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The State Duma may adopt a law restricting the use of Visa and Mastercard in Russia

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The State Duma may adopt a law restricting the use of Visa and Mastercard in Russia

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On July 23, the State Duma is going to consider and adopt a bill on amendments to the law “On the National Payment System”, which should not allow international payment systems to execute US and EU sanctions, Kommersant reports.

New provisions of the law “On the National Payment System” may lead to the departure of international payment systems from Russia. The requirements for their subsidiaries in terms of ensuring the continuity of payments, that is, a de facto ban on the implementation of international sanctions in Russia, are impracticable.

As a result of their withdrawal, it will be impossible to accept cards of Russian banks abroad, and inside Russia – to accept cards of foreign banks.

At the moment, subsidiary structures of IPS such as Visa, MasterCard, China Union Pay, JCB, etc. are registered in Russia. They will have 180 days to comply with the law, which the State Duma reportedly plans to adopt in this session.

“The amendments were made in order to prohibit any payment systems to prescribe in their rules the possibility of disconnecting Russian banks from conducting card settlements. We should not encourage such blackouts and tolerate discriminatory rules , ”said the author of the bill, the head of the State Duma Committee on the Financial Market, Anatoly Aksakov,

In theory, if, after a fixed period, the IPU blocks the operations of a bank, for example, because of international sanctions, then they will be given a warning. If it is ignored, the MPS will be removed from the Russian market. Sources of publication in the payment market assure that in this case already issued cards of the system excluded from the registry will continue to work through NSPK. However, there is the opposite opinion.

“If licenses in Russia are revoked from the Ministry of Railways, then for some time all calculations on the cards inside the country will stop. The fact is that today NSPK has contracts not with banks, but with international payment systems, which pay it for processing their transactions within the country. All payment terms, including interbank commissions, are recorded in the rules of international payment systems. And until NSPK concludes relevant agreements with banks, these calculations are unlikely to be resumed , ”says Dmitry Vishnyakov, an independent expert.

In addition, according to the expert, after the adoption of the draft law, the Ministry of Railways will not change the rules of work, and, most likely, will simply wind down their business in Russia, since the proposed rules for them are not feasible from a legal point of view. At the same time, if nothing unexpected happens, payments for already issued cards will pass through NSPK, but MPS cards will not work outside of Russia, as foreign cards of these systems will not work in Russia either.

Blocking VISA and MasterCard can push settlements and purchases in cryptocurrencies between citizens, which will certainly increase Bitcoin sales in Russia and increase its value in the local market.

Publication date 13/07/2019
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G7: stablecoins pose a threat to the financial system

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A recent report from G7 suggests that global stablecoins can be dangerous to the stability of the financial system.

The report describes many of the risks that are associated with the use of digital currencies. It even explains that even if the companies involved in Libra could manage to solve some minor regulatory problems, they would not be able to get permission from the main regulators. The document also notes that G7 believes that no stablecoin project should have the right to start its activities until certain problems with the supervision and management of the crypto industry are resolved, all risks are eliminated.

G7 also thinks that stablecoins that have the ability to scale quickly can suppress the development of competitors and threaten financial stability, as there is a risk that users may one day be disappointed in this coin. It is anticipated that the provisions of this document will be discussed by finance ministers at the IMF's annual meeting, scheduled for this week.

Such statements explain the hostility of world regulators to Libra and TON projects. For example, Gabor Gurbaks, a digital assets strategist at VanEck, said on his Twitter blog the day before that companies, such as Visa, Mastercard, eBay, Stripe, received letters from regulators asking them not to experiment with Libra before leaving Libra. a new project, otherwise they would have additional, undesirable obligations to regulators.

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The growing complexity of Bitcoin mining in 2019, how is it determined and what depends on it?

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This year, the price of Bitcoin (BTC) ranged from a minimum of just over $ 3,000 to a maximum of about $ 13,000. At the same time, the complexity of BTC mining , which measures the complexity of the calculations needed to mine new coins and create new network blocks, has been growing unprecedented.

Bitcoin mining difficulty is adjusted approximately every two weeks to take into account the hashrate of new miners on the network. Despite the fact that the general trend has been upward almost since the creation of the network, short but significant failures happen. For example, in December 2018, mining complexity decreased three times in a row, the total drop was almost 30%.

In this calendar year, the difficulty of mining BTC decreased five times, but no more than 1.18%. This is unprecedented. In no previous year, the most serious drop was so low. In the entire history, at least one drop was more than 5%.

Of course, 2019 has not yet ended, but it is worth noting that at that time last year, the difficulty of mining BTC decreased only once (3.45%, which is more significant than any decrease in 2019).

If this trend continues, it will confirm that the BTC miner community is less sensitive to currency price fluctuations than ever before.

To understand why, it is worth considering the basics of the complexity of cryptocurrency mining . The Bitcoin network produces 2016 new blocks every two weeks. Maintaining this speed is important for network operation. Blocks are generated by miner computing systems that solve mathematical problems. In this case, it is appropriate to compare the miners with the players in the lottery, and the difficulty of mining is with a very low chance of each individual player to win. Each time someone “wins” the lottery, a block is created.

Since bitcoin networks need blocks that are generated at a predictable speed, the complexity of this “lottery” should vary depending on the number of “players” (miners). For example, if many miners leave the network, the mining complexity should be reduced, or the rest will not have enough power needed to generate new blocks at the speed required to maintain the network.

In fact, the Bitcoin mining system is more complicated than described above, however, according to its basic principle, the upward movement of Bitcoin this year is a bullish sign. Investors come and go, the price fluctuates up and down, but interest in Bitcoin mining is clearly growing, and this year it has become more stable than ever before.

Publication date 10/14/2019
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Europol: Bitcoin remains the most popular cryptocurrency among cybercriminals

Bitcoin is still the preferred cryptocurrency for cybercriminals, Europol stated in the annual report “Assessing the threats of organized crime on the Internet” (IOCTA 2019). “Although we previously reported a slight shift towards more private cryptocurrencies such as Monero, bitcoin is still the currency of choice for both legal and criminal use,” the organization said. In previous IOCTA reports […]

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Bitcoin is still the preferred cryptocurrency for cybercriminals, Europol stated in the annual report “Assessing the threats of organized crime on the Internet” (IOCTA 2019).

“Although we previously reported a slight shift towards more private cryptocurrencies such as Monero, bitcoin is still the currency of choice for both legal and criminal use,” the organization said.

In previous IOCTA reports, the organization pointed to the growing popularity of altcoins such as Zcash, Monero, and Ethereum among cybercriminals.

This year, Monero was the only altcoin mentioned by the EU police organization in a report. It notes that the use of the coin mainly relates to darknet markets that accept or trade Monero.

Europol emphasized that Monero was widely used for hidden mining, the distribution of which has been declining throughout the current year. The latter is partially due to the termination of the Coinhive browser mining service in March, the organization said.

Recall, it was previously reported that the volume of bitcoin transactions in the darknet for 2019 may exceed $ 1 billion.

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Name Price24H (%)
Bitcoin (BTC)
$8,278.81
-1.43%
Ethereum (ETH)
$182.99
-0.20%
XRP (XRP)
$0.287275
3.27%
Bitcoin Cash (BCH)
$225.35
-0.86%
EOS (EOS)
$3.13
0.24%
Stellar (XLM)
$0.062481
1.89%
Litecoin (LTC)
$56.67
-1.04%
Cardano (ADA)
$0.041392
0.70%
Tether (USDT)
$1.00
-0.14%
Monero (XMR)
$52.78
-1.33%
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