Month: February 2022

El Salvador reportedly lost an estimated $20 million by investing in Bitcoin

El Salvador’s president, Nayib Bukele, changed his Twitter profile on Sunday, posting a photoshopped image of himself wearing a McDonald’s uniform. This comes after his country lost millions – by investing in Bitcoin – following a severe crypto market sell-off.

The two largest digital assets, Bitcoin and Ethereum, are off more than 50% from their all-time highs, trading at their lowest levels since July.

The market’s downturn has prompted jokes about new careers for crypto traders in the fast food industry. McDonald’s pay starts as low as $11 per hour in the US.

#NewProfilePic pic.twitter.com/YVDlBoA2Cq

— Nayib Bukele (@nayibbukele) January 22, 2022

Bukele has been facing criticism since he embraced the flagship cryptocurrency. El Salvador was the world’s first nation to adopt Bitcoin as legal tender in June 2021. The country currently holds over 1,500 bitcoins and plans to issue a $1 billion, 10-year Bitcoin bond this year.

The only saving grace for El Salvador is that the price of Bitcoin dipped below $30,000 last summer, so the Central American country has only reportedly lost about $20 million by investing in the leading crypto.

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The call for a more moderate approach comes days after the central bank unveiled proposal for a total ban on cryptocurrencies

Cryptocurrencies should be regulated in Russia, but not banned, according to Ivan Chebeskov, the Director of the Financial Policy Department of the Ministry of Finance.

“Technologies of this kind should get a chance to develop,” the official said during a conference organized by Russian business-focused media RBC.

“In this regard, the Finance Ministry is actively working on legislative initiatives aimed at regulating this [cryptocurrency] market. And for now, we have prepared a draft concept plan for regulatory measures that is currently discussed in the Ministry, and that has been sent to the state administration,” Chebeskov added.

According to the official, Russian authorities should protect the interests of those purchasing cryptocurrencies or using them in any technological solutions.

READ MORE: Telegram CEO assesses impact of Russia’s proposal to ban crypto

“I think it is necessary to regulate, not to ban; regulation will just ensure the transparency that will ensure security for citizens,” he said, stressing that Russia just cannot afford to ban a highly developed technological sector.

The official’s response came after the latest call for a complete ban of cryptocurrencies in Russia issued last week by the central bank. The regulator said that the issuance, circulation, exchange, and trade of cryptocurrencies and stablecoins should be prohibited along with the organization of these operations in the country.

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Ray Dalio compares political risks in the US with recent economic growth in China

China is winning the economic competition against the United States, according to Ray Dalio, the founder of the world’s largest hedge-fund firm, Bridgewater Associates.

The US is in “relative decline,” while “China has been rising,” Dalio said on Monday during a wide-ranging interview with Bloomberg. He noted that the US Federal Reserve has been “behind the curve” on monetary policy, adding that “rising interest rates means all other assets have to adjust.”

Dalio contrasted political risks in the United States with recent economic growth in China, saying there’s a “reasonable chance” neither major US political party will accept the results of the 2024 election.

“There is a worry that one should have about the divisiveness and what it means for each other,” he said.

The billionaire has long predicted that the Chinese economy will overtake the US in size to become much more powerful.

Earlier this month, Dalio praised China’s drive for common prosperity while urging nations including the US to narrow wealth gaps.

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Ukraine-related penalties may include the banning of Russian arms sales as well as curbing energy exports

The US is reportedly trying to convince its allies to impose new sanctions against Russia if a war with Ukraine breaks out. These would target arms and energy exports, costing Moscow around $50 billion, German tabloid Bild reported citing unnamed sources.

The drastic step was reportedly proposed by William Burns, the head of the CIA, during his visit to Berlin. US officials reportedly asked the German government to ban imports of Russian raw materials and block the launch of the Nord Stream 2 pipeline.

Berlin assured the US that in the event of an invasion of Ukraine, Russian gas would not go through the Nord Stream 2 pipeline, the sources told the media. However, the chancellor’s office voiced doubts over completely abandoning the vital pipeline. The remark caused irritation in Washington, Bild reported.

Read more

Over the past few months, a wide range of Western media outlets, along with multiple US officials, have been spreading speculation about an imminent Russian invasion of Ukraine. Washington and some of its allies threatened the Kremlin with a new round of ‘crippling’ sanctions if this happens, citing the movement of Russian troops within the country’s vast Western territory as evidence of the plan. Moscow has consistently rejected the accusations, saying it has a right to carry out military maneuvers as it pleases within its borders.

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Coffee giant’s decision to reverse vaccine requirement for employees sparks backlash from some patrons and workers

The world-famous coffee giant Starbucks has come under fire for scrapping the Covid-19 vaccine mandate, with calls to ‘boycott Starbucks’ flooding social media.

Both customers and Starbucks baristas say they refuse to support a place, no matter how iconic, which does not require employee vaccinations.

“Who wants unvaccinated people handling your food and drinks?” wrote one Twitter user, while others bitterly joked with the idea of “Starbucks now serving Covid-19 with that delicious hot coffee.”

The public reaction was sparked by Starbucks’ decision to go back on its previously announced plan to require all its US workers to be vaccinated against Covid-19 by February 9 or submit to weekly testing. The company scrapped the plan after the Supreme Court earlier this month ruled against the vaccine mandate proposed by President Joe Biden’s administration for large businesses. Without the mandate, firms are left to decide how to counter the spread of the pandemic internally.

“We respect the Court’s ruling and will comply,” John Culver, head of Starbucks in North America, said in a note to employees on Tuesday. Culver noted, however, that Starbucks workers are still encouraged to get vaccinated. He added that the “vast majority” of Starbucks’ roughly 200,000 US employees have been fully vaccinated already, but did not give specific numbers.

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The firm’s employees have not been happy with management’s decision, staging a walk-off earlier this month over “Covid-19 safety concerns that the company rebuffed” at a Starbucks in Buffalo, New York, the company’s first unionized store. The union – Starbucks Workers United – formed just last month, representing two Buffalo-area Starbucks stores. It slammed the company’s reversal on the vaccine mandate, stating that the decision was made without employee feedback.

Starbucks declined to comment on the public backlash regarding the mandate decision when asked by Yahoo Finance. The company introduced a number of Covid-19 safety protocols this week, including the requirement for workers to wear three-layered medical grade masks and the expansion of self-isolation policy. Starbucks also continues to offer two hours of paid leave for employees getting vaccinated.

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