The Bank of England was forced to buy bonds again to stabilize the market. The mess created by the new UK Prime Minister, Liz Truss, has (obviously) hit the government’s credibility hard. In an effort to regain that lost credibility, Kwasi Kwarteng, the now former Chancellor of the Exchequer, has stepped down. His replacement, Jeremy Hunt, is a Tori, but a centrist. The old “fiscal plan” and the clumsiness of wanting to eliminate taxes, at the least appropriate time and in the most irresponsible way, was not the most appropriate for the newcomer. The measure was taken from idiosyncrasy and not from prudence. Of course, the sterling crisis added to the instability in an already very unstable environment.
It is possible that global inflation has found its maximum during this year 2022. However, this does not imply that we will have an inflation-free year ahead. The most likely is a 2023 nuanced with undesirably high inflation. The International Monetary Fund (IMF), an international financial organization, warns us: “The worst is yet to come.” In fact, The agency forecasts that by next year at least a third of the world’s economies are at risk of slipping into recession. In other words, this turned the color of ants.
Of course, due to the rather disappointing reports and data of the last few weeks, markets are expecting continued aggressiveness from the US Federal Reserve at its next meeting.
While in Cryptoland, Bitcoin remains stuck in this channel of relative stability for what seems like an eternity. In such unstable conditions, this atypical stability sends out optimistic signals. However, heInvestors are feeling the fear of uncertainty. We still do not know the outcome of this story. Is a floor solidified? Is it the calm before the catastrophe?
Now, let’s talk about this week’s top crypto news according to Cointelegraph en Español. This is not a news summary. This is a critical and skeptical analysis of said news.
EU Regulators Ban Cross-Border Payments from Russian Cryptocurrency Accounts
A high volume in exchanges and P2P markets in certain countries is in many cases related to the obstacles and frictions of these jurisdictions. Namely, these are gray solutions by people looking to solve a problem. For example: Venezuela Case, Argentina Case, China Case and Russia Case.
When the flow is not free, the waters seek to escape through the cracks. And the regulation is intended to prevent the proliferation of any crack. In this case, we have the reverse. What you want is to form a fence. On this occasion, the regulation is not created to incite a lockdown from within. It is created to isolate from outside.
Colombia debates the project that seeks to establish a “Crypto Law” in the country
Colombia, apparently, is not El Salvador. In Colombia, it is beginning with the debate. In other words, first, a conversation is being opened. Politicians ask. The experts answer. The public participates. Everything seems to indicate that a bottom-up process will take place. That is to say, the law, surely, will not be an imposition. It will not be the whim of a “strong man”.
In El Salvador, the president announced the law at a rally. And three days later it was approved in parliament. We can already imagine the quality of that debate. Well, actually, there was no discussion. That was approved in the Latin American way. The leader says so. The supporters applaud. The legislature obeys. A top-down process.
PayPal says policy of punishing users for posting misinformation was ‘a mistake’
Centralization has its pros and cons. Decentralization has its pros and cons. And both forms of organization have their uses and applications. PayPal, in many cases, is a big headache. Of course. They are a bureaucratic giant who can be very helpful at times and have a huge network. Certainly, the innumerable restrictions, the many regulations and the high commissions are very heavy.
Of course, the decentralized can also become a nightmare. These solutions often rely too heavily on technology. There is no head. Then, no one takes responsibility for anything. And the environments are not very user-friendly in their interfaces and in their technical support. Decentralization is strongly advocated. And often idealized. But, when problems arise, that’s the time to yearn for the centralized. I’ll give a quick example: “I forgot my password”. At PayPal, the solution is a matter of a call and that’s it. This is not always so simple in the paradise of decentralization. Both currents are useful and necessary. But I think it’s a mistake to idealize one to demonize the other.
Breaking Minute: Google Turns to Coinbase to Bring Cryptocurrency Payments to Cloud Services
Banks are becoming technological. And tech companies are becoming banks. While on cryptotwitter cryptolibertarians champion a libertarian utopia free of banks, corporations, and governments, in the real world, banks, tech, and crypto companies are doing business together to create a shared future.
For quite primitive reasons, wrestling is a very popular sport. Many people find their identity in a fragmented humanity. In other words, they find identity in their small group. The self belongs to a fragment. So, friends are the members of our little club of equals. And the enemies are all those who do not belong to the “chosen people”. We are the good ones. They are the bad guys. We are always innocent. They are always guilty. The dichotomy and false dilemmas of –them and us- is extremely popular in the crypto world.
Google? Coinbase? Among the most equal of equals of this tribe, the supremacy of the individual and the supremacy of technology reign as the supreme values. Extreme individualism and the cryptographic code. Everything else is oppressive. “Not your keys, not your coins” and things like that. Yesterday’s Protestant and Jeffersonian heritage lives on in today’s California ideology (liberalism, technophilia, and counterculture). The fanaticism in this space is amazing. However, the world continues to haunt. The moderates are still the majority. Agreements like these, in fact, are normal. Google and Coinbase. Why not? All these products and services give us a variety of options.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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