A recent agreement between the Inter-American Development Bank (IDB) and the Central Bank of Paraguay (BCP) will allow for sustained progress toward the modernization of the country’s financial system through the adoption of International Financial Reporting Standards (IFRS).

The South American country signed this agreement with the goal of “strengthening financial transparency, aligning the accounting practices of the Paraguayan banking system with international standards, and facilitating integration with global markets.”

The project, with an estimated duration of 18 to 24 months, includes a technical assessment to identify accounting, regulatory, and technological gaps. It also includes training for strategic staff, public-private discuss tables, and simulations of the impact on financial statements.

Ultimately, the project will be able to design a strategic roadmap for a gradual and sustainable transition to IFRS, an initiative framed within the IDB’s Capacity Building, Asset Management, and Advisory Services (CAsA) Program, effective July 2024, which supports central banks in Latin America and the Caribbean through technical assistance and institutional strengthening.

The Central Bank of Paraguay will be responsible for developing two complementary projects: “the adoption of IFRS, led by the Superintendency of Banks, and the implementation of a Risk-Based Supervision approach, led by the Superintendency of Securities,” aimed at “maximizing synergies in modernizing the regulatory framework and strengthening the technical supervisory capacity of the financial system.”

M.Pino

Source: finanzasdigital

(Reference image source: Tobias Meza on Unsplash)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on X/Twitter and Instagram

La entrada Paraguay receives IDB support in financial modernization process apareció primero en Bitfinance.

Morocco is studying the legal inclusion of cryptocurrencies in its financial system, which would allow citizens to use them on a daily basis.

In this advance in the legalization of cryptocurrencies, the country’s central bank, Bank Al Maghrib, prepared a “draft law to regulate activities with cryptocurrencies.”

Global institutions such as the World Bank participated in its drafting. The intention is to “formalize the use of cryptocurrencies in a way that mitigates risks, encourages innovation and guarantees consumer protection.”

Undoubtedly, issues such as the local financial context, “volatility, lack of safeguards for consumers and their possible misuse in illegal activities” are still pending to be addressed.

M.Pino

Source: cripto247

(Reference image source: Paul Macallan on Unsplash)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on X/Twitter and Instagram

La entrada Morocco moves forward in adopting cryptocurrencies apareció primero en Bitfinance.

A group made up of eight environmental organizations asked different government institutions in the United States to apply strict measures to the operating permits granted to Proof-of-Work mining companies and other cryptocurrency mining operations.

The organizations Earthjustice, Greenpeace, the League of Conservation Voters, the Sierra Club, Friends of the Earth, the Guardian of Seneca Lake and the Guardian of the Milwaukee River, called on the administration of President Joe Biden to proclaim “policies designed to curb electricity use and climate pollution associated with digital currencies that rely on the PoW model.”

The environmental group argued that mining affects communities because it increases the demand for electricity from fossil fuels, threatens the supply chain of “chips for mining rigs”, generates electronic waste and does not contribute to the evolution of energy renewable.

Recommended measures

Environmental institutions asked the Environmental Protection Agency to reduce the damage to the disposal of electronic waste from cryptocurrency mining; address noise pollution complaints allegedly caused by mining rigs.

They also asked the Office of Information and Regulatory Affairs of the Office of Management and Budget to create a registry where PoW mining operators can reveal their “sources and amounts of energy consumed”.

Additionally, they urged the regulatory entities of the financial system to require exchange houses to list “digital assets that meet certain environmental and electricity standards.”

M. Rodríguez

Source: es.cointelegraph.com

La entrada Environmentalists call for measures for cryptocurrency mining apareció primero en Bitfinance.

Hirokazu Matsuno, Chief Cabinet Secretary of the Japanese government, reported during a press conference that his government is working on a bill that allows reviewing the legal regulations on currencies that allow the inclusion of cryptocurrency exchanges.

The Japanese country plans to modify its Foreign Exchange and Foreign Trade Law so that crypto exchanges are incorporated into the regulations that govern financial entities. The proposed amendment is intended to prevent sanctioned countries from taking evasive action using digital assets.

With the update of the legal precepts, cryptocurrency exchanges will have the obligation, as banks do, to “verify and mark transactions associated with sanctioned Russian individuals or groups.”

Recently elected Prime Minister Fumio Kishida expressed his support for the reform and asked to coordinate measures with Western countries allied to the Japanese government in order to achieve greater effectiveness in the application of the new laws.

As will be remembered, Japan joined with most Western governments to impose various financial sanctions on Russia due to the military actions it is carrying out in Ukraine. In early March, Japan’s regulatory body asked the different cryptocurrency exchange houses to refrain from “allowing transactions for sanctioned parties.”

Protection against international sanctions

The reform of the Law on Foreign Exchange and Foreign Trade by the parliament would establish the obligation that cryptocurrency exchanges must have to “block transactions for several sanctioned Russian officials, oligarchs, banks and other institutions.”

The concern of the Japanese government authorities is focused on the possibility that Russia “attempts to circumvent sanctions using cryptocurrencies”. A concern that arises as a result of the country’s growing interest in the cryptoactive market, coupled with the statements of some of the Russian ministers on the crypto market.

As is known worldwide, the financial sanctions established against Russia have made that country try to implement alternative payment systems and methods that allow them to access international markets and obtain the products and services they require to maintain their economies and at the same time obtain their income.

The use of digital assets as an instrument to evade the sanctions imposed on various countries has been a topic that has been widely discussed by experts in recent days. However, many of the analysts consider that there is no evidence to support this phenomenon, on the contrary, it is “totally unfounded” speculation.

M. Rodríguez

Source: es.cointelegraph.com

La entrada Japan to strengthen regulation of cryptocurrency trading apareció primero en Bitfinance.

Asdrúbal Oliveros, economist and director of Ecoanalítica, stressed that the relationship between the governments of Russia and Venezuela could impact the sale of foreign currency in Venezuela to contain the exchange rate because the country uses “the Russian financial system to triangulate the operations of collection or sale of crude oil.”

The economist recalled that the Venezuelan government required the support of allied countries and “Russia has been fundamental for Venezuela due to the size of its financial system“, which provided the “financial floor”, as well as “cash currencies” to the Caribbean country.

According to the director of Ecoanalítica, the Venezuelan government “charges in cash in dollars or euros” for a large portion of the products (gold or oil) it sells, and much of that money is managed between “Russia and Turkey.” However, with the financial sanctions imposed by the United States and Europe on Russia, “the question remains as to what the provision of cash payments that Venezuela receives will be like,” which could affect the “selling of foreign currency made by the Executive to contain the rate exchange.”

Isolation of Russia

Oliveros said Russia is being isolated due to the severe financial sanctions. “They are even more aggressive than those that Venezuela can have”, thus the Venezuelan government must modify “the strategy to be able to receive foreign exchange in cash by the sale of oil.

Additionally, Oliveros believes that the conflict between Russia and Ukraine will have repercussions on the country, because it will limit the country’s “economic recovery capacity.”

M. Rodríguez

Source: financedigital.com

La entrada Venezuela could face problems in the sale of foreign currency apareció primero en Bitfinance.

ECB President Christine Lagarde recently pointed out that raising interest rates too quickly would stifle the Eurozone’s recovery. “Raising the main interest rate of the European Central Bank now would not reduce the historically high levels of inflation in the Eurozone and would only harm its economy.”

Lagarde stressed that the ECB will only withdraw its aggressive negative interest rate stimulus policy gradually and when conditions allow it because that would not solve any of the current economic problems, on the contrary, from his point of view, that could exacerbate the economic situation.

“That would not solve any of the current problems (…) On the contrary: if we act too hastily now, the recovery of our economies could be considerably weaker and employment would be put in danger. (…) Now we can adjust, calmly, step by step, our monetary policy instruments (…) and when the economic data allows it, we will do it”, the president of the ECB insisted.

Bond market in fall

Lagarde’s statements have had a significant impact on the financial market, specifically on the bond market, which plummeted “by opening the door to the ECB’s first rate hike in more than a decade, given the persistent upward pressure on prices.

Money markets were expecting a 50 basis point hike in the ECB’s deposit rate last December, but Lagarde is now signaling that a hike would not end high oil prices and supply problems that have fueled inflation.

The euro zone registered an inflation of the order of 5.1 % and the European Commission indicated that it estimates an inflation for this year of 3.5 %, well above 2 % established as a target by the ECB.

The European financial entity had declared in December that it would continue buying bonds to stimulate the decline in inflation at least until October this year and will only raise rates once these purchases are completed. However, it is very likely that it will change the line in March when its next monetary policy meeting takes place.

Currently its ECB interest rate on bank deposits stands at -0.5 %. ECB Chief Economist Philip Lane, who is responsible for monetary policy proposals, has been more cautious, saying the current situation does not warrant significant tightening.

M. Rodriguez

Source: publico.es

La entrada ECB will continue with its economic stimulus policy apareció primero en Bitfinance.

The European Commission continues to work on the development of the digital euro and they estimate to finalize a first prototype of their digital currency by the end of this year. But the commission plans to launch it on the market, regulated and official, by 2025 when it will compete with the Chinese cryptocurrency and the one that the United States is developing.

The countries of the world are working and joining efforts to work on a digital version of their fiat currencies. Thus, it is estimated that the dollar, the yuan and the euro will have their digital version.

The popularity of cryptocurrencies and the growing interest from traditional banks and institutions have set off alarm in central banks, which have been working for some time to create these digital versions of their own currencies.

Public and regulated digital currencies

The Eurozone is very clear about the importance of having a digital euro and the European Central Bank is immersed in this effort, which is why it is carrying out internal tests to finalize the project.

The director of the European Central Bank (ECB), Christine Lagarde, announced last July 2021 that approximately 80 central banks were interested in the creation of cryptocurrencies and one of them was the ECB, which initiated the conceptualization of the project in October of last year.

Currently, the European Commission is preparing the legislation that will regulate the digital euro and those responsible estimate that it will be completed by the beginning of 2023. At this time, the planning carried out seems to be very good because during the legislative process of the European Union, “the negotiations with the Member States and also in the European Parliament before finally becoming law”.

Some representatives of the ECB explained that the digital euro “would complement cash, it does not come to replace it”. But it would also become a solution to the attractiveness of cryptocurrencies such as Bitcoin or Ethereum which, despite not being used as currencies for buying and selling everyday goods and services already have derivative or alternative cryptocurrencies that are positioning themselves in that market segment.

Public consultation for the digital euro

The European Union plans to carry out a public consultation process, within a few weeks, in order to reaffirm the use that European citizens will give to the digital euro, as recently reported by the EU’s financial director, Mairead McGuinness, at an event about FinTech.

Once the public consultation has been carried out, it is planned to carry out an assessment on the impact that the digital euro could have on a potential destabilization of the financial system, since it could affect the liquidity of private banks if people convert all their money into the currency regulated and managed by the ECB.

M. Rodríguez

Source: xataka.com

La entrada The European Union estimates to launch its digital currency in 2025 apareció primero en Bitfinance.

Jihan Wu, one of the founders of Bitmain, expressed that the crypto market will grow by trillions of dollars despite the volatility that characterizes cryptocurrencies. “Even if 95% of today’s coins lose all their value and disappear, the remaining 5% will grow enormously,” he said.

Bitmain was founded by Jihan Wu and other partners in 2013 and by 2018 it was the world’s largest provider of cryptocurrency mining platforms, with a 75% market share.

The former CEO of Bitmain is quite optimistic about the future of cryptocurrencies and considers that both crypto and blockchain together “will experience rapid growth in the future to tens of trillions of dollars.”

Loyalty for crypto

According to Wu, loyalty to crypto will also increase because many current and new users will remain forever in the crypto market, requiring “advanced and sophisticated products to manage the wealth they accumulate in crypto assets”.

Cryptocurrencies, unlike the traditional financial system, are free and will continue to develop and innovate in the market because they have no restrictions. Wu pointed out.

Jihan Wu, once separated from Bitmain, focused on developing of the two companies he owns in Singapore. Bitdeer Technologies, a cryptocurrency mining platform, valued at 4,000 million dollars, which will be trading on the Nasdaq. Matrixport, which is a recently estimated $ 1 billion financial services company.

M. Rodríguez

Source: diariobitcoin.com

La entrada Crypto market to grow by tens of trillions of dollars apareció primero en Bitfinance.

The economist Ronald Balza explained during a radio interview that the national executive should allow the Venezuelan financial system to have various products that facilitate financial intermediation.

According to Balza, the government should allow citizens within the financial system “to be able to make more than deposits, that they can allow mobilization between banks at the national level and abroad, and that they can also access loans in dollars to make your investment”.

For the economist, dollarization is not closely related to the elimination of the bolivar, and neither does this process imply the total elimination of the Venezuelan currency. “Dollarization is not eliminating the bolivar, but I do not agree to prohibit banks from using other currencies for transactions within Venezuela.”

The problem does not lie in the use of the national currency, but in the need to use all the currencies that can circulate in the country.

Multi-currency system requires regulation

Balza is emphatic in pointing out that to start a multi-currency system it is necessary to establish a “prudential regularization” such as that used by any country in the world, with which it seeks to protect itself from risks that may impact the economy, such as

To start a multi-currency system in Venezuela, a prudential regularization is required, according to the expert, which is used anywhere in the world to avoid “risks in the economy, such as bankruptcy of lenders and losses to depositors.”

The idea is not to prevent dollarization, but “to design a system so that all the currencies needed for each transaction can be used in Venezuela,” he stressed.

According to what Balza explained, the bolivar is currently used for the acquisition of goods and the payment of services, not to acquire foreign currency.

M. Rodríguez

Fuente: noticiasaldiayalahora.co

La entrada National executive could establish a multi-currency system apareció primero en Bitfinance.

Dubai’s Financial Services Authority (DFSA) announced new measures for the regulation of investment assets, with the aim of improving the country’s digital crypto financial ecosystem.

The financial entity, in its regulatory framework, considers investment tokens as “value” or “derivative” and classifies cryptocurrencies as “value tokens“, which can be issued, transferred and stored using “Distributed technology Ledger Technology (DLT)”. In this sense, investors will have a legal framework to work with.

These measures are intended to protect investors and provide legal security to market operators, defining the type of investment tokens that will be allowed on the Digital Asset Exchange at the Dubai International Financial Center.

According to the DFA, cryptographically insured tokens are different from exchange or crypto. Thus, the regulatory body plans to establish other measures that allow the inclusion of “public service tokens” or those protected by “assets or stable currencies.”

Peter Smith, Managing Director, Head of Policy Strategy and Risk at DFSA, highlighted that creating an appropriate environment for innovative companies to prosper in the UAE is a top priority for both UAE governments and Dubai and DFSA.

This system is considered the first ladder for a new regulatory structure considered the first step for the Digital Assets Regime within Dubai, which recorded the applications and suggestions in a consultation document, which was carried out last March, when the DFSA inquired about the opinion of citizens about security tokens in order to regulate them.

The DFSA also highlighted that it is carrying out the procedures and investigations that allow it to generate measures for other assets that do not enter the framework of investment tokens, among which the following stand out: cryptocurrencies, utility tokens and stable currencies.

M. Rodríguez

Source: ezanime.net

La entrada Dubai releases regulatory framework for investment tokens apareció primero en Bitfinance.