Wace, Fin Capital to Invest in Circle

Circle Internet Financial announced Tuesday that it has entered into an agreement for a $400 million funding round with investments from Blackrock Inc., Fidelity Management and Research, Marshall Wace LLP, and Fin Capital.

Circle is the issuer of USD Coin (USDC). The stablecoin USDC has a market cap of about $51 billion and market dominance of about 2.58% at the time of writing, based on data from Bitcoin.com Markets.

Expanding on its partnership with Blackrock, the world’s largest asset manager, Circle detailed:

In addition to its corporate strategic investment and role as a primary asset manager of USDC cash reserves, Blackrock has entered into a broader strategic partnership with Circle, which includes exploring capital market applications for USDC.

Jeremy Allaire, co-founder and CEO of Circle, commented: “Dollar digital currencies like USDC are fueling a global economic transformation, and Circle’s technology infrastructure sits at the center of that change.” The funding round is expected to close in the second quarter.

Allaire further explained the significance of the partnership with Blackrock and investments from other major companies in a series of tweets Tuesday.

“With the Blackrock partnership, we are expanding on our existing relationship with Blackrock for managing significant assets for the reserves that back USDC to explore new ways that USDC can be adopted in tradfi capital markets applications,” he described.

The Circle CEO concluded, “As the U.S. seeks out a leadership role in digital currency, we firmly believe that the strength of private sector innovation, building on an open financial system on public blockchains, can cement America’s leadership role in the internet economy,” elaborating:

This is a huge milestone on the road towards mainstream adoption of digital currency.

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What do you think about Blackrock, Fidelity, and other financial corporations investing in Circle? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.




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Nigerians Optimistic CBDC Will Improve Payments and Help Promote Cryptocurrencies

Nigerians are hopeful the planned central bank digital currency (CBDC), also known as the e-naira, is going to enhance cross-border payments and make it “easier for the naira to be widely used and accepted.”

E-Naira Launch a Boon for Cryptos

In fact, according to a VOA report, some Nigerian blockchain experts like Janet Kaatyo believe the e-naira launch will work in favor of cryptocurrencies. Prior to the Central Bank of Nigeria (CBN)’s February directive, cryptocurrency usage and trading in Nigeria had surged due in part to pandemic-related movement restrictions.

However, this growing popularity as well as the depreciation of the naira eventually forced the CBN to act. Soon after ordering banks to squeeze out crypto players, the CBN began promoting the e-naira which it claimed would “ease monetary transactions and improve the long-term value of Nigeria’s currency.”

CBDC Role in Fighting Corruption

While the CBN has yet to announce the new launch date for the e-naira, some Nigerians like Daniel Yerimah, a digital strategist, are still hopeful this central bank digital currency (when rolled out) will help authorities curb corruption and money laundering.

“Everything built on blockchain is very safe and secure. Another thing again is it’s universal, parts of the benefits they intend to achieve with the eNaira is it will be used for both international and local trade and also it’s going to be to fight corruption,” the report quotes Yerimah explaining.

Despite the optimism exhibited by both the CBN and blockchain experts, there are ongoing concerns “the emergence of CBDCs will cut off roles played by intermediary banks and give the central bank more control over citizens’ financial rights,” the report notes. Still, another Nigerian blockchain expert, Jadel Chidi, says he disagrees.

Instead, Chidi says he foresees the CBN eventually creating “a portal where each e-naira user will be able to access their e-wallet through the database they already have with their bank.”

Do you agree that the emergence of the e-naira will help curb corruption and money laundering? Tell us what you think in the comments section below.

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Elon Musk Reveals Dogecoin Will Be Accepted at Tesla’s New Futuristic Diner, Drive-in Theater

Elon Musk has revealed that Tesla’s upcoming futuristic diner and drive-in theater, planned for the Hollywood area, will accept the meme cryptocurrency dogecoin. The electric car company currently accepts DOGE for some merchandise on its website.

Tesla CEO Elon Musk: ‘You Can Pay in Doge’

Tesla and Spacex CEO Elon Musk tweeted about future dogecoin payment acceptance Friday in reply to a tweet by developer Ryan Zohoury, who said a new Tesla supercharger station in Santa Monica, California, is almost full 10 minutes after it opened.

The Tesla boss tweeted, “And futuristic diner / drive-in theater planned for Hollywood area.” He added in a follow-up tweet:

And, of course, you can pay in Doge.

At press time, the Tesla CEO has not clarified what exactly customers can pay for with the meme cryptocurrency. Some people assume that Tesla supercharger stations will accept dogecoin while others interpreted Musk’s tweet as applicable to only the upcoming diner and drive-in theater in the Hollywood area.

Nonetheless, Dogecoin’s supporters welcome Musk’s plan to further the adoption of the meme cryptocurrency.

The price of dogecoin, however, is fairly unaffected by this news. At the time of Musk’s tweet, DOGE was trading at $0.1417 based on data from Bitcoin.com Markets. While the price did subsequently rise slightly to $0.1450, it fell to $0.1411 at the time of writing.

In January, Tesla began accepting dogecoin for some merchandise. Musk then tried to get McDonald’s to accept DOGE by offering to eat a Happy Meal on television. However, the famous fast-food chain replied, “only if Tesla accepts grimacecoin.”

Musk, a longtime dogecoin supporter, is sometimes known in the crypto community as the Dogefather. The Tesla boss believes that DOGE is the people’s crypto and previously revealed that many people he talked to at Tesla and Spacex owned dogecoin. He said that dogecoin is the best crypto for transactions while bitcoin is more suitable as a store of value.

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Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.




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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Fed Chair Says US Inflation ‘More Enduring Than Anticipated’ — Strategist Predicts 10% Market Correction

Americans are not only worried about future inflation, but they are also dealing with dwindling purchasing power in real-time. Meanwhile, on Thursday, Federal Reserve chairman Jerome Powell plans to address the Senate Banking Committee and discuss inflation. In the remarks pre-published from Powell’s speech, the Fed chair noted that the recent inflation spike may last longer than the central bank anticipated.

Fed Chair Jerome Powell: ‘Inflation Effects Have Been Larger and Longer-Lasting Than Anticipated’

If you were to read reports published by news outlets like CNN or Axios, it’s likely the reporter would say something like “maybe we can ignore inflation expectations.” While CNN admits inflation is here, reporters like Dana Peterson blame things like the Covid Delta variant, chip shortages, labor costs, and the cost to rent. Similar to the opinions of politicians and Fed board members, CNN’s Peterson concludes that “inflationary pressure probably will be with us for a while longer.”

Jerome Powell’s speech on Thursday reflects a similar message as he explains to the Senate Banking Committee in his pre-published statements that the rise in inflation may persist for a bit longer. “Inflation is elevated and will likely remain so in coming months before moderating,” Powell’s remarks from Thursday’s upcoming testimony note. The central bank lead blames supply chain issues and further adds:

As the economy continues to reopen and spending rebounds, we are seeing upward pressure on prices, particularly due to supply bottlenecks in some sectors. These effects have been larger and longer-lasting than anticipated, but they will abate, and as they do, inflation is expected to drop back toward our longer-run 2 percent goal.

Long-Time Market Bull Predicts a 10% Market Correction, Fed Says It Will ‘Do All We Can to Support the Economy’

At the same time, “long-time market bull” Phil Orlando said on Monday that a 10% correction may take place “over the course of the next five weeks or so.” The Federated Hermes chief market strategist explains that there is a lot of uncertainty around “fiscal and monetary policies” right now. “We’re seeing how events develop and evolve here,” Orlando said during an interview on CNBC’s “Trading Nation” broadcast. The market strategist continued by adding:

On the monetary policy side, inflation has been running much hotter than the Fed and the administration has been prophesying. We think inflation is more sustainably higher. That’s going to result in the Federal Reserve changing monetary policy both in terms of their taper and their interest rate increases much more quickly than they originally told us.

The news follows the recently published statements from the Fed last week and a few members of the Fed board being scrutinized for their stock purchases in 2020. Fed chair Jerome Powell has also been criticized for owning bonds of the same type the U.S. central bank bought during the pandemic last year. Of course, Powell’s pre-published remarks from the upcoming Senate Banking Committee testimony note that the central bank will always step in until the U.S. economy has recovered.

“We at the Fed will do all we can to support the economy for as long as it takes to complete the recovery,” Powell’s pre-published commentary emphasized.

What do you think about the upcoming speech Powell will give to the Senate Banking Committee on Thursday? Let us know what you think about this subject in the comments section below.

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Finance School Bentley University Now Accepts Cryptocurrency Payments for Tuition

Bentley University, the private university located in Waltham, Massachusetts, has revealed it now accepts digital currencies for tuition payments. Bentley University’s president explained that the school has been “at the forefront in preparing business leaders” and further remarked that the faculty is “proud to embrace” the same technology its students are learning about today.

Bentley University Partners With Coinbase to Accept 3 Digital Currencies

According to an announcement stemming from Bentley’s newsroom, the school of accounting and finance has partnered with Coinbase in order to give students and their families the ability to pay tuition with crypto.

Bentley will accept three crypto assets including bitcoin (BTC), ethereum (ETH), and usd coin (USDC). Bentley president E. LaBrent Chrite explained that the school founded 105 years ago is embracing a technology that may shift the traditional financial landscape entirely.

“Bentley University is at the forefront in preparing business leaders with the skills and knowledge to succeed in the changing world economy,” the university president said in a statement. “We’re proud to embrace this technology that our students are learning about, which will soon transform the global business landscape they’re about to enter.”

Bentley Scholar Says Students ‘Have a Real Interest in Knowing More About Blockchain’

Universities all around the world accept cryptocurrencies including the University of Cumbria in Carlisle, England, the Financial Business School in Paris, France, and the Innovation and Entrepreneurship Business School in Spain. Moreover, Lucerne University of Applied Sciences, Switzerland accepts crypto.

In addition to Bentley University in Massachusetts, in the United States King’s College in Wilkes-Barre, Pennsylvania, accepts bitcoin as well, and the University of Pennsylvania accepts cryptocurrencies. Furthermore, the University of California, Berkeley (UC Berkeley) accepts crypto asset payments. The Bentley announcement further highlighted a student named Alex Kim who launched the Bentley Blockchain Association.

“Students have a real interest in knowing more about blockchain, decentralized finance, and cryptocurrency investments,” said Kim in the press statement. “These technologies are influencing the industries where they will be working,” the Bentley student added.

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Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.




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Solidus AI Tech Raises $5.4 Million in Funding and Unveils New Partners

PRESS RELEASE. High-performance computing (HPC) company Solidus AI Tech has raised $5.4 million and are now entering their 3rd round of funding. Solidus AI Tech is working to solve the problem of the lack of European HPC facilities in the global top 10. Only producing 5% of computing power despite being the consumer of one-third of HPC resources.

It is bridging the gap across a number of industries such as the automotive industry, face & voice recognition, medical industry, sales automation & lead generation, among others. It is an advocate of the “Crypto Climate Accord”, an initiative to de-carbonise the crypto industry by 2024. Its data centres are 40% more energy-efficient due to their use of unique IP and evaporating cooling methods.

Solidus’ AI infrastructure enables government authorities, corporations, SMEs, as well as
professionals to purchase artificial intelligence (AI) & High performance computing power (HPC) services using its utility token AITECH. Solidus is currently in its public sale phase, from which the project has raised $5.4 million so far.

Solidus AI Tech and Its Partners

Solidus AI Tech has partnered with some heavy-hitters in the space which include Microsoft Azure to help bring its vision to life. Each partner is carefully vetted for the value that they add to the company. Solidus AI Tech recently announced its partnership with three organizations, namely, Crowdcreate, Cyber Smart Defence, and Sinofy in Asia. Each one of these partners serves a unique purpose.

Crowdcreate is an award winning growth marketing service and was named “Top Crypto Marketing Firm” by Forbes, CoinBureau, and Clutch. They help to accelerate funding and influencer sales for businesses. They connect projects to the right investors by creating a brand and image that appeals to people willing to help grow a business. the company has worked with some of the largest organisations n the world to raise investor funds, rapidly increase sales, create buzz, acquire users and expand their online community. To date the company has raised $133 million, reached 7.1 million people and successfully managed more than 300 projects.

Cyber Smart Defence is a penetration testing and ethical hacking company. Its team of experts helps to find vulnerabilities and bugs in projects before attackers can exploit them. They help strengthen the security of a platform by finding and stopping cyber attacks before they happen. CEO Madalin Dumitru has over 20 years experience in Cyber Security and is a regular speaker on well known news channels.

Last but not least is Sinofy. Sinofy is a company that works with brands seeking to expand their reach in the digital sphere. Based in Asia, it helps to fund and empower companies in what is the world’s most digitally connected region – China and South East Asia. It will help expand Solidus AI Tech’s reach into the region.

Solidus AI Tech is audited by leading smart contract auditing firm Certik. It has received the stamp of approval from the firm which has confirmed that it is a safe project to interact with.

Founded in December 2017, Solidus Technologies started as a cryptocurrency mining firm with a particular focus on mining Ethereum (ETH) via GPU-based mining rigs. In the wake of the 2020 financial crash and the significant boost in demand for AI services, the company shifted its core focus to Artificial Intelligence and incorporated Solidus AI Tech to become the AI arm of the business. Solidus’ Artificial Intelligence infrastructure will enable Government Authorities, Megacorps, SME’s and Professionals to purchase AI services. Solidus AI Tech is launching its eco-friendly AITECH token to operate seamlessly with their AI infrastructure. AITECH can be bought, staked or held.

The Solidus AI Tech public sale is still ongoing. Visit https://www.ai-tech.io/ to participate.

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Market Strategist Explains 4 Reasons Why BTC Is Rallying — ‘Ukraine Crisis Highlights How Bitcoin Can Act as a Support Mechanism’

On Monday, Sven Henrich, the founder and the lead market strategist for northmantrader.com discussed bitcoin “rallying in the face of this crisis.” The technical analyst and market commentator highlighted four reasons why he believes bitcoin’s value surged — “Fundamental, Sentiment, Technical, [and] Safety trade.”

Northmantrader’s Founder Sven Henrich Describes Why He Thinks ‘Bitcoin Is Rallying in the Face of Crisis’

The price of bitcoin (BTC) surged on Monday to a high of $44,256 per unit at 5:35 p.m. (EST). BTC’s price hasn’t been this high in USD value in roughly 39 days, since January 20, 2022. Bitcoin’s price rise sparked a number of conversations on social media and forums during the course of the day. After the price of the leading crypto jumped, gold bug and economist Peter Schiff shared his two cents about the market action on Monday.

“Gold and bitcoin are both up today,” Schiff tweeted. “But this move in no way implies a correlation. They’re rising for different reasons. Gold is up as a safe-haven and inflation hedge. Bitcoin is up for the reason ARKK is up. Speculators in risk assets have been conditioned to buy the dips.”

Meanwhile, northmantrader.com’s founder and the lead market strategist, Sven Henrich, had an entirely different perspective about bitcoin’s rally on Monday. In a Twitter thread, Henrich described why he thought bitcoin was “rallying in the face of this crisis.” Henrich touched upon four main reasons in the Twitter thread with the first being “Fundamental.”

“Fundamental: Adoption [and] acceptance continues to expand, i.e Ebay but also institutional. This path will continue in my view. There is no sign of regression, but continued expansion,” Henrich noted. “Sentiment: The Ukraine crisis highlights how bitcoin can act as a support mechanism to raise funds when traditional avenues are cut off. Blockchain [and] decentralized money to become more relevant.”

The market strategist continued:

Technical: Bitcoin made a higher low versus equities in February showing a positive divergence [and] defense of a key trend. Start of correlation decoupling process? Safety Trade: Sanctioned money may seek bitcoin as a safe haven (unconfirmed). This also invites risk as it gives excuse to accelerate regulation (long term positive/short term risk).

Henrich Says ‘Bitcoin Is Here to Stay’ — Some Claim ‘Bitcoin’s Success Could Be Its Demise’

Henrich further added that the bottom line is that bitcoin “is here to stay” and the fiat monetary system further bolsters the fact. “The rationale for [bitcoin’s] existence finding more validation as the existing fiat world requires ever more intervention to stay afloat,” Henrich stressed in his Twitter thread.

One person replied to Henrich’s thread and asked: “If people stop putting money into bitcoin does it stay afloat? It’s almost like it requires constant injections of money.” Another individual responded to the question and said:

You just described our fiat monetary system.

However, some people responding to Henrich’s tweets were inclined to believe that “BTC’s success will be its demise” and the “double-edged sword is starting to bite.” The individual left a link to an article that discussed Christine Lagarde, president of the European Central Bank (ECB), calling on global lawmakers to approve regulations in order to stop Russia from evading financial sanctions.

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Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.




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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Compute North Reveals Bitcoin Miner Is Building a 300 MW Data Center in Texas

The bitcoin mining operation Compute North has announced it is in the midst of constructing a 300-megawatt (MW) data center in Granbury, Texas. According to the mining firm, the data center located near Wolf Hollow Power Plant will be scalable up to 600 MW going forward.

300 MW of Capacity to Start, 600 MW in the Future

On April 8, the blockchain infrastructure and hosting services provider Compute North announced the launch of a new 300-MW bitcoin mining facility in Texas. The TIER 0 data center will be located near Wolf Hollow Power Plant and eventually, the company aims to scale the facility to 600 MW. Furthermore, Compute North will be providing grid-balancing services to the Energy Reliability Council of Texas (ERCOT).

The Eden Prairie, Minnesota-based Compute North recently secured $385 million in funding to scale the company’s operations. The Series C private equity investment was co-led by the energy and commodity firm Mercuria, and the sustainable energy investment firm Generate Capital. National Grid Partners also participated in Compute North’s Series C financing round. According to the firm, the company’s TIER 0 data center provides “the ability to respond quickly during times of peak demand that stress the grid.”

Additionally, the new Compute North data center aims to hire “30 skilled positions for the facility.” Granbury’s City Manager, Chris Coffman, looks forward to the mining company bringing jobs into the area. “Granbury is excited to have a new employer in the neighborhood. Not only will Compute North bring quality jobs to our area, but they also bring an engaged corporate partner by supporting existing non-profits and being part of the community,” Coffman said in a statement on Friday.

Compute North Says Wolf Hollow Plant Co-Location Will Provide a ‘Unique Behind-the-Meter Approach’

According to Compute North, the data center will emit less carbon than most facilities of its size that are directly connected to the grid. “Compute North’s modular containers will be co-located at the Wolf Hollow plant through a unique behind-the-meter approach, bringing the load directly to the source,” the announcement on Friday highlights. Dave Perrill, the CEO and co-founder at Compute North explained the company is excited to see construction moving forward.

“We are developing the next generation of data centers meeting the unprecedented needs of next-generation technology at a time when the demand for energy efficiency and stabilizing the energy grid has never been higher,” Perrill said during the announcement. “We are committed to continued innovation to support timely demand response solutions, and we work closely with our energy partners to support local energy dynamics.”

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Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.




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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Argentinian Government Raises Energy Costs Almost 4x for Cryptocurrency Miners

The Energy Secretary of Argentina eliminated power subsidies for cryptocurrency miners, raising the cost of energy to almost 4x what the miners were paying before. The measure affects customers of the wholesale power market in the Tierra del Fuego province, one of the provinces more notably occupied by miners in the country due to its specific climate characteristics.

Argentina Eliminates Subsidies for Cryptocurrency Mining

The government of Argentina has eliminated the subsidies that applied to power used by cryptocurrency miners. This is the decision that the Energy Secretary of the country took regarding cryptocurrency mining, and according to the new 40/2022 resolution, published and made official on February 1st, miners will now pay almost four times what they did before.

The new price of energy for miners in Ushuaia and the Rio Grande will be 5,000 ARS (or $47.50) per MW/H. Before this resolution was published, these same miners were paying around 1,764 ARS (or $16.76) per MW/h. The reason behind the change is explained in the resolution, which declares:

Due to the availability of payment and the profitability of the activity, it is considered opportune that these users face the payment of the price of energy equivalent to the cost of supply, being inequitable that they pay the price of a residential user or another.

The resolution affects miners located in the Tierra del Fuego province, where most miners are located in Argentina due to the cold climate that allows the establishment of mining farms without intensive cooling capabilities.

Cammesa Faces a Challenge

Cammesa, which is the energy wholesaler company of Argentina, faces a challenge trying to identify which sources are using the energy supplied for cryptocurrency mining purposes. During inquiries carried out last year, the company managed to identify two cryptocurrency mining facilities in the zone. About this finding, a source familiar with the matter told local newspaper La Nacion:

Monitoring is being done at the national level. These are the first that we detect with relevant power. Those that use a home connection are much smaller and very difficult to identify.

While there is no official data on the subject, local energy companies seem to all agree on one thing: more and more people and companies are mining cryptocurrencies due to the low cost of energy that is subsidized at approximately 70% by the state.

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Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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On Sunday, January 30, 2022, the top smart contract protocol tokens by market capitalization is $592 billion or 32.66% of the $1.8 trillion crypto economy. Meanwhile, the total-value locked (TVL) in decentralized finance (defi) protocols is $192.42 billion up 5.28% … read more.

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Nigerian Lawmaker Proposes Closure of All Domiciliary Accounts in Order to Save Imperiled Naira

Nigerian lawmaker Ibrahim Obanikoro has called on Nigerian authorities to “close all domiciliary accounts for the next 12 months.” Such a move, he argues, will help to ease pressure on the naira, which has depreciated by more than 10% in the past two months.

The Naira’s Continuing Depreciation

The call by Obanikoro comes nearly two weeks after threats from the Central Bank of Nigeria (CBN) governor forced Abokifx to stop publishing the naira’s black market exchange rates. Yet even after the suspension of the service, the naira continues to slide in value.

This continuing depreciation, in turn, is forcing panicking stakeholders including Obanikoro to propose even more unconventional and controversial solutions.

However, in his September 28 tweet, Obanikoro also justified his call by suggesting that other countries would never allow Nigerians to open a naira account. The lawmaker explained:

I am not the Central Bank of Nigeria [CBN] Governor but at this moment, I’m of the opinion that CBN should mandate that all dorm accounts be closed for the next 12 months. Let’s see the effect on the naira. After all, you can’t go to any of the Western world and open a foreign currency account. Your opinion.

Lawmaker’s Suggestion Questioned

As expected, Obanikoro’s controversial call sparked an immediate reaction from some Twitter users. For instance, in his response to the lawmaker’s suggestion, an account called “Cryptocurrency Thought Leader” brings bitcoin into the discussion and says: “Satoshi looked through history and decided to create this alternative for us.” The user ends his reply by predicting that the naira’s drop to $1 for every NGN1000 will “happen faster than I predicted.”

Another user, Orisha welcomes the lawmaker’s willingness to solve the local currency’s continuing depreciation but warns against closing domiciliary accounts. The user said:

“This idea can work, but you can’t just close people dom account, but only mandate them to withdraw all their $ from the account within let’s say 4month max. Will the North and Naija Elites allow you to destroy banks & bureaux de change [BDC]?”

Still, other users have asked Obanikoro to focus his attention on factors that caused the naira to lose its value, and not the accounts.

Do you agree with the Nigerian lawmaker’s suggestion? Tell us what you think in the comments section below.

On September 24, the staff writer for The New Republic, Jacob Silverman, tweeted about a Freedom of Information Act (FOIA) request he filed that was ultimately denied. On the social media platform, Silverman wrote that he got Securities and Exchange … read more.

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