🌐 Janet Yellen: "The use of cryptocurrencies for illegal purposes is a growing problem"
According to US Treasury Secretary Janet Yellen, the use of cryptocurrencies for drug trafficking and terrorist financing is a "growing problem."
During a roundtable on policy innovation in the financial sector, US Treasury Secretary Janet Yellen warned that digital currency-related crime and cyber attacks are on the rise.
“I see the promise of these new technologies, but I also see the reality: cryptocurrencies are being used to launder the proceeds of online drug dealers and as a tool for terrorist financing,” she said.
Yellen cited the Anti-Money Laundering Act passed by Congress last December, which became part of the National Defense Act. The new law requires the US government to update its anti-money laundering and terrorist financing measures. Yellen noted that the existing regulatory framework was created in the 1970s and has not been updated since then.
“The legal framework was updated at the most opportune time. As you all well know, we live in an environment of dramatic increase in the risks of fraud, money laundering, terrorist financing and data privacy, ”she said.
In January, Yellen stated that cryptocurrencies are a particular problem for law enforcement and that they can improve the efficiency of the financial system. She said this week that the Treasury Department, along with its regulators, "can better stop the flow of dark money."
“We will have more power to prevent attackers from hacking into our government offices or interfering with our elections,” she added.
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Twitter may consider Bitcoin as a reserve asset
Twitter finance chief Ned Segal said the company may consider bitcoin as a reserve asset and is willing to pay employees salaries in BTC.
Segal explained that if employees or customers ask for funds in BTC, the company will be ready to consider the idea. Twitter intends to approach this in a meaningful way, but the company has yet to make specific changes. Considering that Twitter CEO Jack Dorsey has always been a supporter of Bitcoin, calling it "the future of Twitter", this initiative may soon be implemented.
Segal's position echoes Grayscale CEO Michael Sonnenshein, who believes large corporations will follow the lead of Tesla founder Elon Musk and invest in bitcoin. Indeed, many companies doubting Bitcoin are beginning to realize its potential.
Wachsman CEO and founder David Wachsman also believes that Musk's investment in the first cryptocurrency will significantly accelerate institutional investor adoption. Therefore, there is a great chance that crypto assets will be legalized. Waxman added that institutions are already experiencing lost profits syndrome (FOMO), and it is highly likely that many institutions will also start buying bitcoin.
Square, the sister company of Twitter, has already invested $ 50 million in this crypto asset to expand its economic opportunities. Additionally, last year, Square's cryptocurrency arm began developing tools that will allow Bitcoin wallet developers to integrate the Lightning Network into their products.
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🌐 Amazon is looking for developers for a digital currency project
Amazon is looking for engineers and software developers to project digital and evolving payments. A vacancy at a Mexico branch mentions digital currency development.
According to the vacancies published by Amazon , the company plans to develop projects related to digital and evolving payments. One of Amazon's job descriptions says:
"This product will allow customers to convert their cash into digital currency, with which they can use online services, including purchases of goods and / or services such as Prime Video."
Amazon Digital and Emerging Payments intends to first deploy the product in Mexico. Based on the description of the second vacancy , the digital currency development project is focused on emerging markets. Amazon employs software engineers "at all levels."
As a reminder, in 2013, Amazon already issued the Amazon Coin, which was used to purchase gaming applications and digital content on Android smartphones and Blackberry devices. However, it was not a cryptocurrency, as it was not based on the blockchain.
Last year, Binance CEO Chanpeng Zhao expressed confidence that Amazon will sooner or later release its own cryptocurrency that will be used to buy and sell goods.
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🌐 Mastercard will launch support for cryptocurrencies this year
International payment company Mastercard plans to add support for several major cryptocurrencies to its systems this year.
“Regardless of your opinion about cryptocurrencies - whether you are a fan or a hardened skeptic - the fact is that digital assets are becoming an increasingly important part of the payments world. We are already preparing for the future of cryptocurrencies and payments, and we declare that already this year Mastercard will begin directly supporting certain cryptocurrencies, "- noted in an article in the company's blog.
It is not yet known what kind of cryptocurrencies the Mastercard system will support, but the authors of the article promise that the company's specialists "will very carefully select cryptocurrencies, based on the principles of consumer protection and compliance with regulatory requirements." Most likely, the payment company will add support for stable cryptocurrencies first.
“For clarity, it should be added that not all cryptocurrencies will be supported on our network. Stablecoins have become more regulated and reliable lately, but hundreds of digital assets need to be in compliance with regulatory requirements, so they are not suitable for us. We hope that consumers and the entire ecosystem will contribute to the development of reliable and secure cryptocurrencies, ”the article says.
Earlier, Mastercard CEO Ajay Banga said that bitcoin, due to its volatility, cannot function as a currency for people without access to banking services.
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🌐 American bank Blue Ridge will add BTC purchase feature to its ATMs
Virginia-based Blue Ridge Bank will be the first public bank in the United States to offer Bitcoin purchases at ATMs.
In the United States, since 2013, vending machines for the first cryptocurrency have been operating, but it is Blue Ridge Bank that will become the first public bank to provide such a function. The decision to launch the function was made due to the high demand for Bitcoin.
“We try to anticipate the needs of our customers, both present and future,” Blue Ridge Bank CEO Brian Plum told local Richmond Times-Dispatch.
To work with cryptocurrencies, Blue Ridge has entered into an agreement with the national ATM operator BluePoint ATM Solutions and the company LibertyX, which develops software for ATM.
To buy BTC from Blue Ridge Bank ATMs, users need to install the LibertyX mobile app on their smartphones, as well as create a digital asset wallet.
At the same time, any user can buy bitcoin at ATMs, not just Blue Ridge Bank customers. In addition, users will be able to exchange their BTC and receive cash immediately.
Recall that back in September last year, the number of cryptomats installed around the world exceeded 10,000. Currently, according to the Coin ATM Radar resource, the number of such devices exceeds 15,000.
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🌐 VTB Chairman of the Board: "investors can leave the stock market in bitcoin"
Andrey Kostin, VTB Bank Chairman of the Board, believes that due to strict restrictions on the stock market, investors may take particular interest in bitcoin and other "less understandable" products.
Recall that on January 1, 2021, the law "On digital financial assets (DFA) and digital currency" came into force . At the end of last year, the Central Bank of Russia proposed to limit the amount of digital assets for purchase by individuals to 600,000 rubles per year.
Kostin said that he supports the Central Bank's actions to protect private investors, but the regulator should stick to the "golden mean" between market development and its control. At a meeting with the government, Russian President Vladimir Putin stated the need to protect the interests of citizens in the stock market, but at the same time not to "overregulate" the market.
“Too strict restrictions will lead to the fact that people will leave the Russian securities market in gold, dollar or bitcoin. Investors will prefer to open accounts with foreign brokers, which will not provide them with adequate legal protection. People will start using less transparent products and will focus even more on cryptocurrencies, ”said Kostin.
We will remind that earlier the chairman of the State Duma Committee on the Financial Market Anatoly Aksakov called bitcoin a “bubble” that could burst at any moment. Deputy Chairman of the Bank of Russia Alexei Zabotkin is also convinced that investing in bitcoin and other digital assets is dangerous because they have high volatility.
