Crypto news: EU scraps PoW ban proposal following backlash

Peter Shiff, a critic of cryptocurrencies, pointed out that BTC’s performance did not live up to its reputation as an inflation hedge – Photo: ShutterStock.

The European Parliament will vote on EUs cryprocurrency asset regulation without a controversial proposal to outlaw all Proof-of-Work (PoW) cryptocurrencies, following a widespread backlash.

The Parliament’s Committee on Economic and Monetary Affairs (ECON) was set to vote whether to outlaw mining, purchase and trading of PoW cryptocurrencies due to environmental demands of PoW technology. But as the majority of main virtual coins, including bitcoin, ethereum, run on PoW consensus, such a ban would have far-reaching consequences and become the subject of market-wide criticism.

However, as of Monday morning, the proposal document Markets in crypto-assets regulation (MICA) shows that the paragraph 61 (9c) was crossed. It read: “The proposal includes an Crypto-asset providers shall not provide services related in any way, shape, or form to crypto-assets that do not meet the environmental sustainability criteria in accordance with Article 3a.”

“In particular, they shall not facilitate the purchase or trading of such crypto-assets and shall not offer custody services for such crypto-assets.”

ECON had previously scrapped the clause, but then it re-appeared to the document before being crossed out again.

head to head

Cryptocurrency bulls, Elon Musk and Michael Saylor, are sticking to their guns and holding crypto assets in the inflationary environment, while economist and cryptocritic Peter Shiff warns against using BTC as inflation hedge, and author of Rich Dad Poor Dad, Robert Kiyosaki has changed his mind about digital assets.

Musk, the founder and chief executive at electric car maker, Tesla, asked on Twitter for people’s thoughts regarding the inflation rate over the next few years. In response, chief executive of MicroStrategy, the biggest corporate owner of BTC, Michael Saylor predicted that as inflation will run near all-time highs, “capital from cash, debt, and value stocks to scarce property like BTC will intensify.”

“It is not entirely unpredictable that you would reach that conclusion,” Musk replied, and added that he believed it was better to own physical assets like houses in a high inflation environment. “I still own & won’t sell my bitcoin, ethereum or doge for what it’s worth,” he added.

Separately, Kiyosaki came forward to say that due to high inflation “BEST INVESTMENT may be stocking products you will always use such as toilet paper, trash bags, canned goods, frozen foods, gold, silver, bitcoin.”

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Just a couple days prior, Kiyosaki proclaimed that cryptocurrency was over. “BYE-BYE BITCOIN: Prediction. Biden to sign EXECUTIVE ORDER regulating Cryptos. NEXT: Fed Crypto. NEXT: all crypto currencies seized & folded into GOVERNMENT crypto,” Kiyosaki wrote last week.

Peter Shiff, economist, financial broker, and a longtime critic of cryptocurrencies, on the other hand, have pointed out that BTC’s performance did not live up to its reputation as an inflation hedge over the last two years.

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Ace of 11:30 GMT

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