ECB President Christine Lagarde Insists Cryptos Are Not Currencies, Calls Them Highly Speculative, Suspicious

ECB President Christine Lagarde Insists Cryptos Are Not Currencies, Calls Them Highly Speculative, Suspicious

The president of the European Central Bank (ECB), Christine Lagarde, says cryptos are not currencies, adding that they are “highly speculative, suspicious occasionally, and high intensity in terms of energy consumption.” She also discussed the need for stablecoin regulation and central bank digital currencies (CBDCs). Lagarde: ‘Cryptos Are Not Currencies. Full Stop’ ECB President Christine Lagarde shared her view on cryptocurrency, stablecoins, and central bank digital currencies (CBDCs) in an interview with Carlyle Group co-founder David Rubenstein, published Thursday. Lagarde was asked whether “cryptocurrencies are a plus for the global economy” or whether it is too early to tell. The ECB chief promptly replied: “Cryptos are not currencies, full stop. Cryptos are highly speculative assets that claim their fame as currency, possibly, but they’re not. They are not.” She continued: I think we have to distinguish between cryptos that are those highly speculative, suspicious occasionally, and high intensity in terms of energy consumption assets, but they’re not a currency. Lagarde proceeded to discuss stablecoins. “On the other hand, you have those stablecoins that are beginning to proliferate, which some big techs are trying to promote and push along the way, which are a different animal and need to be regulated, where there has to be oversight that corresponds to the business that they’re actually conducting, irrespective of how they name themselves.” The ECB president then addressed the subject of central bank digital currencies. “And in all that you have the central banks who are prompted by a demand of customers to produce something that will make the central bank and central bank digital currencies fit for the century we are in, which is why we are not all looking at CBDC.” She explained that “instead of having banknotes and cash in our pockets in our wallets, we can have exactly the same thing but in a digital form so all of us are working on this and certainly I was keen to push the issue, the CBDC issue, on our agenda because I believe that we have to stand ready for that.” She was also asked whether the ECB’s CBDC would be “to the exclusion of paper currencies or it would be side by side.” Lagarde replied: Side by side, because we want customers to…

US Lawmakers Propose to Subject Cryptocurrencies to Wash Sale Rule

US Lawmakers Propose to Subject Cryptocurrencies to Wash Sale Rule

A committee of the U.S. House of Representatives has proposed to subject cryptocurrencies to the “wash sale” rule. Since cryptocurrencies are treated as property by the Internal Revenue Service (IRS), they are currently not subject to the wash sale rule. This proposal attempts to close down a big crypto tax loophole. Crypto Included in New Proposal The Committee on Ways and Means, the chief tax-writing committee of the U.S. House of Representatives, proposed to subject cryptocurrencies to the wash sale rule Monday. If adopted, the rules will apply to crypto trades occurring after Dec. 31. The “wash sales” provision in the bill states: This section includes commodities, currencies, and digital assets in the wash sale rule, an anti-abuse rule previously applicable to stock and other securities. The wash sale rule in section 1091 prevents taxpayers from claiming tax losses while retaining an interest in the loss asset. The wash-sale rule was designed to discourage people from selling securities at a loss simply to claim a tax benefit. A wash sale occurs when an individual sells a security at a loss and then purchases that same security or substantially identical securities within 30 days. Shehan Chandrasekera, head of Tax Strategy at crypto tax software firm Cointracker, commented that with this wash sale proposal, the committee “is trying to close down a big crypto tax loophole.” He elaborated: Since cryptocurrencies are treated as property (IRS 2014-21), they are not subject to the wash sale rule. This allows you to harvest losses more aggressively in crypto than in stocks. You don’t have to wait 30 days. Ways & Means Committee is trying to subject crypto to the wash sale rule. According to Chandrasekera, “the new rules will not eliminate the tax benefit, it will defer the tax benefit.” What do you think about this new proposal? Let us know in the comments section below. Image Credits: Shutterstock, Pixabay, Wiki Commons Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage…

Multimillion-dollar investment rounds spark rallies in Avalanche and Audius

Multimillion-dollar investment rounds spark rallies in Avalanche and Audius

Altcoins continue to book notable gains on Sept. 16 as a slew of celebrity endorsements, major investments and the growing popularity of cross-chain bridges catch investors’ attention.Top 7 coins with the highest 24-hour price change. Source: Cointelegraph Markets ProData from Cointelegraph Markets Pro and TradingView shows that the biggest gainers over the past 24 hours were Audius (AUDIO), Avalanche (AVAX) and Celer Network (CELR). Superstars invest in AudiusThe Audius platform is a decentralized music-sharing and streaming protocol that aims to cut out the middleman from the music industry and allow fans, subscribers and creators to interact with each other directly. According to data from Cointelegraph Markets Pro, market conditions for AUDIO have been favorable for some time. The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.VORTECS™ Score (green) vs. AUDIO price. Source: Cointelegraph Markets ProAs seen in the chart above, the VORTECS™ Score for AUDIO was in the green for most of the past week and reached a high of 77 on Sept. 14, around 22 hours before the price increased 38% over the next day.The spike in price and trading volume for AUDIO followed the announcement that several well-known musicians including Katy Perry, Nas and The Chainsmokers had taken part in a $5 million strategic funding round for Audius. Avalanche benefits from a $230 million investing roundAvalanche (AVAX) is a layer-one protocol that has been gaining traction in 2021 thanks to its low fee environment and the launch of the “Avalanche Rush” incentive program, which has attracted investors and liquidity from the Ethereum (ETH) network. According to data from Cointelegraph Markets Pro, market conditions for AVAX have also been favorable for some time. VORTECS™ Score (green) vs. AVAX price. Source: Cointelegraph Markets ProAs seen in the chart above, the VORTECS™ Score for AVAX surged into the green zone on Sept. 13 and reached a high of 86 around 24 hours before the price increased 40% over the next two days. The boost in price and momentum for AVAX comes following the announcement that large funds like Polychain Capital, Three Arrows Capital and Dragonfly Capital participated in a $230 million investment…

Horizen (ZEN) is now available on Coinbase

Horizen (ZEN) is now available on Coinbase

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Study Shows Cross-Chain Bridge Technology Growth, Bridges to Ethereum Exceed $7 Billion

Study Shows Cross-Chain Bridge Technology Growth, Bridges to Ethereum Exceed $7 Billion

On September 8, 2021, Dmitriy Berenzon, research partner at 1kxnetwork, an early-stage crypto fund that helps founders bootstrap token networks, published a comprehensive research post concerning blockchain bridges. Berenzon’s study highlights the current “multi-chain market structure” and bridges that are making a myriad of blockchains compatible. Researcher: ‘We Are Finally in a Multi-Chain Market Structure’ For quite some time now, multi-chain or cross-chain technology has been a holy grail of sorts in the cryptocurrency development space. People want to transact with other blockchains by leveraging bridges to different ecosystems. Dmitriy Berenzon published a detailed article about the subject of cross-chain tech and bridges, and he believes we’ve finally reached a watershed moment. “After years of research & development, we are finally in a multi-chain market structure,” Berenzon stresses in his blog post. Image of bridge technology “as of September 8, 2021; Illustrative / Not fully comprehensive,” according to research partner at 1kxnetwork, Dmitriy Berenzon. Berenzon’s study looks at blockchains like Ethereum, Solana, Tezos, Avalanche, Polkadot, Binance Smart Chain, Cosmos, and more. The researcher notes that “interoperability unlocks innovation” as he highlights that “bridges are important because they enable users to access new platforms, protocols to interoperate with each other, and developers to collaborate on building new products.” Moreover, Berenzon lists the many benefits of cross-chain interoperability like leveraging the tech for external validators and federations. Also, using the tech for light clients and relay protocols alongside the ability to access liquidity networks. However, Berenzon’s report is not just a fluff piece about fintech, and he highlights that cross-chain tech and bridges are an “incredibly difficult problem in distributed systems.” He adds that things like finality and rollbacks need to be addressed, NFT transfers and provenance, alongside stress testing these blockchain bridges over time. $7.7 Billion Locked Across 8 Bridges to Ethereum In addition to Berenzon’s insights, statistics from Dune Analytics’ dashboard called “Bridge Away” measure bridge volume tethered to the various chains and Ethereum. In terms of Ethereum bridge relative total value locked (TVL) stats, the Polygon ERC20 Bridge has approximately $2.4 billion in TVL on September 16, 2021. Dune Analytics’ dashboard called “Bridge Away” was crafted by @eliasimos, a protocol specialist at Coinbase via Bisontrails. Polygon’s bridge represents 32.5% of the TVL across eight…

Monsta Infinite Lists on AscendEX

Monsta Infinite Lists on AscendEX

press release PRESS RELEASE. AscendEX is thrilled to announce the Monsta Infinite token (MONI) listing under the trading pair USDT/MONI on Sept. 15 at 1 p.m. UTC. In celebration of the MONI listing, AscendEX and the MONI team will launch seven limited-time promotional events for users to earn token rewards. The events will take place between 12:00 a.m. UTC, on Sept. 16 and 12:00 a.m. UTC, on Sept. 23, 2021. By depositing and trading MONI, users will have the chance to share airdrop rewards worth up to 80,000 USDT. Monsta Infinite is a decentralized game universe where tokens are earned through participation. The project’s efforts are focused on bringing accessibility and decentralization to the gaming world. They believe that greater blockchain adoption can be achieved through gamification. The project is built on top of Binance Smart Chain, which they believe will improve the user experience by making gameplay affordable and accessible. Monsta Infinite implements a sidechain service with EVM capabilities and interoperability with Binance Smart Chain (BSC). Using BSC, players can save and update their in-game assets, including their “Monsta,” without paying a fee at every step. Monsta Infinite aspires to be a unique gaming experience by removing the common flaws of other NFT-based games. The NFT standard allows buyers to keep the proprietary rights to their original assets, allowing for the monetization of virtual assets in the real world. Consequently, all Monsta Infinite in-game items will be tokenized, and buyers will retain full ownership of their items and the independent selling rights. The experience features a unique storyline for each user. Players will not get the same (Player Vs Environment) PVE every day, and users choose from multiple pathways in the story mode. The enemies and obstacles users face on these different pathways will also have variations and randomization aspects, making each player’s experience unique. Another important goal for Monsta Infinite is to achieve economic equilibrium in the game’s marketplace. Monsta will sustain affordable pricing through eliminating the involvement of MONI, the governance token, in any game-related matters. MONI is subject to price fluctuations over time as the valuation and staking rewards grow with increased adoption. Thus, increasing the demand for STT, is the easiest way to stabilize the price. Adding features like augmentation,…

Ethereum After 1559: Network Participants Burn Over 300,000 Ether Worth More Than $1 Billion

Ethereum After 1559: Network Participants Burn Over 300,000 Ether Worth More Than $1 Billion

On August 5, 2021, the Ethereum network and its participants successfully completed the highly anticipated London upgrade, which saw the implementation of the Ethereum Improvement Proposal (EIP)-1559. Since then, 303,681 ether worth more than a billion U.S. dollars have been burned. More Than 300K Ether Burned Following EIP-1559 More than a billion dollars worth of ethereum (ETH) has been burned to date, after the London upgrade was implemented 42 days ago. The biggest changes added to the Ethereum blockchain included EIP-1559 and EIP-3554. While EIP-3554 changed the difficulty bomb, EIP-1559 changed Ethereum’s fee rate to a new scheme that makes the crypto asset ether deflationary. Essentially, fees are standardized and calculated based on network demand, as a transaction pricing mechanism introduces a base fee for every block found on the network. The remainder of the fees will be burned and ether proponents assume this will significantly reduce the overall supply of ethereum. As of today, September 16, 2021, the Ethereum network has burned 303,681 ether worth over $1 billion using Thursday’s ether exchange rates. Opensea Still Largest Burner, Stablecoin Transfers Add to the Burn Pile The biggest burners in the network are people transferring ether from one address to another and decentralized applications (dapps) and decentralized finance (defi) platforms as well. The largest ether burner today is the non-fungible token (NFT) marketplace Opensea as Dune Analytics stats show the market has burned 42,991 ether worth $146.1 million today. Opensea is followed by traditional ether transfers which have added 25,514 ether to the burn pile. Uniswap V2 and the stablecoin project Tether (USDT) command the third and fourth positions in terms of the top ether burners. To date, the second version of the Uniswap decentralized exchange (dex) has burned 16,665 ether worth $55.8K. Tether’s stablecoin USDT has added 15,015 ether to the burn pile as it is responsible for burning $51 million. Other top burners include Axie Infinity, Uniswap V3, Metamask, the stablecoin project USDC, and Opensea’s registry. What do you think about the 303,681 ether worth over $1 billion burned? Let us know what you think about this subject in the comments section below. Tags in this story 300K burned, Blockchain, Burn Rate, deflationary, EIP-1559, ETH, ETH fees, ETH Markets, ETH Transfers, ether, Ethereum, Ethereum…

Alt winds of change? What an altcoin season would mean for crypto

Alt winds of change? What an altcoin season would mean for crypto

A new alt season is here — at least, according to some crypto industry commentators. Over the last month, altcoins — aka cryptocurrencies that aren’t Bitcoin (BTC) — have surged in price, with projects such as Solana, Cardano and Polkadot seeing their tokens triple in value. However, though people are screaming “alt season” with an air of familiarity, the industry is still very much exploring uncharted territory.The Cointelegraph Markets Pro alt season indicator states that the industry is in the midst of an alt season, showing a 32% inclination. While The Altseason Index, which defines the alt season as a period of 90 days where 75% of the top 50 altcoins outperform Bitcoin, says it isn’t an alt season just yet. But if the last few weeks are anything to go by, the altcoin market is just getting started, and it’s already proving its desire to impress.One theory behind why an alt season is imminent is that the general sentiment around Bitcoin has reached a solid footing. Outflows from Bitcoin are funding more altcoin projects, resulting in newly launched tokens reporting impressive growth. However, could there be much more to the story than that?Wen alt season?Alt seasons can be both good and bad for the crypto economy, being a sort of necessary evil in the space. On the one hand, they are a sign of health, indicating new money flows into the market and causing valuations to surge. However, after a while, speculation tends to outpace the utility of these tokens, causing steep market corrections and immense losses for speculators.Over the last few years, the cryptocurrency and digital assets space has grown drastically, but according to Hunain Naseer, senior analyst at OKEx Insights, not much is new this time around. “We’re witnessing Ethereum breaking out against BTC and starting to outperform the market leader. The same happened in previous alt seasons,” he said, adding, “ETH is leading a market-wide surge, and as long as it remains strong, the trend can continue till the end of the year.According to Naseer, the recent altcoin rally is being fuelled by myriad factors, including the recent nonfungible token boom (especially in August), which reaffirmed the market’s belief in the speculative value of digital assets. The recent gust of positive news…

3 reasons why REN price is up 340% from its July swing low

3 reasons why REN price is up 340% from its July swing low

Interoperability has become one of the driving themes within the crypto market and as the blockchain ecosystem evolves into an interconnected web of layer-one protocols, the importance of communication and efficiency among decentralized applications (dApps) will also increase.Ren (REN), a blockchain protocol designed to provide interoperability and liquidity between different blockchain platforms, has started gaining traction over the past month and a half as activity in the decentralized finance (DeFi) sector has been on the rise. Data from Cointelegraph Markets Pro and TradingView shows that after reaching a low of $00.41 on Aug. 9, the price of REN has climbed 185% to a daily high at $1.16 on Sept. 15 as its 24-hour trading volume spiked 443% to $673 million. REN/USDT 1-day chart. Source: TradingViewThree reasons for the price growth seen in REN include the steadily increasing activity and total value locked on RenVM, the launch of a bridge to Arbitrum and the release of RenVM Greycore on the network’s testnet. Rising volume and total value lockedREN’s bullish momentum can be found in the data for the total network volume and total value locked (TVL).Total network volume and total value locked on Ren. Source: Ren ProjectAs 2021 progressed, new chains were added to the list of bridges supported, which now includes Ethereum, Binance Smart Chain, Solana, Polygon, Fantom, Avalanche and Arbitrum. Each new bridge has helped to increase the volume and TVL on the Ren network, which has coincided with moves seen in REN p. REN price follows the Bridge to ArbitrumThe spike in price seen on Sept. 15 was due, in large part, to the release of the Arbitrum bridge, an Ethereum (ETH) layer-two scaling solution Arbitrum, which is designed to host popular decentralized applications in a fast, low-fee environment. The Ethereum network has been plagued by high fees and delayed transaction times, which have hampered the ability of many users to use DeFi or nonfungible token (NFT) related protocols on the network. Arbitrum’s low-cost environment has proven to be an attractive DeFi environment for BTC holders who are now able to migrate to the layer-two solution and interact on the network with renBTC. The total value locked on Arbitrum via the Ren protocol was $7.75 million as of Sept. 15 and is represented by…

BTC takes aim at $50K; Solana goes down; Is ETH ‘sound money’? | Watch The Market Report w/ Charlie Burton

BTC takes aim at $50K; Solana goes down; Is ETH ‘sound money’? | Watch The Market Report w/ Charlie Burton

Tune in to watch Cointelegraph host and analyst Benton Yaun alongside resident market experts Jordan Finneseth and Marcel Pechman. Here’s what to expect in this week’s markets news breakdown: Bitcoin (BTC) once again takes aim at $50,000. Is this the final hurdle before all-time highs are within reach?The Solana network was brought down by a sudden surge in transaction volume, while Ethereum evaded a malicious attack. What does this mean for the future of decentralized finance, or DeFi?After Cardano finally launched smart contracts, the price of ADA dropped 10%. Is this a classic case of “sell the news”?Next, Pechman and Finneseth take a dive deep into the most important factors driving the markets in back-to-back expert takes. Join Pechman on a journey through the history of Ethereum. There are a few events that might reveal what Ethereum truly is. Then, Finneseth takes a closer look at alternative next-generation blockchain protocols that are beginning to gain a foothold in the market. Up next, the Cointelegraph experts identify two altcoins that stood out this week, Avalanche’s AVAX and Horizen’s ZEN, using insights from Cointelegraph Markets Pro, a platform for crypto traders who want to stay one step ahead of the market. Finally, be sure to stick around for an exclusive guest interview with veteran trader Charlie Burton, the co-founder of Ezeetrader. The interview will cover recent market movements, trading insights and analysis of crypto’s biggest coins! “The Market Report” streams live every Thursday at 4:00 pm UTC, so be sure to head on over to Cointelegraph’s YouTube page and smash that like and subscribe button for all our future videos and updates.