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Venezuela Bans Crypto Mining to Protect Power Grid

Venezuela has announced an immediate ban on cryptocurrency mining. The decision, revealed by the Ministry of Electricity, aims to address the significant strain that crypto mining has placed on the country’s already fragile energy infrastructure.

Published

9 months ago

May 20, 2024

Crypto News Team

The Venezuelan government cited growing concerns over the excessive energy consumption and resulting instability caused by crypto mining operations. These activities, which require substantial computational power, have been blamed for frequent blackouts and power shortages in various regions of the country.

The Ministry of Electricity emphasized that the ban is a necessary step to ensure a stable and reliable power supply for all citizens. “Protecting the integrity of our national grid is paramount,” stated an official from the ministry. “The energy-intensive nature of cryptocurrency mining operations has posed a serious threat to our ability to provide consistent electrical service.”

Crypto mining has surged in popularity in Venezuela in recent years, largely driven by the country’s low electricity costs and the desire to hedge against hyperinflation of the national currency, the bolívar. However, the uncontrolled growth of mining activities has exacerbated the challenges faced by the nation’s energy sector.

The ban is expected to be enforced through strict regulatory measures and increased monitoring of energy usage patterns. Authorities have pledged to take decisive action against illegal mining operations and to penalize those found in violation of the new regulations.

This move is the latest in a series of steps by the Venezuelan government to regulate the cryptocurrency industry. While the country has previously promoted the use of its state-backed cryptocurrency, the Petro, the current focus is on mitigating the adverse impacts of private crypto mining on the power grid.

The ban has sparked mixed reactions within the local crypto community. Some miners express concern over the sudden disruption to their operations and livelihoods, while others acknowledge the need for measures to stabilize the national power supply.

In summary, Venezuela’s ban on cryptocurrency mining reflects the government’s urgent efforts to protect its power grid from further strain. As authorities implement these new regulations, the future of crypto mining in the country remains uncertain, with significant implications for the broader energy and economic landscape.

Related Topics:Crypto Currency crypto news

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Vitalik Buterin criticizes crypto’s moral shift toward gambling

Published

3 days ago

February 20, 2025

Crypto News Team

Ethereum co-founder Vitalik Buterin has expressed concerns over a “moral reversal” in the crypto industry, particularly regarding criticism of Ethereum’s stance on blockchain gambling. In a recent AMA, he noted that some have condemned Ethereum for not welcoming casinos, while other blockchains have embraced them. Buterin stated that if the community continues to shift its values in this direction, he may reconsider his role in the space.

Despite these concerns, Buterin emphasized that in-person interactions with the Ethereum community reassure him that core values remain intact. He urged developers to work toward a decentralized future aligned with ethical principles rather than just profit-driven ventures.

His comments coincide with the Ethereum Foundation’s shift in its funding approach. Following criticism of its Ether sales, the foundation recently allocated 45,000 ETH into DeFi platforms like Aave and Compound. This move was widely praised as a step toward supporting decentralized finance without market disruptions.

As Ethereum navigates these challenges, Buterin’s remarks highlight the ongoing debate about blockchain ethics and the industry’s future direction. The conversation around gambling applications and decentralized finance underscores the tension between financial innovation and maintaining a moral compass in crypto.

Business

UAE saw 41% increase in crypto app downloads in 2024

Published

3 days ago

February 20, 2025

Crypto News Team

Crypto app downloads in the UAE surged by 41% in 2024, reaching 15 million, with a record 2.8 million installs in December, according to AppsFlyer. This increase was largely driven by market trends and rising adoption, especially in the latter half of the year.

Donald Trump’s election win and pro-crypto stance reportedly played a role in boosting adoption, with his surprise memecoin launch further attracting first-time investors. This trend also contributed to a rise in crypto app downloads in the U.S.

Aggressive marketing campaigns accounted for 60% of traffic, though retention remained a challenge, as one in five apps was uninstalled within 30 days. Despite this, crypto app downloads in the UAE hit 3.5 million in January, surpassing half of 2023’s total.

With 2025 projected to be a record-breaking year, market experts suggest crypto companies should continue leveraging marketing strategies to expand their user base. The UAE’s rapid growth in crypto adoption highlights the region’s increasing role in the digital asset industry.

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Brazil approves first spot XRP ETF as local bank eyes stablecoin on XRPL

Published

3 days ago

February 20, 2025

Crypto News Team

Brazil has approved its first spot XRP exchange-traded fund (ETF), the Hashdex Nasdaq XRP Index Fund, which will soon begin trading on the country’s B3 exchange. The fund, managed by Hashdex, joins a growing list of crypto investment products in Brazil, including Bitcoin and Ethereum ETFs. The approval comes as the U.S. Securities and Exchange Commission (SEC) reviews multiple spot XRP ETF filings from major firms like CoinShares and WisdomTree.

In response to this development, XRP saw an 8% price increase, reaching $2.72, bringing it within 20% of its all-time high. This surge reflects growing investor confidence in XRP-based financial products. Meanwhile, market analysts expect the approval of additional crypto ETFs worldwide as regulators reassess their stance on digital assets.

Simultaneously, Braza Group, a financial institution in Brazil’s interbank market, announced plans to launch BBRL, a stablecoin pegged to the Brazilian real. Built on the XRP Ledger, BBRL aims to enhance international payments and digital asset accessibility in South America. Initially, the stablecoin will be available only to institutional clients, with broader adoption expected in 2025.

Braza Group’s participation in Brazil’s central bank blockchain initiative, DREX, underscores the country’s efforts to integrate digital assets into its financial system. With crypto adoption surging, Brazil’s latest moves in stablecoin and ETF approvals signal growing institutional confidence in blockchain-based finance. Read more.