The joint provisional liquidators of FTX Digital Markets, which is the parent company’s subsidiary in that nation, has made public a report on the company’s tangible holdings in the Bahamas. The report details the company’s assets physically located in the Bahamas.
According to an affidavit that was filed with the Bahamas’ supreme court on February 8 by a PricewaterhouseCoopers partner, FTX’s joint provisional liquidators, or JPLs, stated that the company had purchased 52 properties in the Bahamas, including units “in the name of individual employees or relatives of Sam Bankman-Fried, despite FTX Digital providing the funding.” An FTX entity shelled out around $255 million to acquire these properties, which comprised living quarters for FTX employees as well as office space for rent by the commercial sector. The FTX subsidiary purchased these different pieces of real estate.
The JPLs also discovered “a fleet of vehicles” that the employees of FTX had used around the island and that were worth approximately $2.4 million, office furniture and computer equipment that was worth $500,000, and 13 leased storage units whose contents have yet to be evaluated. All of these items were located on the island. On the island, each and every one of these goods might be found. The liquidators have said that they would “commence disposals” once they have received clearance to do so from the highest court in The Bahamas.
In the middle of the procedures for FTX’s bankruptcy, it is unknown where the majority of the people who were still employed by the company were working. During his testimony on February 6 in the bankruptcy court, FTX CEO John Ray indicated that the firm did not have any physical offices anymore and instead conducted all of its operations in the metaverse. When Mr. Ray made this comment, he may have been referring to the headquarters of FTX rather than its local subsidiaries. It is probable that he had this in mind.
The Caribbean nation of Venezuela keeps registering firsts on the book. They have arguably the first-ever CBDC, the infamous Petro, and now this. The first-ever Bitcoin Mining Museum. And even though Bitcoin is barely 12 years old, the idea makes sense. Everything has been moving too fast in that arena, someone needs to register it and preserve the past.
Related Reading | Renowned Bitcoin Artist Encourages Venezuelan Artists Spread the BTC Word
Since January 17th, the space is open for business. The Bitcoin Mining Museum is located at Chacao’s Torre Xerox, in Caracas. CriptoAvila, a mining equipment dealer, is both creator and operator. Joan Telo, a representative from the company,told CriptoNoticias:
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“We decided to take this step because, until now, there is no, or at least not publicly, place where people can observe evolution and we felt it was necessary. Each equipment, each brand, and model that we will exhibit has a story to tell, either because they have been transcendental in the history of mining or because they represented obstacles. Within this story, there are also scams, equipment that ended up harming many people who tried to mine bitcoin at the time.”
BTC price chart on Bitstamp | Source: BTC/USD on TradingView.com
A Bitcoin Mining Museum That Teaches
The museum will also host a model mine, with which visitors will be able to learn how the whole process works, and, “build safe electrical installations to connect your own ASICs.” Among the exhibited pieces, there’s an ATI 5850 AMD graphic card. About this one, Telo said:
“It was one of the best GPUs, but just when people began to use them, there was a worldwide stock failure like the one we are experiencing now. It happened precisely because of the cards’ capacity for mining. It was the first time that there was a global inventory failure caused by bitcoin mining. Now, our idea is to add equipment to the museum as we get them, because we want to be a world reference on this issue of the evolutionary process of cryptocurrency mining.”
To close the article off, Criptonoticias gives us interesting stats about Bitcoin mining in Venezuela:
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Venezuela, even since last year, is among the 10 countries with the greatest presence in Bitcoin mining. At that time, the Caribbean country registered 0.42% of the total hash rate, although occasionally that figure has been higher.
Not Everything Is Rosy For Bitcoin-Miners In Venezuela
In other news, on July 15th Venezuelan police detained six people in Puerto Ordaz for operating an unregistered mine. They had 25 unlicensed ASIC miners that were seized. However, the non-gubernamental organization Asociación Nacional de Criptomonedas or ASONACRIP, informs us that the miners are free once again. Accordingto Criptonoticias:
Related Reading | How Bitcoin is The Answer To Venezuela’s Stuck-At-Sea Oil Supply
Through a statement, ASONACRIP celebrated the action of the state entity to achieve the release of the miners. In this regard, the organization stressed that digital mining activity is legal in Venezuela and operating miners without a license represents an offense punishable by fines, but not a crime. In other words, the miners cannot be detained.
So, yeah, the regulation of Bitcoin mining through strict registration isn’t going that well in Venezuela. At least they’re trying new things and breaking eggs. And they have the first-ever Bitcoin Mining Museum.
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Jamaican reggae artiste Bay-C has partnered with the London-based Bitcoin (BTC) wallet company Caricoin to create a nonfungible token platform for fellow performers in the Caribbean.
According to a report by the Jamaica Observer, the planned NFT platform will allow reggae and dancehall creatives in the Caribbean to gain more from their efforts in the music industry.
The planned NFT platform for musicians in the Caribbean is a further extension of the three-year partnership between Caricoin and the reggae star. Commenting on the plans for the NFT platform, Bay-C sta:
“Not everybody wants to understand how the blockchain technology works, some just want to get the content out; know that they have this NFT, so we’re trying to make it as easy as possible for as many people in the Jamaican and Caribbean creative space.”
According to Bay-C, the planned NFT platform for Caribbean reggae stars will come online before the end of 2021. The reggae star says he is encouraging his colleagues to get involved with NFTs.
The upcoming reggae NFT platform is another example of Caricoin’s continued expansion in the Caribbean. The U.K. Bitcoin wallet company made Jamaica its home back in 2015 and announced plans for a crypto exchange back in 2016.
Bay-C has some previous experience with NFTs, releasing seven copies of one of his songs as digital tokens. The reggae star reportedly plans to expand his NFT foray by releasing digital collectibles as part of his second full album, King Bass.
Owners of the King Bass NFT collection will reportedly gain access to redeemable and unlockable content as well as coupons and playing cards.
Musicians and other celebrities continue to delve into NFTs, releasing digital collections leveraging on their personal or creative brand identities.
The Caribbean is a region that underscores the global inequality of access to the international financial system.
It’s a place full of unique natural resources, hard-working people and destinations sought by tourists from around the world. But its economies have been thoroughly and devastatingly “de-risked” by major global banks, a process that has seen these banks place restrictions on Caribbean businesses over anti-money laundering (AML) or other regulatory concerns. This makes it exceptionally difficult for Caribbean businesses to participate in the legacy financial system, particularly for making cross-border fund transfers.
“Banks pulling out of the region include the Bank of America, Scotiabank, Royal Bank of Canada, and CIBC,” the Center for Strategic & International Studies reported on the de-risking of the Caribbean that followed the 2008 financial crisis. “Banks from the Netherlands, Germany, and the United Kingdom also restricted their [corresponding banking relationships] business with Caribbean jurisdictions.”
Of course, Bitcoin can provide a lifeline for individuals or businesses that find themselves cut off from financial institutions. Bitcoin is supported by individual nodes running its software and transactions are approved and verified by a network of international miners that are motivated predominately by fees, and not required to adhere to any set of regulations.
It gives those in the Caribbean the chance to capitalize on the value they offer the rest of the world without the restrictive difficulties imposed by international banks — an opportunity being demonstrated clearly by Storm Gonsalves, who grew up in Saint Vincent and is now constructing the Bitcoin-forward vacation development One Bequia.
Why One Bequia Is Embracing Bitcoin
“Banking in the Caribbean is over regulated and technologically outdated,” Gonsalves explained to Bitcoin Magazine. “Online banking, if available, is very basic. To send wires can sometimes take weeks. Opening accounts takes a similar amount of time. On top of all that, international rules are coming down hard on regional banks, while ignoring some of these same rules in their home countries. This is all very harmful to the business atmosphere in the region.”
Gonsalves’s development, which offers two- to five-bedroom villas for sale on the picturesque island of Bequia, proposes to bring the Caribbean economy into the future by enabling bitcoin payments for the properties, as well as for daily expenses in the community. Customers can reserve their villa lot with a deposit of $10,000 or the bitcoin equivalent, before completing a land holding license application and a construction contract and, within 12 months, they can move into their newly-built villa. Once there, they will be able to use bitcoin and other major cryptocurrencies to pay for goods and services like meals at the clubhouse, groceries or their monthly maintenance fees.
www.onebequia.com
Gonsalves expects One Bequia to utilize a Financial Crimes Enforcement Network (FinCEN) approved processor to accept BTC payments, and will convert most of the bitcoin he receives into fiat. Once expenses are covered, he will determine what to do with any excess cryptocurrency.
“Aside from all of its practical benefits of ease of transfer, traceability and its non-inflationary aspects, the fact that our acceptance of bitcoin and its technology puts us at the forefront of a global innovation is exciting, to say the least,” Gonsalves said. “It’s a game changer.”
How A Move To Bitcoin Will Help Caribbean Residents
Gonsalves hopes One Bequia eventually becomes a home for the current and future pioneers of the Bitcoin movement, showing the world what is possible through a Bitcoin standard. But he also hopes that it will also help residents of the Caribbean open their minds to the power of blockchain technology and financial tools that circumvent the restrictions placed on them in the meantime.
“Living in small island economies leaves you highly susceptible to natural disasters and global economic shocks,” he said. “At least a portion of income should be held in one of these currencies because we at least need reserves to carry us through turbulent times in the future. Additionally, islanders are very mobile people with a large diaspora. I think cryptocurrencies and blockchain-backed financial services can make sending money back home to friends and family much easier.”
In addition to the hedge that bitcoin can provide to Caribbean people, Gonsalves sees distinct advantages in its ability to preserve privacy.
“I am a strong believer in privacy and any privacy we lose should be compensated with a significant improvement in time, service, security and the ease of doing business,” he said. “The situation we are in now is quite the opposite.”
Ultimately, he’s looking for a system that would give Caribbean residents the same opportunity to transact internationally that those favored by major global banks have.
“I think KYC and AML rules are extremely important but should not hinder already fragile economies such as small island tourism/agricultural-based economies that are susceptible to natural disasters as well as global economic shocks,” explained Gonsalves. “We just need an even playing field. Sending a wire should be the same in the Caribbean as it is in developed countries.”
Gonsalves sees potential in blockchain technology at large, altcoins and even the “DCash” central bank digital currency launched recently by the Eastern Caribbean Central Bank — anything that offers an alternative to the institutions that have de-risked the region. One Bequia will soon be a place that hosts wealthy vacationers who enjoy financial freedom far beyond that of the typical Caribbean resident. But Gonsalves’ goal is to make it a place where the potential for Bitcoin to help these residents is realized.
“I think of One Bequia as more than just a real estate development,” he said. “I see it as a meeting of minds. This development will put in close proximity some of the greatest thinkers and doers in the world. Hopefully, the success of this project can show the world the potential of Bitcoin.”
Bequia, an 18-square-kilometer island in the Caribbean’s Grenadines archipelago, is poised to become one of the most Bitcoin-integrated communities in the world.
“The One Bequia development, where 39 luxury villas are set to be built, will be the first of its kind in the Caribbean to accept bitcoin as payment for the properties,” according to a recent report from Euronews. “Bitcoin will also be accepted as payment for everyday essentials at the development’s grocery store as well as its restaurant, café and cinema.”
It may seem that Bitcoin-enabled transactions throughout the development are merely tourist attractions — more of a Bubba Gump-style activation than a community taking charge of its financial wellbeing, as in El Salvador’s Bitcoin Beach. But the property developers behind One Bequia stress that Bitcoin is a very necessary alternative to legacy financial services, or lack thereof.
“Residents of small island nations are finding it increasingly difficult to send and receive money internationally because of ‘derisking’ by large international banks,” Storm Gonsalves, the development’s manager and a native of the Caribbean, told Euronews. “This prevents the island-based banks from transacting internationally. If this trend continues it means small island nations will be essentially cut off from international trade and commerce. For tourism-based economies, this will be devastating.”
Residents and governments in the Caribbean have adopted cryptocurrencies as a solution to these problems in the past, but most of this adoption has centered around altcoins or centrally-managed digital currencies. But the vision for One Bequia appears to be more focused on the decentralized conviction of Bitcoiners.
“Not everyone understands the advantage of cryptocurrencies. People are still skeptical,” Gonsalves said. “Early crypto investors are not your typical speculators and they believe strongly in the philosophy of decentralization behind Bitcoin/blockchain. They are not your typical speculator.”
The more than 5,000 residents of an island that forms a part of St. Vincent and the Grenadines can use crypto as a means of payment.
According to a report from Euronews, both residents and visitors to the island of Bequia can use Bitcoin (BTC) to pay for goods and services ranging from property to food at one of the local eateries. The One Bequia project, backed by entrepreneur Storm Gonsalves, is building luxury villas on the island for sale in BTC. Gonsalves said the move to accept crypto was aimed at solving the issue of traditional financial systems abandoning Caribbean islands.
“The adoption of cryptocurrencies is far from being a gimmick,” said Gonsalves. “It’s a response to the very real challenges faced by island communities increasingly cut-off from mainstream banking facilities.”
He clarified:
“Residents of small island nations are finding it increasingly difficult to send and receive money internationally because of ‘derisking’ by large international banks. Derisking is when these large institutions remove their intermediary banking services from smaller island-based community banks. This prevents the island-based banks from transacting internationally.”
The island is currently home to one branch of the Bank of Saint Vincent and the Grenadines and also accepts the Eastern Caribbean dollar for fiat transactions. Gonsalves cited Grenada, St. Kitts and Nevis, Antigua and Barbuda, and Saint Lucia recently adopting DCash as examples of island nations in the Caribbean pushing back to seemingly being slowly cut off from international commerce. The Bahamas has also issued its own central bank digital currency, the Sand Dollar.
Though the entrepreneur claims that many people are “still skeptical” of crypto, the technology could provide an attractive investment for island dwellers. Some are already calling Bequia “Bitcoin Island,” given the opportunity for residents to use the crypto asset as a medium of exchange.
“The Caribbean is known for its laidback island atmosphere,” said Gonsalves. “It’s not exactly the place you would expect a groundbreaking property development on global proportions to take place. I wanted to break out of this mould and surprise the world by pioneering a new way of project financing, such as the use of alternative payment methods such as Bitcoin.”
Banking giant Citigroup has successfully completed a proof-of-concept for blockchain-based cross-border payments in collaboration with the Inter-American Development Bank, or IADB.
According to a Thursday announcement, Citigroup’s Citi Innovation Labs and the IADB enabled several disbursements from the United States to a recipient in the Dominican Republic using the LACChain blockchain network — a proprietary effort by IADB’s regional program LACChain.
As part of the project, the IADB deposited tokenized funds denominated in U.S. dollars in a Citi account and transferred the funds using digital wallets, IADB’s blockchain specialist and LACChain technical leader Marcos Allende explained. “After tokenized, these funds were converted to local currency — Dominican pesos — with the exchange rate established by Citi,” he said.
The blockchain-based pilot enabled IADB to provide instant traceability of transactions, exchange rates and fees, potentially bringing a new method of making cross-border payments from the United States to countries in Latin America and the Caribbean.
“There are many applications of inclusive cross-border payments, such as official development assistance and international remittances. There is no doubt that they are extremely important for the economies of our region and, more importantly, for final beneficiaries and families receiving remittances,” IADB Lab CEO Irene Hofman noted.
The IADB is an international organization that supports Latin American and Caribbean economic development, social development and regional integration. The IADB has been actively exploring blockchain technology to fulfill its mission, with its innovation laboratory IDB Lab setting up its blockchain-focused LACChain program in 2019.
The open-source LACChain runs on JPMorgan’s blockchain and smart contract platform Quorum.
Citigroup is not a stranger to blockchain technology. Back in 2015, the bank developed three blockchain-based systems and a pilot cryptocurrency dubbed Citicoin to explore more efficient cross-border transactions.
