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Why Bitcoin, Ethereum, Dogecoin, and XRP Bounced Back Today

Why Bitcoin, Ethereum, Dogecoin, and XRP Bounced Back Today
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What happened

As of 9:50AM ET, here’s how prices are looking at many of the biggest names in cryptocurrency:

Image source: Getty Images.

so what

And so it appears that cryptocurrency prices, which collapsed dramatically earlier this week after El Salvador failed to introduce bitcoin as the national currency, started to rebound a bit on Thursday due to better news from a different country – Ukraine.

as in Ukraine Kiev Post This morning reports, the country’s parliament has just passed a bill that, if signed by President Volodymyr Zelensky, would legalize the production, ownership and use of digital currencies in Ukraine. for investment Regulating the local cryptocurrency market to protect cryptocurrency users from fraud. The law is expected to enter into force in 2022, but it will first require the implementation of legislation to amend the Civil Code and Tax Code of Ukraine, as well as a new law creating a state registry for crypto-mining operations.

It should also be noted that the law specifically does not permit the use of cryptocurrencies as legal tender. Only Ukrainian hryvnia can be used for this.

What now

Regardless of this warning, Ukraine’s Minister of Digital Transformation Mykhailo Fedorov notes that “only a few countries in the world have legalized crypto assets – Germany, Luxembourg, and Singapore.” [and now] Ukraine will be one of them.” Fedorov argues that by creating “favorable conditions” in the country, Ukraine encourages entrepreneurs to register there rather than anywhere else. ” He said.

This is the line I think investors should focus on right now. Ukraine is now “the fifth country in several weeks to set some ground rules for the cryptocurrency market,” according to CNBC, adding that in addition to the institutionalization of Bitcoin in El Salvador as the national currency this week, Cuba passed a law “to recognize and regulate cryptocurrencies” two weeks ago. Panama is working on a cryptocurrency law, and the United States has taken a step in that direction by mentioning cryptocurrency in its new $1 trillion infrastructure bill.

I think it’s no coincidence that in the US, as in Ukraine, it seems that one of the government’s primary interests in cryptocurrency is figuring out how to tax things. The more countries decide that cryptocurrency is at least as much a cash cow as a threat to their own currencies, the more popular cryptocurrency will become internationally.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of the Motley Fool Premium Consulting Service. We are diverse! Asking about an investment thesis — even if it’s our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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