Crypto Adoption and Regulation Talks Continue as Bitcoin Stays Below $52k

On this week’s Scoop, we bring you trending news about cryptocurrencies:

• The future of bitcoin as discussed in a US Congressional hearing
• India’s stance of cryptocurrency
• A call for bitcoin regulation in Nigeria
• Ethereum’s continued rise
• Crypto education and financial literacy

The price of bitcoin in the last weeks has been experiencing persistent volatility, The price fell from around $57,000 on December 3rd to $45,000 the next day. However, it rose to around $49,000. Many have questioned why the price of bitcoin fell so drastically after going over $60,000 in October. Will bitcoin end the year below $60,000 market price? Stay tuned.

The Future of Bitcoin discussed in the House of Financial Services Committee

In our last scoop, we made mention of the hearing of executives of eight major cryptocurrency firms before a US Congressional committee on Dec. 8. Alesia Haas of Coinbase, Jeremy Allaire of Circle, Brian Brooks of Bitfury, and Sam Bankman-Fried of FTX Trading defended the interests of cryptocurrencies satisfactorily before the US House Financial Services Committee.

The Lawmakers who took part in this hearing seemed genuinely interested in working toward a greater understanding of the industry. Does this represent a turning point for the U.S. crypto industry?

India’s Prime Minister to announce the Nation’s stand on cryptocurrency

India's Premier, Narendra Modi is all set to take the final decision regarding cryptocurrency regulation in India.

On Thursday, a high-level meeting uniting government officials in Cryptocurrency Regulation in India. In this session, the statesmen discussed various prospects of the cryptocurrency bill including the possibilities of either imposing a complete ban on crypto activities in India, a partial ban or allowing all categories of crypto products with regulation, or just selecting a few with regulation.

The proposed crypto bill also made provisions for an imminent launch of an Indian Central Bank Digital Currency (CBDC), a digital currency that will be issued by the Reserve Bank of India. After two working days, the outcome of the discussions It said cryptocurrency regulation in India seems to be orienting and creating possibilities for the Indian Government to think of ways to innovate the traditional Banking system.

Nigeria calls for friendly bitcoin regulation

Clem Agba Nigeria’s minister of state for budget and national planning seemingly understands the stakes of bitcoin to an economy with the might of Nigeria. Bloomberg reported last week that Minister Clem called for a friendly regulation of bitcoin that would promote innovation and allow citizens to plug into the network’s opportunities rather than suppress usage of the possibilities enabled by the technology. He further stated “uncertainty in regulating cryptocurrencies risks denying government and citizens the chance to maximise opportunities from the technology”.

A flashback of 2017 brings to mind the official ban imposed by the Central Bank of Nigeria (CBN) on financial institutions from facilitating bitcoin-related transactions. This led to the shutting down of multiple accounts that carried out Crypto transactions. though the CBN claimed the move was a way to prevent crimes like money laundering and the finance of terrorism as well as mitigate financial risks.

However, reports hold that by April 2021, P2P bitcoin trading in Nigeria had increased by 27% as citizens flocked to the alternative bitcoin on-ramp. Although the CBN had banned financial institutions from dealing with bitcoin, local media outlet Today AG reported that the Central Bank did not impose restrictions on Nigerians’ bitcoin usage.

This may be just the right time to set rigid regulations on bitcoin in Nigeria. And as Minister Clem puts it, regulation should enable the promotion of Bitcoin and new developments in the industry rather than a crackdown on businesses.

Ethereum continues to rise

Ethereum’s growth has been attributed to its technology and this is an attractive point for investors, according to Michael Novogratz, CEO of Galaxy Investment Partners.  Ethereum has proven to be one of the digital currencies with a good number of users. It is today obvious that Ethereum seconds bitcoin especially with the advent of the decentralised finance (DeFi) space. In a speaking time with  CNBC  on Wednesday, December 8, 2021, the CEO mentioned that Ethereum’s offering is larger than an inflation play.

This is a sharp contrast as bitcoin’s biggest offering still hinges on it being an inflation bet. However, Novogratz pointed out that bitcoin starts to lose its appeal when it is being pitted against a devalued currency like the dollar.

Nevertheless, Ethereum combats the problem of being just an inflation bet by providing innovative tech in the blockchain industry. “People see Ethereum as a technology bet,” Novogratz noted.

However perplexed, bitcoin enthusiasts and critics waived Novogratz assertions but cannot wait to see how long Ethereum’s rise will last and what challenges it could pose to other cryptocurrencies, especially bitcoin.

Crypto Education: The Financial Literacy Model for the 21st Century

Leading Bitcoin companies have launched Sats Center, a nonprofit business league dedicated to fostering an innovative environment for Bitcoin.

On Thursday, representatives of the Sats Center said they will provide education to the public, elected officials, and regulators seeking to learn more about Bitcoin and how it can empower economic growth and financial inclusion.

The organisation’s statement read, “Sats Center will focus primarily on the state and local level, filling in knowledge gaps about Bitcoin and the opportunities it can bring to communities. The organization will also create an environment for the innovative open-source industry to connect with regulators and community leaders.”

Getting educated on cryptocurrency is imperative.  Finance experts are aware of Bitcoin, but most still lack full comprehension of the network. Few people in power understand the true value proposition of the peer-to-peer monetary system and how it can improve the lives of everyday citizens.

Sats is surely a timely organisation for the United States. Crypto Companies in other countries should be looking forward to aligning to these innovations. Yellow Card is on this path already with Yellow Card Academy, a platform that teaches anyone the basics of cryptocurrency and financial literacy for free.

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