Coins are rarely used for purchases in the U.S., but there is an estimated $48.5 billion in coins sitting in American households [46e1ec86]. The Federal Reserve encourages people to deposit or exchange their coins for bills. Many banks and credit unions offer coin exchange services, and there are over 20,000 Coinstar kiosks worldwide. Some regional retailers also provide coin-cashing services. If you prefer to pay with coins, check with the retailer in advance. Businesses are not required to accept coins as payment.
In a recent blog post by the Federal Reserve, the buying power of Bitcoin compared to the US dollar was analyzed. The post revealed that while the price of eggs in BTC fluctuates more than in USD and requires additional transaction fees, the number of satoshis required to purchase a dozen eggs has actually decreased more than the equivalent USD since December 2022 [cb1d2396].
This analysis sheds light on the ongoing debate surrounding the buying power of Bitcoin compared to traditional fiat currencies. While Bitcoin may offer advantages in terms of transaction fees and decreasing satoshi requirements for certain goods, it is still subject to market fluctuations and external factors that can impact its value [cb1d2396].
USD Coin (USDC) is a digital greenback and a stablecoin pegged to the U.S. dollar. It aims to maintain a value of $1 and is one of the largest stablecoins in the world. USD Coin is backed by U.S. treasury securities and cash deposits, and its reserves are verified through monthly reports issued by Grant Thornton, LLP. The Centre consortium manages USD Coin, and it was launched in 2018. USD Coin can be bought and sold for U.S. dollars through exchanges using smart contracts. It is widely considered to be a safer option compared to other stablecoins due to its transparency. USD Coin has inked major partnerships with companies like Robinhood and Visa, expanding its use as a payment method. It is supported across multiple blockchains and can be used for lending and staking to earn interest. While USD Coin is not designed as an investment, it can be used for passive income. However, there are risks associated with stablecoins, such as bankruptcy of the managing companies and regulatory changes. [f587816a]
Stablecoins are a form of cryptocurrency that has gained popularity. The US government is calling for legislation to regulate stablecoins and require issuers to become banks. Stablecoins offer the advantages of blockchain without the volatility of Bitcoin. The US dollar dominates global trade, and countries hold reserves in US Treasury bonds. Stablecoins expand access to dollars, particularly for countries without access to the US dollar-backed system. Stablecoins may introduce risks if unregulated, but the US can regulate them like other financial institutions. US officials are advancing legislation to regulate stablecoins and ensure financial stability. [fc998734]
Latin America has a higher preference for centralized exchanges compared to the rest of the world, according to a report from Chainalysis. The global average for centralized exchanges is 48.1%, while in Latin America it is higher at 74% in Colombia and 92.5% in Venezuela. Argentina leads in cryptocurrency transactions in the region, receiving an estimated $85.4 billion in a 12-month period [8cff3255].
Coinbase Wallet, a popular cryptocurrency wallet, has introduced a new feature that allows users to send money instantly and without fees through a shared link on messaging and social media apps. Recipients can claim the funds through the Coinbase Wallet app or create a new wallet with a single click. This new feature enhances the usability and accessibility of Coinbase Wallet, which is available in 20 languages and over 170 countries. Coinbase Wallet also supports local fiat on-ramps in more than 130 countries, allowing individuals to purchase digital assets using leading payment methods specific to their region. Additionally, the wallet has introduced an optional 'simple mode' that focuses on essential functions and reduces complexity for beginners [071e5d3b].
Wasabi Wallet, an open-source, non-custodial Bitcoin wallet known for its privacy features, has released version 2.0.7 - Juggernaut. This update focuses on user privacy and security, introducing features such as the Safety Coinjoin feature, which ensures a minimum of two coinjoin rounds for initial Bitcoin deposits. The update also adds support for Blockstream Jade and BitBox02 hardware devices. The RPC server has been enhanced with 11 new calls, improving privacy and fee efficiency. Performance improvements include halved CPU and memory usage, faster launch times, and a streamlined user experience. The update also includes bug fixes, security enhancements, and improvements to the underlying framework and GUI [1c30c090].
Yeniwallet is a cryptocurrency wallet that provides buying and selling of cryptocurrencies. It has gained popularity due to its well-thought-out protection system and convenient user interface. The platform offers reliability, profitability, and an extensive choice of currencies. Users have praised the speed of exchange operations and the ability to receive support in different languages. Yeniwallet has successfully entered the market and has been used by almost 20,000 cryptocurrency investors. The wallet is known for its ease of use, security features such as two-factor authorization, built-in exchange, and customer support. It offers more than 100 types of digital assets and has multiple layers of security to protect against intruders. The wallet allows trading in 200 countries and offers options for transferring digital assets and fiat funds. Yeniwallet is a new cryptocurrency wallet with a simple interface and high-quality software. The developers focused on the wishes of crypto investors and fans of virtual assets, resulting in innovative technologies and increased security. The platform will continue to be improved based on user feedback. [7369e8bd]
The founders of the bitcoin wallet Samourai Wallet, Keonne Rodriguez and William Lonergan Hill, were arrested on April 24. They were charged with conspiracy to commit money laundering and conspiracy to operate unlicensed money-transmitting business offenses. The charges carry a maximum sentence of 25 years. Samourai Wallet is a privacy-focused wallet that enables users to make collaborative and private transactions. The arrests highlight the international nature of the case, with Rodriguez being arrested in the U.S. and Hill in Portugal. The U.S. Attorney's Office of the Southern District of New York alleges that Samourai Wallet facilitated over $2 billion in unlawful transactions and laundered over $100 million in criminal proceeds. The wallet's website and web servers have been seized by authorities. The indictment claims that Samourai Wallet encouraged criminal or sanctioned users to use their product through the X social media platform. The wallet is no longer available on the Google Play store. The case raises legal issues regarding the definition of a money transmitter entity and the future of privacy in the cryptocurrency space. Other privacy-focused wallet operators may be affected by the outcome of this case. [b10593a3]
The FBI has issued a warning against using unregistered cryptocurrency money transmitting services. The agency states that these services are often used by criminals to facilitate money laundering, drug trafficking, and other illegal activities. The FBI advises individuals and businesses to only use registered and regulated cryptocurrency exchanges and money transmitters to ensure compliance with anti-money laundering and know-your-customer regulations. The warning comes as the use of cryptocurrencies continues to grow and regulators around the world are increasing their scrutiny of the industry. The FBI urges individuals to report any suspicious activity related to cryptocurrency transactions to their local law enforcement agencies. [24e089a1]
A study co-developed by Visa and Allium Labs reveals that more than 90% of stablecoin transaction volumes are not coming from genuine users. Out of about $2.2 trillion in total transactions in April, only $149 billion originated from 'organic payments activity.' This challenges the argument that stablecoins are poised to revolutionize the payments industry. The total value of all stablecoins in circulation could reach $2.8 trillion by 2028, according to analysts at Bernstein. However, the study suggests that stablecoins are still in a nascent stage as a payment instrument and that existing payment rails need improvement. Visa, which handled over $12 trillion worth of transactions last year, could stand to lose out if stablecoins become widely accepted. The study highlights the challenge of tracking the 'real' value of crypto activity using blockchain data. The value of stablecoins in circulation could increase 18-fold from their current circulation. However, there is tepid demand for stablecoin-based payment solutions due to concerns about user-friendliness. The study emphasizes the need for technological adoption in the payments sector. [46a349ec]
A new report from Coinbase reveals that 50% of U.S. small businesses favor stablecoins for their stability and lower transaction fees. Small businesses, which contribute 44% to the U.S. GDP and employ nearly half of the private sector workforce, are increasingly adopting crypto and blockchain technology. 53% of small businesses prioritize hiring candidates with crypto knowledge, highlighting the growing demand for crypto-savvy talent. Stablecoins are preferred for their reduced volatility, making them suitable for everyday transactions and cross-border payments. [3a80bf7a]