El Salvador buys a smokin’ hot 420 more Bitcoin

The recent purchase brings the Latin American nation’s stash to about 1,120BTC.

The President of El Salvador, Nayib Bukele tweeted earlier today that his government has taken advantage of the recent Bitcoin price drop and added 420 additional BTC to the nation’s stash.

“It was a long wait, but worth it,” he tweeted, “We just bought the dip!”

Shortly after he tweeted: “We’re already making a profit off the #Bitcoin we just bought.” During the time between the tweets, the value of the country’s Bitcoin grew by around 0.4% or $100K.

Many onlookers online have speculated on the significance of El Salvador purchasing 420 Bitcoin specifically, which is a popular slang term for marijuana consumption.

“Nice! blaze it!” commented Reddit user theylie86, using another popular term in marijuana culture.

“I’m starting to believe he’s doing this on purpose,” speculated Reddit user EGarrett. “Actually, now that I check he was born in 1981 so he probably is. Funny to see the results of millennials starting to inherit the world.”

Four hundred and twenty Bitcoin is worth about $24.6 million USD. The purchase brings the country’s total amount of Bitcoin to 1,120 BTC, which is worth about $87.4 million USD. The country has an estimated average purchase price of just above $53,300.

El Salvador first purchased two batches of 200 BTC on September 6 this year, snatching up another batch of 150 BTC a day later, when it also became the first country in the world to make Bitcoin legal tender. On September 19, El Salvador bought another 150 BTC, which brought the country’s total holdings to 700 BTC.

However, other observers were less positive about the recent purchase, expressing concerns over the security of the nation’s Bitcoin holdings.

Twitter user @dolomiteHEX replied to the President’s tweet asking, “Who holds their private keys?” The user also asked what would happen if the nation were to be hacked.

User @EnocWatcher shared these concerns, adding that Bitcoin purchased using taxpayer money should be stored in a publicly disclosed entity.

Read more: Latin America stands to benefit most from crypto, says Uphold exec

El Salvador’s Central Bank chief Douglas Rodriguez told Bloomberg earlier this month that the Latin American country continues to invest under the expectation that Bitcoin will soon lose its reputation as a speculative asset and become a legitimate payment system.

“We don’t see any risks. Perhaps, upside risks,” Rodriguez said. Bitcoin will, “become a payment system, a system for financial inclusion.”

The price of Bitcoin has recently taken a downwards turn at $58,570 after hitting an all time high of $66,976 earlier this month. Despite the dip, the cryptocurrency is still up about 20% since September 7.

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Circle enables seamless USDC-USD transfers, providing a bridge from banks to DeFi

The result of developments in both crypto technology and regulation, Circle’s new USDC API provides a bridge between crypto and traditional finance.

Circle, the company behind the second most popular stablecoin USD Coin, has rolled out a new API that will allow for the seamless transfer of USDC to USD via automated clearinghouse (ACH) systems. 

The first exchange to adopt the new API will be derivatives and futures specialist FTX, looking to speed up USD settlement processes on behalf of their customers.

In a blog entry, project manager Gee Chuang described how Circle’s ACH API improves connections between the fiat world and the digital world by introducing interoperability among payment rails, such as card, wire and blockchain transfers. Using the API, USD funds can be transferred easily between banks and blockchains with processing traditionally done manually, now automatic.

Circle has partnered with Plaid, a company that specializes in online account security and verification, to provide a process for streamlining USD/USDC transfer through Circle. Chaung said:

“This process prevents common errors like mistyping bank accounts or routing numbers and ensures greater user security, while reducing fraud reversal risks. No digging around for numbers, no clunky codes, no switching between applications during the process.”

More than 50 countries use some version of ACH payment processing, including the EU, United States, United Kingdom, China, Japan and South Korea. Circle has also partnered with Visa to process crypto-related payouts across 30 countries covered by their network.

USD Coin is primarily an Ethereum-based token that can be exchanged for US dollars on a 1:1 basis and is backed by a reserve of regularly-audited assets. Launched in Oct. 2018 as an alternative to Tether, there are currently about 5.4 billion USDC in circulation, making it the second biggest stablecoin by market cap, after USDT.

Demand for USDC has been at an all-time high, setting weekly volume records during the first three weeks of the new year. In addition to being used heavily at Binance and Coinbase, USDC is also a stablecoin favorite among DeFi traders, with platforms like Uniswap, Curve and Compound accounting for hundreds of millions in daily trading volume.

Circle CEO Jeremy Allaire has long been a proponent of integration between the digital currency space and traditional finance, appealing to the U.S. Treasury Department in Dec. 2020 to allow crypto industry collaboration in the regulation development process.

Speaking at a fintech festival earlier that month, Allaire predicted that upcoming breakthroughs in blockchain technology will encourage massive adoption, putting its potential benefits “in the hands of hundreds of millions, if not billions of users.”

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$9 Trillion in Stimulus Injections: The Fed’s 2020 Pump Eclipses Two Centuries of USD Creation

Since September 2019, research shows the Federal Reserve has pumped over $9 trillion to primary dealers by leveraging enormous emergency repo operations. A recently published investigative report shows the U.S. central bank submits the daily loan tally, but the Fed will not provide the public with information concerning the recipients. Estimates say, in 2020 alone, […]

The post $9 Trillion in Stimulus Injections: The Fed’s 2020 Pump Eclipses Two Centuries of USD Creation appeared first on Bitcoin News.

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Tron Enters Strategic Partnership With Band Protocol To Power Its Rapidly Growing DeFi Space

Tron Enters Strategic Partnership With Band Protocol To Power Its Rapidly Growing DeFi Space

Tron has completed integration with the cross-chain data Oracle project, Band protocol in a recent partnership. This will improve scalability for all Tron developers by bringing high-throughput, customizable, and decentralized oracles to the Tron ecosystem. Plans are underway to secure all Tron applications covering enterprise, government DeFi, betting, games, RNG, and more by integrating them […]

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