News Updates August 13, 2022

1. The Deputy Minister Of Digital Transformation Says Ukraine Should Launch A CBDC

In a four-tweet thread on Friday, Ukraine’s Deputy Minister Of Digital Transformation, Alex Bornyakov, argues that Ukraine has much to benefit from creating a Central Bank Digital Currency (CBDC).

“I believe Ukraine could benefit from launching its national currency on blockchain. CBDC as a new form of programmable monetary instrument can be a big leap toward digitalization of the state finance system,” Bornyakov asserts at the beginning of his thread.

According to Bornyakov, a digital hryvnia run on the blockchain can improve the cost and speed of transactions across the board. Additionally, he asserts that with a CBDC, Ukraine’s tax revenue could increase as tax gaps come to light. 

* Improved transparency in public office transactions and records.

* Ease of donation to rebuilding efforts with better transparency in handling these donations.

* A potential strategic economic advantage.

It is worth noting that Bornyakov has been one of the more influential voices applauding the role of cryptocurrency and blockchain technology in Ukraine’s war effort. As previously reported by The Crypto Basic, Bornyakov, in July, asserting that the crypto industry is here to stay, reiterated that digital assets remain critical to the country’s defense plans.

Notably, unlike other means of receiving donations, Ukraine can receive crypto donations within minutes. As a result, crypto donations played a crucial role in providing the required equipment and amenities needed in the early days of the country’s struggle against the Russian invasion.

While the launch of a CBDC would take Ukraine’s blockchain adoption one step further, it is also likely to spark privacy debates and possibly backlash from privacy advocates. It is worth noting that while CBDCs have the potential for certain benefits, privacy advocates do not support the idea of the central bank being able to watch or, worse, regulate how citizens spend their money.

Notably, several nations are already exploring the idea of launching a CBDC, including the United States, as China is already in the advanced stages of testing.

2. Bitcoin (BTC) Fear and Greed Index Back to Neutral Zone for First Time in 17 Weeks

As Ethereum (ETH) and Bitcoin (BTC) are struggling with major levels of resistance, crypto sentiment indexes are getting back to "Neutral" zones.

 *Crypto "Fear & Greed" index jumps to early April levels* 

According to the estimation of Alternative, for the first time since April 6, 2022, the cryptocurrency "Fear & Greed" index is at 46/100. While it is still below 50/100, the analysts are treating this metric as "Neutral."

As such, this crucial indicator of Bitcoin (BTC) sentiment managed to shrug off the losses caused by the Terra (LUNA) collapse and the subsequent dramatic plunge of crypto prices.

In June 2022, the index briefly plummeted to 6/100, which indicated a level of fear unseen in many years. Only one week ago, the index was at 30/100. Yesterday, Bitcoin (BTC) tried to reclaim the $25,000 level for the first time in two months. Ethereum (ETH), the second cryptocurrency, jumped over $2,000. Bitcoin (BTC) and Ethereum (ETH) holders who were lucky enough to buy the bottom in mid-June 2022, are now up 40% and 100%, respectively.

3. Bitcoin traders still favor new $20K lows as Ethereum hits $2K

Bitcoin (BTC) is still due to return to near $20,000, fresh analysis warns as BTC/USD attempts to retest multi-month highs. 

 *Buy-the-dip set for invalidation at $20,700*

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD staging a second run-up to near $25,000 on Aug. 13, so far seeing rejection.

The pair had gained over $1,300 overnight, but as bulls again ran out of momentum near crucial resistance, few were optimistic over Bitcoin avoiding a deeper comedown.

"One last high to rekt early shorts," popular trading account Il Capo of Crypto told Twitter followers.

Similarly cautious was fellow trader Jibon, who said that he would even prefer to wait and "buy higher" than spot price to rule out any trend reversals.

More bullish was trading account Credible Crypto, who argued that any corrections would still be bullish unless $20,700 was broken.

"Relief went a big higher than expected but looks like a liq grab of local highs and still think a move down to green before continuation to 28k+ makes most sense," he commented on an accompanying chart.

Targeting high 20s of $27,000 - $28,000 as long as we remain above the range high," Crypto Tony added, continuing a strategy from earlier in the week with $24,500 a key support level.

4. Bitcoin mining revenue jumps 68.6% from the lowest-earning day of 2022

Since July 2022, the Bitcoin ecosystem recovered across numerous determinants, including miners’ revenue in dollars, network difficulty and hash rate.

The Bitcoin (BTC) mining industry endured immense financial stress throughout the year 2022 as a prolonged bear market directly impacted their earnings when translated to the U.S. dollar. However, miners resilient to the year’s lowest mining revenue day, June 13, witnessed a 68.63% increase in mining revenue within a month.

Over the year, revenue from Bitcoin mining dropped due to a multitude of factors centered around investor sentiment — driven by tensions arising from market crashes, ecosystem collapses and loss-making investments. Cutting through the noise, the Bitcoin ecosystem recovered across numerous determinants, including miners’ revenue in dollars, network difficulty and hash rate.

Data from blockchain.com confirms that BTC mining revenue jumped nearly 69% in one month — from $13.928 million on July 13 to $23.488 million on Aug. 12. The significant increase in mining revenue reassures Bitcoin mining as a viable business despite high operational costs. In addition, lower mining equipment (GPU) prices have allowed BTC miners to expand their existing infrastructure as they pursue mining the last 2 million BTC.

Alongside mining revenue, Bitcoin’s hash rate grew over 10% over the last month, adding to the network’s resilience against double-spending attacks. However, as a result, network difficulty — a measure of how difficult it is to mine a new BTC block — increased for the first time since June.

 *BTC mining stocks double in a month as production ramps*

Mirroring the positive outcomes across the Bitcoin network, crypto mining companies reported increased stock prices over the last month.

Crypto mining companies, including Hut8 Mining Corp., Marathon Digital Holdings and Core Scientific, revealed skyrocketing stock prices, each performing at least 95% better than June 2022.

5. Philippines’ Unionbank to Support Cryptocurrency Exchange via Mobile App

Union Bank of the Philippines, commonly known as Unionbank, has announced the upcoming launch of another crypto service for its clients. The financial institution will offer select users of its mobile app the option to exchange bitcoin and other digital currencies without a separate wallet.

 *Unionbank to Add In-app Crypto Exchange Feature, Reportedly a First in the Philippines*

The Union Bank of the Philippines (Unionbank) is working to become the first universal bank in the country to facilitate cryptocurrency exchange within its mobile application. Users will be able to buy and sell cryptocurrencies such as bitcoin directly from the banking app, the lender said, doing away with the need to have a third-party wallet.

In a statement quoted by the ABS-CBN broadcasting network, Unionbank shared its view that blockchain is a technology that will power the future of banking. “At the same time, we also recognize that cryptocurrency has been one of the services that a lot of customers are already looking for, especially the younger generation, and this demand was accelerated by the pandemic,” commented Cathy Casas, head of digital asset markets, blockchain and application programming.

Unionbank, which is one of the top 10 banks by assets under management in the Philippines, has already established itself as a crypto-friendly institution. About a year ago, it announced preparations to pilot a custody service for cryptocurrencies, and in January of this year, the bank unveiled a plan to facilitate crypto trading.

The new exchange functionality will initially be offered to randomly pre-selected users of the banking app, Unionbank explained, but emphasized it will aim for a wider rollout in the near future. Senior Executive Vice President, Chief Technology and Operations Officer, and Chief Transformation Officer Henry Aguda has been quoted as saying:

All three companies, however, posted widened losses, driven by impairment losses on their crypto holdings.

6. Philippines’ Unionbank to Support Cryptocurrency Exchange via Mobile App

Union Bank of the Philippines, commonly known as Unionbank, has announced the upcoming launch of another crypto service for its clients. The financial institution will offer select users of its mobile app the option to exchange bitcoin and other digital currencies without a separate wallet.

 *Unionbank to Add In-app Crypto Exchange Feature, Reportedly a First in the Philippines*

The Union Bank of the Philippines (Unionbank) is working to become the first universal bank in the country to facilitate cryptocurrency exchange within its mobile application. Users will be able to buy and sell cryptocurrencies such as bitcoin directly from the banking app, the lender said, doing away with the need to have a third-party wallet.

In a statement quoted by the ABS-CBN broadcasting network, Unionbank shared its view that blockchain is a technology that will power the future of banking. “At the same time, we also recognize that cryptocurrency has been one of the services that a lot of customers are already looking for, especially the younger generation, and this demand was accelerated by the pandemic,” commented Cathy Casas, head of digital asset markets, blockchain and application programming.

Unionbank, which is one of the top 10 banks by assets under management in the Philippines, has already established itself as a crypto-friendly institution. About a year ago, it announced preparations to pilot a custody service for cryptocurrencies, and in January of this year, the bank unveiled a plan to facilitate crypto trading.

The new exchange functionality will initially be offered to randomly pre-selected users of the banking app, Unionbank explained, but emphasized it will aim for a wider rollout in the near future. Senior Executive Vice President, Chief Technology and Operations Officer, and Chief Transformation Officer Henry Aguda has been quoted as saying:

7. Japan Appoints Political Heavyweight as New Digital Minister, Boosting Web3 Hopes

Hopes are high in Japan that the government will put Web3 development at the front and center of its economic plans – after its Prime Minister appointed a new minister in charge of digital affairs.

On Twitter, the politician Taro Kono announced that he had been appointed to the post by the Prime Minister, Fumio Kishida, in the latter’s latest ministerial reshuffle.

The appointment appears to be a clear sign of intent from Kishida: Kono is a former tech industry chief, has a particularly high social media presence, and as a former Georgetown University alumnus, is fluent in English. He has previously headed the foreign ministry and is also the former Minister of State for Administrative Reform.

During his term as Foreign Minister, Taro Kono held an official meeting with the Ethereum (ETH) co-founder Vitalik Buterin and the Ethereum Foundation’s Executive Director Aya Miyaguchi.

Last year, Kono narrowly lost the Liberal Democratic Party (LDP) leadership election race to Kishida. Had he won, he would have taken on the role of PM.

More recently, he took to Twitter to ask his 2.4 million followers to create a digital avatar that he could use in metaverse spaces.