October 23, 2022

🏟 A level playing field

While other currencies discriminate through censorship and preferential access, bitcoin is open to all. And that's why it will win.

Joe Lupo
Joe Lupo

Reserve Client Manager

🏟 A level playing field

Table of contents

🏟 A level playing field

Over the past few months, central bankers and politicians have been busy promoting central bank digital currencies (CBDCs). In September, the Biden administration released its Policy Objectives for a U.S. Central Bank Digital Currency (CBDC) System. The Society for Worldwide Interbank Financial Telecommunication, or SWIFT, is also testing the technology.

What is a CDBC?

In the United States, the Federal Reserve creates dollars, which consist of physical cash and reserve balances held by banks at the Fed. Digital dollars, like the ones in your bank account, are actually claims to the dollars held by banks in their Fed reserve balances. The difference between digital dollars (claims to reserve balances) and physical dollars doesn't impact American consumers because the U.S. banking system is secure.

How are CBDCs different from digital dollars?

A CBDC would allow Americans to hold the actual dollars produced by the Fed rather than claims to dollars held in a bank's Fed reserve balance. The difference is significant: Americans would have a direct bank account with the Fed without commercial intermediaries. Advocates claim direct access to the Fed promotes financial inclusion.

Yet, CBDCs do not alleviate the financial problems people currently face, such as inflation. They also give governments greater control over their citizens' financial decisions. With a CBDC, government officials no longer have to work with banks: They can limit, censor, or stop financial transactions at a whim.

And while governments seem determined to roll out CBDCs, there is a way out. The O.G. digital currency, bitcoin, is accessible, censorship-resistant, deflationary, and promotes financial inclusion worldwide. What a relief!

News

🚀 Mastercard wants your everyday payments to be in digital assets

Like Fidelity, Mastercard is a legacy finance institution that understands where the industry is headed. The company cited heavy consumer demand as the reason for the move. As Visa partnered with FTX last week to offer crypto debit cards, legacy finance interest is increasing despite the bear market. But while they're focused on "crypto," we hope our valued readers block out the noise and focus on the signal: bitcoin.  

📈 IMF Director caught saying the quiet part out loud

IMF Deputy Managing Director Bo Li discussed CBDCs and financial inclusion in a widely shared clip. Specifically, the Director spoke about the ability of governments to control what people can - and cannot - spend their money on if citizens use CBDCs. Reacting to the clip, one Coinbits' employee said, "Anytime he says 'inclusion,' you can replace it with 'control,' and it would fit perfectly."

Alternatively, while this newsletter is critical of the Federal Reserve, we also like to give credit where it is due. Check out this video of current Minneapolis Fed President Neel Kashkari discussing why CBDCs are bad for Americans.  

🚨 Nearly $1 billion worth of bitcoin leaves exchanges Tuesday

When bitcoin leaves exchanges, it's a signal that investors are interested in holding for the foreseeable future. This bitcoin typically gets locked away in cold storage and is unavailable for sale. 48,000 bitcoin left Coinbase Pro on Tuesday, marking the second-largest outflow of all time. The exchange is popular amongst institutional investors.

👥 DeFi hacks abound

Last week, hackers acquired $570 million from the Binance Smart Chain, a blockchain that Binance uses as a bridge for transferring assets between networks. Mango Markets, a Solana-based DeFi protocol, also lost $117 million to hackers. Both events demonstrate risks inherent to other cryptocurrencies that do not exist on bitcoin.

Bitcoin adoption continues

The third largest bank in France, Societe Generale, has received regulators' approval to offer their customers bitcoin.

Impervious.ai released its highly anticipated peer-to-peer and privacy-focused web browser, which offers tools for communication, data transport, and bitcoin lightning payments.

South Africa announced bitcoin and digital assets would be treated as financial products as an update to the Financial Advisory and Intermediary Services Act of 2002.

European digital bank N26 announced bitcoin and crypto services for their clients. The bank manages $9 billion and believes the space now is "more than just a fad."

Rio de Janeiro released plans to accept bitcoin for tax payments beginning in 2023.

Bitcoin Ekasi Center opens in South Africa to provide financial and bitcoin education for the youth in the area.

Michael Saylor gave insight into his path to bitcoin in a 90-second clip that likely resonates with many.

Twitter Spaces Logo

Bitcoin vs. Authoritarianism With Vijay Boyapati

Join the conversation on Twitter Spaces at 2:00 PM EST on Friday, October 21st.

No registration required but make sure you follow @CoinbitsApp and set reminder to get notified when we're live.

Follow @CoinbitsApp to join

How bitcoin works

Learn one key idea about bitcoin each week. This week: Bitcoin is for everybody.

Inclusion is a popular word nowadays.

It's defined as "the practice or policy of providing equal access to opportunities and resources for people who might otherwise be excluded or marginalized."

Politicians, bureaucrats, and media types use inclusion to garner favor with constituents and appear compassionate.

Whether you believe their motives are pure or not, financial inclusion is a significant issue of our time.

Billions of people are unbanked, lacking access to essential financial tools. Financial censorship is also gaining steam as legacy institutions use their influence to remove access to those who say and do things they dislike.

However, one thing you won't hear mentioned in the mainstream regarding inclusion is that bitcoin is the most potent force for inclusion we've ever seen. And it isn't even close.

With Bitcoin, there are no bank account requirements and no limits on who can send or receive payments. Transactions are also pseudonymous, meaning that your identity is not attached to your transactions unless you reveal it.

This makes it an ideal solution for people living in countries with oppressive regimes, those facing retribution for political dissent, or those who want to keep their financial activities private.

The world needs a borderless, unconfiscatable, incorruptible, fixed monetary system. And every day, more and more are discovering this system exists. Its bitcoin. Stay bullish.

Are you ready to begin your bitcoin journey?

When it comes to getting started with bitcoin quickly and safely, Coinbits is the best option. It's free to create your Coinbits account. Withdrawing or selling your bitcoin is free of charge, too.

Sign up for Coinbits

Coin check

What makes bitcoin censorship resistant?

  1. No one can take your bitcoin without permission
  2. Decentralized network allows for permissionless transactions
  3. The bitcoin blockchain is immutable, that is, it cannot be altered.
  4. All of the above

Check your answer at the end of the page.

From the meme pool

Follow us on Twitter for more fresh bitcoin content

What to do next

➡️ Want bitcoin? Sign up for Coinbits.

➡️  Orange pill the whole family. Get the “Bitcoin for Kiddos” book. 10% off your order with code: Coinbits

➡️ Need coffee? Shop Queen City Coffee Roasters and get 15% OFF your order with promo code BITCOINROUNDUP

➡️ Want to work with us? Explore careers at Coinbits.

Answer: D. All of the above

October 20, 2022

🏟 A level playing field

While other currencies discriminate through censorship and preferential access, bitcoin is open to all. And that's why it will win.

Joe Lupo
Joe Lupo

Investor Relations

🏟 A level playing field

Over the past few months, central bankers and politicians have been busy promoting central bank digital currencies (CBDCs). In September, the Biden administration released its Policy Objectives for a U.S. Central Bank Digital Currency (CBDC) System. The Society for Worldwide Interbank Financial Telecommunication, or SWIFT, is also testing the technology.

What is a CDBC?

In the United States, the Federal Reserve creates dollars, which consist of physical cash and reserve balances held by banks at the Fed. Digital dollars, like the ones in your bank account, are actually claims to the dollars held by banks in their Fed reserve balances. The difference between digital dollars (claims to reserve balances) and physical dollars doesn't impact American consumers because the U.S. banking system is secure.

How are CBDCs different from digital dollars?

A CBDC would allow Americans to hold the actual dollars produced by the Fed rather than claims to dollars held in a bank's Fed reserve balance. The difference is significant: Americans would have a direct bank account with the Fed without commercial intermediaries. Advocates claim direct access to the Fed promotes financial inclusion.

Yet, CBDCs do not alleviate the financial problems people currently face, such as inflation. They also give governments greater control over their citizens' financial decisions. With a CBDC, government officials no longer have to work with banks: They can limit, censor, or stop financial transactions at a whim.

And while governments seem determined to roll out CBDCs, there is a way out. The O.G. digital currency, bitcoin, is accessible, censorship-resistant, deflationary, and promotes financial inclusion worldwide. What a relief!

News

🚀 Mastercard wants your everyday payments to be in digital assets

Like Fidelity, Mastercard is a legacy finance institution that understands where the industry is headed. The company cited heavy consumer demand as the reason for the move. As Visa partnered with FTX last week to offer crypto debit cards, legacy finance interest is increasing despite the bear market. But while they're focused on "crypto," we hope our valued readers block out the noise and focus on the signal: bitcoin.  

📈 IMF Director caught saying the quiet part out loud

IMF Deputy Managing Director Bo Li discussed CBDCs and financial inclusion in a widely shared clip. Specifically, the Director spoke about the ability of governments to control what people can - and cannot - spend their money on if citizens use CBDCs. Reacting to the clip, one Coinbits' employee said, "Anytime he says 'inclusion,' you can replace it with 'control,' and it would fit perfectly."

Alternatively, while this newsletter is critical of the Federal Reserve, we also like to give credit where it is due. Check out this video of current Minneapolis Fed President Neel Kashkari discussing why CBDCs are bad for Americans.  

🚨 Nearly $1 billion worth of bitcoin leaves exchanges Tuesday

When bitcoin leaves exchanges, it's a signal that investors are interested in holding for the foreseeable future. This bitcoin typically gets locked away in cold storage and is unavailable for sale. 48,000 bitcoin left Coinbase Pro on Tuesday, marking the second-largest outflow of all time. The exchange is popular amongst institutional investors.

👥 DeFi hacks abound

Last week, hackers acquired $570 million from the Binance Smart Chain, a blockchain that Binance uses as a bridge for transferring assets between networks. Mango Markets, a Solana-based DeFi protocol, also lost $117 million to hackers. Both events demonstrate risks inherent to other cryptocurrencies that do not exist on bitcoin.

Bitcoin adoption continues

The third largest bank in France, Societe Generale, has received regulators' approval to offer their customers bitcoin.

Impervious.ai released its highly anticipated peer-to-peer and privacy-focused web browser, which offers tools for communication, data transport, and bitcoin lightning payments.

South Africa announced bitcoin and digital assets would be treated as financial products as an update to the Financial Advisory and Intermediary Services Act of 2002.

European digital bank N26 announced bitcoin and crypto services for their clients. The bank manages $9 billion and believes the space now is "more than just a fad."

Rio de Janeiro released plans to accept bitcoin for tax payments beginning in 2023.

Bitcoin Ekasi Center opens in South Africa to provide financial and bitcoin education for the youth in the area.

Michael Saylor gave insight into his path to bitcoin in a 90-second clip that likely resonates with many.

Twitter Spaces Logo

Bitcoin vs. Authoritarianism With Vijay Boyapati

Join the conversation on Twitter Spaces at 2:00 PM EST on Friday, October 21st.

No registration required but make sure you follow @CoinbitsApp and set reminder to get notified when we're live.

Follow @CoinbitsApp to join

How bitcoin works

Learn one key idea about bitcoin each week. This week: Bitcoin is for everybody.

Inclusion is a popular word nowadays.

It's defined as "the practice or policy of providing equal access to opportunities and resources for people who might otherwise be excluded or marginalized."

Politicians, bureaucrats, and media types use inclusion to garner favor with constituents and appear compassionate.

Whether you believe their motives are pure or not, financial inclusion is a significant issue of our time.

Billions of people are unbanked, lacking access to essential financial tools. Financial censorship is also gaining steam as legacy institutions use their influence to remove access to those who say and do things they dislike.

However, one thing you won't hear mentioned in the mainstream regarding inclusion is that bitcoin is the most potent force for inclusion we've ever seen. And it isn't even close.

With Bitcoin, there are no bank account requirements and no limits on who can send or receive payments. Transactions are also pseudonymous, meaning that your identity is not attached to your transactions unless you reveal it.

This makes it an ideal solution for people living in countries with oppressive regimes, those facing retribution for political dissent, or those who want to keep their financial activities private.

The world needs a borderless, unconfiscatable, incorruptible, fixed monetary system. And every day, more and more are discovering this system exists. Its bitcoin. Stay bullish.

Are you ready to begin your bitcoin journey?

When it comes to getting started with bitcoin quickly and safely, Coinbits is the best option. It's free to create your Coinbits account. Withdrawing or selling your bitcoin is free of charge, too.

Sign up for Coinbits

Coin check

What makes bitcoin censorship resistant?

  1. No one can take your bitcoin without permission
  2. Decentralized network allows for permissionless transactions
  3. The bitcoin blockchain is immutable, that is, it cannot be altered.
  4. All of the above

Check your answer at the end of the page.

From the meme pool

Follow us on Twitter for more fresh bitcoin content

What to do next

➡️ Want bitcoin? Sign up for Coinbits.

➡️  Orange pill the whole family. Get the “Bitcoin for Kiddos” book. 10% off your order with code: Coinbits

➡️ Need coffee? Shop Queen City Coffee Roasters and get 15% OFF your order with promo code BITCOINROUNDUP

➡️ Want to work with us? Explore careers at Coinbits.

Answer: D. All of the above