The Wild Rollercoaster of Stablecoins
This week was anything but stable for stablecoins. Terra’s beloved TerraUSD (UST), which the world thought was as reliable as the sunrise, nosedived to a jaw-dropping $0.29. Meanwhile, Tether (USDT) didn’t fare much better, flirting dangerously with the ground at $0.96 for a brief moment. Talk about a wild ride!
Government Assurance or Political Dance?
Enter United States Treasury Secretary Janet Yellen, stepping out of the shadows like a superhero in a fiscal cape. With the markets in chaos, she felt the need to soothe the nation’s worries, assuring everyone that the minuscule market size of stablecoins didn’t threaten America’s hefty economy. Little did she know that politicians rarely demolish their own effigies when they can just keep building them. Yellen also urged for a “consistent federal framework” on stablecoins – just what we need, yet more government regulations, right?
The Crypto Mom Wants Room for Risk
In a contrary twist, Commissioner Hester Peirce, affectionately dubbed the Crypto Mom, seems to be shaking things up. While she acknowledges the necessity of a regulatory framework, she argues that failure should also be part of the experimentation package. “That’s how innovation happens, folks!” she quipped—probably while shuffling the deck of her crypto poker cards.
CBDCs on the Horizon: Treading Carefully
As stablecoins juggle their turbulence, the central bank digital currencies (CBDCs) are inching their way forward, albeit slowly. The Bank of Israel is providing sweet nothings about public support for its ‘digital shekel,’ which they temporarily shelved before dusting it off for testing last year. Meanwhile, the European Central Bank is still at the drawing board, attempting to convince the public that anonymity in their digital euro is credible.
Global Response: A Mixed Bag
Amid all this chaos, the Central Bank of Nigeria (CBN) has captured the spotlight—though not necessarily for the right reasons. In its attempt to keep the eNaira cozy in the spotlight, the CBN is making life hard for private digital currencies. The United Nations and OECD couldn’t help but raise their eyebrows, pointing out that the CBN’s restrictions are stifling fintech investments, leading to ominous consequences for its youth. Sadly, the CBN seems oblivious, clutching its new toy tightly.
No Tax for Hodlers in Deutschland!
But let’s lighten the mood! Germany’s Finance Ministry has played the good cop this week by introducing cryptocurrency tax guidelines. So, if you’ve managed to hold onto your Bitcoin (BTC) or Ether (ETH) for more than a year before cashing in, congratulations—you’re exempt from taxes! And yes, miners can also enjoy the sweet taste of no tax on freshly minted BTC after a year. Who knew that learning patience could lead to tax benefits?
