How cryptocurrencies are used

Here’s a quote from DeSantis, published by news outlet CryptoSlate.

I told state agencies to find ways in which if businesses wanted to pay tax in cryptocurrency in Florida, we should be prepared to accept payments.

Florida Governor Ron DeSantis

Unfortunately, the politician did not reveal more details about the potential innovation. It is still unknown exactly what cryptocurrency taxes will be accepted in – most likely it will be Bitcoin or some kind of Stablecoin – as well as what exactly the mechanism for converting crypto to the state budget will be.

Recall that last year the governor proposed that the state use blockchain technology to manage Florida's road safety and motor vehicles, as well as Medicaid payments. However, the proposal was later rejected.

However, even such a statement without specific information already means huge progress for the cryptosphere as a whole. Digital assets are constantly being discussed, even in the highest circles of the US government, which contributes to the development of a system to properly regulate crypto and protect investors.

Read also: Governments see cryptocurrencies as a growing threat - Edward Snowden statement.

In Ireland, on the other hand, cryptocurrencies are viewed much more cautiously. The country’s central bank recently posted a publication with the headline “Central Bank Warning on Crypto Investments”. It is part of a campaign launched by several European supervisory authorities, including the European Securities and Markets Authority, the European Banking Authority and the European Insurance and Employment Pensions Authority.

Cryptocurrency advertising in Ireland

In the publication, central bank experts stated that “crypto-assets are high-risk and speculative, so may not be suitable for individual investors.

While people may be attracted to these investments, which are often promoted as high-yield investments, in reality they carry significant risk. Before buying crypto-assets, you need to consider whether you can afford to lose all the money you have invested. Does the promise of fast or high returns seem too good to be true?

In addition, the publication highlighted that many cryptocurrency-related advertising campaigns can be misleading. This is especially true of social media, where there is also a high level of fraudulent activity. Potential investors should also be wary of “influencers” promoting cryptocurrencies, as celebrities are likely to be paid for such promotions.

In Ireland and across the EU, we are seeing an increasing frequency of advertisements and aggressive promotion of crypto-asset investments.

Bitcoin

The concerns of the Irish central bank with those of many other regulators around the world. For example, the UK's Advertising Standards Authority (ASA) has previously actively opposed the promotion of crypto in the country. Here too, the wording was similar - potentially misleading investors, i.e. promising them too much profit while omitting the risks.

Another negative development was the postponement of the launch of Bitcoin bonds by the Salvadoran government. El Salvador’s Finance Minister Alejandro Zelaya said that the country’s government has postponed the launch of the expected Bitcoin bonds. The official wording is that the situation in the crypto market is too bad. Meanwhile, the government had originally planned to issue a billion dollars worth of Bitcoin-backed bonds to investors between 15 and 20 March.

The Salvadoran government planned to convert $500 million into Bitcoin, with the rest of the aforementioned billion money to be used for cryptocurrency-related infrastructure development. Bondholders expected to hold the securities for at least five years, receiving their dividends from them.

According to Zelaya, the current volatility of the crypto market and geopolitical tensions between Russia and Ukraine have forced authorities to postpone the bond launch date – possibly until September. However, he said it is difficult to enter the international market in autumn, so officials are still hoping to “meet” the first half of this year.

El Salvador’s Finance Minister Alejandro Zelaya

When El Salvador’s cryptocurrency bonds are launched, they will be backed by Blockstream, a cryptocurrency market infrastructure and digital currency payments company. As a reminder, Bitcoin Bonds is closely tied to plans for an entire city in El Salvador that will be designed to mine crypto using geothermal energy from volcanoes.

Meanwhile, the international governing body for many major football tournaments, FIFA, has announced that cryptocurrency exchange Crypto.com will be the official sponsor of the next World Cup in Qatar. In a fresh statement, the association said that Crypto.com branding will appear both inside and outside stadiums during the FIFA World Cup in Qatar in 2022, which is scheduled to start in November.

Partnership between FIFA and Crypto.com

According to FIFA chief commercial officer Kai Madati, the deal will help develop the games “on a global scale”, referring to Crypto.com’s partnerships with other organisations around the world. Recall that in November the exchange entered into an agreement to rename the Staples Center sports and entertainment complex in Los Angeles as Crypto.com Arena for 20 years. Crypto.com has also been heavily involved with the Australian Football League with a $25 million deal.


We believe these developments prove the massive popularity of digital assets around the world. Soon they will surely be used for taxes and other payments to the budget, which will be good for the reputation of cryptocurrencies. Still, such a government decision would be a strong argument for people who still see blockchain coins as something negative and illegal.


Should states take a more responsible approach to promoting crypto? Share your opinion on this in our Millionaires’ Crypto Chat.