Market update

Cointree Crypto Market Update - October 23rd 2024

Market report for traders

🔮 BTC and altcoins

Over the last 7 days, Bitcoin ends at AU$100,560, moving +0.58% at the time of writing. Meanwhile, Ethereum ends at AU$3,915 moving +0.86% week-on-week. On the Altcoin side, Solana pumps +8.36%, Cardano +1.47%, and XRP -1.38%.

🗞 What’s happening in the news?

🏙️ Buenos Aires Unveils Blockchain-Based IDs for 3.6 Million Residents

Residents of Buenos Aires can now access blockchain-based digital IDs, marking a significant step in the city's digital transformation. Since 1 October, over 3.6 million active users of the miBA app have received decentralised digital identities (DIDs) secured by QuarkID, a digital identity protocol powered by ZKsync Era.

This initiative is part of Buenos Aires' ongoing efforts to integrate blockchain technology into public services. In September 2023, the city announced that birth and marriage certificates would be the first documents available on-chain, followed by proof of income and academic records.

Diego Fernández, Secretary of Innovation and Digital Transformation of Buenos Aires, stated:

"We have seen a lot of blockchain-based innovation in financial services, but this initiative demonstrates blockchain's potential to revolutionise other use cases, such as government services, by empowering citizens to securely own their data."

Data stored in QuarkID wallets is self-sovereign, allowing citizens full control over their personal information when interacting with government agencies, businesses, and individuals. This move showcases the potential of blockchain to enhance privacy and security in digital identity management.

🔒 ANZ Bank Pilots Chainlink's Privacy Protocol

The ANZ Bank is set to pioneer the use of Chainlink's new CCIP Private Transactions protocol, aiming to enhance privacy and compliance in blockchain transactions.

Chainlink's protocol allows institutional users to conduct secure and confidential transactions across different blockchain networks. It enables them to define privacy conditions, keeping on-chain data private from third parties while allowing authorised entities to access necessary information.

Sergey Nazarov, co-founder of Chainlink, commented:

"Privacy is a critical requirement for most institutional transactions. Now that private transactions across chains are possible, we expect an even greater influx of institutional adoption of blockchains, CCIP, and the Chainlink standard in general."

This development addresses a key concern for financial institutions—maintaining confidentiality while leveraging blockchain technology. By ensuring end-to-end privacy, ANZ's pilot could pave the way for broader institutional adoption of blockchain solutions.

🇯🇵 Japan's DPP Leader Proposes 20% Crypto Tax Cap Ahead of Election

Yuichiro Tamaki, leader of Japan's Democratic Party for the People (DPP), has pledged to reduce the tax on cryptocurrency gains to a flat 20%, a significant cut from the current rate of up to 55%. This proposal is part of the DPP's policy platform for the upcoming general election on 27 October.

Tamaki announced on X (formerly Twitter):

"If you believe that cryptocurrency should be taxed at a flat 20% rate, instead of being treated as miscellaneous income, please vote for the Democratic Party for the People. We also propose no taxes on cryptocurrency-to-cryptocurrency exchanges."

The party's policy statement includes:

Implementing a 20% separate self-assessed tax on crypto gains.
Exempting taxes on cryptocurrency exchanges.
Raising the leverage limit from 2x to 10x.
Introducing cryptocurrency exchange-traded funds (ETFs).

Tamaki has previously emphasised the need for Japan to "aim to become a major cryptocurrency nation through deregulation and tax reform."

Currently, cryptocurrency gains in Japan are classified as miscellaneous income, subjecting them to taxes of up to 55%. This high rate has been seen as a deterrent for crypto investors and companies operating in the country.

📖 What we’ve been reading

Bitcoin Hashrate Hits All-Time High, Boosting Network Security

The increasing Bitcoin hashrate and block reward reduction from the Bitcoin halving may lead to miner consolidation among smaller firms.

Crypto CEO Loses $450K to 'Best Friend' After Connecting to His WiFi

A ‘proximity breach’ is a rising trend, when someone exploits someone close to them to steal money—this time through a WiFi network.

How Long Does It Take to Mine 1 Bitcoin?

Solo mining Bitcoin involves one miner competing with every other miner globally. This process is incredibly challenging, and miners often join together to combat the challenge.