It’s Moonday Morning which can mean only one thing. That we have to hook ourselves up to an IV drip of coffee, and hard-line that weekend cryptocurrency and blockchain news straight into your thought box.

1. Despite hating the idea, Brazil’s largest independent brokerage will be launching a cryptocurrency exchange.

2. US congressman, Tom Emmer, has drafted three bills in support of blockchain and cryptocurrency . Emmer wants America to lead blockchain innovation – good luck buddy!

3. Keen to put its entire government on blockchain, Dubai – or rather, “Smart Dubai” – announced the launch of a blockchain-powered ‘Payment Reconciliation and Settlement’ system . Sounds like a fancy way of saying bank if you ask me.

4. According to the Cyber Threat Alliance, who are sort of like the Avengers of the internet, crypto-jacking spiked 400 percent over the last 12 months.

5. South Korea still keen on developing blockchain. The Ministry of Science and Information Communications Technology has pledged more investment to support the development of the industry.

6. No matter how hard Maduro tries , it seems he can’t get his cryptocurrency, the Petro, to become anything more than a fantasy. The Petro appears to be non-transferable and so, falls flat as any form of currency or store of value.

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EU hates cryptocurrency and likes blockchain – for all the wrong reasons

The European Commission – the executive arm of the European Union – is a supporter of the common “blockchain, not Bitcoin” adage, it seems.

At a blockchain roundtable session earlier this week, the Commission announced a new distributed ledger initiative that aims to transform the digital services space. Not only that, a number of banking giants, including Spain-based BBVA, are already part of the project.

Along with “industry leaders” and “innovative startups,” the Commission also discussed ways to support the development of the distributed ledgers and create the “right conditions” for the technology to flourish.

The initiative, called “ International Association for Trusted Blockchain Applications,” is expected to kick off early next year.

“Blockchain, not Bitcoin”

One thing was clear though: while the Commission certainly believes there are some excellent use cases for blockchain – like transparency, traceability, and security – it doesn’t seem to think much of cryptocurrencies.

“What makes this association special is its focus on promoting trust in blockchain technology among public authorities and citizens,” Director-General for communications networks, content, and technology, Roberto Viola, said. “It will also be able to communicate with citizens about blockchain, a technology which should not be associated with obscure cryptocurrencies but with transparency traceability and a secure environment.”

Considering the Commission’s past aversion to permissionless blockchains, it is not all that surprising the agency denounces cryptocurrencies. With so much fraud going on in the industry, there are many reasons to shy away from supporting cryptocurrencies.

But for what it’s worth, it seems the Commission’s enthusiasm for blockchain is somewhat misplaced too.

For all the transparency and trust chatter, statements from BBVA suggest that the European Commission is currently experimenting with permissioned blockchains. Unlike permissionless blockchains (like Bitcoin’s), permissioned blockchains are open only to select partners – a big no-go for blockchain purists.

Also referred to as private blockchains, permissioned implementations of the technology tend to be less resistant to centralization and more susceptible to tampering.

Of course, immutability and censorship-resistance are two of the main tenets of the technology, as envisioned by its mysterious creator Satoshi Nakamoto. But those aspects don’t seem to matter to the European Commission.

Not that the Commission has a choice either: with GDPR now in effect , the only way to remain compliant with European law is to bet on permissioned blockchains – or suffer the consequences of denouncing the technology altogether.

But in the eyes of the original cypherpunks, none of those two alternatives will ever come close to a truly permissionless and censorship-resistant global network, like they wanted Bitcoin to be.

Ohio businesses can no longer use Bitcoin to pay taxes – but will they care?

Ohio, the first US state to accept Bitcoin for taxes, has suspended its cryptocurrency payment system meaning businesses can no longer pay in digital assets.

According to Ohio Treasurer Robert Sprague , OhioCryptoom – the website used to pay taxes in Bitcoin – could be legally operating as a “financial transaction device.” As such, the provider, in this case BitPay, should have been chosen through a “competitive selection process,” The Fresno Bee reports .

It appears that OhioCryptoom’s initiation may have happened unlawfully. Sprague said that it’s vital to explore new technologies, but those that are implemented should be done so in line with Ohio law.

Don’t worry, though. Sprague went on to say that in the 10 months since OhioCryptoom launched, less than 10 businesses have chosen to pay their taxes in Bitcoin or other cryptocurrencies. No one is really going to miss it.

Let’s put that in some context. According to the US Small Business Association , in 2018 there were more than 940,000 small businesses in Ohio, making up over 99 percent of the state‘s business. The state also has 1,600 registered businesses that have more than 100 employees, according to careers service Zippia .

It’s probably fair to say then that OhioCryptoom wasn’t going down like many cryptocurrency advocates would hope.

The operation of the BitPay-based system has been suspended until the Attorney General gives their formal opinion. No date has been given for when this will happen, though.

Given the fact that virtually no one used the service and that it may have been implemented unlawfully, it’s quite likely that we might never see it return. I doubt anyone will care.

Ohio might have been the first US state to launch a platform to accept Bitcoin for tax payments, and it looks like it might be the first to cancel it, too.

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