Top 5 Crypto News of the Week! (02-08 September)
Dear PointPay Family,
We’ve gathered the top 5 most interesting and important news from the past week just for you! Stay up-to-date with the latest changes and events!
El Salvador's Bitcoin Investment Grows to $400M Despite Slow Adoption
El Salvador’s bold $135 million Bitcoin investment has surged to $400 million, according to President Nayib Bukele. While the adoption of Bitcoin as legal tender has progressed slower than anticipated, Bukele believes the move has had a positive impact on the country’s global image, boosting investments and tourism. Despite the slow uptake, major businesses in El Salvador, including McDonald's and supermarkets, now accept Bitcoin. Bukele, serving his second term, remains optimistic about Bitcoin’s potential and sees a bright future for the digital currency in the nation.
Japan Plans to Cut Crypto Tax to 20% in Major Reform
Japan is set to lower its cryptocurrency tax rate from a steep 55% to a flat 20%, responding to long-standing demands from investors and the crypto industry. Spearheaded by the Financial Services Agency, the change would treat digital currencies similarly to other financial assets. This proposal is part of Japan’s efforts to modernize its tax framework and stimulate growth in the crypto market. At a recent Web3 conference, officials highlighted the importance of this reform in creating a more favorable environment for cryptocurrency investments.
Bitcoin Hits Monthly Low Amid Global Market Uncertainty
Bitcoin has dropped to a monthly low, driven by widespread caution in global markets. Concerns over economic prospects in the US and China have spooked investors, causing Bitcoin to briefly plunge over 4%. Other major tokens, including Ether, also saw declines. Investors are closely watching US employment data expected on Friday, which may signal deeper economic challenges ahead. Amid this backdrop, Bitcoin futures have fallen to their lowest levels since May, with a continued outflow of funds from US-based Bitcoin ETFs further amplifying market uncertainty.
ZKB Introduces Bitcoin and Ethereum Trading for Clients and Partner Banks
Zurich Cantonal Bank (ZKB), one of Switzerland’s largest financial institutions, has launched new services allowing clients to trade and store Bitcoin and Ethereum. This offering, available via ZKB's mobile app and online banking platform, is designed for both private clients and external banks, seamlessly integrating into the bank’s existing infrastructure.
Partnering with Crypto Finance, a FINMA-licensed crypto service provider, ZKB ensures the secure storage of digital assets and private keys, removing the need for external wallets. This move further solidifies Switzerland’s position as a crypto-friendly nation.
Bitcoin Mining Profitability Hits Record Low Amid Rising Network Difficulty
Bitcoin mining profitability has plummeted to historic lows, according to JPMorgan analysts. In August, miners earned an average of $43,600 per exahash per second in daily block rewards, a significant drop from the peak of $342,000 in November 2021, when Bitcoin was valued at $60,000.
Despite a 9% increase in mining difficulty, the market capitalization of 14 publicly listed miners tracked by the bank fell by 15% last month, bringing the total to $20 billion. Bitcoin's annual volatility also surged to 62% in August, up from 45% in July, highlighting the ongoing challenges in the mining sector.
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