FameEX Morning Crypto News Recap | May 5, 2023

US Federal Reserve Increases Interest Rate by 25bps, Stresses Robustness and Resilience of Banking System
The Federal Reserve of the United States, in conjunction with the Federal Open Market Committee, has declared a 25 basis point hike in the federal funds rate, consistent with market projections. This marks the tenth successive instance of interest rate increases since the initial 25bps hike in March 2022.

El Salvador Scraps Taxes on Technology Innovations, AI, and App Programming
As part of the President's proposed budget for fiscal year 2024, the Biden President Nayib Bukele of El Salvador has enacted a law that eliminates all taxes on technology innovations, such as software and app programming, AI, and the manufacturing of computer and communications hardware. This initiative aims to strengthen the country's technology sector, generate more job opportunities for its citizens, and attract foreign investments.

After Five Consecutive Increases, Bitcoin Miners Receive Relief as Difficulty Drops by 1.45%
Bitcoin miners were under pressure due to the network difficulty level's five consecutive increases. Nevertheless, at block height 788,256 on May 4, 2023, the difficulty level dropped by 1.45%, providing some respite to the miners. This drop lowered the overall difficulty level to 48.01 trillion for the next two weeks, relieving some of the burden from Bitcoin miners.

Biden Officials Explore $1 Trillion Platinum Coin as Solution to Impending Debt Default
To tackle the impending debt default in June, the US Treasury is considering minting a single $1 trillion platinum coin. By utilizing a legal loophole, the proposal involves delivering the coin to the central bank, creating enough funds to pay off the debts. This idea is gaining attention as a possible solution to the crisis.

Florida Lawmakers Show Strong Support for Anti-CBDC Bill to Oppose Central Bank Digital Currencies
In response to Governor Ron DeSantis' recent statements, Florida's House of Representatives and Senate have both given strong support to SB 7054, an anti-central bank digital currency (CBDC) bill. The legislation explicitly forbids CBDCs from being used as digital mediums of exchange within Florida if issued by the US central bank, a federal agency, or a foreign government.

Russia Poised to Begin Purchasing Chinese Yuan for Its Foreign Reserves from May Onward
According to reports from Russian economists, the country is expected to start purchasing Chinese yuan for its foreign reserves as early as this month. Although the initial purchases are anticipated to be small and symbolic, they will demonstrate a positive turn in the country's economy, as per analysts.

Kenya Considers Imposing Taxes on Crypto, NFT Transfers, and Online Influencers
Kenya's parliament is considering a bill that may introduce a 3% tax on cryptocurrency and non-fungible token (NFT) transfers, as well as a 15% tax on monetized online content created by online influencers. The proposed bill aims to generate significant revenue for the Kenyan government.

Montana Governor Approves Legislation to Boost Cryptocurrency Mining Industry
Montana Governor Greg Gianforte signed a bill into law that prevents local governments in the state from passing laws that prohibit cryptocurrency mining. The new legislation revises existing laws to protect the rights of crypto miners, prohibit discriminatory electrical rates for mining firms, and prevent taxation of cryptocurrency used as a method of payment.

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