Negative US Interest Rates Coming; New Ripple Class Action Suit; Telegram Rescinds GRAM Offer

TL;DR: Welcome to In Case You Missed It (ICYMI), a daily crypto news update. Negative rates could be coming to the US in the near future. Ripple faces another class action lawsuit. Telegram won’t repay investors with cryptocurrency. Several governments are planning to enforce a digital services tax. Daily BitMEX transactions disrupt bitcoin fees, and Paxful starts Africa coronavirus campaign.

Negative Rates Coming to the US

Negative Rates

Negative rates could be adopted by banks in the US as another measure to try to halt the economic crisis the country is facing as a result of the coronavirus pandemic and the implemented lockdown policies. Narayana Kocherlakota, former President of the Federal Reserve Bank of Minneapolis, stated the Fed should establish negative rates because it has no “good argument against going negative.” This would incentivize spending and investing because individuals would have to pay banks to keep their savings.

Ripple Faces Yet Another Class Action Lawsuit

Negative Rates

Ripple, the XRP services company, is facing another class action lawsuit that claims its founders such as CEO Brad Garlinghouse created the currency just to make themselves rich, violating securities laws with an ICO sale. The suit is from an entity called Bitcoin Manipulation Abatement and states Ripple engaged in misleading marketing, making “a litany of false and misleading statements regarding XRP” to entice customers and investors to support the project financially.

Telegram Won’t Repay Its Investors With Grams

Negative Rates

Telegram, the encrypted messaging giant, announced it withdrew an offer to pay investors with GRAMS (its official token) after the SEC ordered a halt to its distribution last month. The company was to pay customers 72% of their investments before April 30, but the company instead declared it “made the difficult decision not to pursue an option involving grams or another cryptocurrency due to its uncertain reception from the relevant regulators,” in a letter.

Several Governments Planning to Create Digital Services Tax

Six governments of the world are planning to tax digital services in the near future to use these resources in the fight against the coronavirus outbreak. Austria, France, Hungary, Italy, Turkey, and the UK have already drafted plans for a digital services tax, while other countries like Indonesia are already enforcing it. Indonesian Finance Minister Sri Mulyani Indrawati stated they decided to tax these digital companies “because their sales have soared amid the Covid-19 outbreak” and “their economic activities are huge.”

Daily BitMEX Broadcast Impacts Bitcoin Transaction Fees

The transactions that popular crypto and derivatives exchange BitMEX issues every day at 13:08 UTC might be disrupting the BTC fee market and creating congestion in the mempool, according to a report published by 0xB10C. The number of transactions could make fees rise during US business hours and European afternoons, saturating the BTC mempool due to the limitations of the network. 0xB10C proposes transaction batching and using nested Segwit to minimize the impact these transactions might have on fees and congestion.

Paxful Launches Coronavirus Bitcoin Donation Campaign

Paxful, a very popular P2P cryptocurrency exchange, started a coronavirus relief campaign seeking to help the most vulnerable nonprofit organizations in Africa. Paxful will kickstart the fund with $15,000, matching any donation up to $15,000. In addition, Paxful will provide 8,400 meals across South Africa and 6,100 masks for frontline workers in Kenya. “The Africa Fund is just the latest in what will be an ongoing effort to provide relief and serve these resilient communities,” stated Paxful CEO Ray Youssef.

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