Venezuela is a remarkable country when it comes to cryptocurrency. Despite the Petro currency continuing to be scrutinized left, right, and center, it seems there are big plans for this crypto. More specifically, the government now aims to create a digital cryptocurrency bank directly targeted at younger residents. The venture will receive $1.2 billion worth of funding in the form of 20 million Petro.
THE PETRO GAINS MORE TRACTION
In a way, it is good to see the Petro currency gain a bit more traction. Despite the initial hype surrounding this project in Venezuela, there are still a lot of questions as to what the future holds for the currency itself. So far, there is no real reason to be interested in the Petro, although it seems that may change fairly soon. A new venture has been announced by the government which will certainly put this new form of money on the map.
More specifically, the Venezuelan government is launching a brand-new digital cryptocurrency bank. This particular venture is interesting for many reasons. Not only does it promote the use of the Petro cryptocurrency, but it also alleviates some of the financial concerns that have been plaguing the country for quite some time now. Venezuela is known for its financial instability, yet setting up a cryptocurrency bank could lead to some interesting developments down the line.
Moreover, this cryptocurrency bank is not necessarily designed for adults, as the government is mainly targeting youth and students. That is another interesting development, as it goes to show the
Funding such a massive venture is not all that easy, although the government has a clear plan in place. More specifically, the cryptocurrency bank venture will be funded with 20 million Petro, currently valued at $1.2 billion. This further confirms that there is a real-life value for the Petro and actual use cases waiting to be unlocked. This is all part of an ongoing plan associated with cryptocurrency and Venezuela, by the look of things.
Moreover, President Nicolas Maduro made it clear he values all of Venezuela’s schools and universities. However, Maduro is convinced every single one of these institutions needs to have its own farm to mine cryptocurrencies. It is a bit unclear whether this applies to the Petro currency specifically, or any cryptocurrency which could rise in value over the coming years.
As one would expect, there are some concerns regarding this new venture. While one has to commend the president for focusing on cryptocurrency and banking in Venezuela, the value of the Petro itself is still up in the air. While the currency is backed by oil reserves, it remains to be seen how useful it will be in the real world. Funding a national effort for youth and young students portends an interesting future ahead, but there will be challenges to contend with as well.
Russian Central Bank Head Says “No Obvious Need” to Issue a National Cryptocurrency
Speaking at the Finopolis forum of innovative financial technologies, Elvira Nabiullina, Russian economist and head of the Central Bank of the country said the regulator doesn’t see a need to issue a national cryptocurrency, reported Russian News Agency, Tass.
“As Russia’s Central Bank, we have been studying this topic and the need to issue a national cryptocurrency is not obvious for us,”
said Nabiullina addressing Deputy Governor of the People’s Bank of China Fan Yifei.
“Not only for technological reasons, but also because it is (difficult) to really estimate what advantages will the national digital currency give, for example, in comparison with existing electronic non-cash payments. There are many risks, and the advantages may not be obvious enough,”
Back in July, Nabiullina said that one day the institution could launch its own digital currency but
She has repeatedly pointed out in the past that the regulator does not support the legalization of cryptocurrencies as a legitimate payment facility.
Earlier the lower house of the Russian parliament, the State Duma adopted a bill on digital assets.
Meanwhile, Fan Yifei said China is exploring the possibility of creating a national cryptocurrency. He believes it is important to cooperate with other countries so that regulatory standards could be developed.
After five years of research, China is finally ready with its cryptocurrency which is expected to launch soon.
Fan YiFei didn’t specify the launch date but said first there is a need to conduct studies and also take into account other countries’ experience.
Cryptocurrencies and esports: reshaping modern gambling
Over the course of many centuries, gambling has proven to be very versatile and adaptive to innovations. Presently, it is going through the phase of transition from being reliant on brick-and-mortar casinos, with their limited capacity, regulatory issues, and inability to reach a broad audience, to running the operations solely on online platforms. The emergence of blockchain only incentivized the process of digitization of this industry.
Cryptocurrencies are the next evolutionary step for gambling
While Bitcoin, the first and the most influential cryptocurrency that still exerts total dominance over all other coins, wasn’t created to serve the needs of the gambling industry specifically, it paved the way for other representatives of this space.
Projects like TRON and EOS are fundamentally designed to disrupt the world of gambling by providing it with such tech solutions as provably fair algorithms for casino games, decentralized gambling applications, and, of course, cryptocurrencies to fuel these ecosystems.
But in order to apprehend the benefits of a symbiosis between cryptocurrencies and the industry of gambling, it is necessary to understand what is crypto, how it works, and what it can bring to the table.
A cryptocurrency is a type of digital asset with strong cryptography features at its core, designed to eliminate the need for a trusted third party, such as banks, to confirm and/or carry out the financial transactions. But what makes crypto and gambling go together like peanut butter and jelly is the nearly total anonymity of digital currencies, the promptness and cheapness of transactions, and the substantially enhanced security. While traditional casinos demand plenty of sensitive information from gamblers (i.e., banking details, real name, date of
These are the primary reasons why the industry is currently witnessing the emergence of all-for-crypto gambling platforms, such as 1xBit which accepts more than 30 cryptocurrencies, assures total anonymity through the provision of the one-click registration, effortless and low-cost deposits/withdrawals, and, of course, an abundance of casino games and sports betting opportunities.
1xBit places a particular emphasis on esports since this up-and-coming phenomenon represents another disruptive factor for the gambling industry that moves in parallel with the adoption of cryptocurrencies.
Esports make the grand entrance
For decades, video games have been considered as nothing more than a form of recreation. However, the rapid development of Internet technologies and the overall sophistication of online games, along with the acquisition of the global audience, had turned this form of activity into a fully-fledged sport.
Nowadays, world championships in such disciplines as Dota 2, Counter-Strike: Global Offensive, and League of Legends draw millions of spectators from around the globe. The recognition of esports has reached such a level that the International Olympic Committee considers introducing esports to the official program of the 2024 Olympics in Paris.
Such an unprecedented surge in popularity made esports one of the main destinations for tech-savvy online sports bettors who are well aware of the benefits that cryptocurrencies will bring to this space. The crypto-oriented platforms, particularly 1xBit, took on the task of being a meeting point for cryptocurrencies, esports, and betting. There is no doubt that this combination will shape the future of the gambling industry.
China’s CBDC initiative fills private cryptocurrencies’ missing elements
The latest Binance Research, while showcasing China’s CBDC initiative, highlighted its possibility of being a renminbi (RMB) replacement. Creating a buzz in the context, the report read,
“The People’s Bank of China plans to replace China’s M0 money supply with its CBDC. Several potential improvement areas were discussed as reasons to justify this move including retail payments, interbank clearing and cross-border payments.”
Moreover, as the Chinese CBDC targets to be a substitute for China’s M0 supply, CBDC-holders would not receive any interest from the central bank if it is not parked in any financial institutions. This will ensure that China’s crypto initiative “would not compete with commercial bank deposits, and would not have a noticeable impact on the existing economy in this regard.”
Interestingly enough, China’s CBDC initiative includes
Source: Binance Research
The above graph displays PBoC’s “one coin, two repositories, and three centers”approach, which was previously proposed by Yao Qian, the former head of PBoC’s Digital Currency Research Institute. Concluding the report, Binance Research mentioned,
“Despite one of the end-goals from this digital currency initiative being to further internationalize the renminbi, it remains to be seen what legislation would apply on cross-border payments.”
While the report uncovers various technical aspects of China’s crypto initiative, it remains unclear whether that individuals, based outside of China, would rely on the Chinese central bank to both maintain a consistent monetary policy and to protect their financial privacy.