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<p>Bitcoin has rallied to all-time highs in recent months, as the cryptocurrency rises as an alternative investment. Joining CNBC Africa to provide more insight on the performance of Bitcoin and the outlook going into the next year is Marius Reitz, General Manager for Africa at Luno.</p>


Bitcoin: A player for the future?

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<p>The past month has seen a steep uptake of cryptocurrencies with bitcoin in particular seeing an almost 50 per cent jump. But what does the future hold for crypto on the continent? CNBC Africa spoke to the Executive Director of the Africa Blockchain Institute, Kayode Babarinde for more.</p>


How COVID-19 is accelerating digital currency uptake in Africa

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<p>In the fourth quarter of 2020, economic activity is normalising faster than expected across the globe. This, even with renewed lockdowns to contain the spread of COVID-19. And also structural trends are changing the nature of portfolio diversification. Joining CNBC Africa to look at asset allocation going forward is Karim Chedid, Investment Strategist at BlackRock.</p>


BlackRock’s global economic outlook for 2021

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<p>Retail-focused cryptocurrency exchange Luno, says the legality of Bitcoin and other crypto-assets varies significantly across Africa as over 60 per cent of African governments are yet to clarify their position. They also describe Africa as one of the most promising regions for the adoption of cryptocurrencies. Luno’s General Manager for Africa, Marius Reitz joins CNBC Africa’s Esther Awoniyi to discuss the state of crypto regulation on the continent.</p>


What’s the state of crypto regulation in Africa?


<p>LAGOS/LONDON (Reuters) &#8211; Four months ago, Abolaji Odunjo made a fundamental change to his business selling mobile phones in a bustling street market in Lagos: He started paying his suppliers in bitcoin.</p>



<p>Odunjo sources handsets and accessories from China and the United Arab Emirates. His Chinese suppliers asked to be paid in the cryptocurrency, he said, for speed and convenience.</p>



<p>The shift has boosted his profits, as he no longer has to buy dollars using the Nigerian naira or shell out fees to money-transfer firms. It is also one example of how, in Africa, bitcoin &#8211; the original and biggest cryptocurrency &#8211; is finding the practical use that it has largely failed to elsewhere.</p>



<p>“Bitcoin helped to protect my business against the currency devaluation, and enabled me to grow at the same time,” Odunjo told Reuters from his two-by-eight metre shop.</p>



<p>“You don’t have to pay charges, you don’t have to buy dollars,” the 30-year-old said, raising his voice above the sound of loud haggling and the honking horns of scooters.</p>



<p>Odunjo is one of many people at the heart of a quiet bitcoin boom in Africa, driven by payments from small businesses as well as remittances sent home from migrant workers, according to data shared exclusively with Reuters and interviews with around 20 bitcoin users and five cryptocurrency exchanges.</p>



<p>Monthly cryptocurrency transfers to and from Africa of under $10,000 &#8211; typically made by individuals and small businesses &#8211; jumped more than 55% in a year to reach $316 million in June, the data from U.S. blockchain research firm Chainalysis shows.</p>



<p>The number of monthly transfers also rose by almost half, surpassing 600,700, according to Chainalysis, which says the research is the most comprehensive effort yet to map out global crypto use. Much of the activity took place in Nigeria, the continent’s biggest economy, along with South Africa and Kenya.</p>



<p>This represents a reversal for bitcoin which, despite its birth as a payments tool over a decade ago, has mainly been used for speculation by financial traders rather than for commerce.</p>



<p>Why a boom in Africa? Young, tech-savvy populations that have adapted quickly to bitcoin; weaker local currencies that make it harder to get dollars, the de facto currency of global trade; and complex bureaucracy that complicates money transfers.</p>



<p>The bitcoin users interviewed by Reuters, based in five countries from Nigeria to Botswana, said the cryptocurrency was helping people make their businesses nimbler and more profitable, and helping those working in places like Europe and North America hang on to more of the earnings they send home.</p>



<p>Yet risks abound.</p>



<p>Bitcoin and other cryptocurrencies are unregulated in many countries and their legal status is unclear, meaning there is no safety net and little recourse if you lose funds.</p>



<p>For many, converting local currencies to and from bitcoin relies on informal brokers. Prices are volatile, and buying and selling is a complex process that demands technical knowledge.</p>



<p>In 2018, the Nigerian central bank warned cryptocurrencies were not legal tender, and investors were unprotected.</p>


A security man administers sanitiser to a visitor to a state hospital in Lagos, on February 28, 2020. PIUS UTOMI EKPEI | AFP via Getty Images

How bitcoin met the real world in Africa

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<p>This morning, the world woke up to news that Twitter accounts of US prominent figures were targeted by Hackers, in a Bitcoin scam. The incident paints a very worrying picture concerning social media security. Joining CNBC Africa to discuss these security breaches in the technological space is Raj Wanniappa, CEO of Future Horizon Technologies.</p>


How secure are your social media accounts?

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<p>Has the coronavirus pandemic giving cryptocurrencies an opportunity to make that big acceptance leap? Or is it a wasted opportunity? CNBC Africa spoke to the Country Manager of Spenn and President Rwanda Block Chain Association, Norbert Haguma for more.</p>


COVID-19: How the pandemic has positively impacted cryptocurrency acceptance in Africa

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<p>Bitcoin trader and evangelist Tone Vays in this CNBC Africa Special tells Godfrey Mutizwa why Bitcoin will one day be the currency of choice&#8230;.</p>


Bitcoin may one day supplant the dollar

Bitcoin may one day supplant currencies

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On a single day this week the value of the entire cryptocurrency market fell over $26 billion. That day was on Monday. The sell-off followed a plummet in oil prices. Today they are down again. To find out what gives and to discuss the hidden opportunities in decentralised financing, CNBC Africa is joined by Richard de Souza, CEO of AltCoin Trader.</p>


The hidden opportunities in decentralised finance


<p><a href="https://www.cnbc.com/arjun-kharpal/"><br>Arjun Kharpal</a><a rel="noreferrer noopener" href="https://twitter.com/ArjunKharpal" target="_blank"> @ARJUNKHARPAL</a><br><br>KEY POINTS</p>



<ul><li>The value of the entire cryptocurrency market fell over $26 billion on Monday. </li><li>Bitcoin, the biggest cryptocurrency by value, fell 10% in 24 hours. </li><li>Other big digital coins ethereum, XRP and bitcoin cash, posted double-digit losses.  </li><li>The sell-off in digital coins followed a plummet in oil prices. </li></ul>



<p>Cryptocurrency markets plunged following a plummet in oil prices and further sell-off in stocks.&nbsp;</p>



<p>The market capitalization or entire value of cryptocurrencies was down$26.43 billion from a day earlier at around 1:17 p.m. Singapore time, according to data from Coinmarketcap.com. The sell-off worsened as the day went on.&nbsp;</p>



<p><a href="https://www.cnbc.com/quotes/?symbol=BTC=">Bitcoin</a>, the biggest cryptocurrency by value, fell over 10% in 24 hours at around the same time.</p>



<p><strong>READ:</strong> <a href="https://www.cnbcafrica.com/coronavirus/2020/03/09/african-european-markets-set-to-plunge-on-oil-price-crash-and-coronavirus-spread/">African, European markets set to plunge on oil price crash and coronavirus spread </a></p>



<p>The violent sell-off in the cryptocurrency market comes after international oil benchmark&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=@LCO.1">Brent crude</a>&nbsp;futures&nbsp;<a href="https://www.cnbc.com/2020/03/08/oil-plummets-30percent-as-opec-deal-failure-sparks-price-war-fears.html">plummeted 30% to $31.02 per barrel, its lowest level since Feb. 2016.</a>&nbsp;That was sparked by Saudi Arabia slashing its official selling prices for oil after OPEC failed to agree a deal on production cuts. This has led to fears of an oil price war. Brent has since pared some of its losses.&nbsp;</p>



<p>Meanwhile, stock markets in Japan and Hong Kong&nbsp;<a href="https://www.cnbc.com/2020/03/09/asia-markets-oil-prices-coronavirus-currencies-in-focus.html">fell sharply</a>&nbsp;while U.S. stocks are&nbsp;<a href="https://www.cnbc.com/2020/03/08/dow-futures-drop-700-points-as-all-out-oil-price-war-adds-to-coronavirus-stress.html">set for a steep drop</a>&nbsp;at start of trading on Monday.&nbsp;</p>



<p>The other big digital coins&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=ETH=">ethereum</a>,&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=XRP.BS=">XRP</a>&nbsp;and&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=BCH.CB=">bitcoin cash</a>, posted double-digit percentage point losses.&nbsp;</p>



<p>Despite the losses posted Monday, bitcoin is up around 9% year-to-date.&nbsp;</p>



<p>Huge moves in cryptocurrency prices are not unusual and these digital coins are known for their volatility. Market players however said this could be an opportunity to buy some bitcoin.</p>



<p>“For those who have long term investment horizons, bitcoin is absolutely a buy during these dips,” Jehan Chu, co-founder of Kenetic Capital, an investor in blockchain start-ups told&nbsp;CNBC. “We can expect more of this volatility sparked by macro health and financial shocks, but ultimately long term investments in the digital future and it’s key asset Bitcoin will be a winning strategy”&nbsp;<br></p>


Over $26 billion wiped off cryptocurrency market in 24 hours after massive oil price plunge

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<p>Bitcoin has fallen by over 17 per cent since the beginning of September. Joining CNBC Africa to unpack what&#8217;s behind its current weakness is Marius Reitz, Luno&#8217;s General Manager for Africa.</p>


Bitcoin falls almost 20% in September – What’s behind the sharp decline?


<p>By <a href="https://www.cnbc.com/ryan-browne/">Ryan Browne</a> </p>



<p><a href="https://www.cnbc.com/quotes/?symbol=FB" class="">Facebook</a>&nbsp;has made headlines of late with its plans to create a cryptocurrency.</p>



<p>The social media company has been&nbsp;<a href="https://www.cnbc.com/2019/07/17/facebook-currency-chief-questioned-at-house-financial-services-hearing.html" class="">forced to defend the project</a>&nbsp;on Capitol Hill, amid regulatory concerns around data privacy and potential illegal usage, while the G-7 has warned it poses “serious” legal risks.</p>



<p>It’s an experiment in monetary systems for the digital age, and has inevitably been compared to popular cryptocurrencies like&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=BTC=" class="">bitcoin</a>. However, many experts question whether Libra can even be called a cryptocurrency.</p>



<p>Other than the fact that they both come with a white paper and are referred to as cryptocurrencies, Libra and bitcoin are actually very different. Here’s a rundown of the key differences between the two.</p>



<h2 class="wp-block-heading">Different technology</h2>



<p>One of the biggest differences lies in the underlying technology behind both currencies.</p>



<p>With bitcoin, transactions are recorded anonymously on a public ledger known as&nbsp;<a href="https://www.cnbc.com/2018/06/18/blockchain-what-is-it-and-how-does-it-work.html" class="">the blockchain</a>. It’s essentially a database maintained by a network of computers, on which transactions are secured in such a way that makes it virtually impossible to tamper with.</p>



<p>Libra also uses a form of blockchain, or distributed ledger technology. But unlike bitcoin, Libra’s blockchain is permissioned —&nbsp;<a href="https://libra.org/en-US/permissionless-blockchain/#overview" class="">at least for now</a>&nbsp;— meaning that transactions can only be added to it by a group of trusted parties.</p>



<p>That’s where the Libra Association, a Switzerland-based consortium of companies including&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=V" class="">Visa</a>&nbsp;and&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=UBER" class="">Uber</a>, comes in. Each of the nonprofit organization’s members have invested a minimum of $10 million into the project.</p>



<p>“Libra will create a centralized structure governed by an unelected ‘association’ composed exclusively of large institutions who have purchased their voting rights,” said Ido Sadeh Man, founder and president of the Saga Foundation, a cryptocurrency firm that counts&nbsp;<a class="" href="https://www.cnbc.com/quotes/?symbol=JPM">J.P. Morgan</a>&nbsp;Chairman Jacob Frenkel as an advisor.</p>



<p>It’s different to bitcoin’s network, which can be accessed and maintained by anyone with decent enough hardware and access to the internet.</p>



<p>“Cryptocurrencies are defined by their lack of reliance on trusted intermediaries,” Peter Van Valkenburgh, director of research at the cryptocurrency policy think-tank Coin Center, said in a&nbsp;<a href="https://coincenter.org/entry/the-differences-between-bitcoin-and-libra-should-matter-to-policymakers" class="">recent blog post</a>.</p>



<p>“We believe that Libra is not a cryptocurrency because of its use of a permissioned ledger and its reliance on a trusted issuer to hold and manage a fund of assets that back the currency.”</p>



<h2 class="wp-block-heading">Different use cases</h2>



<p>Bitcoin’s white paper describes the virtual currency as a peer-to-peer payment system, allowing people to exchange money without going through a bank.</p>



<p>It’s commonly used today as a form of investment, with the term “HODL” being a common slang phrase in the industry to describe buying and staying invested in the cryptocurrency for the long term. It’s frequently been referred to as “<a href="https://www.cnbc.com/2019/06/19/bitcoins-digital-gold-but-facebooks-libra-is-the-digital-dollar.html" class="">digital gold</a>. ”</p>



<p>Libra’s primary purpose is to be used in cross-border payments and money transfers. The currency is tied to a basket of government-backed currencies and other assets, to avoid the volatile swings often seen in cryptocurrencies like bitcoin and&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=ETH=" class="">ether</a>.</p>



<p>Referred to by many in the industry as a “stablecoin,” Libra is aimed at maintaining a stable value. David Marcus, the Facebook executive leading the blockchain initiative, has previously said it will work “more like a traditional currency” than a cryptocurrency.</p>



<p>“Bitcoin and Facebook’s Libra both represent stages in the evolution of currency but in starkly different ways,” Charles Hayter, co-founder and CEO of digital currency comparison platform CryptoCompare, told CNBC.</p>



<p>“Bitcoin is permissionless, fully decentralized, deflationary and volatile. Libra is permissioned, more centralized, governed by supply and demand and pegged to fiat currencies.”</p>



<p>What Hayter means by “governed by supply and demand” is that Facebook and its partner companies can adjust the supply to match a quantity of other assets held in reserve, effectively maintaining a stable price even when demand changes.</p>



<p>Bitcoin on the other hand has a fixed supply. The total number of bitcoins that will ever be minted is “hard-capped” at 21 million.</p>



<p>“Bitcoin supply is fixed and cannot react to the market’s demand,” the Saga Foundation’s Sadeh Man said. “Libras are created or burned when one of Libra’s authorized resellers deposit or withdraw money from its reserve.”</p>



<h2 class="wp-block-heading">Different regulatory questions</h2>



<p>Facebook’s currency has taken the spotlight when it comes to talk of regulating cryptocurrencies. But some worry the company’s blockchain project could be lumped in with other digital assets by regulators.</p>



<p>That would be problematic given the difference between Libra and a digital currency like bitcoin. Whereas bitcoin rules out the need for financial intermediaries, Libra’s model is reliant on the entities which form the Libra Association, Coin Center’s Van Valkenburgh said.</p>



<p>“A system without intermediaries is a system without intermediary risk, and thus no need for regulation aimed at safeguarding against the types of risk presented by intermediaries,” he said.</p>



<p>The Libra Association currently consists of 28 founding members, according to the Libra white paper, and is hoping to reach 100 members by the time the currency launches. The token is slated for launch in the first half of 2020.</p>



<p>Though bitcoin’s network involves so-called “miners” who record transactions, it wouldn’t make sense to regulated them as they aren’t trusted custodians of user funds, Van Valkenburgh said. Cryptocurrency exchanges and wallets on the other hand do require regulatory oversight, he added.</p>



<p>Questions around how Libra would fit into existing financial regulations were raised at Wednesday’s hearing. Facebook’s Marcus was grilled on whether Libra could be considered a financial security, which he said could not be the case. But Marcus said it could possibly be considered a commodity.</p>



<p>Securities and Exchange Commission Chairman Jay Clayton&nbsp;<a href="https://www.cnbc.com/2018/06/06/sec-chairman-clayton-says-agency-wont-change-definition-of-a-security.html" class="">last year told CNBC</a>&nbsp;that cryptocurrencies like bitcoin could not be viewed as securities. Cryptocurrencies are “replacements for sovereign currencies” like the dollar and the euro, he said.</p>



<p>Regardless, if Facebook and its partners do manage to overcome the regulatory hurdles that have accompanied Libra, the currency “will undoubtedly have an enormous impact on the global economy — possibly eclipsing that of bitcoin,” CryptoCompare’s Hayter said.</p>



<p>For Andy Bryant, chief operating officer of cryptocurrency exchange bitFlyer’s European business, Libra could start to convince people there are “other ways” of storing value than using fiat currencies like the U.S. dollar. “If that’s all that Libra achieves, I think it will be a great step forward,” he said.</p>



<p><em>This article first appeared on CNBC&nbsp;</em><a href="https://www.cnbc.com/2019/07/19/bitcoin-vs-libra-how-facebooks-cryptocurrency-is-different.html"><em>https://www.cnbc.com/2019/07/19/bitcoin-vs-libra-how-facebooks-cryptocurrency-is-different.html</em></a><em>&nbsp;and is republished with its permission.</em></p>


Bitcoin vs Libra: Here are the key differences between the two cryptocurrencies


<p>By <a href="https://www.cnbc.com/jessica-bursztynsky/">Jessica Bursztynsky</a> </p>



<p>Billionaire tech entrepreneur&nbsp;<a href="https://www.cnbc.com/mark-cuban/" class="">Mark Cuban</a>&nbsp;criticized&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=FB" class="">Facebook</a>’s venture into cryptocurrency in a new CNBC interview.</p>



<p>“I’m not a big fan of what they’re doing there,” Cuban said of Facebook’s Libra coin. “I think it’s a big mistake.”</p>



<p>Cuban, owner of the Dallas Mavericks and a “Shark Tank” investor, said he’s not so much concerned with the impact on U.S. markets but at a global level.</p>



<p>“I think globally and in countries where there isn’t a lot of rule of law, or a lot of government stability, or currency stability, then it could be dangerous,” Cuban told CNBC’s&nbsp;<a href="https://www.cnbc.com/deirdre-bosa/" class="">Deirdre Bosa</a>&nbsp;in an interview that began airing on Friday.</p>



<p>“There’s going to be some despot in some African country that gets really upset that they can’t control their currency anymore and that’s where the real problems start occurring,” he explained.</p>



<p>Cuban has joined a series of government leaders and high-profile bankers in criticizing the social media giant.</p>



<p>In a series of tweets, President Donald Trump on Thursday said that he’s “not a fan” of cryptocurrencies and said Libra “will have little standing or dependability.”</p>



<p>He also said, “If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations.”</p>



<p>Appearing on Capitol Hill over two days this week delivering testimony and taking questions on the economy, Federal Reserve Chairman&nbsp;<a href="https://www.cnbc.com/jerome-powell/" class="">Jerome Powell</a>said he has “serious concerns” about Libra.</p>



<p>French Finance Minister Bruno Le Maire and Bank of England Governor Mark Carney have also questioned Libra.</p>



<p>Last month,&nbsp;<a href="https://www.cnbc.com/2019/06/17/facebook-announces-libra-digital-currency-calibra-digital-wallet.html" class="">Facebook announced</a>&nbsp;its ambitious endeavor to create a digital coin, with launch plans in the first half of next year. Libra will not be run by Facebook but by a nonprofit association supported by a range of companies and organizations, including&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=V" class="">Visa</a>,&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=PYPL" class="">PayPal</a>,&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=EBAY" class="">eBay</a>,&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=LYFT" class="">Lyft</a>,&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=UBER" class="">Uber</a>, and&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=SPOT" class="">Spotify</a>.</p>



<p>David Marcus, the Facebook executive behind the effort, told CNBC on the day of the announcement, June 18, that consumers should not be worried about the social media network gaining access to their financial data.</p>



<p>The Libra project comes as Facebook&nbsp;<a href="https://www.cnbc.com/2019/06/18/facebook-david-marcus-on-building-trust-for-libra-cryptocurrency.html" class="">works to rebuild public trust</a>&nbsp;after a series of privacy scandals and admissions that Russia used the platform&nbsp;<a href="https://www.theguardian.com/technology/2017/oct/30/facebook-russia-fake-accounts-126-million" class="">to try to influence</a>&nbsp;the 2016 presidential election.</p>



<p>Facebook did not immediately return a request for comment.</p>



<p><em>This article first appeared on CNBC </em><a href="https://www.cnbc.com/2019/07/12/mark-cuban-calls-facebook-digital-coin-libra-a-big-mistake.html"><em>https://www.cnbc.com/2019/07/12/mark-cuban-calls-facebook-digital-coin-libra-a-big-mistake.html</em></a><em> and is republished with its permission.</em></p>


Billionaire Mark Cuban calls Facebook’s digital coin Libra a ‘big mistake,’ saying it ‘could be dangerous’

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<p>With plans to expand into more than 15 African countries, this cryptocurrency platform is catching onto the digital currency craze. Luno&#8217;s GM for Africa, Marius Reitz joins CNBC Africa to unpack the global Bitcoin rally and what this means for growing interest in emerging markets.</p>


Naspers-backed Luno outlines growth plans for Africa


<p>By <a href="https://www.cnbc.com/ryan-browne/">Ryan Browne</a> and <a href="https://www.cnbc.com/eustance-huang/">Eustance Huang</a> </p>



<p>

KEY POINTS</p>



<ul><li>The cryptocurrency market shed about $10 billion in value in the space of an hour late Thursday, CoinMarketCap data showed.</li><li>New York’s top lawyer alleges Bitfinex used at least $700 million from Tether’s cash reserves to cover up an $850 million loss.</li><li>Questions have arisen over whether Tether has enough dollar reserves to justify its token’s dollar peg and whether it was used to manipulate prices.</li></ul>



<p>Cryptocurrencies fell amid reignited regulatory worries and questions around the legitimacy of so-called “stablecoin” tether.</p>



<p>The entire market shed about $10 billion in value in the space of an hour late Thursday, CoinMarketCap data showed. This after the New York attorney general&nbsp;<a href="https://ag.ny.gov/press-release/attorney-general-james-announces-court-order-against-crypto-currency-company-under" class="">accused</a>&nbsp;the operator of bitcoin exchange Bitfinex and tether issuer Tether Limited of hiding an $850 million loss.</p>



<p>The state’s top lawyer alleges Bitfinex used at least $700 million from Tether’s cash reserves to cover up the apparent loss of $850 million of client and corporate funds. Its findings were detailed in papers filed with the Manhattan Supreme Court.</p>



<p>Tether is a cryptocurrency that is meant to be pegged to the U.S. dollar — otherwise known as a stablecoin. Worries have been raised over whether Tether Limited holds enough dollars to back all the tokens in circulation.</p>



<p>The price of&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=BTC=" class="">bitcoin</a>, the world’s largest cryptocurrency, has fallen 4% over the last 24 hours, according to industry website CoinDesk. In the same time period, the prices of ethereum and XRP — the world’s second and third-largest virtual currencies by market value — also dropped 6% and 3%, respectively. Tether’s price fell over 1%, coming off its dollar peg.</p>



<p>The attorney general’s office said Thursday that Bitfinex handed $850 million to a Panama entity called Crypto Capital without disclosing it to investors. Executives at Bitfinex and Tether then allegedly “engaged in a series of conflicted corporate transactions” — where Bitfinex gave itself access to Tether’s cash reserves.</p>



<p>“Those transactions — which also have not been disclosed to investors — treat Tether’s cash reserves as Bitfinex’s corporate slush fund, and are being used to hide Bitfinex’s massive, undisclosed losses and inability to handle customer withdrawals,” the attorney general’s office said.</p>



<p>A court order issued by New York’s legal chief requires the operators of Bitfinex and Tether Limited to cease further losses of its U.S. dollar reserves. They are also barred from deleting or permitting others to delete potentially relevant documents and communications.Bitfinex’s response</p>



<p>Bitfinex said in response that the attorney general’s court filings were “written in bad faith” and “riddled with false assertions.” It flatly denied the alleged $850 million loss, stating the funds were “not lost but have been, in fact, seized and safeguarded.”</p>



<p>“Bitfinex and Tether have been fully cooperative with the New York attorney general’s office, as both companies are with all regulators,” the crypto exchange said in a <a class="" href="https://www.bitfinex.com/posts/356">statement</a> on its website. “The New York attorney general’s office should focus its efforts on trying to aid and support our recovery efforts.”</p>



<p>The company added that both Bitfinex and Tether are “financially strong,” and that it would challenge the order by New York.Why it matters</p>



<p>Tether is one of the most notable stablecoins on the market. It’s meant to be backed 1:1 by U.S. dollars to provide a stable value, and is often used as an alternative to government-backed money for crypto trading.</p>



<p>But it’s not been without controversy. Questions have arisen over whether it actually has enough dollar reserves to justify that dollar peg and whether it was used to&nbsp;<a href="https://www.cnbc.com/2018/06/13/much-of-bitcoins-2017-boom-was-market-manipulation-researcher-says.html" class="">manipulate bitcoin’s huge price spike</a>&nbsp;in 2017.</p>



<p>Charles Hayter, CEO of digital currency comparison firm CryptoCompare, said the New York fraud probe into tether was affecting the market. He said it creates a knock-on effect as tether is “so ubiquitous and so enigmatic.”</p>



<p>Cryptocurrencies have slumped massively from a monster rally in late 2017. Bitcoin, once worth almost $20,000, has fallen steeply to just under $5,300 as of Friday. It had a <a class="" href="https://www.cnbc.com/2019/04/02/bitcoin-rallies-14percent-to-its-highest-level-since-november-last-year.html">recent pop</a> last month that experts attributed to algorithm-driven trading.</p>



<p>This article was first published by CNBC <a href="https://www.cnbc.com/2019/04/26/cryptocurrency-bitcoin-price-falls-on-ny-ag-bitfinex-probe.html">https://www.cnbc.com/2019/04/26/cryptocurrency-bitcoin-price-falls-on-ny-ag-bitfinex-probe.html</a> and is republished with its permission. </p>


Cryptocurrencies shed $10 billion in an hour on worries over ‘stablecoin’ tether

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<p>Recently on CNBC was a headline reading &#8220;like season flu, Bitcoin spread could be over&#8221;. To understand this CNBC Africa spoke to YPO Member,  Founder of OnChain Capital, Ran Neu Ner our own crypto trader.</p>


Bitcoin: Where to from here?

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<p>As the conversation around Bitcoin continues to be driven by the crypto&#8217;s volatility, some commentators have continually highlighted that more emphasis need be accorded to its enabler capabilities.</p>


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