2022/19

23 May 2022 - 29 May 2022 week Bitcoin & Economic News

May 29, 2022

TL;DR
Japan's 2nd largest bank to launch a bitcoin custody platform for institutional clients
World's largest restaurant software will enable Bitcoin payments in 65 countries
One of the largest real estate developers in Brazil now accepts Bitcoin
Central African Republic announces Bitcoin zone with zero tax on gains and income (UPDATED!)
Stripe will allow merchants to convert payments into Bitcoin automatically
Balenciaga announces Bitcoin payments
JPMorgan: Our preferred “alternative” investment is Bitcoin
Portugal has rejected proposal to tax Bitcoin
Thailand has formally introduced a VAT exemption for the transfer of Bitcoin
Paraguay just passed a bill to regulate Bitcoin mining

Japan's 2nd largest bank to launch a bitcoin custody platform for institutional clients
Sumitomo Mitsui Trust, Japan's second largest bank, is creating a new company called Japan Digital Asset Trust to offer custodial services for bitcoin and other shitcoins for institutional clients, according to a report by Nikkei Asia.
This announcement follows the news that Japanese competitor bank Nomura Holdings Inc. also recently announced they would be creating a subsidiary to offer custodial services to institutional clients looking to acquire bitcoin and other cryptocurrencies.
It’s interesting how the wealthiest groups around the World open to Bitcoin even when the price tag is under $30K. No wonder why so many banks are doing it in Japan because the most printed money (debt vs. GDP) in circulation compared to the other G7 countries is in Japan.
World's largest restaurant software will enable Bitcoin payments in 65 countries
Global restaurant software provider Lavu announced on May 19, that they’re now in cooperation with Verifone, a global FinTech payment solution provider.
The partnership will offer smooth integration of Lavu’s restaurant software suite with the Verifone FLEX payment options, enabling the companies based in more than 65 countries to offer a unique point of sale (POS) solution with multiple modern payment methods to their customers.
I bet they will instantly convert those bitcoins to FIAT money like BitPay does.
One of the largest real estate developers in Brazil now accepts Bitcoin
Gafisa, one of the largest Brazilian real estate developers, is now accepting bitcoin as payment for the purchase of real estate, according to a press release from Foxbit, a cryptocurrency payment gateway provider.
The press release stated that Gafisa’s decision to accept bitcoin was also largely based on the disruptive nature of the technology which can open opportunities for further innovation in the growing sector.
“Bitcoin is the largest cryptocurrency in market value and, technologically, the most ballast currency in history,” said Guilherme Benevides, CEO of Gafisa. “It is a currency that is growing in popularity every day, also expanding the possibilities of its use.”
Foxbit is an exchange, one of the oldest one, so I think these bitcoins will be instantly converted to FIAT, why? Because why would you need an intermediary like Foxbit if you can make a simple Bitcoin transaction between seller and buyer of the real estate?
Central African Republic announces Bitcoin zone with zero tax on gains and income (UPDATED!)
Weeks after adopting Bitcoin as a legal tender, the Central African Republic is doubling down on Bitcoin and shitcoins.
According to a 24-page document detailing the project, the country will build a zone offering e-residency, citizenship by investment, online business registration, and tax exemptions for Bitcoin and shitcoins businesses too.
(UPDATE: Meanwhile the World Bank says it does not support Central African Republic's SANGO project citing transparency, financial inclusion & environmental shortcomings as concerns - Bloomberg)
(UPDATE 2.:The country’s president, Faustin-Archange Touadera, released a statement on Monday saying: “The formal economy is no longer an option. An impenetrable bureaucracy is keeping us stuck in systems that do not give us a chance to be competitive.”)
Stripe will allow merchants to convert payments into Bitcoin automatically
There are companies who make contracts with BitPay like companies which are simple exchanges for converting Bitcoin to FIAT, but there are companies who understand Bitcoin's real value and they partner with a true Bitcoiner company like Stripe (a global payment processor)!
Stripe just announced they are working with bitcoin payments infrastructure company OpenNode, to allow businesses to convert fiat payments into bitcoin.
Through the OpenNode app located in Stripe’s app marketplace, users will be able to convert fiat payments into bitcoin in real time. Businesses can set an automatic amount of their payments to be converted into bitcoin, or they will be able to manually convert any amount into bitcoin they wish.
Balenciaga announces Bitcoin payments
Balenciaga is currently owned by Kering Luxury Group and has 34 brick-and-mortar locations in the U.S. alone. Balenciaga recently announced plans to accept Bitcoin and certain cryptocurrencies as both in-store and online forms of payment. They don’t know yet who they will use as a payment solutions provider, but let’s hope not BitPay or any other “instantly exchange it to FIAT” company.
In a statement addressing the market's volatility, the Kering-owned company said, “Balenciaga is thinking long-term about crypto, and fluctuations in currency value are nothing new.”
I think they won’t hold their own Bitcoin but they will store them in a custodial wallet solution.
JPMorgan: Our preferred “alternative” investment is Bitcoin
Banking giant JPMorgan said in a note Wednesday that bitcoin and shitcoins are now among its preferred “alternative” investments, Markets Insider reported.
Funny how the main thinking changed at the JPMorgan. Just less then a year ago (!) when the Bitcoin price was double (!) than today, the JPMorgan CEO Jamie Dimon said that “I personally think that bitcoin is worthless,”.
What has changed? Yeah, they all educated themselves and based on the current business cycle they don’t see any other “alternative” to invest.
Here comes my favorite recent Michael Saylor tweet:
“The Bitcoin price is set by those with more money and less knowledge than you. In time, they will get the knowledge and you will get the money.”
I wrote two newsletter’s ago that Warren got the knowledge and now Jamie too! Your reward is not far, just HODL!
Portugal has rejected proposal to tax Bitcoin
Just last week’s news was that Portugal is planning to tax Bitcoin. The plan was not to charge VAT or Personal Income Tax (IRS) as an individual. However, businesses that provide services related to cryptocurrency are taxed on gains between 28% and 35%.
Happily in their Parliament there are some people who have enough pressure on the decision making to reject these kinds of barbaric decisions.
The news was welcomed by Derek "Isaac" Kaplan, founder of DuoVerse and VMining, who said that any "unreasonable taxation" would have been negative for the cryptocurrency sector's growth. He told Cointelegraph that:
"While a regulatory framework is important, we need to give the industry the space to grow. Crypto industry is nascent and it shouldn’t be subject to the same rate applicable to capital gains on equivalent income as it will be unfair. This development reflects that crypto-friendly sentiment goes strong in Portugal.”
Thailand has formally introduced a VAT exemption for the transfer of Bitcoin
The government in Thailand has formally introduced a value-added tax exemption for the transfer of Bitcoin and other shitcoins via government-approved exchanges. The tax break issued would be in force until the end of 2023.
Notably, the cabinet granted the VAT exemption back in March, but the decision was enacted into Thai law yesterday. This essentially means that investors moving Bitcoin and shitcoins through exchanges in Thailand would now save 7% tax.
Paraguay just passed a bill to regulate Bitcoin mining
In Paraguay, the bill does not make bitcoin legal tender. During a conversation with Paraguayan Congressman Carlitos Rejala in July, an exclusive peek at the draft bill was released. The bill hinted at stronger regulatory oversights from the country’s regulators when it came to bitcoin mining, as well as an overarching purpose of providing investor safeguards from enterprises that offer bitcoin services.
Rejala said at the time, “With this we want to welcome the innovation of cryptocurrencies in Paraguay to the world. This is the result of a very strong and arduous teamwork of many experts in the field, both local and foreign.”
Bitcoin miners might benefit from “thousands of megawatts that Paraguay currently has as surplus,”
The cost of electricity in Paraguay, which is the lowest in the region at roughly $0.05 per kilowatt-hour, is one of the key attractions for mining companies, according to congressman Rejala, who added that nearly 100 percent of energy output originates from hydroelectric sources.

Global Economic News

TL;DR
Germany’s electricity prices are flying steeply up and the people are getting poorer
Another sign that the U.S. housing market is already plummeting
Germany losing China’s import interest
U.S. Personal Savings fell to 2013 levels

Germany’s electricity prices are flying steeply up and the people are getting poorer
“COLUMN: Investors are focusing on oil/gas, but Europe is facing a **second electricity shock**
So far in May, the benchmark German 1-year forward power contract has averaged €222 per MWh, heading toward its highest ever monthly level” by Javier Blas
“Germans are likely to become significantly poorer this year. Financial assets are expected to increase by only 2.3%, well below inflation of 7% due to Ukraine war. In previous years, financial assets had risen by 6.7% & 8.4% respectively.” by Holger Zschaepitz
Another sign that the U.S. housing market is already plummeting
“The Federal Reserve can kiss housing goodbye. Fed over jawboned the mkt. Next few months economic and inflation data to drop significantly. 3 months from now long rates will be a lot lower, Gold higher, BTC higher. Fed causing unnecessary turbulence in mkts now.” by Dan Tapiero
Germany losing China’s import interest
“Germany, which does not yet have a position on how to deal w/China. While Chancellor Scholz wants to trade w/o restrictions, Greens more critical of Germany's most important trading partner w/which GER runs trade deficit of €50bn.” by Holger Zschaepitz
U.S. Personal Savings fell to 2013 levels
“US Personal Savings fell to 2013 levels, the savings rate to 2008 levels- while revolving credit card debt grew at a record-setting pace back to the pre-COVID peak despite all those $trillions of cash dropped in their laps. Looming: a consumer recession and more earnings trouble.” by @michaeljburry

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These are just speculations, no investment advice!

“Bitcoin Are you ready for the Mega Pump?” by @AurelienOhayon

“Don't panic. Bull market is still active. We are only in a wave 4 correction.

-Did you know that all Wave 4 corrections in the past Bitcoin cycles have made a fakeout below the support line (black line)? We will soon start with the 5 wave.” by @el_crypto_prof

“New BTC Weekly Candle has closed as a Bullish Hammer candlestick” by @rektcapital

“For the 4th time in Bitcoin's history it appears that this metric might have already bottomed out and be reversing. The last 3 times this occurred once we left the green zone the BTC bottom was already in and a massive bullish uptrend followed.” by @TheRealPlanC

“Logarithmic Fractal Growth Model (Monthly). 1/2 According to this indicator we are currently in an accumulation zone. Historically, BTC price’s always been supported by the green line.

There has been no case of a monthly candle body (entirely) closing below it. “ by @Washigorira

“Perhaps the most important chart in Bitcoin currently! For the past months we've had LTH capitulation ⁠— shown by the rapidly falling LTH Cost Basis. An uptick is a first sign that LTH’s might have stopped capitulating! Note: early signal, but finally a change in trend! by Root

“A very effective Bull Run Start Detector (PVT) has just given a positive signal.” by @AurelienOhayon

‘$29K, feels similar to 2015 and 2018/19 (blue)” by PlanB

“Bitcoin Accumulation Trend Score. The second half of May is the heaviest accumulation period we are experiencing in 2022. 8 days since May 13th printed an accumulation trend score of 1” by @Bockwise_

Bitcoin Shorts

Funny Bitcoin short stories

“5 years ago today, 50 startups tried to force a change to the Bitcoin code and failed. By users, for users, forever” by @pete_rizzo_
Bitcoin Ekasi project in South Africa.
Bitcoin mass adoption will happen sooner rather than later - MasterCard
SWIFT, the international interbank messaging system, won't exist in five years' time - Mastercard CEO
84% of Americans don't believe that Bitcoin investments are a threat to the environment - Forbes Advisor
Turkey to submit draft bill regulating Bitcoin and crypto in coming weeks – Bloomberg
“Tonight, I was on @TuckerCarlson's show reminding everyone that Bitcoin is the most certain thing in a very uncertain world. In a market full of chaos, sound, and fury, people need a safe place to stand, apart from the intervention of a government, agency, or corporation.” tweet (video) by Michael Saylor
“Bitcoin Indy 500 Car to race this weekend at Indianapolis Motor Speedway” by Bitcoin Magazine
Central African Republic legislators are getting familiar with Bitcoin and Lightning Network.