FameEX Morning Crypto News Recap | May 5, 2023

Federal Reserve Hikes Interest Rate by 25bps, Emphasizes Strength and Resilience of US Banking System
The US Federal Reserve, together with the Federal Open Market Committee, has announced a 25 basis point increase in the federal funds rate, in line with market expectations. This move marks the tenth consecutive occasion of interest rate hikes since the initial 25bps increase in March 2022.

El Salvador Abolishes Taxes on Technological Innovations, AI, and App Development
El Salvador's president, Nayib Bukele, has introduced a law to abolish all taxes on technology innovations, including software and app programming, AI, computer, and communications hardware manufacturing. The move is aimed at bolstering the country's technology sector, creating more employment opportunities, and attracting foreign investment.

Bitcoin Miners Get Reprieve as Difficulty Decreases by 1.45% Following Five Straight Increases
Bitcoin's network difficulty level had seen five consecutive increases, putting miners under strain. However, on May 4, 2023, at block height 788,256, the network's difficulty level decreased by 1.45%. The overall difficulty level has now dropped to 48.01 trillion for the next two weeks, providing a bit of relief for Bitcoin miners.

Biden Administration Considers Minting $1 Trillion Platinum Coin to Address Looming Debt Default
The US Treasury is exploring the option of minting a single $1 trillion platinum coin to address the potential debt default in June. The idea exploits a legal loophole and involves creating enough funds by delivering the coin to the central bank to pay off the debts, gaining traction as a potential solution to the crisis.

Florida Legislature Overwhelmingly Backs Anti-CBDC Bill to Challenge Central Bank Digital Currencies
Both the Florida House of Representatives and Senate have overwhelmingly approved the state's anti-central bank digital currency (CBDC) legislation, SB 7054, following Governor Ron DeSantis' remarks on the matter. The bill explicitly prohibits the use of CBDCs as a digital medium of exchange in Florida should they be issued by the US central bank, a federal agency, or a foreign government.

Russia Expected to Add Chinese Yuan to Its Foreign Reserves Starting May
Russian economists are reporting that the country will start purchasing Chinese yuan for its foreign reserves as early as this month. The initial purchases are expected to be small and symbolic, but will demonstrate a positive shift in the country's economy, according to analysts.

Kenya Contemplates Taxation of Cryptocurrency, NFT Transfers, and Online Influencers
Kenya is mulling over a bill that could impose 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 has been introduced in the country's parliament, and if passed, could generate significant revenue for the Kenyan government.

Montana Governor Enacts Bill Supporting Cryptocurrency Mining
Montana's governor, Greg Gianforte, has signed into law a bill that prevents local governments in the state from passing laws prohibiting cryptocurrency mining. The legislation enshrines crypto miners’ rights by revising existing laws and prohibits discriminatory electrical rates for mining firms, and not allowing taxation for crypto used as a method of payment.

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