Bitcoin hashrate drops 50%, BIS optimistic about CBDC’s and another ETF delayed by SEC
Bitcoin hashrate drops by nearly 50% following China’s mining crackdown
Bitcoin hashrate has dropped by nearly 50% in over a month. From about 168,000 petahashes per second (PH/s) on May 15, the bitcoin hashrate has dropped to nearly 86,000 PH/s as of June 23.
The hashrate has dropped significantly after the government of China last month moved to shut down bitcoin mining activities in some regions, including Xinjiang and Sichuan. These two regions alone estimated to have 50 exahashes per second (EH/s) hashrate or about 30% of the total bitcoin hashrate.
Currently, miners are moving to the USA and/or Kazakhstan to restart their mining activities in other jurisdictions.
Source: The Block
BIS optimistic about central bank digital currencies
The central bank of central banks says CBDCs are necessary for maintaining the status quo of the legacy financial system, according to the Bank of International Settlements (BIS).
In a report titled “CBDCs: an opportunity for the monetary system,” BIS researchers argued that sovereign digital currencies offered “the unique advantages of central bank money.”
“A logical step in their design is to delegate the majority of operational tasks and consumer-facing activities to commercial banks and non-bank PSPs that provide retail services on a competitive level playing field. Meanwhile, the central bank can focus on operating the core of the system.”
Keep in mind that a CBDC is the opposite of Bitcoin: it’s centralized, permissioned, privacy-unfriendly and will be maintained by a central bank which could increase the supply of the currency.
US: SEC delays decision on Valkyrie Bitcoin ETF
The Securities and Exchange Commission is yet to approve a Bitcoin Exchange Traded Fund (ETF) in the United States.
The federal agency has a history of rejecting BTC ETFs. In what is the most recent development, the regulatory body delayed passing its judgment on the Valkyrie Bitcoin ETF.
The SEC, in its latest filing, announced that it would take an approval/disapproval call only by 10 August. Usually, the SEC delivers a decision on a particular application within 45-day windows. However, to date, the agency has used the upper cap, 240 days, to review most of the Bitcoin ETF applications.
“The Commission is extending this 45-day time period.”
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