India warns that cryptos are the new tulips; Kenya Weighs Digital Currency; Binance invests in Forbes: Crypto moves
Countries’ differing views on crypto assets were again on display this week as Kenya began a consultation on the potential launch of a central bank digital currency, while India’s central bank chief compared unfavorably private crypto assets with tulips, in reference to the speculative bubble of the 17th century. .
Reserve Bank of India Governor Shaktikanta Das has warned against investing in cryptocurrencies days after the Indian government announced a tax framework for digital assets as a sign of official acceptance following fear that they are banned in the country.
“Private cryptocurrency is a huge threat to macroeconomic stability and financial stability…investors should keep this in mind that they invest at their own risk,” Das told a conference. release following a monetary policy meeting. “And these cryptocurrencies have no underlying (value) – not even a tulip.”
Tulipmania erupted in the Netherlands in 1634 when prices for fashionable flowers soared to unsustainable heights before collapsing in February 1637, marking the first speculative bubble.
Around 20 million investors in India hold around 400 billion Indian rupees ($5.34 billion) worth of crypto assets.
Further west, the Central Bank of Kenya asked the public to share their views on the potential introduction of a central bank digital currency.
He acknowledged the risks of such a move, including the financial exclusion of those who do not have access to technological infrastructure or the knowledge and outflows of commercial banks, while emphasizing the benefits, including the reduction of cross-border payment costs.
For that to happen, all countries in the region would need to participate in order to flatten “the multi-tiered correspondent banking structure” and shorten payment chains, the bank said in a statement.
“The balance of risks and benefits of central bank digital currency will vary from economy to economy,” he said.
Last year, Tanzanian government officials were working on a directive from the president to prepare for the introduction of digital currencies.
The Chinese e-yuan is said to be the main form of payment in the Winter Olympics bubble, even beating Visa, which is the exclusive provider of credit and debit cards to the games. By the end of January, 261 million people had signed up for e-yuan wallets on Android or Apple app stores, about a fifth of China’s population.
In the United States, one of the most famous names in business journalism, Forbes, is going public through a special purpose acquisition company, or SPAC, and taking a $200 million investment from the biggest stock exchange. cryptocurrency in the world, Binance.
Binance will help advise Forbes on its “Web3” digital asset and strategy, a version of the internet based on decentralized blockchain-powered applications.
Questions have been raised about the effect the investment might have on Forbes journalism. Last February, Binance dropped a lawsuit against Forbes in which it accused two of its journalists of defamation for an article about Binance’s corporate structure.
“I can confirm that Forbes editorial independence will remain sacrosanct and entirely independent of Binance,” Binance spokesman Simon Matthews told Reuters.