Weekly News in a Crypto World 🌎

BRICS Expansion Propels Global Reshaping

The BRICS alliance is set to expand as 14 countries, including Algeria, Venezuela, and Vietnam, express interest in joining, marking a significant global shift and challenging traditional power structures. The diverse mix of applicants seeks the economic and diplomatic benefits of BRICS membership, emphasizing the alliance’s growing influence and commitment to a multipolar world order. The expansion, following the 2023 summit, adds momentum to BRICS’ role in reshaping international trade and diplomacy. Anticipation builds for the 2024 summit, where the potential inclusion of these countries could enhance BRICS’ position on the world stage.

Bitcoin and BlackRock Speculation

The dwindling Bitcoin supply on exchanges, ranging between 1.8 to 2 million BTC, sparks speculation that BlackRock may acquire 1 million BTC for its ETF initiative, contributing to potential scarcity and price impact. The evolving narrative categorizes Bitcoin as an ESG asset, influenced by reports on renewable energy mining and adoption as a treasury asset. The overall market sentiment remains cautiously optimistic, with the recognition of key resistance levels and inherent risks in cryptocurrency investments.

Coinbase SEC Regulatory Battle Unfolds

Coinbase, the largest U.S. cryptocurrency exchange, is taking legal action against the SEC, seeking judicial intervention after the SEC’s denial of regulatory guidance. The SEC, under Chair Gary Gensler, defends its decision, emphasizing adherence to existing laws, while Coinbase stresses the lack of clarity in current regulations and the need for definitive guidelines. This legal battle reflects broader tensions over cryptocurrency regulation in the U.S. and highlights the critical need for comprehensive regulatory frameworks in the evolving industry.

AI Breakthrough in Brain Decoding

Japanese scientists have achieved a milestone by using AI to generate recognizable images from human brain signals, including detailed depictions of objects like leopards and airplanes. The breakthrough "brain decoding" technology offers broad applications, from medical devices to understanding dreams, potentially revolutionizing communication and providing insights into the complexities of the human mind. This innovative research signifies a pivotal moment in neuroscience and AI, offering unprecedented possibilities for visualizing and decoding the contents of the human mind.

Brazil Enacts Overseas Crypto Tax Law

Brazil has enacted a new law to tax overseas cryptocurrency transactions, implementing a flat 15% tax on crypto profits starting January 1, 2024. The move aims to generate $4 billion in new taxes in 2024 and establish fair tax treatment for crypto investments. The law requires Brazilian crypto users engaging in international transactions to report activities to tax authorities, signaling a departure from focusing solely on domestic exchanges and acknowledging the borderless nature of cryptocurrency transactions.

Argentina’s Economic Challenges

Argentina’s new president, Javier Milei, broke a major campaign promise to reduce inflation by doubling it overnight, devaluing the peso’s official exchange rate from 366.5 to 800 pesos per US dollar. The country’s economy minister, Luis Caputo, announced a further monthly devaluation target of 2%, aiming to address economic challenges. The International Monetary Fund (IMF) praised Argentina’s reduction of government spending as a crucial step toward stability, despite the country facing a 161% annual inflation rate.

South Korea’s Urgent CBDC Call to Action

Bank of Korea Governor Lee Chang-yong urges urgent action on central bank digital currencies (CBDCs), stating it is imperative and can no longer be postponed. The central bank has not made a decision on issuing a CBDC but acknowledges the growing importance of stablecoins and the need to research CBDCs. South Korea, at the "2023 MOEF-BOK-FSC-IMF International Conference on Digital Money," emphasizes the significance of balancing investor protection and innovation in regulations, anticipating the regulatory framework for virtual assets to take effect in July 2024.