El Salvador has moved to adopt bitcoin as legal tender. The Central American nation, however, will not receive the technical assistance it requested from the World Bank and must look for alternatives.
The World Bank refuses technical assistance to El Salvador
El Salvador is officially the first country to adopt bitcoin as legal tender. While the country has taken this historic step, there is still significant work to be done to implement the new system. The World Bank denied El Salvador’s request for technical assistance related to adopting bitcoin alongside the US dollar. As a result, El Salvador has turned to the International Monetary Fund (IMF), and the country’s finance minister has reported that discussions with the IMF are proceeding without obstacles. The Central American Bank for Economic Integration (CABEI) has also offered to assist El Salvador with the technical aspects of implementing bitcoin.
Although not yet formalized, El Salvador is considering paying some public-sector salaries in bitcoin. A final decision will be made once the legal status of bitcoin as official currency is fully enacted into law.
MicroStrategy grows more bullish
After raising $500 million last week to buy additional bitcoin, MicroStrategy is continuing to expand its market position. This week the company announced plans to sell up to $1 billion in shares. The proceeds would be used for general corporate purposes and to purchase more bitcoin. MicroStrategy currently holds the largest corporate bitcoin position globally, and additional purchases would push its holdings to over 100,000 BTC.
US SEC delays decision on VanEck bitcoin ETF again
The U.S. Securities and Exchange Commission (SEC) has once again postponed its decision on approving the VanEck bitcoin ETF. The regulator says it is seeking input on potential market manipulation concerns and will decide on approval only after considering those views. The SEC remains uncertain about bitcoin as an asset class and is open to additional opinions. For the time being, the agency does not plan to issue comprehensive bitcoin regulation this year; its 2021 regulatory agenda does not include bitcoin, suggesting that formal crypto regulation in the United States may not occur this year.
Shiba Inu listed on Coinbase Pro
Cryptocurrency exchange Coinbase has accelerated the pace at which it lists new tokens across its platforms. After listing dogecoin in early June, Coinbase added three more cryptocurrencies to Coinbase Pro this week, including Shiba Inu, another popular meme token. Coinbase Pro also listed Chiliz and Keep Network. Trading for these tokens is now available on Coinbase Pro.
Tesla may accept bitcoin again under one condition
Tesla CEO Elon Musk indicated the electric car maker would accept bitcoin again for vehicle purchases if crypto miners commit to using renewable energy for mining operations. Tesla stopped accepting BTC after concerns arose that many miners rely on non-renewable energy sources. Environmental considerations prompted Tesla to suspend bitcoin as a payment option. The company says it will resume accepting bitcoin once a sufficient number of miners pledge to use renewable energy for their mining activities.
General Motors open to accepting BTC if demand is high
GM CEO Mary Barra stated the automaker would consider accepting bitcoin as a payment option if customer demand justifies it. While GM does not currently plan to invest in bitcoin, the company would permit customers to use the cryptocurrency to purchase vehicles if enough buyers request the option. If that happens, GM would follow a similar path to Tesla, although Tesla has temporarily suspended its BTC payment option for now.
Goldman Sachs to offer ether futures and options to clients
Investment bank Goldman Sachs plans to offer ether futures and options to its clients. The bank has been active in the crypto sector, historically focusing more on bitcoin, but now aims to deepen its presence by providing derivatives tied to ether. Goldman Sachs has also invested in several crypto-related firms as part of its broader strategy to expand in the market.
Thailand’s SEC bans trading of NFTs and meme tokens
The Thai Securities and Exchange Commission (SEC) has ordered crypto exchanges operating in Thailand to delist non-fungible tokens (NFTs) and meme altcoins from their trading platforms. The regulation requires exchanges to remove NFTs, meme altcoins, and fan tokens from trading. The ban also applies to digital tokens issued on a blockchain by an exchange or by an individual affiliated with an exchange.
Kraken considers an IPO
U.S.-based crypto exchange Kraken had previously considered a direct listing like Coinbase, but after watching COIN’s significant losses over recent months, Kraken is re-evaluating its options. The exchange is now contemplating a traditional initial public offering (IPO). Kraken aims to go public by 2022, though it has not announced whether it will list in the United States or in another jurisdiction.
Paul Tudor Jones allocates 5% of portfolio to BTC
Renowned investor and Tudor Investment Corporation founder Paul Tudor Jones revealed plans to allocate up to 5% of his portfolio to bitcoin. Jones views bitcoin as a store of value and believes the crypto market has matured significantly in recent years. A 5% allocation from an investor of his stature would inject hundreds of millions of dollars into the cryptocurrency market.