Get Forbes’ top crypto and blockchain stories delivered to your inbox every week for the latest news on bitcoin, other major cryptocurrencies and enterprise blockchain adoption.
BITCOIN REACHES $13,000, IS $20,000 NEXT?
Bitcoin is on the move again. After topping $13,000 this week, it is up 80% on the year. This achievement is outpacing the year-to-date returns from leading equity performers in the S&P 500 including most of the infamous FAANG members. In fact, it has recently surpassed mighty Amazon
Additionally, while this recent surge is reminding observers of the sharp peaks and valleys of the 2017 ICO craze, bitcoin’s relatively low volatility in recent weeks combined with its ability to not only defend the $10,000 price floor but stay above $12,000 despite some sellers taking profit is bullish for its future.
PAYPAL JOINS THE PARTY
A major reason for the recent jump in the markets was the mid-week announcement that fintech giant PayPal will soon enable its 346 million customers to buy, sell and hold crypto. Aside from bitcoin, it will also support ether, litecoin and bitcoin cash, each of which saw substantial price bumps from the news.
However, it wasn’t all roses, as numerous bitcoin enthusiasts expressed reservations about some of the restrictions that PayPal
DON’T FORGET ABOUT TAXES
Although PayPal offering crypto services is great for overall adoption, the current taxation around cryptocurrencies may end up leaving people frustrated. Cryptocurrencies like bitcoin are treated as property per the IRS. This means every time you sell, exchange, or dispose of it to buy something else, it is a taxable event.
PayPal makes it clear that users are responsible for calculating and paying their own tax obligations, so it will be important for everyone to keep their own detailed records.
FIRST CBDC CROSSES THE FINISH LINE
While the majority of attention placed on central bank digital currencies is focusing on developments in China, the U.S. or EU, this week saw the Bahamas launch the first official CBDC. Known as the sand dollar, the digital currency will be pegged 1:1 with the Bahamian dollar, which is actually pegged to the U.S. dollar.
Designed to improve financial inclusivity and reduce transaction fees and friction, the sand dollar will be accepted at any merchant with a Central Bank approved e-Wallet on their mobile device. The first stage of the process involves private-sector players such as banks and credit unions preparing their systems for know-your-customer (KYC) and other compliance checks to ensure that users and issuers maintain regulatory compliance. Over time it will become available across the Bahamas’ 700 island archipelago.
WE NEED CRYPTO NOW MORE THAN EVER
Stress and tensions are rising across the world as Covid-19 remains stubbornly persistent. Aside from well-publicized government stimulus measures around the world, 2020 has also been marked by protests and domestic strife in Hong Kong, the United States, Nigeria, Thailand, Belarus and beyond. In fact, no corner of the world has been untouched by a wave of fresh political protests.
In the face of government clampdowns, cryptocurrencies and various service applications have proven to be a substantial lifeline to protestors. From payment processors that can circumvent banking networks to crypto wallets that help protestors protect their identity and wealth, these tools are critical lifelines to the success of legitimate movements around the world.
Privacy Coin Zcash Makes Its Ethereum ‘Wrapped’ Debut With Tokensoft and Anchorag [CoinDesk]
PayPal in Talks to Buy Crypto Firms Including BitGo [Bloomberg]
Filecoin Miners Will Now Receive 25% of Block Rewards Immediately With No Vesting Period [The Block]