Seeds of Wisdom RV and Economic Updates Friday Afternoon 11-22-24

Good Afternoon Dinar Recaps,

BRICS: WHY 2025 COULD BE THE END OF ITS DE-DOLLARIZATION EFFORTS

Despite being the BRICS focus over the last two years, 2025 could mark the end of the alliance’s de-dollarization efforts. Although the bloc has sought increased financial prominence, it has yet to truly strike at international Western hegemony.

With President-elect Donald Trump set to take over the White House in the coming years, his relationship with Russia’s Vladimir Putin could orchestrate a massive shift in perspective for the group. Since Trump won the 2024 election, Putin has already assured he is no longer interested in abandoning the US dollar.

BRICS Fight Against the US Dollar Coming to Its Final Bell: Why Trump Changes Everything
2022 remains one of the most important years, geopolitically speaking. 

That year marked the start of Russia’s invasion of Ukraine. Moreover, it forced the hand of the West, with the United States moving to sanction the country in response to its military advancement.

With that being more than two years ago now, things have changed. The invasion sparked increased cooperation with the global South BRICS alliance. Specifically, Russia sought to forge plans to lessen international reliance on the US dollar. Effectively, he struck back against the West in any way he could.

Yet, things have changed. Specifically, Trump is back in office, and the sentiment from the Russian president has shifted greatly. More importantly, things for the BRICS bloc could be set to change, as 2025 could be the end of its ongoing de-dollarization efforts.

A Reuters report notes that Putin has expressed a willingness to sit down with Donald Trump and discuss ending the ongoing war in Ukraine. Although he has extensive conditions, his openness for a ceasefire is progress nonetheless. 

Moreover, that comes as he already denounced a desire to truly abandon the US dollar after Trump was elected as the incumbent US President.

Trump has been outspoken about his stance regarding de-dollarization. Just as certain, the 45th president has been vocal about his belief in his own capacity to end the Ukraine war. Those two things could create a perfect storm that only hinders the nations that put their faith in BRICS de-dollarization.

It is not out of the realm of possibility to see an increase in Russian and US cooperation. That is especially true amid Trump’s return. Such an action would threaten its advances on the US dollar. More importantly, it could ensure Trump gets what he wants, assuring the greenback’s position atop global economics.

@ Newshounds News™

Source: Watcher Guru

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SEC COMMISSIONER JAIME LIZÁRRAGA TO STEP DOWN IN JANUARY

The U.S. Securities and Exchange Commission will see yet another exit in January after Commissioner Jaime Lizárraga announced he will step down.

Bloomberg Law reports that the former congressional aide has said he will leave the agency on January 17. The announcement comes just a day after SEC Chair Gary Gensler announced his resignation effective January 20.

Lizárraga, Gensler, and Caroline Crenshaw are the three Democrat commissioners among the SEC’s five members. The two exits will leave Crenshaw, Hester Peirce, and Mark Uyeda, the latter two having dissented on various SEC decisions.

Notably, Lizárraga and Gensler will exit as Donald Trump, elected on Nov. 5, gets into office amid expectations of a pro-crypto White House. Reports that the Trump administration is eyeing a “crypto czar” have added to optimism, even as the industry debates on who would be the best pick for SEC Chair.

Lizárraga joined the SEC in 2022, with his term ending in 2027. Lizárraga faced criticism for overreach, with his corporate reporting regulations burdening small businesses. He was also criticized for the controversial policies that the market saw as prioritizing politics over investors.

He says his resignation is for family reasons.

“In reflecting on the challenges that lie ahead, we have decided that it is in the best interests of our family to close this chapter in my 34-year public service journey,” he said in a statement quoted by Bloomberg Law.

The crypto industry has largely criticized the SEC’s approach over the past four years, pointing to what many see as an anti-crypto stance. Trump has pledged to fire Gensler immediately upon taking office, vowing to end the current administration’s “war on crypto.”

@ Newshounds News™

Source: Crypto News 

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MASTERCARD INTEGRATES ITS MTN BLOCKCHAIN NETWORK WITH JP MORGAN’S KINEXYS DIGITAL PAYMENTS (JPM COIN)

Today Mastercard announced it has integrated its Multi-Token Network (MTN) for tokenized deposits and tokenized assets with Kinexys Digital Payments (formerly JPM Coin).

 It allows clients of the two solutions to send payments across the networks. Both companies emphasized the benefits for cross border payments because of traditional challenges with speed, transparency and time zone differences.

Kinexys Digital Payments is designed to support clients with JP Morgan bank accounts, so it’s mainly used by corporates that want to move money between JP Morgan branches dotted around the world. MTN provides a simplified solution to enable banks to engage with tokenized deposits.

Instead of developing their own blockchain networks, it offers banks an API driven solution. Additionally, it provides interoperability with multiple blockchain networks. Kinexys is an example of one of those networks.

“For years, both Mastercard and Kinexys by J.P. Morgan have been committed to innovating for the future of digital asset and commercial infrastructure,” said Raj Dhamodharan, EVP, Blockchain and Digital Assets at Mastercard.

“By bringing together the power and connectivity of Mastercard’s MTN with Kinexys Digital Payments, we are unlocking greater speed and settlement capabilities for the entire value chain.”

Both solutions represent bank payments on a blockchain. Conventional cross border payments involve Swift messages being sent between banks, often with intermediary banks involved. The banks then move the money separately from the message. That works fine most of the time, but not always. 

With blockchain-based transfers, there is no separation of the message and money movement. That avoids issues where money has departed the sender’s account but has not arrived at the recipient.

If there’s an issue with the payment, such as an AML query, then the transfer should not start until that’s resolved.

Kinexys and MTN experience
Kinexys Digital Payments are relatively mature, having launched in 2020. It now processes on average $2 billion in payments daily. Kinexys supports both Euros and Dollars, with plans to support instant FX soon. By contrast, MTN was first announced in mid 2023, and executed its first live transaction in a sandbox with Standard Chartered in May.

Both projects are explored in Ledger Insight’s new report on bank stablecoins and deposit tokens.

@ Newshounds News™

Source: Ledger Insights  

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Iraq News Highlights and Points to Ponder Friday AM 10-22-24

Dollar-Dinar Exchange Rate Gap: Causes And Treatments

Dr. Haitham Hamid Mutlaq Al Mansour   Iraq relies in its monetary policy to monitor the change in the value of its dinar against the dollar on a fixed exchange rate peg system. The overall policy aims to reduce the gap between the official and actual exchange rates and stabilize it close to the target exchange rate, curbing inflation, stimulating markets, commercial, financial and investment transactions, and stimulating growth.

Therefore, reducing the exchange gap at the target exchange rate level is one of the prominent issues facing the economic policy maker in Iraq in order to limit the major repercussions that go beyond the economic scope and crystallize significantly in the social stability of the country.

This gap becomes more evident through the variation in the dollar exchange rates and the fluctuation of the real value of the dinar. Either positively, it generates revenue, or negatively, it generates additional costs that cause repercussions on purchasing power without taking individuals and economic units into account, negatively affecting local and foreign savings and investment.

The more the gap varies, the greater the economic cost of investment and the higher the levels of inflation, which increases the suffering of the limited-income family sector.

It has become known that the size of the Iraqi economy's GDP depends very heavily on the oil dollar, which is the main source of the Ministry of Finance's resources, instead of the non-oil dollar, which is called the non-oil export dollar, which has very low flexibility, resulting in a sharp decline in credit deposits in the accounts of traders exporting goods in Iraqi banks in exporting countries.

This dependence exposes the exchange gap to fluctuations in the global oil market. When global oil prices rise, we witness a decrease in the exchange gap due to the increase in the supply of the dollar, while in contrast, during periods of economic recession or when oil prices fall, the gap increases significantly when the government is unable to provide an adequate supply of dollars in the official window for buying and selling dollars.

In such cases, traders are forced to search for alternatives through the parallel market, which exacerbates price pressures on the weakest groups.

Referring to the reasons that widened the exchange gap, they are multiple. In addition to what was mentioned above, the reasons can be traced according to the axis of indirect reasons that are linked to the country's trade policy and the problems of border crossings related to dollar smuggling, including those related to activating the role of crossings as an authentic source of revenue.

 There are also indirect reasons that have a political and security nature and medium- and long-term repercussions on the movement of money and investment.

While economic and monetary reasons stand out at the forefront of direct or technical reasons, some of them are related to the nature of the banking system and the extent of its credit capacity and the level of banking compliance with the monetary and credit conditions of the Federal Reserve, which affects the levels of supply of the petrodollar.

Therefore, we find that many international banks refuse to work as correspondent banks due to the low credit rating of our banking system as a result of smuggling operations, money laundering and sanctions that affect a third of Iraqi banks. Therefore, we find that they do not stand up in this regard, except for banks that have external partnerships with Arab banking capital.

They derive international acceptance from the quality of the credit rating of those countries, which facilitates the process of opening accounts with correspondent banks. Therefore, there is fear that pressures on the dollar exchange rate will increase, widening the gap.

It is also noted that among the technical reasons that led to the widening of the gap are the successive changes in the official exchange rate threshold taken by successive government administrations.

The gap witnessed a transition at the end of 2020 from the stable situation in which the gap between the official exchange rate of 0.118 dinars per dollar and the actual exchange rate of 1,200 dinars narrowed, to raise the threshold in 2021 to 1,450 due to the decision of the Central Bank at the time.

Then the threshold rose this time after the Council of Ministers approved in February 2023 the decision of the Board of Directors of the Central Bank of Iraq to amend the official exchange rate of the dollar against the dinar, to the threshold of 1,300 dinars per dollar.

By following the parallel dollar exchange rate in November of this year 2024, we find that it has reached the limits of 1500 dinars per dollar and exceeded it, and that the Central Bank’s selling price for cash dollars, transfers, documentary credits, and international settlements for electronic cards is at the threshold of 1300 dinars per dollar.

Therefore, it is concluded that the gap in the dollar exchange rate against the dinar is still widening despite the pressures of the Federal Reserve and the Central Bank’s efforts towards compliance.

Therefore, dealing with the gap between official and actual spending should require comprehensive, integrated policies that target technical and non-technical treatments within medium- and long-term planning, the most important of which are:

Reforming the structure of the banking system, developing its efficiency, and raising the levels of its credit capacity and the flexibility of its banking compliance.

Developing tools for targeting inflation and exchange rates, which would help reduce the exchange gap and achieve price stability.

Implementing solid reforms in the financial and monetary sectors to enhance the flexibility of banking performance in accordance with the SWIFT global financial settlement system.

Coordination between fiscal and monetary policies to achieve the target exchange rate by rationalizing government spending and tightening control over the money supply.

Economic policy should enhance transparency in all financial and banking operations, by implementing clear and strict control systems to contain opportunities for corruption and exploitation of the exchange gap.

Deepening the mechanisms of border control and combating administrative corruption to increase total revenue.

Government authorities must maintain and enhance security and political stability to contribute to building confidence between local and foreign investors on the one hand and the investment environment on the other, which will stimulate further stability and growth.[/rtl]

Formulating an economic policy that targets technical solutions to expand the non-oil production base, and serious planning on how to diversify sources of income for the overall economy.

The path of developing the agricultural and industrial sectors will be the decisive factor in reducing imports and stimulating the growth of fixed capital accumulation for the private sector. Hence, the demand for the dollar for consumer import purposes will decrease. https://economy-news.net/content.php?id=50102

US Report Shows The Importance Of The Population Census In Iraq: It Will Reshape This Map

Local    Economy News - Follow-up   The American Associated Press published a report on the population census and its results on the political process in Iraq.

The agency said in its report, which was reviewed by "I am Parliament", that "the population census will reduce the political influence of minorities in Iraq."

The report added, "The delay in conducting the population census in Iraq was not only due to security and political reasons, but there was also data that the parties did not want to publish, such as poverty levels in each governorate."

He pointed out that "the population census will reshape the map of political thinking and decision-making in Iraq."

The population census operations began in the Iraqi governorates on Wednesday, after a 27-year hiatus.       https://economy-news.net/content.php?id=50098

Economist: Total Cost Of General Population Census Reached 951 Billion Dinars

Local |Today,   Baghdad Today – Baghdad  Economic expert Nabil Al-Marsoumi revealed, today, Friday (November 22, 2024), the financial and economic cost of the general population census.

Al-Marsoumi said in a post on Facebook, which was followed by "Baghdad Today", that "the total financial and economic cost of the general population census amounted to 951 billion dinars."

He explained that "the direct financial cost of the census amounted to 459 billion dinars, while the cost of suspending official work amounted to 492 billion dinars."

Al-Marsoumi added, "The economic cost is expanding due to the halt of public and private economic activities, and many individuals and local communities are harmed as a result, especially the poorest groups who depend on earning their living on a daily basis in normal times and do not save any resources to use during the curfew."

The economic expert pointed out that "the population census could have been conducted without the need to impose a comprehensive curfew in the country, even if that led to extending the data collection period for several more weeks, in order to save costs and take into account vulnerable groups and workers in the private sector."  LINK

Economist: The Census Will Lead To An Increase In The Share Of Some Governorates In Regional Development

Posted on 2024-11-22 by sotaliraq  Economic expert Nabil Al-Marsoumi confirmed that the general population census will lead to an increase in the share of some governorates in regional development and a decrease in the share of others.

Al-Marsoumi said in a blog post that the general population census will lead to an increase in the share of some governorates in regional development and a decrease in the share of others because the population is the only criterion in distributing regional development funds among the governorates.

[size=45]Iraq witnessed the last general population census that included all its governorates in 1987, and although the country conducted another population census in 1997, it did not include the governorates of the Kurdistan Region, because they were semi-independent during the era of the former regime. LINK

Setting The Date For Announcing The Preliminary Results Of The Population Census

Time: 2024/11/21 Reading: 962 times  {Local: Al Furat News} An informed source revealed the date of announcing the preliminary results of the general population census.

The source told {Euphrates News} a copy of it, "The preliminary results of the general population census will be announced within two days from now, specifically next Saturday."

He said, "The operations room for the population census continues to operate around the clock."

Yesterday, Wednesday, the general population census process was launched in Iraq in all its governorates. It is the first of its kind since 1987, amidst strict security measures and the imposition of a comprehensive curfew, in an attempt to facilitate the work of the mobile teams working to record information from the residents.

At exactly 12 midnight local time on Tuesday, the security authorities imposed a curfew in all governorates of the country that will last for two days. Security checkpoints and all entrances and exits to cities were closed to prevent movement.

The census is also accompanied by the alert status (C) for Iraqi security and military units. From.. Raghad  LINK

Seeds of Wisdom RV and Economic Updates Friday Morning 11-22-24

Good Morning Dinar Recaps,

CONGRESSMAN THAT LED SAB 121 HOUSE VOTE, VOWS TO OVERTURN CRYPTO CUSTODY RULE

Earlier this year, both the House and Senate voted to overturn the SEC’s SAB 121 accounting rule that prevented banks from providing crypto custody solutions. However, President Biden used his veto so the rule still stands. Mike Flood, the Congressman that led the bipartisan House vote, has vowed to work with a new SEC Chair to ditch SAB 121 for good.

However, Flood’s work wasn’t entirely wasted. The dual votes highlighted the issue that forcing banks to put assets under custody on their balance sheet is both unconventional and affects their compliance with bank balance sheet rules.

As a result, it makes it prohibitively expensive for banks to provide crypto custody and inhibits innovation on the tokenization front.

Since then, the SEC has softened its stance a little. Banks can apply for exceptions and it has granted them. That’s not a practical solution, because banks have to consult the SEC on most deals.

“SAB 121, despite widespread opposition, works effectively as a regulation even though it never went through the normal Administrative Procedures Act process required for one,” Congressman Flood wrote.

“I look forward to working with the next SEC Chair to rollback SAB 121.” He didn’t pull his punches about SEC Chair Gensler. “Whether the chair leaves on his own or President Trump delivers his famous line on January 20, 2025, there’s an incredible opportunity for the new administration to turn the page on the Gensler era.”

“It should be no surprise that Gensler opposed the digital assets regulatory framework that passed the House earlier this year on a bipartisan basis. 71 Democrats joined House Republicans to pass this common sense framework.

Even though the Democrat-led Senate has refused to take it up, it represents a breakthrough moment for cryptocurrency and is likely to inform the work of the unified Republican government as the next Congress begins in January.”

@ Newshounds News™

Source:  Ledger Insights

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CFTC COMMISSIONER URGES US CRYPTO POLICY REFORMS

The CFTC’s Summer Mersinger advocated structured crypto regulations and urged the industry to engage with the incoming US administration.

Speaking at the North American Blockchain Summit on Nov. 21, CFTC Commissioner Summer Mersinger discussed the need for standard US crypto-related policies through notice and comment regulation.

The United States Commodity Futures Trading Commission (CFTC) has played a role in implementing the current “regulation by enforcement” strategy alongside the Securities and Exchange Commission (SEC) under the outgoing administration, as evidenced by recent charges against Uniswap Labs.

Mersinger also said recent litigation against a decentralized autonomous organization (DAO) required the CFTC to seek a court verdict for entity classification. In this case, the CFTC wanted to classify the DAO as a corporation or association:

“I really started to get uncomfortable with this idea that we were kind of setting some sort of policy through our enforcement cases and through going to court. To me, how you’re going to treat an entity that’s a policy question.”

Need for regulated relief for the crypto industry
Mersinger said that while crypto entities, including decentralized finance (DeFi), are often charged under existing categories and expected to operate under the same laws, there is no provision for them to be officially registered. She added:

“This is really tricky settlements because the information we share publicly with our enforcement settlements really doesn’t offer a lot of guidance for anyone who’s trying to do the right thing.”

As a result, Uniswap tried to do the right thing but ended up attracting more charges, Mersinger said. Still, Uniswap settled with the CFTC for a “very small fine.”

Despite its small size compared with the other agencies such as the SEC, Mersinger said that the CFTC is the “ideal regulator for the cryptocurrency spot market” as it can implement major legislative changes fairly quickly without disruptions to the market.

New laws can help crypto companies fight wrongful litigation
Moreover, she supported the introduction of new laws and regulations for crypto firms despite her predominantly conservative stance:

“What we’re seeing right now is that without those laws, you have agencies like the Federal Communications Commission (FCC) who can come in and create chaos and bring charges where maybe it doesn’t fit.”

Mersinger also recommended that the crypto industry start engaging with the new administration as soon as its leadership has been identified. “Don’t be afraid to start knocking on doors on day one because I think it’s critical to start” the conversations early on, she said.

@ Newshounds News™

Source:  CoinTelegraph 

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🌱 THE DOLLAR GAIN MEANS WHAT?  | Youtube

@ Newshounds News™

Source:  Seeds of Wisdom Team RV Currency Facts

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“Tidbits From TNT” Friday Morning 11-22-2024

TNT:

Tishwash:  MP Hassan Al-Asadi brings good news to a group of those covered by Article 140

Member of Parliament Hassan Al-Asadi announced, today, Thursday (November 21, 2024), good news for a group of those covered by Article 140.

Al-Asadi said in a statement received by "Baghdad Today", "After continuous follow-up with the Committee for the Implementation of Article 140 of the Constitution of the Republic of Iraq, approval was obtained to promote the transactions of the article for those who have a receipt for the years (2018, 2019, 2020) on Sunday, corresponding to 11/24/2024, at the committee's office in the city of Nasiriyah."  link

Tishwash:  Because it contains a political aspect.. Parliamentary Wealth: The Oil and Gas Law faces difficulties

Member of the Parliamentary Oil, Gas and Resources Committee, Ali Abdul Sattar, confirmed today, Thursday, that the Oil and Gas Law has been facing difficulties since 2008. 

Abdul Sattar told Al-Maalouma Agency, “The oil and gas law faces difficulties within the House of Representatives because it contains a political aspect between the region and the center.” 

He added that "the law regulates financial matters and oil management for all governorates, especially the governorates producing oil and gas," noting that "the reason for the law's suspension is that it contains points of contention with the region."

He explained that "the law is still in the government's registry and has not been sent to the House of Representatives, despite the ongoing dialogues and discussions between the Baghdad government and the regional government." 

He added, "The dispute is still ongoing between Baghdad and Erbil over the oil file, and we are waiting for it to be resolved and for the law to be sent to the House of Representatives for discussion and approval."  link

************

Tishwash:  Economist: Government should exploit rising oil prices and implement sound financial management

An economic expert called on the government to exploit the circumstances of rising oil prices and implement sound financial management.

Rashid Al-Saadi told Al-Furat News Agency: "The rise in global oil prices is due to the impact of political circumstances. With the intensification of the Russian-Ukrainian war and the challenges facing the region, in addition to the decision of the International Criminal Court regarding Netanyahu and his Minister of War, and Israel's threats to Iraq and the pressure in the region, oil importing companies are being prompted to take precautions and be careful, and the political and security factor is the decisive and influential factor in the rise in oil prices."

He explained that "Iraq's benefit from this rise is that every dollar in which oil rises serves Iraq by no less than a billion dollars annually and strengthens its budget according to the size of its production."
Al-Saadi stressed, "The government must exploit the circumstances and the rise, because as soon as there is stability in the near or distant future, oil prices may drop significantly. This is a call for the government to manage the state's finances in a rational manner."   link

Tishwash:  Dollar-Dinar Exchange Rate Gap: Causes and Treatments 

Iraq relies in its monetary policy to monitor the change in the value of its dinar against the dollar on a fixed exchange rate peg system, as the overall policy aims

to reduce the gap between the official and actual exchange rates and stabilize it close to the target exchange rate, curbing inflation, stimulating markets, commercial, financial and investment transactions, and stimulating growth.

Therefore, reducing the exchange gap at the target exchange rate level is one of the prominent issues facing the economic policy maker in Iraq in order to limit the major repercussions that go beyond the economic scope and crystallize significantly in the social stability of the country.

This gap becomes more evident through the variation in the dollar exchange rates and the fluctuation of the real value of the dinar, either positively generating revenue or negatively generating additional costs that cause repercussions on purchasing power without taking into account individuals and economic units, negatively affecting local and foreign savings and investment. The more the gap varies, the greater the economic cost of investment and the higher the levels of inflation, which increases the suffering of the limited-income family sector.

It has become known that the size of the Iraqi economy's GDP depends very heavily on the oil dollar, which is the main source of the Ministry of Finance's resources, instead of the non-oil dollar, which is called the non-oil export dollar, which has very low flexibility, resulting in a sharp decline in credit deposits in the accounts of traders exporting goods in Iraqi banks in exporting countries.

This dependence exposes the exchange gap to fluctuations in the global oil market. When global oil prices rise, we witness a decrease in the exchange gap due to the increase in the supply of the dollar, while in contrast, during periods of economic recession or when oil prices fall, the gap increases significantly when the government is unable to provide an adequate supply of dollars in the official window for buying and selling dollars. In such cases, traders are forced to search for alternatives through the parallel market, which exacerbates price pressures on the weakest groups.

Referring to the reasons that widened the exchange gap, they are multiple. In addition to what was mentioned above, the reasons can be traced according to the axis of indirect reasons that are linked to the country's trade policy and the problems of border crossings related to dollar smuggling, including those related to activating the role of crossings as an authentic source of revenue. There are also indirect reasons that have a political and security nature and medium- and long-term repercussions on the movement of money and investment.

While economic and monetary reasons stand out at the forefront of direct or technical reasons, some of them are related to the nature of the banking system and the extent of its credit capacity and the level of banking compliance with the monetary and credit conditions of the Federal Reserve, which affects the levels of supply of the petrodollar.

Therefore, we find that many international banks refuse to work as correspondent banks due to the low credit rating of our banking system as a result of smuggling operations, money laundering and sanctions that affect a third of Iraqi banks. Therefore, we find that they do not stand up in this regard, except for banks that have external partnerships with Arab banking capital. They derive international acceptance from the quality of the credit rating of those countries, which facilitates the process of opening accounts with correspondent banks. Therefore, there is fear that pressures on the dollar exchange rate will increase, widening the gap.

It is also noted that among the technical reasons that led to the widening of the gap are the successive changes in the official exchange rate threshold taken by successive government administrations.

The gap witnessed a transition at the end of 2020 from the stable situation in which the gap between the official exchange rate of 0.118 dinars per dollar and the actual exchange rate of 1,200 dinars narrowed, to raise the threshold in 2021 to 1,450 due to the decision of the Central Bank at the time. Then the threshold rose this time after the Council of Ministers approved in February 2023 the decision of the Board of Directors of the Central Bank of Iraq to amend the official exchange rate of the dollar against the dinar, to the threshold of 1,300 dinars per dollar.

By following the parallel dollar exchange rate in November of this year 2024, we find that it has reached the limits of 1500 dinars per dollar and exceeded it, and that the Central Bank’s selling price for cash dollars, transfers, documentary credits, and international settlements for electronic cards is at the threshold of 1300 dinars per dollar. Therefore, it is concluded that the gap in the dollar exchange rate against the dinar is still widening despite the pressures of the Federal Reserve and the Central Bank’s efforts towards compliance.

Therefore, dealing with the gap between official and actual spending should require comprehensive, integrated policies that target technical and non-technical treatments within medium- and long-term planning, the most important of which are:

Reforming the structure of the banking system, developing its efficiency, and raising the levels of its credit capacity and the flexibility of its banking compliance.

Developing tools for targeting inflation and exchange rates, which would help reduce the exchange gap and achieve price stability.

Implementing solid reforms in the financial and monetary sectors to enhance the flexibility of banking performance in accordance with the SWIFT global financial settlement system.

Coordination between fiscal and monetary policies to achieve the target exchange rate by rationalizing government spending and tightening control over the money supply.

Economic policy should enhance transparency in all financial and banking operations, by implementing clear and strict control systems to contain opportunities for corruption and exploitation of the exchange gap.

Deepening the mechanisms of border control and combating administrative corruption to increase total revenue.

Government authorities must maintain and enhance security and political stability to contribute to building confidence between local and foreign investors on the one hand and the investment environment on the other, which will stimulate further stability and growth.

Formulating an economic policy that targets technical solutions to expand the non-oil production base, and serious planning on how to diversify sources of income for the overall economy. The path of developing the agricultural and industrial sectors will be the decisive factor in reducing imports and stimulating the growth of fixed capital accumulation for the private sector. Hence, the demand for the dollar for consumer import purposes will decrease.  link

Mot: .. Happy New Day!

Mot: .... Now I Get it!!!  

Seeds of Wisdom RV and Economic Updates Thursday Evening 11-21-24

Good Evening Dinar Recaps,

INDUSTRY EXECS SEEK POSITIONS ON TRUMP’S CRYPTO ADVISORY COUNCIL

President-elect Trump promised the establishment of a strategic Bitcoin ‘stockpile’ during the Bitcoin 2024 event in Nashville Tennessee.

Industry executives are reportedly seeking a seat at President-elect Donald Trump’s highly-anticipated crypto advisory council, which will be responsible for crafting regulatory policy and expected to establish a Bitcoin strategic reserve.

According to a Reuters report, Coinbase, Ripple Labs, and venture capital firm a16z are among some of the firms looking to join the council. 

The council may be nestled under the White House’s National Economic Council, but this is not certain, and the council may operate as a separate, standalone entity.

Speaking at the North American Blockchain Summit on Nov. 21, Bitcoin advocate and co-founder of the Satoshi Action Fund Dennis Porter explained the importance of establishing a Bitcoin strategic reserve in the United States:

"A great way for us to protect ourselves from outside influence — undue influence from our foreign adversaries — is to be in the market buying and selling Bitcoin, acting as a shock absorber for all the incredible Bitcoin miners that we have here in this country."

Porter continued by comparing the establishment of a Bitcoin strategic reserve to the Louisiana Purchase in 1803 and the US government’s acquisition of Alaska in 1867 — a point previously stated by MicroStrategy CEO Michael Saylor.

“We bought these things for pennies on the dollar,” Porter remarked and argued that the US has the same option to do the same today by adopting Bitcoin as a reserve asset before other countries beat the US to the punch.

The race is on for a Bitcoin strategic reserve
Senator Cynthia Lummis — who introduced the Bitcoin strategic reserve bill to the Senate earlier in 2024 — recently argued that the Treasury Department should convert some of its gold to Bitcoin to seed the strategic reserve with assets.

Pro-Bitcoin investor and asset manager Anthony Pompliano also remarked that the Bitcoin race between sovereign powers is underway in a Nov. 16 appearance on Yahoo Finance, and urged the US government to “Get as much Bitcoin onto the balance sheet as possible.”

However, not all industry participants are optimistic about the Bitcoin strategic reserve being established under the incoming Trump administration.

Galaxy Digital CEO Mike Novogratz previously opined that he believes a Bitcoin strategic reserve is unlikely under a Trump administration, but also forecasted a $500,000 Bitcoin price tag if the strategic reserve is founded in the near term.

@ Newshounds News™

Source:  CoinTelegraph

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CHARLES SCHWAB TO ENTER SPOT CRYPTO MARKET ONCE REGULATIONS IMPROVE

Incoming CEO Rick Wurster emphasized readiness to capitalize on evolving regulations and anticipates significant industry impact.

Charles Schwab Corp. is gearing up for a foray into the spot crypto market, signaling a strategic pivot for the financial giant in anticipation of regulatory clarity.

Incoming CEO Rick Wurster disclosed the company’s plans during a Bloomberg Radio interview on Nov. 21, emphasizing Schwab’s readiness to capitalize on evolving regulations.

Wurster said:

“We will get into spot crypto when the regulatory environment changes, and we do anticipate that it will change. We’re getting ready for that eventuality.”

His comments mark a notable shift for Schwab, which has so far limited its crypto exposure to products like exchange-traded funds (ETFs) and futures.

VanEck’s Matthew Sigel noted that the firm’s entry would be a significant moment for the industry and highlighted Wurster’s admission of regret, who said during the interview:

“I have not bought crypto, and now I feel silly.”

Competition and timing
Schwab’s move comes as competition intensifies among retail-focused investment platforms vying for investor dollars. Rival firms like Robinhood Markets and Interactive Brokers have already integrated spot crypto trading, forcing Schwab to reassess its cautious approach.

The so-called “Trump trade,” fueled by President-elect Donald Trump’s victory and its implications for crypto-friendly policies, has further accelerated the industry’s momentum.

Schwab’s current offerings focus on crypto-linked ETFs and futures contracts, allowing clients indirect exposure to the digital asset market. However, industry observers have long speculated that the firm would eventually embrace direct trading to remain competitive.

Adding to the speculation, Sigel hinted at behind-the-scenes activity, stating that a prominent crypto asset manager recently approached Schwab to pitch a partnership. 

While details remain unclear, such collaborations could provide Schwab with a quicker and less risky entry into the spot market, leveraging established expertise to navigate operational and regulatory challenges.

Broader institutional shift
Shwab’s evolving stance mirrors a broader shift in institutional attitudes toward digital assets. With regulatory clarity potentially on the horizon, major players in traditional finance are increasingly exploring direct crypto exposure.

The firm’s strategic pivot could position it as a key player in the next wave of crypto adoption, bridging the gap between traditional finance and the burgeoning digital economy.

For now, Schwab appears to be laying the groundwork, aiming to meet investor demand while mitigating risks. The timeline for its entry into spot crypto markets, however, hinges on the regulatory landscape and the firm’s ability to execute its plans effectively.

@ Newshounds News™

Source:  Crypto Slate

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🌱 SEC CHAIR GENSLER TO DEPART AGENCY ON JANUARY 20 - What it means  |  Youtube

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Source:  Seeds of Wisdom Team RV Currency Facts

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Seeds of Wisdom RV and Economic Updates Thursday Afternoon 11-21-24

Good Afternoon Dinar Recaps,

BREAKING NEWS

SEC CHAIR GENSLER TO DEPART AGENCY ON JANUARY 20

Gensler implemented reforms to enhance efficiency, resiliency, and integrity in U.S. capital markets; agency held wrongdoers accountable and returned billions to harmed investors.

For Immediate Release   2024-182   Washington D.C., Nov. 21, 2024 —

The Securities and Exchange Commission today announced that its 33rd Chair, Gary Gensler, will step down from the Commission effective at 12:00 pm on January 20, 2025. Chair Gensler began his tenure on April 17, 2021, in the immediate aftermath of the GameStop market events.

He led the agency through a robust rulemaking agenda to enhance efficiency, resiliency, and integrity in the U.S. capital markets. He also oversaw high-impact enforcement cases to hold wrongdoers accountable and return billions to harmed investors.

“The Securities and Exchange Commission is a remarkable agency,” said Chair Gensler. “The staff and the Commission are deeply mission-driven, focused on protecting investors, facilitating capital formation, and ensuring that the markets work for investors and issuers alike.

The staff comprises true public servants. It has been an honor of a lifetime to serve with them on behalf of everyday Americans and ensure that our capital markets remain the best in the world.

“I thank President Biden for entrusting me with this incredible responsibility. The SEC has met our mission and enforced the law without fear or favor. I’ve greatly enjoyed working with my fellow Commissioners, Allison Herren Lee, Elad Roisman, Hester Peirce, Caroline Crenshaw, Mark Uyeda, and Jaime Lizárraga. I also thank Congress, my colleagues across the U.S. government, and fellow regulators around the world.”

@ Newshounds

Read More:  SEC

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CFTC ADVISORY SUBCOMMITTEE RECOMMENDS TOKENIZED COLLATERAL WITH NO RULE CHANGES NEEDED

The Commodity Futures Trading Commission (CFTC) has a Global Markets Advisory Committee (GMAC) made up of industry participants. Today the subcommittee on digital assets voted in favor (27-0) of three recommendations to adopt DLT and tokenized assets as collateral for margin.

The proposals would need to be adopted by the full GMAC Committee and it’s up to the CFTC to decide whether it proceeds.

The problem addressed by tokenized collateral
Stepping back, the CFTC is the primary regulator for derivatives markets. Typically derivatives require the posting of margin to cover the risk of price swings. Initial margin is provided at the outset, with variation margin during the lifetime of the derivative.

 Non cash collateral is already allowed by the CFTC but is not used much for variation margin, because moving assets involves multiple intermediaries and hence delays. Plus, assets can only be transferred during office opening hours.

By contrast, tokenized assets are directly transferrable 24/7. The ability to quickly transfer tokenized assets for use as variation margin reduces counterparty and other risks. Plus, it saves money by removing the need to liquidate assets to meet margin calls.

During market panics, the need to post additional cash margin often requires selling collateral that increases market volatility.

Collateral mobility is one of the killer apps for tokenization. Beyond the CFTC and derivatives, there are already significant industry initiatives targeting collateral mobility, including HQLAᵡ, JP Morgan’s Tokenized Collateral Network, and Broadridge’s DLR which supports repo and Treasury tokenization.

The Digital Asset subcommittee proposals
The GMAC Digital Assets Markets subcommittee believes that tokenized assets could be used for margin without the need for regulatory changes. Likewise the use of DLT as books and records (without tokenization), should also not require new legislation.

 Given non cash collateral is already eligible for margin, it also doesn’t require changes in eligibility rules. Committee members also concluded that existing policies and procedures for managing risks should be sufficient to support DLT.

The assets they had in mind as collateral would be World Bank bonds, government securities, corporate debt, money market funds and gold. Current CFTC criteria for non cash collateral is that the assets are liquid, hold value and lack correlation to counterparty or portfolio risks.

The Global Head of DTCC Digital Assets, Nadine Chakar, commented that “This is an opportunity for us to be able to increase the velocity of collateral in the marketplace without any changes to rules and guidance.”

DRW has been operating a significant digital asset business for years. DRW’s Chris Zuehlke said it has seen the benefits of the ability to move assets in real time 24/7 in practice. He said the company has a different view on risk where there’s a bank wire involved versus real time settlement with a DLT-based asset.

“We often times feel much more confident in our risk management processes when we know we can have a 24/7 real time settlement capability with these counterparties,” said Mr Zuehlke.

“I think that will transfer very directly to the collateral management side for derivatives based businesses under the CFTC’s purview. And I’m really excited to see that evolution take place.”

The risk of not proceeding
Christopher Perkins from Coinfund is another subcommittee member strongly in favor. He spent a large part of his career at Citi, latterly as Global Co-Head, Futures, Clearing and FX Prime Brokerage.

There’s been much criticism about a lack of technology neutrality with DLT, with extra hurdles often put in place. He argued for the reverse: that market participants should be incentivized to move to tokenized collateral.

 He considers the level of ongoing Herstatt risk in the marketplace as too high. “The risk here is being able to tolerate the very inefficient settlement processes today,” said Mr Perkins. “We’re living in a world now where it takes days to settle Yen. Completely unacceptable.” He advocated for using stablecoins for variation margin.

The potential figures involved are massive. Exchange traded derivatives are small fry compared to over the counter (OTC). Global exchange traded derivatives have a notional open interest of $88 trillion versus $742 trillion for OTC. To put that in context, global stock markets total $124 trillion.

Even if the full GMAC committee proposes to advance the recommendation, the CFTC might be slow to adopt. During today’s meeting, Commissioner Pham noted that the CFTC has not yet implemented a recommendation from November 2023. That one aimed to harmonize rules relating to money market funds as eligible collateral.

@ Newshounds News™

Source:  Ledger Insights

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🌱JUDICIAL NAME - LEGAL NAME - MAINTAINING SOVEREIGNTY #CONSTITUTION #SOVEREIGNTY  |  Youtube

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Source:  Seeds of Wisdom Team RV Currency Facts

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China Sell 44% of US Treasury, will US Economy Collapse?

China Sell 44% of US Treasury, will US Economy Collapse?

Fastepo:  11-20-2024

Recently, news broke that China has sold approximately 44% of its holdings in US Treasury securities, sending ripples through financial markets and sparking a wave of speculation. For years, China has been one of the largest holders of US debt, with its purchases often seen as a sign of confidence in the US economy.

The sudden divestment raises questions about potential impacts on the US economy as well as the broader geopolitical implications. Let’s explore what this development means and whether it could lead to a collapse of the US economy.

Before diving into the implications of China’s actions, it’s important to understand what US Treasury securities are. These are government bonds issued by the US Department of the Treasury to finance government spending. They are considered one of the safest investments due to the stability and creditworthiness of the US government. Investors, including foreign countries like China, purchase these securities as a way to earn interest while also holding assets perceived as low-risk.

While the sale of US Treasuries may sound alarming, declaring that the US economy will collapse is an overstatement. Here are several factors to consider:

When a major holder like China sells a significant portion of its Treasuries, it can lead to an increase in interest rates. Higher interest rates could make borrowing more expensive for consumers and businesses, possibly slowing down economic growth. However, the US economy is more resilient than ever, with a diverse financial market that allows for adjustments.

The US Treasury market is highly liquid and extends beyond foreign governments. American investors, pension funds, and other international buyers can step in to absorb any sell-off. The US dollar remains the world’s dominant reserve currency, and demand for safe assets is unlikely to evaporate entirely, even with China’s reduced involvement.

Economic interdependence means that both the US and China are invested in a stable global economy. A drastic destabilization of the US economy would have severe repercussions for economies worldwide, including China’s. This mutual reliance can lead to more cautious strategies from major global players.

Investor sentiment is also influenced by geopolitical events. While China’s sale of Treasuries may cause short-term market volatility, savvy investors often look long-term. Positive economic fundamentals in the US, including low unemployment rates and continued innovation, can maintain investor confidence.

In conclusion, while China’s sale of 44% of US Treasury securities raises valid concerns about potential economic impacts, it is not an automatic precursor to a collapse of the US economy. The interconnectedness of the global economy provides a buffer against such drastic scenarios.

It will be critical to monitor how this situation unfolds and to consider the broader economic and geopolitical landscape. The resilience of the US economy, combined with its ability to adapt and innovate, suggests it is far from facing imminent collapse due to changes in foreign holdings.

https://youtu.be/huG-Fdq5CfE

“Tidbits From TNT” Thursday 11-21-2024

TNT:

Tishwash:  Al-Sudani, Putin discuss Middle East issues amid unprecedented escalation of tension in the region

Baghdad Today - Follow-up

Russian President Vladimir Putin and Iraqi Prime Minister Mohammed Shia al-Sudani discussed Middle East issues today, Thursday (November 21, 2024), amid unprecedented escalation of tensions in the region.

The Kremlin said in a statement followed by "Baghdad Today", that "Putin discussed, during a phone call with Al-Sudani, joint work within the framework of (OPEC+)," stressing "the importance of coordinating steps in this field."

He added that "the two parties discussed Middle East issues in light of the unprecedented escalation of tension in the region," noting that "issues of cooperation in the fields of trade, economy, transportation, logistics and humanitarian services were discussed  link

Tishwash:  Al-Ghais: Oil and gas are God’s gift and the world must invest in energy sources without exception

The Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), Haitham Al-Ghais, stressed on Wednesday that the world must adopt all energy sources without exception.

Al-Ghais said at the United Nations Climate Change Conference (COP29) that crude oil and natural gas are “a gift from God,” and that talks on limiting global warming should focus on reducing emissions, not choosing energy sources.

His comments were in line with the opening speech of Azerbaijani President Ilham Aliyev, who responded to Western criticism of his country's oil and gas industry, also describing these resources as a "gift from God."

"They are actually a gift from God," Al-Ghais, a veteran Kuwaiti oil executive, said in a speech at the conference hosted by Baku, Azerbaijan.

“These resources affect how food is produced, packaged and transported, how medical research is conducted and how medical supplies are manufactured and distributed. I could go on and on with an endless number of examples,” he added.

He pointed out that the world's governments, which set a ceiling for the rise in global temperature during the Paris summit in 2015 of no more than 1.5 degrees Celsius compared to the pre-industrial revolution level, can achieve their climate goals without shifting away from oil.

Al-Ghais continued, "The Paris Agreement focuses on reducing emissions, not on choosing energy sources."

OPEC said technologies such as carbon capture could address the climate change impacts of burning fossil fuels  link

************

Tishwash:  Economist: Big capitals benefit from the continued rise of the dollar in Iraq

Economic expert Safwan Qusay continued confirmed today, Wednesday, that there are big heads benefiting from the economic chaos and the rise of the dollar in Iraq.

Qusay said in an interview with Al-Maalouma Agency, “There are speculators and local mafias trying to obstruct economic organization and thwart the government's attempt to control the state's resources.”

He added, "The government can strike these mafias with the force of law by directing the supervisory and security agencies against the violators and their continued presence under multiple fronts."

He pointed out that "there are those who manipulate the local dollar markets, and the regulatory bodies must be able to control the big heads that benefit from the continued economic chaos, not the arms."link

Mot:  With temperatures set to plummet tonight, John's legendary weather forecast stone might need a scarf tomorrow—if it’s white, it’s snowing!

Mot: Heeeeeee!! -- Heeeeeee!! -- Heeeeeee!! -- Loves Karma I Do!!  Truck hits snowman

https://www.youtube.com/watch?v=2fxGC_VM6yE

Seeds of Wisdom RV and Economic Updates Thursday Morning 11-21-24

Good Morning Dinar Recaps,

BRICS COUNTRIES GAIN INFLUENCE OVER G20

The G20 summit is ongoing in Brazil’s Rio and all the five BRICS countries are a part of the bloc. The world leaders are discussing trade deals and renewing policies at the summit. US President Joe Biden attended the summit but missed out on the photo op on Tuesday.

However, the world leaders retook the photo op placing Biden at the center and standing next to India’s Prime Minister Narendra Modi to his left and Canada’s Justin Trudeau to his right.

BRICS Influence in G20 Grows

The BRICS countries are having a bigger role in the G20 summit dominating the news cycle and photo ops. The show of unity was on full display making the leaders of Western countries seem like background noise. The show of unity was met with a starkly farcical smile by Biden as leaders clapped and held hands.

“The BRICS countries as a whole are gaining in their role and influence in the G20. This was evident both in Delhi at last year’s summit and in the year before in Indonesia. And here (Rio de Janeiro) it was especially clear,” said Russian Foreign Minister Sergey Lavrov in a press conference.

During the previous G20 summits, BRICS countries rarely hit the news cycles but the 2024 event has turned things around. The bloc is displaying strength through unions and other trade deals indicating their economy can sustain without the West. The alliance recently sent invitations to 13 new nations to join as ‘Partner countries’

Indonesia accepted the invitation to join BRICS as a ‘Partner countries’ while the G20 summit was ongoing. Indonesian Ambassador to Russia, Jose Antonio Morato Tavares said that Indonesia “will actively contribute to and participate in any initiatives of BRICS. This is a positive development. Now, we are already a BRICS partner state,” he said.

@ Newshounds News™

Source:  Watcher Guru

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MALAYSIA EXPLORING WHOLESALE CBDC

Two years ago Bank Negara Malaysia (BNM) outlined its plans for central bank digital currency (CBDC). At the time it intended to explore wholesale CBDC (wCBDC) in the short term and a general purpose retail CBDC this year.

However, during a digital payments event yesterday it disclosed that the emphasis is solely on wholesale CBDC. It believes retail payments are already well served by existing systems.

Currently it is building expertise, performing preparatory work and getting to grips with the technology.

“If we were to issue wholesale CBDC in the future, we would know what it takes and what policy implications we need to bear in mind,” the central bank said, as reported by the Sun Malaysia.

The central bank envisages a wholesale CBDc as supporting interbank settlement for tokenized deposits both domestically and for cross border payments. International payments have been of interest for some time. 

BNM was a participant in Singapore’s multi-CBDC Project Dunbar, and is an observer of mBridge, the cross border CBDC project that is currently at the minimum viable product stage. Active mBridge participants include the central banks of China, Hong Kong, Saudi Arabia, Thailand and the UAE.

Despite its preparations, the central bank has no immediate plans to issue one. It will continue working on wCBDC and DLT during 2024-25. Several Asian economies are currently exploring a wholesale CBDC to support tokenized deposits. They include the central banks of Hong Kong, Korea, Singapore and Taiwan.

Ledger Insights recently released a report exploring tokenized deposits and bank stablecoins, highlighting more than 70 initiatives.

@ Newshounds News™

Source: Ledger Insights 

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🌱NFTS IN COURT?! LEGAL SERVICE VIA AIRDROP EXPLAINED!  |  Youtube

@ Newshounds News™

Source:  Seeds of Wisdom Team RV Currency Facts

~~~~~~~~~

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MilitiaMan & Crew News Reporting-Global Trade-Best Route in World-Purchase Power-Justice-Census-Calm-Revaluation

MilitiaMan & Crew News Reporting-Global Trade-Best Route in World-Purchase Power-Justice-Census-Calm-Revaluation

11-20-2024

The Crew:  Samson, PompeyPeter, Petra, Daytrader, Sunkissed, GIGI and Militia Man

Be sure to listen to full video for all the news……..

https://www.youtube.com/watch?v=6n8GkwzHTTY

Seeds of Wisdom RV and Economic Updates Wednesday Evening 11-20-24

Good Evening Dinar Recaps,

A NEW FRONTIER: COURT AUTHORIZES SERVICE OF PROCESS THROUGH NFT AIRDROP

In a landmark decision highlighting the unique aspects of blockchain technology, an S.D.N.Y. Bankruptcy Judge ruled in favor of Celsius’s motion for alternative service, whereby Celsius sought to provide legal service by airdopping non-fungible tokens (NFTs) to anonymous defendants’ digital asset wallets.

Judge Approves Celsius’s NFT Airdrop for Legal Service
In the wake of the cryptocurrency exchange’s insolvency, its bankruptcy estate filed suit seeking to void allegedly fraudulent transfers and recover additional funds for its creditors.

Due to the pseudonymous nature of the technology, however, Celsius has thus far been unable to identify the owners of the wallets connected to the relevant transfers.

As a result, the Litigation Administrator designed a novel solution for an alternative method of service. Celsius proposed to airdrop NFTs that include a hyperlink to a website containing the complaint and other relevant legal documents to the wallet addresses in question. 

To ensure the NFTs are properly served, Celsius will have FTI Consulting confirm the wallets receive the NFTs on-chain, and record the exact date and time the NFTs are opened. FTI will also monitor website traffic to ensure the links are opened by actual humans rather than automated bots.

Furthermore, FTI Consulting confirmed that it traced the transfers to the wallets in question, that the wallets have been active since the transfers, and that the same individuals likely remain in control of the wallets.

Alternative methods of service are generally permitted if the statutory methods of service are “impracticable.” According to New York case law, service is typically impracticable when the plaintiff is unable to locate either a business or home address for the defendant despite diligent efforts to do so.

 Alternative methods must also satisfy constitutional due process requirements, which requires service to be reasonably calculated, under all the circumstances, to give notice to interested parties of the nature of the action against them.

Recognizing that the anonymity of the wallet owners deemed traditional service impracticable, the Court was satisfied the defendants were likely to receive the summons and complaint via the hyperlink in the NFT since the NFT was being sent to the exact wallets used by the defendants to receive the funds at issue, and the activity could be traced on-chain.

Judge Glenn concluded the NFT airdrop was “the best possible way” to apprise the defendants of the actions against them, and praised Celsius on its “innovative” solution. In terms of service, email addresses pioneered the way for the internet. Wallet addresses just paved the way for blockchain.

This case highlights one of the many challenges of adopting new technology into society, and exemplifies how blockchain technology continues to disrupt the status quo. Luckily, the industry has taken the initiative to craft novel solutions that allow for its implementation into everyday life.

As attorneys operating exclusively in the digital asset space, we understand the importance of staying up to date on the latest developments and helping clients stay informed whenever the legal landscape shifts.

Whether you are an investor, entrepreneur, or business involved in cryptocurrency, our team is here to provide the legal counsel needed to maneuver this complex landscape. If you believe we can be of assistance, schedule a consultation here.

@ Newshounds News™

Source:  Bitcoin News

~~~~~~~~~

SHANGHAI JUDGE SAYS CRYPTOCURRENCY IS A COMMODITY, LEGAL TO OWN

Shanghai Judge Sun Jie calls virtual currency a commodity with property attributes in a commentary on a 2017 business dispute.

A judge in the People’s Court of Songjiang District in Shanghai, China has released an article on the court’s WeChat account about the legality of issuing virtual currency in China. She was commenting on a business dispute dating to 2017, but her opinion sheds light on cryptocurrency’s murky legal status in China.

A virtual commodity with property attributes
An agricultural development company signed a “Blockchain Incubation Agreement” with an investment management company to produce a white paper as the basis for the issuance of a cryptocurrency, paying 300,000 yuan (about $44,400 at the time) for the service.

A year later, no token had been produced, and the investment company said the agricultural company should develop an app before the token could be issued. Instead, the agricultural company sued to recover the money it had paid.

The court ruled that the agreement between the companies envisioned illegal activities, for which both sides were at fault. It ordered the investment company to return 250,000 yuan.

Judge Sun Jie wrote that virtual currency does not have the status of fiat currency, but is rather a virtual commodity with “property attributes.” She stated:

“Although it is not illegal for individuals to simply hold virtual currency, commercial entities cannot participate in virtual currency investment transactions or even issue tokens on their own.”

How banned is crypto in China?
The judge went on to give a lengthy warning about the potential ills of cryptocurrency. For example:

“Virtual currency trading speculation activities such as Bitcoin will not only disrupt the economic and financial order, but also may become a payment and settlement tool for illegal and criminal activities, breeding money laundering, illegal fund-raising, fraud, pyramid schemes and other illegal and criminal activities.”

By “blindly participating in virtual currency transactions,” individuals and enterprises may not have the full protection of the law, the judge concluded. The article reproduces Article 153 of the Civil Code of the People’s Republic of China, as it is the relevant legislation to the case.

China ordered virtual currency exchanges to close down in 2017. In 2021, the People’s Bank of China and 10 Chinese government agencies joined forces to tighten control over transactions with virtual currencies. Nonetheless, ownership of crypto was never prohibited.

@ Newshounds News™

Source:  CoinTelegraph

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IRAQ'S ACCESSION TO THE WORLD TRADE ORGANIZATION (WTO)  |  Youtube

@ Newshounds News™

Source:  Seeds of Wisdom Team RV Currency Facts

~~~~~~~~~

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