News that Strengthen Cryptocurrency (XXXIV)

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A weekly section discussing how general events can influence the near-term future of cryptocurrency sector

Zimbabwe to Eliminate National Currency Circulation

In order to address hyperinflation that reached 500 billion percent in 2008, Zimbabwe government has decided to stop the circulation of its national currency. It is reportedly planning to exchange its quadrillions of local dollar for a few US Dollars (~ $5). On the other hand, internet warriors are suggesting that the nation should adopt a cryptocurrency like Bitcoin to tackle the ongoing inflation.

Draconian Inheritance Law Stirs Ecuadorians

The Government of Ecuador recently created a new inheritance law that sought people to pay a maximum tax rate of 77.5% on inheritance donations that surpass €30,000. The reaction from the public was as usually agitated as they came to the streets to protest, calling the government as a “communist all night.” We however suggest Ecuadorians to transfer their inheritance in the form a cryptocurrency to avoid the government’s draconian tax.

Asian Central Banks Still Inflating Bubbles

The New Zealand central bank lowered interest rates, booming real estate market in the country’s largest city. South Korea did the same, bringing its interest rate to a record low of 1.5 percent, which could further increase the levels of household debt (which are already at a record). For his part, President of the Reserve Bank of Australia said on Wednesday it may cut rates again, despite the “crazy prices” (in his words) of properties in Sydney.

New Zealand Dollars Falls against USD after Price Cut

The New Zealand dollar against the US dollar fell to its lowest level in nearly five years after the central bank unexpectedly slashed interest rates and announced it is studying new expansionary measures.