• A sudden swing has brought Bitcoin back from the grip of bears, registering an immediate high of USD 7,767
  • The French central bank has confirmed trials for a central bank digital currency, scheduled by Q1 2020
  • Kazakhstan’s draft crypto law will include tax clarifications that will not see crypto mining as a taxable activity until the income is exchanged into fiat

Bitcoin experienced a sudden swing upwards today, catching almost everyone by surprise when it got a USD 500 boost at around 1:15 pm UTC to hit a monthly high of USD 7,767 (CoinDesk), after threatening to break the support with a low of USD 7,091.

Most technical analysts were already preparing for a weekly bear trend to take Bitcoin price downwards, before expecting a bounce from USD 6,800 or even as low as USD 6,000. So the sudden — and as usual unexplained — boost going up is now a big surprise and could now suggest that a short-term rally is en route.

Amid the excitement currently infecting traders in North America, a French state official has confirmed that the country’s central bank will launch trials for a central bank digital currency (CBDC) for financial institutions next year.

Local paper Les Echos reports that the governor of the Bank of France, François Villeroy de Galhau, gave a timeline for the digital euro project trials by March 2020. The announcement had actually come earlier from the co-hosts of a financial conference, the French Prudential Supervision and Resolution Authority and the Autorité des marchés financiers. But the central bank has now confirmed it via Twitter.

The digital euro pilot intends to give more efficiency to the national financial system, while bringing more trust to the currency. The trial will only be made for private financial sector stakeholders and will sidestep individual retail payments, said Villeroy. He did say that a separate digital currency for retail users would “be subject to special vigilance”.

Villeroy, via a previous Tweet by the Bank of France, had urged the country to be the world’s pioneer in using a CBDC so it could serve as a model for others to copy. He said:

“I see the interest in rapidly advancing the issuance of at least one central bank digital currency in order to be the leading issuer globally and get the benefits associated with providing an exemplary central bank digital currency.”

France is hot on the heels of crypto adoption it seems, with the state initiating and pushing for many such projects in innovation and blockchain. Last month, the first deputy governor of the Bank of France called for a blockchain-based settlements and payments systems in the European region, just a week after the French Armies and Gendarmerie’s Information and Public Relations Center had validated judicial costs racked up during an investigation into the Tezos blockchain.

France may be well in front of bigger nations, but Kazakhstan, the world’s ninth largest country, has already made eyes at Bitcoin and cryptocurrency. Today, the country’s lawmakers said they won’t be taxing crypto mining until any revenue in crypto is exchanged into fiat, in a big win for crypto mining in the landlocked Asian country.

Local business publication Kursiv said that this all boils down to mining classified legally as a “purely technological process” instead of an entrepreneurial activity.

Madi Saken, a legislative analyst at the National Association for the Development of the Blockchain and the Industry of Data Centers of the Republic of Kazakhstan (NABDC), was addressing an audience at a Blockchain Day event when he said this news.

Apparently, a draft law on crypto taxation is now being considered, which will establish the legal status of other related activities like crypto mining, including tax obligations. Saken explained that digital assets and crypto would not be considered for tax since liabilities were only on income made in “real money”. Saken elaborated:

“Tax liabilities only emerge when there is an income in the form of real money, particularly when a cryptocurrency is exchanged for real money, which means it is sold on an exchange. Then, this income in the form of classic money will be subject to taxation.”

 

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