In today’s edition of Bitmama’s weekly crypto news roundup, we cover interesting developments in the cryptocurrency industry. Top picks -Intel launches blockchain chip to tap crypto boom, Russian government approves plan to regulate cryptocurrency, Bank of Zambia expects to complete CBDC study before the end of the last quarter of 2022.
Let’s get started.
Intel launches blockchain chip to tap crypto boom
Intel Corp on Friday launched a new chip for blockchain applications such as Bitcoin mining and minting NFTs to cash in on the rising usage of cryptocurrencies. The chip will ship later this year and the first customers include Block Inc, the Jack Dorsey-led firm that recently changed its name from Square Inc to highlight its growing focus on the blockchain.
Blockchains serve as public ledgers that keep records of transactions on a network of computers and have grown in prominence in recent years. Their rise has also triggered a buzz around words like “Web.3” and “NFTs” that tout the decentralization of technologies.
Intel said its chip is an energy-efficient “accelerator” designed to speed up blockchain tasks that require huge amounts of computing power and thereby consume a lot of energy.
Chip designer Nvidia Corp, whose graphics cards are used widely for mining activities, also has a separate chip meant for Ethereum mining.
Russian government approves plan to regulate cryptocurrency
The Russian government “has determined the future of digital currencies in Russia,” an announcement published late Tuesday stated. The executive power in Moscow elaborated that the plan is to integrate the circulation of cryptocurrencies into Russia’s financial system. The cabinet also aims to establish control over crypto-related flows in the banking system.
Siding with the Finance Ministry’s view on the matter, the federal government wants to allow crypto platforms to operate under a licensing regime. To protect the rights of Russian citizens, investors will be divided into qualified and non-qualified classes, while crypto service providers will be obliged to meet certain capital and liquidity requirements. They will also be tasked with informing Russians about relevant risks.
This regulatory approach contrasts with the Central Bank of Russia’s proposal from January to impose a blanket ban on a range of operations with cryptocurrencies, including their issuance, use, trading, and mining. The monetary authority has found itself in isolation among Russian institutions, most of which favour regulation over prohibition, and dismiss its concerns over financial stability.
Bank of Zambia expects to complete CBDC study before the end of the last quarter of 2022
The Zambian central bank has said it expects to complete a research study that explores the benefits of launching a central bank digital currency (CBDC) in Q4 of 2022. The bank, which has been weighing the pros and cons of creating a digital currency, says the findings of this study will help it to determine whether it is beneficial to launch the CBDC or not.
According to a Bloomberg report, the Bank of Zambia, like some of its peers on the African continent, wants to launch a digital currency because it believes this has the potential to narrow the financial exclusion gap and reduce transaction costs. However, before launching the CBDC, the central bank said it needs to understand the study’s findings.
“The results of the research will form part of the input in the policy considerations on whether to introduce a central bank digital currency in Zambia,” explained Nkatya Kabwe, the central bank’s acting director of communications.
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