A member of Brazil’s chamber of deputies wishes to provide government workers with a bitcoin payment option.
Cryptocurrencies are continuing to gain traction as a payment option by businesses and governments alike. Recently, Deputy Luizão Goulart of Brazil proposed a bill to allow public and private sector workers to be paid in bitcoin. If passed, this would be the biggest national move to support digital asset adoption since El Salvador’s legal tender law.
What’s in the Bill?
The bold bill – proposed earlier this week – comes amidst an ongoing regulatory debate in Brazil surrounding Bitcoin. The first lines of the bill state that workers may be partially and optionally compensated for their work in crypto.
“This Law establishes that part of the remuneration of the worker can, optionally, be made through cryptocurrencies.”
Notably, this bill emphasizes the optional nature of the proposal, in contrast to El Salvador’s approach. Nayib Bukele’s Bitcoin law drew controversy for article 7 – a stipulation mandating that all businesses accept Bitcoin as payment, even though the president repeatedly said the BTC usage is optional.
Instead, this law would allow employees to choose what exact percentage of their salary is received in crypto. The employer must also agree to the proposed remuneration.
The Importance of Bitcoin
Defending the bill, the deputy explained that adaptation is necessary during what he calls “the fourth digital revolution.” He discussed the significance of money itself, allowing humanity to escape a “primitive barter society.” Goulart then argued that Bitcoin is the “antithesis of the current global financial system” as it does not rely on trust in financial institutions to operate.
The deputy finished saying that the future is in their hands:
“It is only up to us to adapt, reinvent and progress along this wonderful path of Modernity in order to establish a Global Economy that facilitates the daily lives of citizens and, above all, provides a good quality of life for all.”
There is some evidence that Brazil would be welcoming to this proposal. A poll from September shows 48% of citizens in support of making Bitcoin their official currency. Like Goulart, citizens appeared most familiar with and interested in Bitcoin by far, compared to altcoins.
Bitcoin Miner Riot Blockchain Purchased ESS Metron for $50 Million
Riot Blockchain paid $25 million in cash, while the other $25 million consisted of up to 715,413 Riot shares to acquire ESS Metron.
One of the leading cryptocurrency mining companies in the US – Riot Blockchain – acquired the electrical equipment provider – Ferrie Franzmann Industries (known as ESS Metron) for $50 million. As a result, the latter will provide a steady infrastructure supply for Riot’s new mining machines.
The news was announced in a recent press release by the US Securities and Exchange Commission (SEC). The total amount of the transaction equals $50 million as the bitcoin mining firm paid $25 million in cash, funded with capital from its balance sheet. The other half consisted of up to 715,413 shares of Riot common stock.
The mining company expects to benefit from the deal by utilizing ESS Metron’s “highly engineered electrical equipment solutions” as Riot plans to expand to 700 MW. Previously, ESS Metron helped Riot develop customized immersion-cooling technology for its 200 MW expansion project.
Jason Les – Chief Executive Officer at Riot Blockchain – described the acquisition as “another milestone in establishing” his firm as a leader in its field.
“Riot’s strategic position across the electrical supply chain is significantly enhanced as the company will benefit from ESS Metron’s existing relationships with leading electrical suppliers globally,” he added.
Stephen Howell – CEO of ESS Metron – asserted that his organization will keep providing “best-in-class service” to its growing customer base and aid Riot Blockchain in its expansion efforts.
The American bitcoin mining company is one of the giants in its sector and is even listed on Nasdaq under the ticker symbol “RIOT.” A few months ago, it purchased Whinstone US – the owner-operator of North America’s single largest BTC mining and hosting facility.
Riot’s Previous Purchases
Earlier this year, Riot Blockchain increased its mining capacity by buying 42,000 S19 Antminers from Bitmain (a Hong Kong-based cryptocurrency mining products manufacturer).
The purchase was worth at least $138 million and was part of the firm’s plans to boost its bitcoin mining hashrate, aiming at 7.7 EH per second.
“By nearly doubling its planned hash rate capacity, Riot continues to take great strides forward in growing both the Company’s and the United States’ share of the global network hash rate,” – said Megan Brooks, COO of Riot Blockchain.
SEC Rejects WisdomTree’s Bitcoin ETF Proposal
The SEC has rejected another Bitcoin ETF, reiterating its oft-repeated concerns about market manipulation.
The U.S. Securities and Exchange Commission has expectedly shot down WisdomTree’s proposal to launch a spot Bitcoin exchange-traded fund.
In its order, the SEC explains that the rejection is necessary to protect investors from “fraudulent” and “manipulative” acts.
As reported by U.Today, VanEck’s spot Bitcoin ETF proposal was rejected as well in early November.
According to Bloomberg Intelligence’s James Seyffart, the regulator will highly likely deny Kryptoin’s spot ETF bid as well before Christmas.
We have another #Bitcoin ETF Denial letter from the SEC from @WisdomTreeETFs' application. This disapproval was very much expected… Next up is Kryptoin's application which will likely be denied just before Christmas. pic.twitter.com/HvUDlAGDqg— James Seyffart (@JSeyff) December 2, 2021
While the SEC has greenlit futures-based ETFs in October, the regulator is hesitant to approve an ETF that will directly track the value of the largest cryptocurrency, continuing its string of rejections that started with the application of the Winklevoss twins all the way back in 2013.
As reported by U.Today, SEC Chair Gary Gensler recently said that Bitcoin is trading on unregulated exchanges around the globe that operate outside the U.S. regulatory register, which explains why the regulator is not on board with a spot Bitcoin ETF.
Bitcoin network volume increases and Earth “goes to the moon” – Market Summary
This Thursday (22) while bitcoin continues to struggle below US$57,000, altcoin Terra added more than 60% of the value in one week, resulting in a new ATH. Solana is the only one in the top 5 that has risen in 24 hours, according to CoinGoLive.
Although the month of November was characterized by high volatility, the demand for satoshis has not diminished and the volume of the Bitcoin network is increasing. Also check the Market Summary for the impact of the advancement of the omicron variant on traditional financial exchanges.
Bitcoin network volume is increasing
November was the month in which no one beat the 1.08% inflation measured by the IPC-S. Among the assets best known by Brazilians, CDI (+0.52%), BM&F gold (+0.04%), Ibovespa shares (-1.53%) and even Bitcoin, which accumulates in 30 days a drop of 6% failed to have real gains.
In the case of Bitcoin in particular, the month of November was characterized by high volatility. However, demand for satoshis has not diminished, quite the contrary: Mempool yesterday posted the highest value since July, when China’s FUD led to market sales.
Without much influence from the increase in demand, at the moment, the cryptocurrency leader is trading at US$ 56,552 – R$ 320,420 in the main Brazilian brokers – and its market capitalization is still well below US$ 1.1 trillion.
Dominion over the entire market is below 41%. However, the net dominance of BTC is around 72.80%.
First case of the omicron variant in the US
During this week, while waiting for a possible approval of the PEC dos Precatório in the Senate, Brazilian investors returned to worry about the advance of the omicron variant of the new coronavirus and with a new signal from the FED president, Jerome Powell, towards the withdrawal of monetary stimuli .
Due to these fears, the Ibovespa was pulled to 100,000 points. The dollar, in turn, erased the fall and ended the day with a high of 0.59%, at R$ 5.67.
Read too: THE END OF THE REAL is near, understand why
For Brazilians, it will be interesting to defocus a little on the political agenda, to pay attention to the quarterly GDP data that will be released today by the IBGE. We reported yesterday the data from the Continuous Pnad that indicates a retreat in the unemployment rate in the third quarter.
New York’s financial markets traded most of yesterday’s session in positive territory, but erased gains after confirming the first case of the new covid-19 variant, the omicron, in the US and closed the session on the downside.
The Dow Jones Index closed yesterday down 1.34%, the S&P 500 retreated 0.18% and the Nasdaq dropped 1.83%. The three indexes even registered gains of more than 1% at the beginning of the session.
the earth goes to the moon
Since yesterday, most altcoins have been in the red. The second-largest cryptocurrency, for example, was an inch away from hitting a new price record yesterday, but failed to reach that level, dropping 3.19% in 24 hours. In contrast, Solana and Dogecoin see slight gains.
Terra, on the other hand, has the best performance after a double-digit jump. In addition, your native LUNA token hit a new all-time high just a few hours ago, at around $65, with a 60% increase in one week. Could it be said that the Earth went to the Moon, then?
The result of the main altcoins in the last 24 hours is as follows: Ethereum (-3.19%), Binance Coin (-3.37%), Solana (+1.99%), Cardano (-0.07%), Ripple (-2.80%), Polkadot (-4.18%), Dogecoin (+1.22%), Avalanche (-5.94%), Terra (+5.50%) and Shiba Inu (-4 .44%).
According to CoinGoLive, the market capitalization of all crypto assets is around $2.74 trillion as of this Thursday.
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