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IMF is Right: Cryptocurrencies are Ushering in a New World Order

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The IMF report is both right and wrong on cryptocurrencies. Bitcoin and crypto are indeed shaking-up the current world order; but doing so for the better, affirms the CEO of one of the world’s largest independent financial advisory, asset management and fintech organisations.

The analysis from Nigel Green of deVere Group comes as the International Monetary Fund publishes the Global Financial Stability Report, which assessed Bitcoin and other cryptocurrencies disrupting the global monetary system.

The IMF says that “strengthening macroeconomic policies is necessary” to fend off “cryptoization risks.”

Nigel Green says: “The IMF is correct – cryptocurrencies are indeed ushering in a new world order.

“The times ahead are destined to be radically different from what we have all experienced in our lifetimes so far.

“One way in which we will see this each day is with currencies, which are mediums of exchange and store holders of value.

“Increasingly, there will be a mixed system. Some will be currencies from governments, including digital and non-digital, and some will be digital and decentralised, such as Bitcoin.

He continues: “The U.S. dollar has reigned supreme for around 75 years. But there’s no doubt that the world is shifting away from a dollar-dominated system.

“This is because astronomic levels of debt, and the enormous, ongoing amount of money printing to monetise these debts, have caused the considerable drop in the long-term value of the global reserve currency.

“Investors – including individuals and governments – are therefore looking for alternative currencies, such as cryptocurrencies.

“Moving forward, these will increasingly compete with traditional, fiat ones and this will help trigger the decreasing dominance of currently leading international currencies.”

However, the deVere CEO says that the IMF should embrace Bitcoin, which will “inevitably play a critical future role” in the global monetary system.

“Bitcoin can also be a force for social good as it can offer a way out of both financial and political repression,” he notes.

“It’s estimated that more than one billion people live in countries that are suffering from out-of-control inflation, where the money they earn depreciates fast against the goods and services they need to buy.

“But Bitcoin can offer a ‘get-out’ for those whose national currency is plummeting in value in this way.”

Bitcoin can also serve those who face political suppression. There are countless examples around the world where those who are dissenting against ruling authoritarian regimes have their accounts shuttered and/or funds stolen. This means they are then trapped, possibly forever.

“This is where Bitcoin can play a hugely beneficial role as they can receive and send it safely, securely, without censorship.”

The deVere CEO goes on to add: “As a global, decentralised system, it affords anybody, anywhere, regardless of their political beliefs, nationality, ethnicity, religion, gender, or sexuality, the same level playing field. It can’t discriminate.

“This is helping not only the politically repressed but the 1.7 billion global ‘unbanked’ population. That’s almost two billion people worldwide who cannot access financial services because their data is not held on ‘traditional’ sources, largely due to legacy biases.”

Nigel Green concludes: “Bitcoin has the potential to provide enhanced financial and political freedom. It has the power to create a better tomorrow.

“Why the IMF, an organisation whose remit is to ‘achieve sustainable growth and prosperity’ is scared of a future-focused solution, is baffling.

“Clearly, past methods, in poorer countries haven’t been as successful as they should have been. As such, we need to look forward, not back.”

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FG to Start Imposing Tax on Crypto Traders By 2023

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The Federal Government through the Minister of Finance, Budget and  National Planning, Zainab Ahmed has said there is a provision to start imposing taxes on cryptocurrency and other digital assets investing in the 2022 finance bill.

A  statement signed late Thursday by the Senior Special Assistant to the Vice President on Media and Publicity, Laolu Akande noted that the finance bill was discussed at an extraordinary virtual meeting of the National Economic Council presided over by Vice President Yemi Osinbajo. 

The meeting also deliberated on other prevailing issues which include Taxation, Revenue Generation, Climate Change and the Green Growth pillar of the bill. 

If passed into law, this will avail the government an opportunity to start generating revenue from growing cryptocurrency investment in Nigeria.

Investor King learnt that the federal government is already talking to Investors in Europe, US and Canada to invest in Nigeria’s gas sub-sector. 

According to the statement, the meeting agreed that there should be incentives for the natural gas sector and discouragement of gas flaring.

“Under the climate change and green growth bill, there will be incentives for natural gas” the statement partly read. 

With respect to cryptocurrency, the bill these clarify the basis for the taxation of Cryptocurrency and other Digital Assets in line with the Government’s policy thrust of enhancing the cross-border and international taxation of growing e-commerce with emerging markets.

It could be recalled that the CBN in 2021 directed that all commercial banks should close accounts of persons or entities involved in cryptocurrency transactions. 

However, it seems the government is taking a soft position on cryptocurrency in recent times particularly as the largest crypto exchange in the world, Binance now accept naira deposit and withdrawal. 

Meanwhile, Investors King understands that if the bill is passed into law, Nigeria will join other countries which include the Kingdom, the United States of America, Australia, India, Kenya and South Africa that are currently taxing cryptocurrency.

Speaking further on the finance bill 2022, the Minister of Finance noted that the proposed bill is anchored on five fundamental policy drivers which are tax equity, climate change,  job creation and economic growth, tax incentive reform and revenue generation. 

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FTX Missing Billions Remain Mystery After Bankman-Fried Grilling

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FTX Crypto Exchange

The mystery continues to shroud the missing billions at bankrupt crypto exchange FTX after its disgraced founder Sam Bankman-Fried denied trying to perpetrate a fraud while admitting to grievous managerial errors.

In his first major public appearance following the Nov. 11 implosion of FTX and sister trading house Alameda Research, Bankman-Fried said he “screwed up” at the helm of the exchange and should have focused more on risk management, customer protection and links between FTX and Alameda.

“I made a lot of mistakes,” the 30-year-old said Wednesday by video link at the New York Times DealBook Summit. “There are things I would give anything to be able to do over again. I didn’t ever try to commit fraud on anyone.”

Bankman-Fried’s participation was controversial given there are outstanding questions about how Bahamas-based FTX ended up with an $8 billion hole in its balance sheet and whether it mishandled customer funds. Reports that FTX lent client money to Alameda for risky trades have stoked such concerns.

Interviewed by New York Times columnist Andrew Ross Sorkin, who said Bankman-Fried was joining from the Bahamas, the fallen crypto mogul didn’t give a straight answer about whether he had at times lied.

Bankman-Fried told the summit that he “didn’t knowingly commingle funds.” At the same time, he said that FTX and Alameda were “substantially more” linked than intended and that he failed to pay attention to the trading house’s “too large” margin position.

He said he wasn’t running Alameda and added that he was “nervous about a conflict of interest.” No person was in charge of position risk at FTX, he said, describing the lack of oversight as a mistake.

Out of Control

The comments shed little light on the question of where client funds ended up as Bankman-Fried stuck to a hard-to-parse account of how Alameda ran up a massive margin position on the exchange.

The restructuring expert who took over the firm in bankruptcy, John J. Ray III, has painted a picture of FTX as a mismanaged, largely out-of-control company bathed in conflicts and lacking basic accounting practices, calling it the worst failure of corporate controls he’d ever seen.

Bankman-Fried faces a complex web of lawsuits and regulatory probes into alleged wrongdoing. Some observers speculate his public comments could be used against him in litigation.

The spotlight has also fallen on an apparent company culture of working and playing hard. Bankman-Fried said there were no wild parties and that he saw no illegal drug use. He added that he’s been prescribed drugs over time to help with focus and concentration.

Crypto Contagion

The digital-asset sector is braced for widening contagion from FTX, which once boasted a $32 billion valuation before sliding into bankruptcy. It owes its 50 biggest unsecured creditors a total of $3.1 billion and there may be more than a million creditors globally.

A crypto lender, BlockFi Inc., filed for bankruptcy Monday after being buffeted by the wipeout. Embattled brokerage Genesis is striving to avoid the same fate.

BlackRock Inc. Chief Executive Larry Fink said earlier at the DealBook summit that most crypto companies will probably fold in the wake of FTX’s collapse. The world’s biggest asset manager was among firms stung by the chaotic unraveling of Bankman-Fried’s tangled web of 100-plus FTX-related entities.

Bankman-Fried has provided convoluted accounts on social media and in interviews with other news outlets about what led to FTX’s woes. Advisers overseeing the ruins of his business have slammed non-existent oversight.

Potential Hack

As if such travails weren’t enough, the exact breakup of a $662 million outflow from FTX as it tumbled into bankruptcy remains another enigma. Bankman-Fried said in the summit interview that there was improper access to FTX after its spiral.

Treasury Secretary Janet Yellen, another speaker at the summit in New York, called the FTX debacle “the Lehman moment within crypto,” referring to the collapse of investment-banking giant Lehman Brothers in 2008.

Crypto markets have stabilized somewhat after lurching lower in November as the turmoil around FTX thickened. Even so, a gauge of the top 100 tokens is down more than 60% this year, hit by tightening monetary policy and a series of crypto blowups of which FTX is the most spectacular.

Bankman-Fried’s fortune at one point reached $26 billion, and just weeks ago he was described as the John Pierpont Morgan of digital assets, willing to throw around his wealth to bail out the industry. He said during the interview that he’s down to one credit card and $100,000 in the bank.

Pressed on whether he had been straight about FTX, Bankman-Fried said: “I was as truthful as I’m knowledgeable to be.”

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Binance CEO, Zhao to Create $1bn for Purchase of Distressed Assets

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Binance CEO

According to an interview with Chief Executive Officer Changpeng Zhao, cryptocurrency exchange Binance wants to create a fund of about $1 billion for the potential purchase of distressed digital assets.

In an interview with Bloomberg, Zhao made a suggestion about possible funding increases. He said, “If that’s not enough, we can allocate more.”

The recovery fund Zhao’s business plans to set up to help cryptocurrency projects experiencing a liquidity crisis as a result of the failure of rival FTX has drawn a lot of interest from industry players, Zhao said last week while addressing a conference in Abu Dhabi.

Zhao stated he doesn’t have a precise number in mind for the size of the recovery fund while speaking at a conference in Abu Dhabi.

He declined to name other exchanges or institutions at this time, but said that there were “players that have strong financials and we should band together; we’ve got significant interest so far.”

Zhao stated that Binance has strong reserves, but he did not specify how much the business would contribute to the fund.

Zhao remarked that Crypto didn’t require saving. “Crypto will be fine.”

Zhao stated that more information about the fund will be made available over the following two weeks.

Investors King learned that earlier today, Binance’s Twitter account posted information about the launch of a new project and token sale by Binance Launchpad. Similarly to this, Binance has released information about the upcoming token sale for HOOK, the Hooked Protocol’s native cryptocurrency.

In the same manner, as with earlier projects that Binance has launched on its platform, the token sale will be conducted as a lottery.  Participants’ BNB balances will be recorded starting at 0:00 UTC today and continuing until 0:00 UTC on December 1.

Snapshots of balances will be made on an hourly basis during that period of seven days.

The self-custody wallet NGRAVE has received a strategic investment from Binance, and the company will manage its Series A round. The largest exchange by volume has decided to capitalize on the growing demand for hardware wallets. After the recent failure of the important cryptocurrency exchange FTX, a rise has been noted.

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