Crypto Weekly Update – October 2021

The crypto industry is growing ultra-fast so let's take a look at some of the most important news from last week.

El Salvador plans to mine Bitcoin with volcanoes

El Salvador's president, Nayib Bukele, wrote on Twitter that the country has started a project to mine Bitcoin using geothermal energy from volcanoes.

The tweeted clip showed a data center in the forest and crypto mining equipment accompanied by the comment "First steps" and a volcano emoji.

During this year, the mining sector has caught the attention of many organizations due to its high energy consumption. However, in June, Bukele said that El Salvador's electricity company LaGeo would use "very cheap, 100% clean, 100% renewable, 0 emissions energy from our volcanos" to mine Bitcoin.

The cryptocurrency became a legal tender in the country on September 7th.

Visa plans to build "Layer 2" network for stablecoins and CBDCs

The payment giant Visa has bet on the crypto industry over the last two years, formalizing partnerships with different crypto businesses and even buying a CryptoPunk NFT for $165,000. To cement its pro-crypto strategy, Visa announced that it is working on a project to facilitate transactions between various stablecoins and central bank digital currencies (CBDCs).

The "universal payments channel's" main purpose is to create a digital currency equivalent of the existing international payment experience of using a local debit or credit card.

Catherine Gu, Visa product lead for CBDCs, described that the "Layer 2" solution will be built on Bitcoin and Ethereum and will process transactions on a separate layer. Afterward, the transaction will be finalized on the main blockchain.

China crackdowns on crypto ... again

On Friday the 24th of September the Chinese government released more details on its recent crypto ban stating that "Virtual currency-related business activities are illegal financial activities". Resulting in the price of the top cryptocurrencies Bitcoin and Ethereum to drop.

Threatened by the new rules, two of the biggest Ethereum mining pools, SparkPool and BeePool, shut down. According to data from Etherscan they are responsible for one-quarter of all ETH mined.

Earlier this year the Chinese Government took actions against Bitcoin miners in many local provinces. Most of them were forced to pack their equipment and move out of the country. Among the top destinations are Kazakhstan, Russia, and even the USA.

Due to the regulations, one of the leading crypto exchanges, Huobi has stopped operating in China and Binance also announced that it will halt new registrations from Chinese clients.

On top of that on Thursday, some of the most popular crypto data platforms such as CoinGecko, CoinMarketCap, and TradingView were inaccessible in China. The websites appear to have been blocked by China's Great Firewall - a government organization that stops access to other foreign websites such as Google, Twitter, and Facebook.

Militsa Dimitrova

Militsa Dimitrova

Crypto Enthusiast

Militsa Dimitrova is a crypto enthusiast with experience in content creation & social media, who produces her own Cryptocurrency Newsletter and Podcast both in English and Bulgarian. She joined FXCM as an Accountant in 2020, after obtaining a Bachelor's degree in Accounting from the University of National and World Economy…

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