Venezuela turns to USDT as hyperinflation bites, with merchants pegging prices to Binance P2P dollar rates. With inflation at 229%, daily prices in Venezuela are set in USDT “Binance dollars,” usually at live P2P rates. Three dollar rates exist (official, parallel and P2P), but merchants mostly follow the P2P quote. The government tolerates dollar-backed crypto in exchanges, though it hasn’t legalized dollarization. Read more
Stop reacting, start predicting: How AI spots whale moves that can make or break the market before anyone else notices. AI can process massive onchain data sets instantly, flagging transactions that surpass predefined thresholds. Connecting to a blockchain API allows real-time monitoring of high-value transactions to create a personalized whale feed. Clustering algorithms group wallets by behavioral patterns, highlighting accumulation, distribution or exchange activity. Read more
Bank of England Governor Andrew Bailey said stablecoins could thrive in a system that separates money from credit, reducing the UK’s reliance on commercial banks. Bank of England (BoE) Governor Andrew Bailey suggested that stablecoins could reduce the United Kingdom’s reliance on commercial banks, signaling a potential shift in the central bank’s stance toward digital assets. In a Wednesday article in the Financial Times, Bailey said that the current financial system combines money and credit creation through fractional reserve banking, in which banks hold a portion of deposits while lending out the rest. Fractional reserve banking is a system in which banks hold only a fraction of customer deposits in reserve and lend out the rest, thereby creating new money through credit expansion. “Most of the assets backing commercial bank money are not risk-free: they are loans to individuals and to companies,” Bailey wrote in the FT. “The system does not have to be organised like this.“ Read more
The US Senate Finance Committee is holding a hearing on Wednesday on crypto asset taxation, following the IRS’s release of relief guidance on the Biden-era CAMT tax. The US Senate Finance Committee will hold a hearing Wednesday on cryptocurrency taxation, a day after the Treasury Department and Internal Revenue Service (IRS) issued interim guidance easing corporate crypto tax rules. The Treasury and IRS on Tuesday issued interim guidance aimed at easing compliance under the Corporate Alternative Minimum Tax (CAMT), including for companies operating in the digital assets sector. Signed into law under former President Joe Biden as part of the Inflation Reduction Act of 2022, CAMT imposes a 15% minimum tax on the financial statement income of large corporations. Read more