What a week!
From USDT jumping by almost 50% in 2 months, to the US pushing for blockchain use…it was truly a week of highs. We’re smiling from the small wins like Ethereum developers working on the network issues that have been affecting all of us. A particular stock exchange has also embraced crypto products and Switzerland has news for its citizens.
In other news, the world is beginning to have serious conversations about crypto regulation. All this and more in our crypto news roundup. Enjoy!
USDT Market Cap Went from $9 Billion to $13 Billion in 2 Months
You’ve probably been hearing a lot about USDT these days. Everyone tells you it’s perfect as a safety net when you want to keep your money as a dollar cryptocurrency. But what you may not know is this:
Its market cap has increased by almost 50% since July because of DeFi (decentralised finance).
DeFi services include crypto lending and investments. They usually happen on decentralised applications built on top of Ethereum. This may be a little confusing, but we’ve explained it perfectly in our cryptocurrency guides. The bottom line is that the use of USDT and stablecoins is always changing in interesting ways.
U.S Congress Pushes for the Use of Blockchain in Covid-19 Relief Efforts
Members of the United States congress are asking for the government to support current covid-19 relief efforts with blockchain. They wrote this in a letter to U.S president Donald Trump on Wednesday. The letter proposes blockchain as a way to verify the identity of people collecting the relief package.
U.S lawmakers have been advocating for crypto and blockchain applications for a while. In January, they proposed tax reductions for small crypto transactions. This hints at a country gradually embracing the many interesting applications of blockchain technology.
Ethereum Developers Work to Reduce ETH Fees
If you’ve traded Ethereum in the last month, then you know that there have been issues. From slow transactions to heavy fees, it’s been hectic. Now we know why. Remember the DeFi services we just talked about and how they are built on Ethereum? It turns out that because of their growing popularity, more people are using the Ethereum network.
This increased transaction fees from $2 to more than $15 in just one month. It’s also causing congestion on the Ethereum blockchain (database). But now, Ethereum developers are doing something about it. Vitalik Buterin, the founder of Ethereum, recently released a new plan for fees. We hope this solves the problem as soon as possible.
Switzerland’s Canton of Zug is Allowing Crypto Tax Settlements
Zug, a canton in Switzerland, will start accepting tax settlements in the form of crypto. Known for its crypto-friendly regulations, Zug is a great environment for crypto firms and financial startups. According to a statement from the canton, individuals and companies will be able to settle taxes up to 100,000 Swiss francs ($109,670).
The canton will collect the taxes in partnership with Bitcoin Suisse AG, a broker based in Zug. Bitcoin Suisse will convert the crypto into Swiss Francs and pay the government. Crypto tax settlements are just another step forward on a long list of the country’s plans for crypto.
Vienna’s Stock Exchange is Embracing Crypto Products
We’ve seen a rise in regulated stock markets listing crypto-related companies. The latest exchange to join this trend is Vienna’s stock exchange.
On September 1, 21Shares AG announced the Vienna stock exchange listed its Bitcoin and Ethereum exchange-traded products, ABTC and AETH. This means that people from Germany, Austria, and Switzerland can invest in them. This listing is a small but important nod to cryptocurrency products and their influence around the world.
In Other Equally Exciting News…
Bank Of England Governor Wants Global Crypto Regulation
As DeFi products are growing, the world can no longer ignore crypto regulations. Governments are realizing that cryptocurrencies are here to stay.
Andrew Bailey, governor of the Bank of England is calling for the regulation of crypto, especially stablecoins. He wants to make sure that people can always redeem their stablecoins like (USDT) at the expected rate. Even if these regulations don’t come soon, more people are joining the conversation every day.