Morning Tidings

Tag: Currency

  • IMF Warns El Salvador From Using Bitcoin As Official Currency

    Washington, January 26: The International Monetary Fund (IMF) has warned El Salvador to no longer use Bitcoin as a legal tender, citing large risks for financial and market integrity, financial stability, and consumer protection.

    El Salvador in September last year became the first country in the world to adopt bitcoin as an official currency. The central American nation announced that it plans to buy “a lot more” bitcoins soon. It purchased 200 tokens earlier and another 200 more ahead of its rollout as a legal tender. El Salvador Set to Become World’s First Country to Adopt Bitcoin as Legal Tender, President Nayib Bukele Says ‘Bill Almost Ready’.

    In a statement, the IMF said that the adoption of a cryptocurrency as legal tender can also create contingent liabilities. The IMF agreed on the importance of boosting financial inclusion and noted that digital means of payment — such as the Chivo e-wallet — could play this role.

    However, the IMF urged the authorities to narrow the scope of the Bitcoin law by removing Bitcoin’s legal tender status. Some IMF directors also expressed concern over the risks associated with issuing Bitcoin-backed bonds. Global Crypto Market Suffers $1 Trillion Loss as Bitcoin Crashes.

    El Salvador is accepting payment in bitcoin alongside the US dollar, which has been El Salvador’s official currency since 2001. Bitcoin, along with other digital cryptocurrencies, has crashed to its lowest levels and the continuing meltdown has wiped out over $1 trillion from the global crypto market value.

    Bitcoin was hovering around $37,000 per coin on Wednesday and the largest digital asset by market value has lost nearly 50 per cent since reaching its peak in November 2021. Bitcoin hit an all-time high of roughly $69,000 in November. The crypto crash came as the US Federal Reserve raised the possibility of boosting interest rates as soon as March and withdrawing stimulus from the market.

    (The above story first appeared on Morning Tidings on Jan 26, 2022 02:24 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website morningtidings.com).

  • What Are Stablecoins And Its Different Types? Here’s Everything You Need to Know About The Digital Currency

    The enormous returns generated by Bitcoin and other cryptocurrencies over the past few years have compelled a lot of investors to put their money in the digital currency markets. However, cryptos are volatile and risky as they are not regulated by any central authority. Plus, their price is entirely dependent on the demand and supply of the coins. So, what can investors do to safeguard their digital currency portfolio against such volatility? The alternative is to invest in stablecoins.   How a Leading Digital Bank Is Getting Consumers Comfortable With Bitcoin

    Stablecoins are digital currencies that are backed by assets such as fiat currency(issued by the government), other cryptocurrencies or gold. The value of stablecoins does not fluctuate as much as the other cryptos such as bitcoin or ether and they can also be made stable using computer algorithms.

    Stablecoins are digital assets that have a stable valuation like a fiat currency but also provide utility and mobility of a cryptocurrency. Put simply, they can be seen as the bridge between a volatile cryptocurrency and a stable fiat currency. There are mainly four types of stablecoins.

    Fiat-collateralized stablecoins are the foremost variant of stablecoins you would come across. They have the backing of a fiat currency such as Euro, GBP, or the US Dollar. Fiat-collateralized stablecoins are the simplest stablecoin types with a 1:1 ration backing. The 1:1 ration implies that one stablecoin would be equal to one unit of currency such as a dollar or one Euro.

    The value of these stablecoins is pegged to the collateral that backs them. For example, if a stablecoin is backed by a fiat currency, say the US dollar, it means every stablecoin is equal to $1. Hence, if the issuer of the stablecoin has $2 million in reserve, they can only issue two million stablecoins in exchange for it.

    Crypto-backed or on-chain stablecoins are backed by another asset, typically other cryptocurrencies, such as ether or bitcoin. The value of the stablecoin is always proportionate to the value of the underlying cryptocurrency. These crypto-backed stablecoins use smart contracts and do not need an issuer or central custodian.

    Commodity-backed stablecoins have the backing of different types of interchangeable assets such as precious metals. The most common commodity used as collateral for commodity-backed stablecoins is gold. 

    Investors can also redeem their investment in stablecoin and get physical delivery of the collateral. Therefore, there is a need for a custodian. However, token redemption is only possible for set measurements of the collateral.

    An algorithmic stablecoin is not backed by any collateral. But, it uses a special algorithm to maintain the prices of the coin. If the price of the stablecoins falls below the price of the fiat currency it tracks, the algorithm reduces the number of tokens in circulation.

    As of now, stablecoins are working with four distinct models which follow different collateral structures. The different types of collateral used for stablecoins define their types, such as fiat-backed, commodity-backed, crypto-backed, and non-collateralized stablecoins. Each stablecoin variant has its unique characteristic, i.e., the collateral for backing the stablecoin.  These Indian Crypto-Startups Are Making a Buzz Worldwide

    In several ways, stablecoins may not be like other crypto investments. They are designed to stay put in terms of value. This means that while they will not be a fall in value, it will not rise either.  This can be understood by comparing the USD coin to the Bitcoin. Since its inception, the USD coin has hardly fluctuated from its $1 value. Bitcoin, on the other hand, was valued at $4,000 in 2019, and at $60,000 by May 2021.

    (The above story first appeared on Morning Tidings on Jan 09, 2022 02:40 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website morningtidings.com).

  • Cryptocurrency Scammers Netted $7.7 Billion Worth of Digital Currency From Victims in 2021: Report

    New Delhi: Cryptocurrency scammers netted $7.7 billion worth of cryptocurrency from victims in 2021, an 81 per cent rise in losses compared to last year, a new report showed on Monday. According to Blockchain analysis firm Chainalysis, nearly $1.1 billion of the $7.7 billion were attributed to a single scheme which allegedly targeted Russia and Ukraine. Cryptocurrency prices in India today (21 Dec 2021).

    A key source of rising cryptocurrency scams in 2021 were ‘rug pulls’, where the developers of a new cryptocurrency vanish and take supporters’ funds with them, reports ZDNet.

    Rug pulls accounted for 37 per cent of all cryptocurrency scam revenue in 2021, at $2.8 billion.

    “As the largest form of cryptocurrency-based crime and one uniquely targeted toward new users, scamming poses one of the biggest threats to cryptocurrency’s continued adoption,” Chainalysis said.

    The report found that the number of active financial scams rose from 2,052 in 2020 to 3,300. Scams also went up in line with the rise in value of popular cryptocurrencies such as Ethereum and Bitcoin.

    “The most important takeaway is to avoid new tokens that haven’t undergone a code audit. Code audits are a process through which a third-party firm analyses the code of the smart contract behind a new token or other DeFi project,” said Chainalysis.

    (The above story first appeared on Morning Tidings on Dec 21, 2021 08:40 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website morningtidings.com).

  • Cryptocurrency in India: India May Regulate Crypto As An Asset, Not As Currency

    India is likely to bar the use of cryptocurrencies for settling transactions or making payments, but allow them to be held as assets like gold, shares or bonds, according to a report in The Economic Times.

    Citing sources within the government, the newspaper reported that this approach would avoid a complete shutdown on crypto, though the government was keen to stop crypto companies, including exchange apps and platforms from actively trying to attract new investors. Cryptocurrency in India: Govt Likely to Table Crypto Bill in Parliament to Regulate Digital Currency

    The crypto community earlier urged the Indian authorities asking to be classified as an asset rather than as a currency, in order to gain acceptance and avoid a ban.

    Last week, Prime Minister Narendra Modi had chaired a meeting to discuss the future of cryptocurrencies amid concerns that unregulated crypto markets could become avenues for money laundering and terror financing.

    The government is finalising legislation that will pave the way for regulation of digital asset trading while barring the use of virtual currency for payments and transactions.

    The Securities and Exchange Board of India(SEBI) could be designated as the regulator, although a final call is yet to be taken. “Discussions on regulation are going on,” the person said.

    The Reserve Bank of India (RBI) has so far been hesitant to accept cryptocurrencies, expressing concerns over potential risks to macroeconomic and financial stability, and capital controls. Cryptocurrency in India: Reserve Bank Of India Governor Shaktikanta Das Reiterates His Opposition to Digital Currency

    RBI governor Shaktikanta Das earlier said that the number of cryptocurrency accounts in India appears to be highly exaggerated. At a State Bank of India event in Mumbai he said there was need for a deeper discussion on cryptocurrencies and was yet to see well-informed debate on key concerns, some of which had been raised by the RBI.

    (The above story first appeared on Morning Tidings on Nov 17, 2021 03:11 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website morningtidings.com).

  • Cryptocurrency in India: Reserve Bank Of India Governor Shaktikanta Das Reiterates His Opposition to Digital Currency

    New Delhi, Nov 11: Reserve Bank of India (RBI) Governor Shaktikanta Das reiterated his strong views against cryptocurrencies on Wednesday saying they pose serious threats to the macroeconomic and financial stability of the country cautioning investors on the potential pitfalls of the digital currency.

    He also has doubts the number of investors trading on them as well their claimed market value. Cryptocurrency in India: Top 5 Crypto Exchange Apps in India for Online Trading

    Reiterating his earlier threats,he said cryptocurrencies are serious threat to any financial system since they are unregulated by central banks. RBI’s internal panel report on the contentious topic which is expected next month.

    The Reserve Bank Of India(RBI) had in 2018 banned banks and other financial institutions from facilitating transactions in digital currency. The Supreme Court reversed the order in 2020 allowing trading of virtual coins like bitcoin. Since then, though the government has considered the implementation of crypto legislation, but RBI remains extremely critical and continues to support its ban.

    The RBI had announced its plans to come out with an official digital currency, in the face of the craze that Indian investors have about cryptocurrencies like Bitcoin about which the central bank has had many concerns. The government last week moved to ban private cryptocurrencies.

    Das announcing the February 5, 2021 monetary policy told reporters”With regard to digital currency, I think we have already released our document. Our digital payment document spells out that digital currency is work in progress in RBI.”

    The union government has not yet come-up with a law on cryptocurrencies and is in consultation with industry experts, comments from various officials and ministers. Cryptocurrency in India: Govt Likely to Table Crypto Bill in Parliament to Regulate Digital Currency

    After several rounds of caution, the government might largely want to set severe limits on the trading of cryptocurrencies in India in the larger public interest.

    (The above story first appeared on Morning Tidings on Nov 11, 2021 04:17 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website morningtidings.com).

  • Cryptocurrency in India: Govt Likely to Table Crypto Bill in Parliament to Regulate Digital Currency

    Things have changed drastically since last year when the Indian government was really close to banning digital currency. Now, it seems like the Indian government has given up on the idea of banning cryptocurrencies. According to a report in Economic Times, The government is likely to take a middle path on cryptocurrencies and modify the earlier draft of the bill as it gets ready to table the bill in the upcoming winter session of Parliament.

    Though Cryptocurrencies are legal in India, they are not regulated. This makes investors vulnerable to scams and fraud. The crypto industry has been seeking better inclusion, with few voices even asking the government to make crypto a legal tender. While making crypto a legal tender seems a far-fetched reality the government is looking to find a middle route which balances the concerns of all involved. Cryptocurrency in India: Top 5 Crypto Exchange Apps in India for Online Trading

    The Reserve Bank Of India(RBI) had in 2018 banned banks and other financial institutions from facilitating transactions in digital currency. The Supreme Court reversed the order in 2020 allowing trading of virtual coins like bitcoin. Since then, though the government has considered the implementation of crypto legislation, but RBI remains extremely critical and continues to support its ban.

    As Indian investors have put large volumes of investments in cryptocurrencies the government is of the opinion that it would not be a right step to outrightly ban them.

    When the bill is tabled and if it eventually passes in the Parliament, Bitcoin and other cryptocurrencies will classify as digital assets but not a legal tender. This will mean that while you will able to invest in crypto and hold it for long periods, these digital coins won’t be a substitute for the Indian Rupee.

    As of now there is a lot of scope for scams involving cryptocurrency. The bill could also be of help to protect investors against any wrongdoing. Cryptocurrency Investments In India: Know How Much Tax Does India Charge For Profits on Digital Currency

    Cryptocurrency market in India grew 641 percent in the past year, driving growth of digital currencies in central and Southern Asia, according to a report by Chainalaysis.

    (The above story first appeared on Morning Tidings on Nov 09, 2021 03:18 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website morningtidings.com).

  • Cryptocurrency Investments In India: Know How Much Tax Does India Charge For Profits on Digital Currency

    India has the highest number of cryto owners in the world ( 10.03 crore), and crypto investments by Indians have touched to an all time high of $10 billion. It was $923 million in April last year. Though digital currency is not a legal tender in India, it does not mean cryptocurrency transactions are illegal. So it is compulsory to declare it in your income-tax returns if you have put your money in any form of digital currency and are reaping the rewards from such investments.   Cryptocurrency in India: Top 5 Crypto Exchange Apps in India for Online Trading

    Cryptocurrency is acquired in following ways:

    Mining: When a miner solves complicated algorithms and records data on the blockchain using computing technology, He may receive payment in new crypto tokens.

    Buying: Buying it from currency exchanges using real currency and storing it in an online currency wallet in digital form.

    The Reserve Bank Of India(RBI) had in 2018 banned banks and other financial institutions from facilitating transactions in digital currency. The Supreme Court reversed the order in 2020 allowing trading of virtual coins like bitcoin. Though not being a legal tender, the government has already made it compulsory for companies dealing with virtual currencies to disclose profit or loss incurred on transactions. These companies also have to disclose the amount of digital currency they hold in their balance sheets. The amendments made in the Companies Act came into effect on April 1 this year. The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 has been tabled by the government in the parliament and will be discussed in the Winter Session. The bill will contain requirements for income tax returns for crypto exchanges in India as well as on foreign crypto exchanges by Indian residents.

    A digital token is deemed to be a capital asset if it is purchased for investment. It will bound to be taxed under capital gains, which is further categorised into long-term or short-term capital gains, depending on the holding period. Hence if you have bought cryptocurrencies like Dogecoin, Bitcoin, Binance etc, you will be liable to pay income tax on it.

    When you are filing income tax on the profit from cryptocurrency investments, you have two options — either prove that your income from cryptocurrency is a business or an asset class income or opt for the ‘income from other sources’ category.

    In the UK and USA, investments in cryptocurrencies are treated like capital assets. In India, assets which are held for over three years are lost term assets, and short term assets are those which are held for less than three years.

    If you held on to your digital currency for more than 36 months, then your gain will be classified as a long-term capital gains tax and will be subject to tax at 20%, plus applicable surcharge and cess. This means that your tax amount will be calculated after adjusting for inflation index. Since the purchase price is adjusted for inflation, the capital gain gets reduced. The Central Board of Direct Taxes releases the cost inflation on which these assessments are done annually.  Bitcoin Celebrates 13th White Paper Anniversary: ‘9 Page White Paper Which Changed the Way We Look at Money’, Tweets Cryptocurrency India

    The Indian government is mulling over levying the 18% Goods and Services Tax (GST) on transactions On foreign Cryptocurrency Exchanges in order to level the playing field with domestic ones. India has also reportedly considered a 2% equalisation levy on transactions with foreign crypto exchanges. For Indian cryptocurrency exchanges, the 18% GST is charged as the trading fee to customers, which is similar to the setup for stock brokerages.

    (The above story first appeared on Morning Tidings on Nov 03, 2021 05:04 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website morningtidings.com).

  • eNaira: Nigerian President Muhammadu Buhari to Launch Country’s Digital Currency

    Abuja, October 24: As cryptocurrencies are gaining momentum across the world with huge-recent surge in their values more and more countries are inclining towards the digital assets. The newest to join the pro-crypto brigade is the West African country of Nigeria. According to reports, Nigeria is all set to launch its digital currency on Monday. The digital asset will be known as ‘eNaira’ will be backed by the country’s central bank.Bitcoin Flies Above $65K, Could It Reach the $100K Mark? Here’s Why This Is the Right Time To Invest in It.

    According to a release by the CBN, Nigerian President Muhammadu Buhari is scheduled to formally unveil the Nigerian Central Bank Digital Currency (CBDC), known as the eNaira, on Monday 25 October 2021, at the State House, Abuja. It added, “The eNaira therefore marks a major step forward in the evolution of money and the CBN is committed in ensuring that the eNaira, like the physical Naira, is accessible by everyone.” Are Cryptocurrencies Legal in India? Here’s How You Can Buy & Sell Bitcoin, Ethereum & Dogecoin.

    It also added that the central bank will continue to work with relevant partners to “ensure a seamless process that will benefit every user, particularly those in the rural areas and the unbanked population.” According to a report by the Reuters, the country has partnered with Barbados-based Bitt Inc to develop its digital currency, eNaira.

    (The above story first appeared on Morning Tidings on Oct 24, 2021 09:55 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website morningtidings.com).

  • Old Currency Building in Kolkata Illuminated in Colours of Tricolour to Mark India’s 100 Crore COVID-19 Vaccination Milestone (See Pics)

    Old Currency Building in Kolkata was seen all lit up in colours of the Tricolour. This has been done as part of the Archaeological Survey of India’s initiative, 100 monuments across India are being illuminated in colours of National flag following the milestone of 100 crore COVID-19 vaccination.

    (SocialLY brings you all the latest breaking news, viral trends and information from social media world, including Twitter, Instagram and Youtube. The above post is embeded directly from the user’s social media account and Morning Tidings Staff may not have modified or edited the content body. The views and facts appearing in the social media post do not reflect the opinions of Morning Tidings, also Morning Tidings does not assume any responsibility or liability for the same.)

  • ‘Raam’ Is Not a Currency Used in Holland! Know All About the Bearer Bond Started by Maharishi Cult in the Dutch Country

    ‘Raam’ Is Not a Currency Used in Holland! Know All About the Bearer Bond Started by Maharishi Cult in the Dutch Country

    Mumbai, August 4: Twitter is flooded with posts that claim a currency called “Raam” is being used as legal tender in Holland or Netherlands. Such posts also claimed “Raam” is the most expensive currency in the world. However, the fact is “Raam” is not a currency but a bearer bond. Launched in 2001 by Global Country of World Peace (GCWP), “Raam” has been used as a medium of exchange within a closed group of stakeholders in some parts of the United States and Netherlands. Rs 500 Note in Which Green Stripe Is Not Near RBI Governor’s Signature Should Not Be Taken? PIB Fact Check Reveals Truth Behind Fake Post.

    The Global Country of World Peace, set up by Maharishi Mahesh Yogi, launched “Raam” in October 2001. Headquartered in Maharishi Vedic City in US state of Iowa, the GCWP is a non-profit organisation. The Maharishi Vedic City described “Raam” as “the ideal local currency to support economic development in the city and development of local businesses and organisations wishing to accept that currency”. Rs 1,000 Currency Note to be Rescinded Into Cash Circulation? PIB Fact Check Trashes Rumour, Says No Such Move Planned by RBI.

    “Raam”, also known as Raam Peace Bond, is equal to ten Euros and it becomes ten Dollars in the US. The claim that it is the most expensive “currency” is based on this fact. Since one Euro equals Rs 88.09 (as on August 4, 2021), one “Raam” is thus worth Rs 880.9, thus making it more expensive than other currencies.

    Old Tweet on “Raam Currency”:

    But “Raam” is not a national currency of any country or a legal tender issued by any bank. It is in fact a bearer bond. The basic difference between a currency and a bearer bond is that the latter bears interest. “Raam” bears 0.6 simple interest annually. “Raam” carried a picture of Lord Ram and is available in three denominations, 1, 5 and 10.

    According to a BBC report, a spokesperson of the Dutch Central Bank described “Raam” as legal, adding: “The raam can be used as long as the notes are not used as legal tender and it stays within a closed-off circuit of users.” In Netherlands, “Raam” was being accepted in more than 100 Dutch shops, some of them part of big department store chains, in 30 villages and cities as of 2003. In the United States, “Raam” bonds were accepted in 35 states as of 2003. “Raam” was never a legal national currency in Holland or America.

    (The above story first appeared on Morning Tidings on Aug 04, 2021 01:11 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website morningtidings.com).