Transition to the new protocol was of no help to Ethereum; The Switzerland of America to accept taxes in crypto; Japan is digitalizing further and further
This September, Ethereum network switched to a new protocol type — Proof-of-Stake, — but the so-called Merge didn’t save the blockchain crypto from a significant decline. The rate fell by more than 20% in the first month of autumn. In mid September, the Ethereum blockchain switched to a protocol where the network safety relies on validators — users who stake a certain amount of crypto.
According to the Ethereum founders, this switch should have made the cryptocurrency safer and better protected; after the Merge was first announced, ETH showed quite good results. However, later the crypto couldn’t help but follow the overall downward crypto market move and fell with the rest. The overall capitalisation of Ethereum also reduced over the second half of September.
Still, some analysts believe that the downward trend was actually caused by Ethereum which dragged the rest of cryptocurrencies down with it. Though not all of the altcoins entered a recession period! For instance, Ripple (XRP) has grown by over 40%. This happened thanks to their successful court procedures against SEC, the US Securities and Exchange Commission.
Even though the US authorities are doing their best to control everything crypto-related, some states are a source of good news for crypto users. This time, we’ll talk about Colorado where the Department of Revenue allowed its users to pay their taxes in crypto.
Also, the Colorado authorities are planning to legalise ICOs. Jared Polis, the State Governor, turned out to be quite a progressive politician and suggested this idea in a belief that Colorado needs to keep up with the new technologies. No wonder why this state is also called the “American Switzerland”. Though this nickname is more about the similarities between the looks of the Alpine country and Colorado — they are both mountainous.
The authorities are promising to set the commission for crypto tax payments at the level of 1 USD + 1,83% of the total payment amount.
The land of the rising sun has been long since famous for its success in managing and developing hi-tech stuff. Now, Fumio Kishida, the country’s Prime Minister, announced that the government is about to invest into metaverses. Moreover, the Japanese authorities are also planning to launch NFTs for the local municipalities to stimulate their interest to the latest technologies.
The Japanese government already has some experience in rewarding their officials with non-fungible tokens. Seven Japanese mayors were rewarded with NFTs in the beginning of September. The nominees were the mayors who were especially active about implementing new technologies in their territories.