Digital Currency

$2 Billion Worth of Unpeeled Casascius Physical Bitcoins: There’s Less Than 20,000 Coins Left Active

18/09/2021 by Idelto Editor

While bitcoin continues to become more scarce every day, the most popular set of physical bitcoins, crafted by Mike Caldwell from 2011 to 2013, have become far scarcer than their digital counterparts. As of September 18, 2021, there are now less than 20,000 active bitcoins from the Casascius physical bitcoin collection.

Casascius Physical Bitcoin Collection Grows Scarcer

Bitcoin has become a well-known technology and in the early years a number of people and companies deployed concepts called “physical bitcoins.” Essentially, a group or individual would fabricate a coin with the bitcoin symbol etched on it and the coin would also hold digital BTC hidden within the coin’s body.

It’s safe to say that the Casascius physical bitcoin collection created by Mike Caldwell is the most popular collection to date, and these rare physical bitcoins are sold for much more than the face value of the digital bitcoin they hold.

Casascius bitcoins sport a holographic tamper-resistant sticker on one side of the coin, and if the sticker is peeled, the digital bitcoin’s private key is revealed. Caldwell crafted both coins and bars that held loaded bitcoin (BTC) and created series 1 (1-1,000 BTC), series 2 (0.5-500 BTC + the DIY Storage Bars), and series 3 (0.5-1 BTC).

Unfortunately, the U.S. government forced Caldwell to stop minting Casascius bitcoins with loaded BTC on them. By the end of Caldwell’s tenure making these coins, he managed to mint around 27,920 Casascius bitcoins with various increments of loaded BTC. Over the years owners have redeemed the loaded value held on these Casascius bitcoins in a process called a “peel.”

On December 23, 2019, Bitcoin.com News reported on a 100 BTC gold bar that was peeled or redeemed. This means the digital BTC value was spent by the owner and the physical bar is empty with zero digital value left. Ten years after the first Casascius bitcoins were minted, there’s under 20K left that are active with loaded BTC.

19,920 Casascius Physical Bitcoins Left to Peel

According to statistics from casasciustracker.com, on September 18, 2021, there’s approximately 19.92K active Casascius bitcoins waiting to be peeled. So far 8,009 coins or bars have been redeemed over the last ten years and there’s approximately 43K BTC left unpeeled worth over $2 billion.

48,169 BTC worth $2.3 billion has been spent by the peel process. Furthermore, there are some lucky owners who still have yet to peel 1,000 BTC bars or coins worth $48 million using today’s exchange rates. For instance, out of the six 1,000 BTC Series 1 Casascius bitcoins, only 2 have been redeemed so far.

In that same series, Caldwell minted 16 1,000 BTC bars and so far 87.50% or 14 bars have been redeemed. There were 81 Series 2 100 BTC coins (worth $4.8M each) minted by Caldwell and to date 47 coins or 58.02% of the BTC has been redeemed from that minted set.

Today, the Casascius physical bitcoin collection has gathered significant numismatic value and the coins and bars are considered coveted bitcoiner collectibles. Even peeled Casascius bitcoins still hold value and some of them are being sold for $1,999 (for a 2012 piece). A loaded silver Casascius physical bitcoin with 0.1 BTC ($4,834) from 2013 is selling for $20,000 today. A rare unloaded set of 125 Casascius physical bitcoins made of aluminum is selling for $4,995.

What do you think about the fact that there are now less than 20,000 Casascius bitcoins left active today? Let us know what you think about this subject in the comments section below.

Digital Ruble to Help Curb Use of ‘Money Surrogates,’ Russia Says in Financial Strategy Document

15/09/2021 by Idelto Editor

The launch of a digital ruble will be among Russia’s key priorities of digitalization this decade, the country’s financial market development strategy has confirmed. The document claims the issuance of a digital national fiat will help the central bank to prevent Russians from using “money surrogates” as officials have previously called cryptocurrencies.

Bank of Russia to Issue Digital Ruble by 2030, According to Financial Market Development Plan

The Strategy for the Development of the Financial Market of the Russian Federation by 2030 was released this week by the Ministry of Finance. The plan is open for public discussions between Sept. 14 and Oct. 13, 2021, according to a notice published by the State Automated Information System.

The strategy defines the launch of a digital version of the Russian ruble as one of the priority tasks in the field of digitalization, as Bits.media crypto news outlet reported. The digital ruble, the authors have pointed out, will become the third form of money issued by the Central Bank of Russia (CBR).

The central bank digital currency (CBDC) is expected to facilitate the development of Russia’s payment infrastructure and the introduction of innovative financial instruments. The digital ruble should also increase the availability of banking services for private and corporate users while reducing transaction costs.

Moscow hopes the digital ruble will allow it “to continue to discourage the use of monetary surrogates” which are banned under current law. Russian regulators have previously described cryptocurrencies using that term. The Finance Ministry insists money surrogates bring money laundering and terrorist financing threats, pose risks to Russian citizens while hindering macroeconomic policies.

Furthermore, Russia plans to proceed with the development of its Mir payment system, the country’s Faster Payments System and Financial Messaging System. Bank of Russia will implement Suptech and Regtech solutions to analyze transactions and monitor regulatory compliance in order to more effectively manage risks and ensure information security. The document notes:

In the context of the launch of the digital ruble and the development of payment instruments, the Government of the Russian Federation and the Bank of Russia will continue to oppose the use of monetary surrogates.

To ensure consumer protection, Russia will take into account international standards set by the Committee on Payments and Market Infrastructure, the International Organization of Securities Commissions and the Financial Stability Board, the strategy emphasizes. The digital ruble should enable authorities to better deal with crises and inflation as they maintain the stability of the Russian economy.

The publishing of the financial market strategy comes after the Bank of International Settlements (BIS) recently urged central banks to quickly develop their CBDCs to compete with payment initiatives in the private sector. At a financial forum in Slovenia, Benoît Cœuré, who heads the BIS Innovation Hub, warned monetary authorities should accelerate their work on state-issued digital currencies as “stablecoins and cryptoassets are already here.”

Speaking to reporters last week, President Vladimir Putin’s press secretary Dmitry Peskov stated that the Russian Federation is not ready to recognize bitcoin, insisting that such a move would not bring any benefits to the country. In May, Bank of Russia’s Deputy Governor Olga Skorobogatova announced that the CBR is preparing to present a digital ruble prototype by the end of 2021.

Do you think the digital ruble will limit the use of cryptocurrencies in Russia? Share your thoughts on the subject in the comments section below.

Crypto Mining Should Be Registered and Taxed in Russia, Financial Market Committee Chair Says

12/09/2021 by Idelto Editor

Cryptocurrency mining should be registered as entrepreneurial activity and taxed as such, according to Anatoly Aksakov, chairman of Russia’s parliamentary Financial Market Committee. The lawmaker also thinks Russian digital currency regulations need refinement.

Amendments Likely to Affect Mining, Taxation, Definition of Digital Currency

Discussing upcoming changes in the legislation regarding digital currencies in Russia, head of the Financial Market Committee in the State Duma, Anatoly Aksakov, expressed his opinion that cryptocurrency mining should be added to Russia’s register of entrepreneurial activities and taxed accordingly.

The treatment of crypto mining and the taxation of cryptocurrency-related operations are among the areas that are likely to be affected by the legal amendments to be adopted during the fall session of the Russian parliament. Speaking to Tass news agency on the sidelines of the Moscow Financial Forum this week, Aksakov elaborated:

Since this is a type of entrepreneurial activity, obviously, it is necessary to enter it into the register, assign a corresponding code and introduce taxation.

The parliamentarian was positive that amendments concerning digital currencies are to be expected as the Duma has already adopted on first reading a law dealing with the taxation of “in fact, cryptocurrencies.” Earlier this month, Chairman of the Committee on Legislation Pavel Krasheninnikov told Interfax that he hopes the law will hit the floor of the lower house again in the coming months.

Anatoly Aksakov further noted that the use of the legal term pertaining to cryptocurrencies, as it’s now defined, causes confusion. The concept of “digital currency” can refer to a central bank digital currency (CBDC) issued by the Bank of Russia but it can be understood as cryptocurrency as well, the lawmaker explained. Aksakov thinks the two should be clearly distinguished.

The Financial Market Committee chairman insisted more discussions are needed to determine what “digital currency” actually means. Although cryptocurrency is referred to as digital currency in Russian law, Aksakov pointed out that it is used as a financial instrument and financial asset for investment purposes rather than as a means of payment.

The high-ranking member of the Russian parliament added that Bank of Russia’s powers to issue a digital ruble and maintain its circulation should also be defined. The monetary authority announced a plan to digitalize the national fiat currency last October. The central bank is preparing to issue a prototype of the CBDC by the end of this year.

What are your expectations about the upcoming legal changes regarding cryptocurrencies and related activities in Russia? Let us know in the comments section below.

Crypto Market Is ‘Development Vector’ of Nation’s Digital Economy, Ukraine President Says

08/09/2021 by Idelto Editor

President of Ukraine Volodymyr Zelensky has highlighted the importance of launching a legal digital assets market in his country during a working visit to the U.S. The Ukrainian head of state met with top investors including from the cryptocurrency industry.

President Zelensky Highlights Importance of Ukraine’s Virtual Assets Market

Speaking to venture capital funds and Silicon Valley accelerators, Volodymyr Zelensky praised the opportunity to discuss the prospects for the development of the IT sector and innovations in Ukraine. In his opening remarks at the event, quoted in a press release, the Ukrainian leader emphasized his country has made a “real breakthrough in the digital sphere” and a “huge leap towards creating a digital state” over the past year.

At a meeting with representatives of the Stellar Development Foundation, the president expressed hope that in the near future the institution will find more opportunities to expand its activities and team as well as to eventually establish an R&D center in the East European nation. “After all, Ukraine is now the best magnet with blockchain and crypto specialists in Europe,” Zelensky remarked, further emphasizing:

And one of the vectors of development of Ukraine’s digital economy is the launch and development of a legal innovative market for virtual assets.

Earlier this year, Ukraine’s Ministry of Digital Transformation signed a memorandum of understanding with the foundation aimed at supporting the ongoing efforts of the Ukrainian government to develop a legal framework for the country’s expanding crypto space. The agreement also covers Stellar’s participation in building the infrastructure for the Ukrainian national digital currency.

Ukrainian Minister of Digital Transformation Mykhailo Fedorov, who was part of the delegation, noted that Ukraine has one of the world’s largest blockchain developer communities and is working to become an attractive jurisdiction for both local and foreign crypto companies. He added that the country is also modernizing its payments market which will allow the National Bank of Ukraine to issue the digital hryvnia.

The current administration in Kyiv has maintained a generally positive attitude towards the crypto and blockchain industry but is yet to adopt comprehensive regulations for its activities. A draft law “On Virtual Assets,” which was recently revised, is expected to be adopted by the end of this year.

In July, government officials and business representatives produced a roadmap to transform Ukraine into a leader in cryptocurrency integration. A central part of the new strategy is the plan to develop the country’s virtual assets market within the next three years.

Do you expect Ukraine to become a leading crypto friendly destination in Europe? Let us know in the comments section below.

ECB Officially Starts to Investigate Digital Euro — Development Could Begin in 2 Years

07/09/2021 by Idelto Editor

The European Central Bank (ECB) says it is “starting to investigate” a digital euro by launching a two-year investigation. ECB President Christine Lagarde believes the ECB should be ready to respond to people’s demands for digital currencies and come up with a European-based solution that “does not jeopardize the whole banking system.”

Lagarde Unveils ECB’s Plans to Respond to Digital Currency Demand With Digital Euro

The president of the European Central Bank (ECB), Christine Lagarde, talked about central bank digital currencies (CBDCs), particularly the digital euro, in an interview last week with Klaus Schwab, founder and executive chairman of the World Economic Forum.

Following the interview, Lagarde tweeted: “We at ECB believe that we should be ready and have the technology available to respond to people’s demands. That’s why we are launching a two-year investigation into a digital euro.”

The ECB’s website states:

We are now starting to investigate what a digital euro might look like. This investigation phase will start in October 2021 and last for about two years.

“We will look at how a digital euro could be designed and how it could be distributed to merchants and citizens, as well as the impact it would have on the market and the changes to European legislation that might be needed,” the European Central Bank detailed.

ECB chief Lagarde further explained to Schwab, “If customers prefer to use digital currency rather than have banknotes and cash available, it should be available.” She opined:

We should respond to that demand. And make sure that we have a solution that is European based, that is secure, that is available under friendly terms, that can be used as a means of payment at reasonable terms as well and does not jeopardize the whole banking system, which should be part and parcel of the proposal.

Lagarde continued: “So that’s the reason why we’ve decided to go ahead with a two-year experiment to ensure that we can actually respond to that demand: Availability, just as cash is available and will continue to be available, but it will be a consumer’s preference; the safety and security of the device; user-friendliness; cheap cost; and ways of transacting business that will be recognized and accepted not only in the euro area, but around the world.”

The ECB clarified:

Once the investigation phase has ended, we will decide whether or not to start developing a digital euro. We would then create and test possible solutions, working together with banks and companies which could provide the technology and the payment services.

Do you think the ECB should launch a digital euro? Let us know in the comments section below.