Dollar

Crypto Exchange Coincoinx to Launch Crypto to Fiat Payments App in Venezuela

02/07/2022 by Idelto Editor

Coincoinx, a cryptocurrency exchange, will reportedly launch a service that will allow users to skip trading crypto for fiat to make payments in Venezuela. The service, which is called Coinpago, will allow users to make payments in every store and retailer in the country that accepts Pagomovil, a banking service that allows seamless fiat transfers between banks in the country.

Coincoinx to Ease Crypto Payments in Venezuela

While cryptocurrency is slowly going mainstream, becoming more popular in many locations around the world, there are still many retailers and service providers that are not accepting cryptocurrency as a means of payment. However, services that combine traditional bank-based payments and crypto are growing, and bringing functionality to crypto users. Coincoinx, a cryptocurrency exchange in Venezuela, has announced the launch of a service that will combine crypto and fiat for traditional payments.

The service, called Coinpago, aims to allow customers of the exchange to bypass trading their cryptocurrency to make fiat-based payments, so they can make payments on the go. Coinpago will let users skip the exchange phase and give them the possibility of making use of the Pagomovil service, allowing people to pay wherever this kind of bank-based payment method is accepted.

Payments Scene

While some time ago the use of the dollar in Venezuela was forbidden by law, in recent years this situation has become more flexible, with the dollar taking an important spot in the global payments panorama of the country. However, the native fiat currency has started to retake an important spot for payments due to the introduction of the foreign fiat and cryptocurrency tax, which adds 3% to any payment using these.

This has reduced the number of cryptocurrency payments, with people being swayed to pay with fiat. With the proposed service, in its beta stages, Coincoinx seeks to address the problem. The tool will also allow people outside of the country to make fiat payments to pay for purchases of their families in the country, serving as a way of substituting remittances, too.

Leonardo Galindez, CEO of the exchange, stated:

With this tool we are trying to make life easier for people. For example, if you have a relative in Spain who opens a CoinCoinX account and has funds available in tether or bitcoin, they will be able to make a pago movil instantly.

What do you think about this new service to ease crypto-to-fiat payments in Venezuela? Will it be successful? Tell us in the comments section below.

Independent Russian News Site Meduza Raises Over $200,000 in Crypto

11/05/2022 by Idelto Editor

Pressure from the Kremlin and sanctions from the West have forced Russian news outlet Meduza to increasingly rely on cryptocurrency donations to fund its independent journalism. As the restrictions imposed over Moscow’s invasion of Ukraine have prevented its Russian readers from contributing in fiat currency, the Riga-based website now accepts several digital coins.

Meduza Pulls Journalists out of Russia, Seeks Crypto Support

The war in Ukraine has affected Russian-language news site Meduza in more than one way, a report by Bloomberg reveals. Soon after the Kremlin launched its “special military operation,” President Vladimir Putin’s administration clamped down on independent reporting on the conflict and the media outlet has sought help to resettle its 25 journalists in Latvia.

The small Baltic nation of around 2 million, which has a large Russian speaking minority, has become a hub for exiled Russian media. Western sanctions, however, do not allow Meduza’s 30,000 Russian readers who supported it before the conflict to send funds through Stripe, after the payment processor suspended services in the Russian Federation to comply with the penalties.

The war and the sanctions have forced Meduza to turn to its international audience and ask for financial help in U.S. dollars, euros, or cryptocurrency. It now accepts card payments, bank wires, Paypal transfers, and multiple coins including bitcoin (BTC), ether (ETH), the stablecoin tether (USDT), and the privacy-oriented monero (XMR). The report notes that the provided BTC and ETH wallets have already accumulated about $230,000 worth of cryptocurrency.

Commenting on the situation, the news portal’s editor-in-chief Ivan Kolpakov pointed out that Meduza is currently raising only around half of what it needs to develop. While declining to reveal the total amount of donations, he noted that the website is soliciting crypto and relying entirely on money from foreigners for the first time and stated:

We couldn’t predict that the sanctions of Western governments will come first and destroy our crowdfunding.

Independent Russian media outlets have faced unprecedented pressure from authorities in Moscow and as a result some have shut down, while others have been blocked by the Russian state. The Novaya Gazeta newspaper suspended publication in March after receiving warnings about its coverage, and the Ekho Moskvy radio station had its FM frequency handed over to the state-run Sputnik.

Meduza, which was founded in the Latvian capital after Russia’s annexation of Crimea in 2014, during another media crackdown, was labeled last year a “foreign agent” by the Russian government. The designation, which targets Russian media receiving funding from abroad, had already hurt its advertising revenue before the new sanctions effectively ended Russian donations.

Do you expect other independent Russian publications to turn to cryptocurrency donations to fund their reporting? Tell us in the comments section below.

ECB to Cease Bond Purchases in Q3, Lagarde Says EU’s Economic Rebound ‘Crucially Depends on How the Conflict Evolves’

14/04/2022 by Idelto Editor

After the inflation rate in the eurozone reached a high of 7.5% in March, the European Central Bank (ECB) and the bank’s president Christine Lagarde explained on Thursday the central bank’s bond purchases will cease in Q3. Reiterating what she said at a press conference in Cyprus two weeks ago, Lagarde stressed on Thursday that inflation “will remain high over the coming months.”

European Central Bank Plans to End Asset Purchase Program in Q3

The eurozone is suffering from significant inflationary pressures as rising consumer prices are ravaging European Union (EU) residents. In March, data from the ECB had shown consumer prices skyrocketed to 7.5% and the ECB’s president Christine Lagarde expected energy prices to “stay higher for longer.” On April 14, members of the ECB met and then told the press that the central bank plans to cease its APP (asset purchase program) by the third quarter.

“At today’s meeting the Governing Council judged that the incoming data since its last meeting reinforce its expectation that net asset purchases under the APP should be concluded in the third quarter,” the ECB disclosed to the press. After the APP ends, the bank is expected to start hiking the benchmark bank rate. However, in Lagarde’s opinion, it will depend on what happens with the current Ukraine-Russia war.

The EU’s economic improvement, Largade said “will crucially depend on how the conflict evolves, on the impact of current sanctions, and on possible further measures.” The central bank’s message on Thursday highlighted that benchmark bank rates won’t change until end of the APP. “Any adjustments to the key ECB interest rates will take place some time after the end of the Governing Council’s net purchases under the APP and will be gradual,” the ECB detailed in a statement.

Fidelity International Global Macroeconomist: ECB Faces a ‘Tough Policy Trade-off’

Following the ECB’s and Largade’s statements, the gold bug and economist Peter Schiff threw in his two cents on Twitter about the central bank keeping rates suppressed. “The ECB announced interest rates will stay at zero until it judges inflation will stabilize at 2% over the medium term,” Schiff tweeted. “Eurozone inflation is currently 7.5%. How will throwing more gasoline on a fire put it out? Europeans are stuck with inflation well above 2% indefinitely.” Schiff continued:

The dollar is rising against the euro because the Fed is still pretending it will fight inflation, while the ECB is still pretending inflation is transitory. Once both banks stop pretending the dollar will fall against the euro, but both currencies will collapse against gold.

Speaking with CNBC on Thursday, global macroeconomist at Fidelity International, Anna Stupnytska, said the European Central Bank faces a “tough policy trade-off.” “On the one hand, it is clear that the current policy stance in Europe, with interest rates still in the negative territory and the balance sheet still growing, is too easy for the high level of inflation which is becoming broader and more entrenched,” Stupnytska remarked after the ECB’s statements. The Fidelity International economist added:

On the other hand, however, the Euro area is facing a huge growth shock, simultaneously driven by both the war in Ukraine and China’s activity hit due to zero-COVID policy. High frequency data already point to a sharp hit to Euro area activity in March-April, with consumer-related indicators worryingly weak.

What do you think about the ECB explaining that bond purchases will end in Q3 and the discussion concerning raising the benchmark bank rate? Let us know what you think about this subject in the comments section below.

Russia May Accept Bitcoin for Gas Exports, Lawmaker Says

24/03/2022 by Idelto Editor

Russia is moving away from the dollar and the euro as payment options for its energy exports, and bitcoin has been mentioned as a possible substitute alongside the ruble and the national currencies of partnering countries. A high-ranking parliamentarian has indicated that Moscow may take cryptocurrency for natural gas and other resources.

Russian Official Mentions Bitcoin Among Alternative Settlement Methods for Its Gas

The Russian Federation has been taking steps in response to unprecedented Western sanctions imposed over its invasion of Ukraine. The energy-rich nation is now looking to other currencies to replace the U.S. dollar and the euro in its gas trade.

On Wednesday, President Vladimir Putin announced that Russia will ask “unfriendly” nations to pay with rubles for the natural gas they buy. EU member states, many of which are heavily reliant on Russian gas supplies for heating and power generation, fall in that category.

U.S. and European sanctions are hurting Russia’s economy and fiat currency. Some of the measures are targeting its access to the global financial market and foreign currency reserves. The ruble gained some lost ground following Putin’s announcement, while gas prices in Europe soared.

“If we can’t store a currency, acquire it, pay with it, then why should we trade in it?” Pavel Zavalny, head of the Energy Committee at the State Duma, the lower house of parliament, commented for Russian media on Thursday.

“Gas is just the beginning, this will also affect other resources. If they want to buy, let them pay either in hard currency, for us that’s gold, or in currencies that are convenient for us, that’s the national currency,” the lawmaker said.

Zavalny explained that settlements with friendly countries like China and Turkey can be made using the ruble or their currencies, the yuan and the lira. Serbia will be able to pay in either convertible foreign currency or Russian rubles. He further elaborated:

The set of currencies may vary and that’s normal practice. If there are bitcoins — we will trade in bitcoins.

The official added that a number of European countries are now ready to buy Russian fuel with rubles. “To do this, we just need to solve some organizational issues and sign additional agreements. Nothing changes in our obligations under the contracts. If they don’t pay for the gas, there simply won’t be any gas,” the parliamentarian stated.

Russia has been trying to reduce its dependence on the dollar even before the military crisis in Ukraine. In October, Deputy Foreign Minister Alexander Pankin told Interfax that Moscow may partially replace the greenback in its currency reserves and trade settlements with other fiat currencies and potentially digital assets like bitcoin. His remarks came shortly after Putin himself said in an interview with CNBC that cryptocurrency can be utilized for oil trade settlements in the future.

Do you expect Russia to employ cryptocurrency in settlements for its gas and oil exports? Tell us in the comments section below.

US Inflation Rate Jumps Highest in 40 Years to 7%, Democrats Concerned Inflation Will Haunt the Party

13/01/2022 by Idelto Editor

One of the hottest topics in the United States in 2022 is the rising inflation, as the U.S. Labor Department’s data published on Wednesday indicated that the consumer price index (CPI) rose to 7% in December. This represents the largest annual jump since 1982. Federal Reserve governor Lael Brainard is set to tell congressional leaders today that the central bank is focused on battling inflation. Moreover, members of the Democratic party are concerned that the rising inflation may cost the Biden administration politically.

CPI Rate Jumps to 7%, Wholesale Prices Spike 9.7%

On January 11, 2022, the U.S. Labor Department published CPI data for the month of December and the metrics indicate that the U.S. inflation rate jumped 7% year-over-year (YoY) and last month was the third consecutive month over 6%. The rise is the highest jump the CPI has seen since June 1982 as inflation is making the cost of goods and services spike exponentially. Basically, the CPI is a measure of a basket of consumer goods and services urban consumers pay for on a regular basis.

After the Labor Department published the statistical estimate, the CPI jump made headlines and ignited a number of discussions about inflation on social media and forums. Making matters worse, the U.S. producer price inflation rate, or wholesale prices, jumped 9.7% in December from a year ago, which is the highest YoY record to date. The inflation levels have caused a number of U.S. officials to grow concerned about the lack of purchasing power Americans are dealing with today.

Federal Reserve Governor to Address Inflation Concerns, State Governors Take Action

On Thursday, Federal Reserve governor Lael Brainard plans to discuss the central bank’s focus on the inflation issue in prepared testimony to the U.S. Congress. Brainard released a statement on Wednesday, which said the Federal Reserve’s “policy is focused on getting inflation back down to 2% while sustaining a recovery that includes everyone.” The day prior, Florida governor Ron DeSantis said that he had proposed a bill to help Florida families stave off inflation burdens. DeSantis tweeted:

To help alleviate the burden of inflation on Florida families, I am proposing a $1 billion gas tax holiday to help reduce prices at the pump. If Washington, D.C., won’t change course, then we have a responsibility to step up on behalf of Floridians.

Headlines Show Biden, Democrats Could Pay a ‘Political Price’ Over Inflation — Biden Administration Dismisses Concerns

Meanwhile, there are numerous headlines on Thursday that say “Democrats worry Biden could pay the political price for rising inflation.”

A CNN analysis written by Maeve Reston and Stephen Collinson says “inflation concerns could spell trouble for Democrats.” However, Jared Bernstein, Biden’s economic adviser, dismissed the concerns when discussing the subject with CNN’s Jim Sciutto.

“It’s really important to get under the hood of these monthly inflation reports,” Bernstein told Sciutto. “And if you look at the change from November to December, inflation is up half a percent. That’s considerably down from October and November, when inflation was up, .8 and .9%, respectively.” U.S. President Biden reiterated the same commentary and said:

Today’s inflation numbers show a meaningful reduction in headline inflation over [the] last month. We are making progress in slowing the rate of price increases. But there is still more work to do — I remain focused on lowering costs for families and maintaining strong economic growth.

US Officials Ridiculed on Social Media, Economist Peter Schiff Says Rates Far Worse Than the ‘Government’s Cooked CPI’

On social media politicians and the U.S. central bank were ridiculed for the rising inflation. Square and Twitter founder Jack Dorsey said “Damn, Santa didn’t take the transitory inflation away.” Northman Trader’s Sven Henrich jokingly tweeted: “SPX turns red as the inflation party has run out of free drinks.”

Gold bug and economist Peter Schiff discussed the inflation subject in a blog post called: “The Inflation Freight Train.” Schiff’s blog post reminds Americans that the CPI formula is considered inaccurate and inflation is likely much higher.

“Keep in mind, this is using the cooked government CPI formula that understates inflation,” Schiff’s editorial claims. “If the government was still using the formula that it used in 1982, inflation would be higher in 2021 than it was then. In fact, we’d have the highest level of inflation in history. According to Shadowstats, it would be just over 15%,” the blog post adds.

What do you think about the rising inflation in the United States and the criticisms of the country’s political leaders? Let us know what you think about this subject in the comments section below.