Seeds of Wisdom RV and Economic Updates Saturday Morning 8-3-24
Good Morning Dinar Recaps,
US REJECTS VIETNAM'S Request to Lift ‘Non-Market Economy’ Tag
THE QUESTION REMAINS HOW WILL THIS NEWS AFFECT THE VALUE OF THE VIETNAMESE DONG
" The Biden administration rejected Vietnam’s request to be classified officially as a “market economy,” a setback for the country’s efforts to boost exports to its most important market."
"The trade-dependent Southeast Asian economy has pressed the administration to revise the status since the upgrade in diplomatic ties during a visit by President Joe Biden to Vietnam in September last year."
"The “non-market” economy label mainly works against Vietnam when the US applies anti-dumping complaints. A change would have been a signal of closer ties at a time when the US is seeking to bolster relationships in the region as a counterweight to China. "
"Vietnam, which has signed numerous free trade agreements, is making greater access to the US market a priority. Its total trade — exports and imports — is equivalent to about twice the size of its economy."
@ Newshounds News™
Read more: MSN
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Bitcoin: El Salvador makes CRYPTOCURRENCY LEGAL TENDER
"Congress approved President Nayib Bukele's proposal to embrace the cryptocurrency, with 62 out of 84 possible votes on Tuesday night.
The president said the government had made history, and that the move would make it easier for Salvadoreans living abroad to send money home.
Bitcoin will become legal tender, alongside the US dollar, in 90 days.
The new law means every business must accept Bitcoin as legal tender for goods or services, unless it is unable to provide the technology needed to do the transaction."
""It will bring financial inclusion, investment, tourism, innovation and economic development for our country," President Bukele said in a tweet shortly before the vote.
He has previously said the move will open up financial services to the 70% of Salvadoreans who do not have bank accounts."
NOTE: THIS ARTICLE IS FROM 2021. BITCOIN IS BEING USED AROUND THE WORLD TO BRIDGE THE GAP WHERE LOCAL CURRENCIES ARE SEVERELY DEPRESSED
@ Newshounds News™
Read more: BBC
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Indonesia preps second stage of wholesale CBDC trials
Today Bank Indonesia published its Indonesian Payment System Blueprint (BSPI) 2030. One of the five major initiatives is its central bank digital currency (CBDC) work, THE DIGITAL RUPIAH.
It previously announced three stages of its proof of concept CBDC work. The first is the basic issuance and redemption of a wholesale CBDC (wCBDC) using DLT, which was completed during the first half of 2024. Secondly, it plans to explore the integration of a wCBDC with a digital securities ledger. Thirdly, it will use the wCBDC as a foundation for a retail CBDC.
While today’s paper provides an update, and reiterates the three phases first outlined in 2022, there is a subtle change in emphasis towards the wCBDC. For example, now the third phase following the wCBDC digital securities work will focus on wCBDC for cross border payments.
Notably, Bank Indonesia is an observer on the mBridge cross border CBDC initiative that uses wCBDC. mBridge recently entered the minimum viable product (MVP) phase with its initial participants, including the BIS Innovation Hub and the central banks of China, Hong Kong, Thailand and the UAE. Saudi Arabia recently joined and there are at least 22 observer banks.
@ Newshounds News™
Read more: Ledger Insights
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The Philippines chooses Venom for a groundbreaking national blockchain initiative
Manilla, Philippines, 1 August, Chainwire – Venom Foundation is proud to announce a historic agreement with the government of the Republic of the Philippines to digitize billions of accountable forms using its advanced blockchain technology.
Landmark opportunity and global significance
This initiative represents a pivotal milestone for Venom and the broader crypto industry. In what could end up as the world’s largest blockchain use case, this project underscores Venom’s leadership and innovation in the blockchain space.
By betting on Venom, the Philippine government demonstrates unprecedented trust and confidence in blockchain as a secure, scalable, and efficient solution for national-level operations.
This move is poised to revolutionize the way governments and large institutions handle data, transactions, and record-keeping, setting a new standard for transparency and efficiency.
This breakthrough project not only elevates Venom's standing but also sets the stage for other governments and sovereign nations to adopt the same kind of forward-thinking.
Project scope and impact
The Philippines is making a significant leap forward by launching an ambitious project to use Venom technology to digitize approximately ten billion accountable forms such as but not limited to invoices or receipts, cash tickets, documentary stamps, and special bank receipts, individually identified, accounted for, and afforded appropriate security.
This initiative marks a new phase in the country's digitalization journey and promises to revolutionize financial operations.
The project is expected to significantly enhance transparency, reduce costs, and improve the efficiency and security of financial transactions across the nation. With a population of approximately 115 million, the impact of this digitization effort will be far-reaching, touching every aspect of daily life and commerce in the Philippines.
@ Newshounds News™
Read more: Coin Telegraph
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Russia approves law on legalizing cryptocurrency mining
Requirements for the activities of individuals and legal entities mining digital currency, including participants in mining pools, as well as for individuals organizing their activities, will be established by the Russian Government in coordination with the Bank of Russia
Only Russian legal entities and individual entrepreneurs included in a register will have the right to mine. Individuals who do not exceed the energy consumption limits set by the Russian government will have the right to mine digital currency without being included in the register.
@ Newshounds News™
Read more: TASS
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WHO SETS THE RATES? Common questions about CURRENCY EXCHANGE RATES
"Who's in charge of setting currency exchange rates? If you've ever sent money overseas or checked the rates, this is a question that may have definitely crossed your mind. Who decides what is the value of money, and why do rates fluctuate that much during the day?"
"Every country in the world has its own currency, and each of these currencies is valued differently. When you exchange one currency for another, you're actually buying money, just in a different currency than the one used in your country."
"The exchange rate tells you how much the currency used in your country is worth in foreign currency. The rates CONSTANTLY CHANGE for some countries, whereas others use FIXED exchange rates.
As a rule of thumb, a country's social and economic outlook is the main factor that influences the currency exchange rate."
"Most countries have variable currency exchange rates, which are determined by the foreign exchange market. Because these rates are flexible, they fluctuate every minute, often influenced by market movements, political events, economic forecasts, and more."
"Countries such as the U.S., the United Kingdom, Canada, Japan, and Mexico all use flexible exchange rates. It's important to note that even though government policies can influence currency exchange rates, the government can't actually regulate them. The rates are always determined by Forex traders on the foreign exchange market."
"Several countries use FIXED CURRENCY RATES, and that is because the government dictates when the rates change. This is the case for the Saudi Arabian RIYAL, for example. The fixed rates are pegged to the U.S. dollar, and the central bank in the countries that use this system holds U.S. dollars to keep the rate fixed. "
"The market forces of supply and demand are the main factors that determine currency exchange rates. The level of demand for a currency determines its value in relationship with other currencies. "
@ Newshounds News™
Read more: Xe
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North Carolina lower chamber overturns governor’s veto of CBDC ban
The bill received strong support in the General Assembly. Now, the state Senate will consider overturning the veto.
There is still hope for the bill passed by the North Carolina General Assembly banning the American state from testing or accepting a United States central bank digital currency (CBDC) after the state House of Representatives overturned the governor’s veto. If the state Senate follows suit, the bill will go into force.
The bill passed both chambers of the state legislature in overwhelming bipartisan votes on June 26. The state’s General Assembly is dominated by the Republican party, which has shown strong opposition on the state and national levels to the introduction of a US CBDC. The veto override has already been passed to the Senate Committee on Rules.
More support for the ban than the override
Democratic Governor Roy Cooper vetoed the bill on July 5. Only two Democratic lawmakers voted in favor of overturning the veto, while 40 reversed their stance in the passage of the bill.
@ Newshounds News™
Read more: Coin Telegraph
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US Senator Officially Introduces BITCOIN Act to Establish Strategic BTC Reserve
"U.S. Senator Cynthia Lummis has officially introduced the BITCOIN Act in the Senate, aiming to establish a strategic bitcoin reserve as an additional store of value to strengthen America’s balance sheet. The initiative seeks to position the U.S. as a leader in financial innovation by proposing the purchase of 1 million bitcoins and ensuring robust security measures."
"U.S. Senator Cynthia Lummis (R-WY) announced on Wednesday that she has OFFICIALLY INTRODUCED the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act in the U.S. Senate. She unveiled the bill at the recent Bitcoin Conference in Nashville, Tennessee."
"Describing her bill as a “historic proposal to supercharge the U.S. dollar and pay down the national debt by establishing a strategic bitcoin reserve,” Senator Lummis stated:"
"“This is our Louisiana Purchase moment that will help us reach the next financial frontier,” the lawmaker opined.
"Lummis’ BITCOIN Act aims to secure America’s financial future by incorporating bitcoin into the national balance sheet. It proposes the creation of “a decentralized network of secure bitcoin vaults operated by the United States Department of Treasury with statutory requirements ensuring the highest level of physical and cybersecurity for the nation’s bitcoin holdings,” the lawmaker described."
"This legislation will oversee the implementation of “a 1-million-unit bitcoin purchase program over a set period of time to acquire a total stake of approximately 5% of total bitcoin supply, mirroring the size and scope of gold reserves held by the United States,” Lummis noted.
The plan will be funded by reallocating resources within the Federal Reserve System and the Treasury Department, ensuring robust cybersecurity and physical security measures.
The act also upholds the self-custody rights of private bitcoin holders, with Senator Lummis emphasizing that the reserve will not compromise individual financial freedoms."
@ Newshounds News™
Read more: Bitcoin
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Number of Banks in the U.S. – How Many Are There?
"There are currently 4,844 insured commercial banks, according to the Federal Deposit Insurance Corporation (FDIC)."
"The FDIC’s count does not include credit unions. The National Credit Union Administration insures credit unions and tracks them separately. It also doesn’t include fintech apps that aren’t chartered as banks or directly insured by the FDIC. However, fintech apps that accept fiat money deposits (old-fashioned U.S. dollars rather than cryptocurrencies) generally partner with banks that have national charters and FDIC insurance."
"Since the 1980s, the Number of Banks in the U.S. Has Declined"
"The FDIC began counting the number of commercial banks in 1934. That year, 14,146 commercial banks were operating in the United States. That number didn’t change much for the next 50 years. After a low of 13,114 in 1959, the U.S. commercial bank count climbed to an all-time high of 14,469 in 1983.
The following year, the FDIC began tracking the number of savings banks. The inaugural count was 3,550, for a total of 17,810 commercial and savings banks in the United States."
"The U.S. population nearly doubled from 1934 to 1984, so while the number of U.S. banks per capita declined during this period, the industry appeared more or less stable. In other words, new banks formed about as quickly as old ones failed or merged."
"Then, in the mid-1980s, something changed."
"The number of active banks in the U.S. dropped by nearly 6,000 in just 10 years, from 17,754 in 1986 to 11,929 in 1995. This drop coincided with the savings and loan crisis of the late 1980s when thousands of smaller banks went belly-up as real estate prices and mortgage origination activity declined."
"Three factors explain the decline in the number of banks operating in the U.S.: bank failures, bank mergers, and the lack of new banking charters."
@ Newshounds News™
Read more: Money Crashers
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