Kicking off the Week's Edition of Overbit Round Up, we have a few big stories we'd like to cover, ranging from the US Dollar's weakness and its impact on Bitcoin, new Regulations in South Korea (one of the top crypto hotspots in the world), and Visa's newly announced adoption of Stable Coins ($USDC) into its network.
One of the most controversial arguments amongst crypto connoisseurs is; What is the impact of the traditional markets (FOREX & STOCKS) on the Price of Bitcoin? In March and April, earlier this year, we saw Bitcoin and Traditional markets crashing in correlation. Notedly, in the latter part of this year, we have seen them become inversely correlated, i.e. Bitcoin goes up when the Dollar goes down.
Right now the DXY (Dollar Reserve Index) is approaching its lowest point in two years, which is an interesting observation, considering that Bitcoin just broke its all-time high. It's hard to know for sure how they're related, but Bill Noble, the Chief Technical Analyst at Token Metrics said "a weak Dollar is a dream scenario for crypto," so we'll just have to see.
Jumping into our next big story of the week, we'll be covering South Korea and what was supposed to be a rapidly approaching new tax crypto law, which has since been delayed.
According to a recent CoinTelegraph article, the South Korean government has officially postponed a new tax regime on cryptocurrency gains until 2022. This comes after the legislature suggested delaying the adoption of a cryptocurrency income tax rule until January 1, 2022, instead of October 2021. The newly passed tax regime will stipulate that investors in South Korea pay a 20% tax rate on crypto trading gains above 2.5 million won ($2,260) per year.
Wrapping up our last story of the week, we're going to highlight VISA and the new initiatives they are doing with payment networks and cryptocurrencies.
Visa, one of the world's largest payment networks, is just announcing that the crypto-firm Circle will be working with Visa to help prioritize and select Visa credit card issuers to start integrating the stable coin, $USDC, into their platforms to send and receive USDC payments. Cuy Sheffield, Visa head of crypto stated: "This will be the first corporate card that will allow businesses to be able to spend a balance of USDC," he continued by saying "And so we think that this will significantly increase the utility that USDC can have for Circle's business clients."
Leading up to this Circle and Visa partnership, there have already been 25 cryptocurrency wallet providers joining their Fast Track program of crypto partners.
With Stablecoins soon powering millions of transactions on Visa networks worldwide, it's easy to see that the future of payments and investments will continue to live on the blockchain. Regardless of your skill level or experience, Overbit.com will continue to provide insights and tools to help investors, traders, and holders achieve their goals.