roadrunner

In a report by the crypto market aggregation web portal Coingecko, Binance retains its crown in the centralized cryptocurrency exchange arena, but not without facing fierce competition and challenges. Binance Leads But Not Without Contenders, Says Coingecko’s Mid-Year Crypto Study According to the Coingecko research report, Binance continues to dominate the centralized cryptocurrency exchange market with a 51.7% share, boasting a spot trading volume of $235.3 billion in June 2023. However, researchers noted a significant drop from its March peak of $559.8 billion, suggesting possible weaknesses. The research spotlighted Upbit’s perseverance, holding firm as the second-largest exchange. Despite a dip to a 6% market share in May 2023, Upbit rebounded with an 8.1% share by June, backed by a $36.8 billion trading volume. Still, data shows the exchange experienced a 43.4% quarter-on-quarter (QoQ) volume decrease. The report underscored the rise of Bybit and Bitget in the second quarter. Bybit, celebrating a 26.7% QoQ growth, clinched the fifth spot among centralized crypto exchanges. Meanwhile, Bitget made notable strides to secure the seventh position. Both exchanges notably dethroned industry stalwarts Crypto.com and Huobi. The analysis also highlighted Binance’s declining trajectory. Between Q1 and Q2 2023, Binance’s trading volume plummeted by 52.4%, which translates to a $823.9 billion decrease. The report said this decline starkly contrasts with the combined $270.8 billion drop of its nine closest competitors, suggesting regulatory pressures might be denting its dominance. Beyond the big players, the Coingecko report paints a vivid picture of a fiercely contested market. Okx, holding the third position with a 7% market share, is closely trailed by contenders like Coinbase, Bybit, and Kucoin. With each commanding less than 7% of the market, the battle among the top ten continues to be intense. The study leveraged data from the top ten exchanges by recording the centralized trading platforms’ spot trade volumes between January 1, 2023 and June 30, 2023. What do you think about the top ten crypto exchanges’ performances during the first half of 2023? Share your thoughts and opinions about this subject in the comments section below. View the full article

Bitcoin neared a breakout below $29,000 on Wednesday, ahead of the release of anticipated Federal Open Market Committee (FOMC) minutes. The minutes will show the United States Fed’s reasoning behind its last rate hike, whilst also giving guidance on its future decisions. Ethereum dropped to a one-week low. Bitcoin Bitcoin (BTC) extended recent declines on Wednesday, as traders began to anticipate the upcoming FOMC minutes report. BTC/USD fell to an intraday low of $29,061.95 earlier in today’s session, which comes after a high of $29,439.12 the day prior. This drop sent bitcoin to its lowest point since August 7, when the price fell to a bottom of $28,660. Bitcoin chart by TradingView Wednesday’s decline comes despite an upward crossover taking place between the 10-day (red) and 25-day (blue) moving averages. The relative strength index (RSI) did provide a bearish signal however, slipping towards a floor of 42.00 As of writing, the index is tracking at 44.49, which is also a seven-day low. Ethereum Additionally, ethereum (ETH) edged lower for a second straight session, as the cryptocurrency moved towards a floor of its own. Following a high at $1,842.95 on Tuesday, ETH/USD dropped to an intraday low of $1,816.33 earlier today. Like with bitcoin above, this plunge saw the world’s second largest cryptocurrency record a one-week low. Ethereum chart by TradingView Whilst the RSI on BTC was heading towards a floor, ethereum’s price strength broke out of its own support. The index moved below a support level at 41.00, and is now tracking at 40.83, with the next visible point of support at 39.00. Should this target be reached, ETH will likely be trading around the $1,780 mark. Register your email here to get weekly price analysis updates sent to your inbox: Do you expect ethereum to fall below $1,800 this week? Leave your thoughts in the comments below. View the full article

A court in Brazil has found Johann Steynberg, the mastermind of the bitcoin ponzi scheme Mirror Trading International (MTI), guilty in a case in which he is accused of using a forged identity document. The court, however, commuted Steynberg’s three-and-a-half-year sentence to a fine of just over $31,000. Both Steynberg’s lawyers and the prosecution team have reportedly appealed the court’s decision. MTI Boss Avoids Jail Time A Brazilian court has reportedly found Johann Steynberg, the CEO of Mirror Trading International (MTI) — the defunct bitcoin ponzi scheme — guilty in a case in which he is accused of using forged identity documents. However, according to a Mybroadband report, Steynberg, who was sentenced to three and a half years in prison, is unlikely to serve the jail time after the court reportedly ordered him to pay a fine instead. As previously reported by Bitcoin.com News, Steynberg, who fled South Africa in late 2020, was arrested by Brazilian law enforcement in December 2021. At the time of his arrest, Steynberg was found to be in possession of a forged Brazilian identity document. Following his arrest, South African authorities reportedly kickstarted the process to have the MTI boss extradited. Steynberg’s subsequent attempt to block the extradition proceedings was rebuffed by a Brazilian judge in 2022. Since then, the MTI mastermind has seemingly remained in “precautionary detention.” Steynberg Appeals Against ‘Harsh’ Sentence On why the Brazilian court commuted Steynberg’s jail sentence to a total fine of just over $31,100, the report cited the South American country’s penal code which states that jail terms of four years or lower for non-violent crimes can be converted to fines. Meanwhile, the report said Steynberg’s lawyers have signaled their intention to appeal the court’s decision. The lawyers have said Steynberg’s alleged offense warrants a less harsh sentence than the three and a half years handed down by the court. The prosecution team, which is also appealing the court’s verdict, suggested that the punishment given to Steynberg is not commensurate with the offense. Register your email here to get a weekly update on African news sent to your inbox: What are your thoughts on this story? Let us know what you think in the comments section below. View the full article

The Monetary Authority of Singapore (MAS) unveiled regulations aimed at ensuring the value stability of each stablecoin regulated in the city-state. Under the new rules, issuers that want their fiat-pegged tokens to be labeled as “MAS-regulated” will have to meet certain requirements. Singapore to Require Stablecoin Issuers to Maintain Minimum Base Capital and Liquid Assets Singapore’s central banking institution has finalized its new regulatory framework for stablecoins issued in the country. On Tuesday, the monetary authority said its features seek to ensure a high degree of value stability for the stablecoins it will regulate. MAS emphasized that feedback from the public consultation launched in October 2022 has been taken into account. “Stablecoins are digital payment tokens designed to maintain a constant value against one or more specified fiat currencies,” the regulator noted in a press release and elaborated: When well-regulated to preserve such value stability, stablecoins can serve as a trusted medium of exchange to support innovation, including the ‘on-chain’ purchase and sale of digital assets. The financial authority also pointed out that the framework will apply to single-currency stablecoins (SCS) pegged to the Singapore dollar or any of the G10 currencies, the world’s most traded fiat currencies, such as the U.S. dollar, the euro, the Japanese yen, and the Swiss franc. SCS issuers will have to fulfill some key requirements in order to apply for and obtain a “MAS-regulated stablecoins” label for their digital currencies. These cover several important areas such as value stability, capital, and redemption. Reserve assets for the stablecoins will be subject to requirements relating to their composition, valuation, custody and audit, to ensure value stability, the MAS explained. Issuers will be obliged to maintain minimum base capital and liquid assets to limit insolvency risks. They must also return the par value of SCS to holders within five business days from a redemption request and appropriately disclose to users information about the implemented value stabilizing mechanism, the rights of stablecoin holders, as well as the results from audits of reserve assets. This label will allow users to distinguish MAS-regulated stablecoins from other digital payment tokens, the central bank emphasized. Its Deputy Managing Director for Financial Supervision, Ho Hern Shin, urged issuers that want their stablecoins to be recognized as such to prepare early for compliance. She also highlighted that the regulatory framework aims to facilitate the use of stablecoins as a “credible digital medium of exchange” and a bridge between the fiat and digital asset ecosystems. It’s being introduced over a year after the collapse of stablecoin terrausd and cryptocurrency luna issued by the Singapore-registered company Terraform Labs. The stablecoin rules also follow the implementation of new regulations for crypto service providers in July. Do you think Singapore will attract stablecoin issuers with its “MAS-regulated” label? Share your expectations in the comments section below. View the full article

U.S. Congressman Warren Davidson has railed against central bank digital currencies (CBDC), stating that enacting a ban on these instruments is “essential” for the future of the fintech industry in America. Davidson explained that many people wrongly conflate cryptocurrencies with CBDC when these are two different concepts. Congressman Warren Davidson: ‘CBDC Is Evil’ Congressman Warren Davidson has warned about the dangers that issuing a central bank digital currency (CBDC) represents for the financial technology industry in America. Davidson vocally criticized the use of these tools, reaffirming his opposition to CBDC by stating on social media that: At least most agree that CBDC is evil – the financial equivalent of the Death Star. Don’t become an accomplice to anyone designing, building, testing, developing, or establishing CBDC. Davidson, part of the House Financial Services Committee, emphasized that many people wrongly conflated the concept of CBDC with Bitcoin and that banning the existence of a CBDC in America would be “essential” to America’s fintech future. Davidson’s opposition to CBDC is not new, as the representative has railed against the concept before, stating that “central bank digital currency (CBDC) corrupts money into a tool for coercion & control,” explaining that there was no way of implementing CBDCs in America without legislation. People, Not Tokens The congressman noted that the tech behind these tools was not the problem, as he pinned responsibility on the human resource behind CBDC projects. Davidson stated: Tokenized assets are not the problem. It’s the people. Entities (including the Federal Reserve, Ripple, Consensys) and influencers are actively working on CBDC projects. Davison concluded by announcing that he was working on passing a regulation that would “criminalize designing, building, testing, developing, or establishing a central bank digital currency.” While the Federal Reserve is now openly considering a digital dollar as “a means to expand safe payment options, not to reduce or replace them,” it recognizes that it has taken “no decision on issuing a central bank digital currency (CBDC) and would only proceed with the issuance of a CBDC with an authorizing law.” Several bills have been introduced to stop the hypothetical issuance of a digital dollar. In February, Representative Tom Emmer introduced the CBDC Anti-Surveillance State Act to “halt efforts of unelected bureaucrats in Washington, D.C. from issuing a central bank digital currency (CBDC) that strips Americans of their right to financial privacy.” Also, in March, Senator Ted Cruz introduced a bill to stop the Federal Reserve from developing a CBDC. What do you think about Warren Davidson’s thoughts on CBDC? Tell us in the comments section below. View the full article

With the Bitcoin Cash network’s May 15 Cashtokens upgrade now three months behind us, bustling development in non-custodial wallets, marketplaces, non-fungible tokens (NFTs), games, and other applications continues unabated. Paytaca wallet CEO Joemar Taganna notes that “improvements in consensus building” and “new and powerful upgrades to the protocol” showcase several parties “working together to make the peer-to-peer cash revolution happen.” Little Green Monsters, Gurus, Cats, and Prediction Markets After the May 15, 2023 Bitcoin Cash upgrade, which effectively enables smart contracts onchain for BCH by utilizing unspent transaction outputs (UTXOs), much development has been ongoing on the network surrounding Cashtokens, a feature that has inspired the creation of numerous non-fungible tokens (NFTs) and marketplaces like tapswap.cash. NFT sales and trading activity are still modest compared to other networks, with marketplaces in their nascent stages, and decentralized exchanges (dexs) in test phases. That notwithstanding, development has been occurring at an industrious pace in the background, as advocates of Cashtokens point to the power of the upgraded chain to enable even more types of permissionless peer-to-peer exchange directly onchain, for lower fees than other leading protocols. Some NFT collections of note include Emerald DAO, Bitcats Heroes Club, and BCH Gurus. As developer Jason Dreyzehner mentioned to Bitcoin.com News back in May: “Suddenly it was possible to build very efficient, UTXO-based decentralized applications while preserving important features of Bitcoin Cash: stateless transaction validation (low fees) and zero-delay re-spending (fast transactions).” Paytaca, creator of the Cashtokens-friendly Paytaca wallet, is now working on a tool to enable anyone to create their own NFTs via a project called Cashtokens Studio. CEO of Paytaca Joemar Taganna is also involved with the Bitcats Heroes Club NFTs. Taganna told Bitcoin.com news: There is a need now for a tool for the general public that will allow anyone to create tokens using the Cashtokens protocol. Currently, the process is largely manual, so it is tedious and error-prone. That’s why we are building Cashtokens Studio. One popular NFT project springing up after the May upgrade has been the BCH Gurus. This project is a multi-dimensional NFT endeavor which is currently building price prediction games fueled by NFTs and other tokens on the new protocol. “The Cashtokens upgrade has allowed for an entirely new ecosystem to develop directly on Bitcoin Cash mainchain,” the BCH Guru Team told Bitcoin.com News via Telegram, elaborating: “The BCH Guru combines the fun and addictive element of a uniquely designed NFT collection, along with a fungible token (Furu), allowing users to play price prediction games onchain through a Cashtokens smart contract.” Community and Tech Developments, Crypto Custody Ethos Noting that Cashtokens’ simple token primitives “that can allow you to create most (if not all) of defi applications you see in other chains” will require some tooling developed from scratch, Taganna says his group is “happy to take on part of that huge challenge.” Speaking of Bitcoin Cash development over the last few years, the Paytaca CEO notes: “The BCH community is becoming more vibrant and productive, a breath of fresh air from the prior years of political conflict leading to splits. We now have individuals, dev teams, and entrepreneurs, supported by well-aligned donors / investors, all working together to make the peer-to-peer cash revolution happen.” Part and parcel of refusing to compromise on Satoshi Nakamoto’s vision for a money which can’t be censored and can be traded with no need for a financial institution — an ethos enthusiastically championed by many in Bitcoin Cash communities — is keeping complete control over one’s crypto. Non-custodial bitcoin cash wallets supporting the Cashtokens upgrade include Paytaca, Electron Cash, Cashonize, and Zapit. What are your thoughts on this story? Be sure to let us know in the comments section below. View the full article

Chinese leader Xi Jinping and Russian President Vladimir Putin “will continue to advance the China-Russia comprehensive strategic partnership,” according to China’s Ministry of Foreign Affairs. The two leaders are set to participate in next week’s BRICS summit. Xi and Putin Advancing China-Russia Cooperation Chinese foreign ministry’s spokesperson Wang Wenbin said at a press conference Monday that Russian President Vladimir Putin and Chinese leader Xi Jinping are advancing the strategic partnership between China and Russia. Putin is scheduled to visit China in October. “The presidents of China and Russia have maintained strategic communication in various ways,” Wang explained. “Their discussions cover a rich and comprehensive range of topics. High-level exchanges have proceeded in an orderly manner with extensive exchange of views on bilateral cooperation and issues of mutual interest.” The Chinese official emphasized: The two sides will continue to advance the China-Russia comprehensive strategic partnership of coordination for a new era under the strategic guidance of the presidents of the two countries. Both Xi and Putin are expected to participate in the BRICS summit that will take place in Johannesburg on Aug. 22-24. However, Putin will not attend in person. The BRICS nations comprise Brazil, Russia, India, China, and South Africa. South African Foreign Minister Naledi Pandor has revealed that the BRICS summit’s agenda will include discussions about the expansion of the economic bloc. South Africa is the host of the BRICS summit this year. A total of 23 countries have applied for BRICS membership: Algeria, Argentina, Bangladesh, Bahrain, Belarus, Bolivia, Venezuela, Vietnam, Cuba, Honduras, Egypt, Indonesia, Iran, Kazakhstan, Kuwait, Morocco, Nigeria, State of Palestine, Saudi Arabia, Senegal, Thailand, United Arab Emirates, and Ethiopia. South Africa’s President Cyril Ramaphosa has invited 67 leaders of countries in Africa, Latin America, Asia, and the Caribbean to the summit. In addition, 20 representatives of major international organizations have been invited, including the secretary-general of the United Nations, the chairperson of the African Union Commission, and the president of the New Development Bank, also known as the BRICS Bank. What do you think about Chinese President Xi Jinping and Russian leader Vladimir Putin advancing the China-Russia strategic partnership? Let us know in the comments section below. View the full article

The U.S. Securities and Exchange Commission’s former head of internet enforcement has outlined potential changes in the U.S. and at the SEC that could have positive impacts on the crypto industry, including the approval of spot bitcoin exchange-traded funds (ETFs). The changes could include a Republican president being elected, SEC Chairman Gary Gensler resigning, and “crypto mom” Hester Peirce being appointed as the acting SEC Chair. Possible Changes at SEC That Could Benefit Crypto Industry Former U.S. Securities and Exchange Commission (SEC) official John Reed Stark highlighted potential changes that could benefit the crypto industry, including the approval of spot bitcoin exchange-traded funds (ETFs), in a lengthy tweet on Sunday. Stark is currently president of cybersecurity firm John Reed Stark Consulting. He founded and served as chief of the SEC Office of Internet Enforcement for 11 years. He was also an SEC enforcement attorney for 15 years. A number of companies in the U.S. are seeking SEC approval to launch a spot bitcoin ETF, including Blackrock, the world’s largest asset manager. However, the SEC has not approved any spot crypto ETFs so far. Stark opined: My take is that the current SEC will NOT approve a bitcoin spot ETF application for a range of compelling reasons. The former SEC official referenced Better Markets, a non-partisan independent nonprofit organization advocating for economic security, which outlined on Aug. 9 why the SEC should reject spot bitcoin ETF filings. However, Stark believes that the SEC could undergo changes that benefit the crypto industry if a Republican is elected president of the United States in 2024. The 2024 U.S. elections are scheduled to be held on Nov. 5. He stated: The crypto-regulatory tides could shift exponentially after Election Day. He explained that under a Republican U.S. president, the SEC’s crypto-enforcement efforts would likely “decrease significantly.” He clarified that this could involve focusing more on fraud cases, “shifting efforts away from charging pure registration violations (such as the failure of a crypto-trading platform to register as an exchange, broker-dealer and clearing firm).” In addition, Stark expects the new SEC to “become far more receptive to approving a bitcoin spot ETF and far more likely to take other significant crypto-friendly regulatory actions.” The former SEC enforcement official proceeded to explain that when a new U.S. president is elected, the SEC chairman typically resigns and the new chairman position is usually confirmed and filled in a span of three to four months after Inauguration Day. He continued: Hence, should a Republican get elected President, Chair Gensler would likely resign and the senior Republican appointed SEC Commissioner (in this case famed ‘crypto-mom’ Hester Peirce) would possibly become acting Chair. Stark noted that if Peirce “becomes acting Chair of the SEC, given her lengthy track record of dissent and opposition to most crypto-related SEC actions, the world should expect that most U.S. SEC crypto-related enforcement and most crypto-related SEC disruption would grind to a screeching halt.” Last week, Stark warned that the crypto regulatory onslaught will never end under the current SEC. What do you think about the statements by former SEC official John Reed Stark? Let us know in the comments section below. View the full article

Bank of America has provided its analysis of Paypal’s U.S. dollar stablecoin and the Fednow payments system. The bank does not expect the widespread adoption of PYUSD to occur in the near future, noting that the introduction of Paypal’s stablecoin will not lead to “accelerated regulatory clarity.” Nonetheless, Bank of America believes that stablecoins have the potential to provide a more efficient payment solution. Bank of America on Paypal’s US Dollar Stablecoin Bank of America published a Global Digital Asset Strategy report last week covering its view on Paypal’s U.S. dollar stablecoin and the Fednow payments system. The report was written by Alkesh Shah, head of global crypto and digital assets strategy at Bank of America Global Research, and Andrew Moss, the bank’s global digital asset strategist. Paypal (Nasdaq: PYPL) is launching a U.S. dollar-denominated stablecoin, called Paypal USD (PYUSD), which will be available to U.S.-based Paypal customers. According to the payments giant, the stablecoin will be compatible with select third-party digital asset wallets and backed by traditional assets, including the U.S. dollar, short-term Treasuries, and cash equivalents. Noting that Paypal, with 435 million users, is the first global company “to launch a stablecoin with regulatory approval,” Bank of America stated: We expect PYPL’s PYUSD launch to drive payments efficiencies and an improved customer experience over time, but PYUSD adoption is unlikely to be significant in the near term, given lack of wallet compatibility, exchange trading pairs or new functionality. “Over the longer term, we expect PYUSD to experience additional adoption headwinds as competition from CBDCs [central bank digital currencies] and yield-bearing stablecoins increases,” Bank of America continued. “Investors may have been fine holding non-yield-bearing stablecoins, such as USDT and USDC, when rates were close to zero, but yield-bearing stablecoins will likely become increasingly available and attractive with short-term rates above 5%.” Regarding crypto regulations, Bank of America stressed: We do not expect PYUSD’s launch to lead to accelerated regulatory clarity, given the stablecoin’s issuance does not alter systemic risk for traditional markets, but the stablecoin may face regulatory headwinds if non-banks are ultimately barred from stablecoin issuance. Bank of America on Fednow The Bank of America report also provides an analysis of the Fednow service, which went live on July 20 to “enable financial institutions, specifically banks and credit unions, to facilitate bank account-to-bank account transfers of customer funds in (near) real-time,” the bank described. Shah and Moss detailed: We view Fednow as a needed and innovative solution to a problem – inefficient domestic payments and transfers – that other countries have already solved. The analysts explained that Fednow’s infrastructure does not leverage blockchain technology, stating: “Instead, Fednow uses traditional payment rails to produce an interbank settlement system.” They emphasized: “As the digital asset ecosystem evolves, we see the potential for stablecoins and, ultimately, CBDCs to provide an even better solution that would be faster and cheaper, especially for cross-border payments and transfers, which Fednow does not support … We note that the efficiencies Fednow enables are unlikely to be fully captured without financial institution adoption and resulting network effects, as well as development of end-user interfaces and applications.” Do you agree with Bank of America on Paypal’s USD stablecoin and the Fednow system? Let us know in the comments section below. View the full article

U.S. federal prosecutors have unveiled court documents indicating that ex-FTX CEO Sam Bankman-Fried (SBF) is entangled in a web of allegations, with illegal political campaign financing being a significant charge. In light of these allegations against SBF, Ryan Salame, FTX Digital Markets’ former co-CEO, has expressed his intent to plead the Fifth if summoned, thus becoming “unavailable as a witness.” Former FTX Co-CEO Ryan Salame to Plead the Fifth Merely a week prior, insiders hinted at Ryan Salame, ex-co-CEO of FTX Digital Markets, navigating a plea agreement. These sources claimed that part of the deal might involve Salame parting with his private jet. Yet, with the re-arrest of SBF and new campaign financing allegations surfacing, Salame’s potential contribution to the case seems limited. The authorities have pushed for the inclusion of specific evidence during the trial, while sidelining other bits presented by SBF’s defense. The evidence in question encompasses SBF’s supposed bank deception, unlawful campaign contributions, international bribery, crypto price manipulation, and the implementation of auto-delete protocols within his firms. Furthermore, the prosecution is attempting to remove certain defense-related evidence and arguments, deeming them either irrelevant or unjustly biased. These include claims about the victims’ lack of due diligence, the negative impact of the bankruptcy process on clients, the rapidity of the charges indicating ulterior motives, the idea that virtuous deeds signify innocence, and details about potential penalties. The government’s stance is that such evidence might muddle the issues, misguide the jury, lead to unnecessary delays, or provoke jury nullification. In a pivotal move, the authorities aim to present alleged remarks by the former FTX co-CEO Ryan Salame, now an “unavailable witness,” about his supposed pact with SBF to illicitly fund political endeavors. Salame’s legal counsel has indicated that Salame would assert his Fifth Amendment right against self-incrimination if asked to testify. However, the prosecution posits that Salame’s remarks on being a conduit for donations remain valid under the exception to the hearsay rule in Rule 804(b)(3), given they are statements against his interests. Prosecutors emphasize the credibility of Salame’s alleged comments, pointing to the trail of corporate funds channeled through his accounts for political contributions. Despite his absence, the government maintains that these purported remarks can be treated as statements against Salame’s legal interests. Reports have recurrently suggested that Salame funneled a whopping $24 million to GOP candidates before FTX’s unraveling. What do you think about Salame being unavailable to testify in the case against SBF? Share your thoughts and opinions about this subject in the comments section below. View the full article

The Russian currency’s exchange rate versus the U.S. dollar recently dropped below RUB100 per greenback — its lowest in 16 months. Economists attribute the ruble’s latest plunge to the effectiveness of a price cap imposed on Russian oil by Western countries. Russ Mould said a strengthening U.S. dollar could be the reason why the Russian currency has struggled against the greenback in the past few months. Impact of the Oil Price Cap On Aug. 14, the Russian currency’s exchange rate versus the greenback dropped to a new low of just over 100 rubles for every dollar. The currency’s latest plunge means the ruble has now depreciated by over 8% in the past month and by more than 20% since the start of 2023. The ruble’s woes, which appear to have worsened in the past few months, are in contrast to the currency’s fortunes in 2022 when it was the world’s best-performing currency for much of that year. As reported by Bitcoin.com News, the ruble’s performance at the time appeared to defy predictions that the currency would struggle in an isolated Russia. Some experts have nevertheless linked the ruble’s latest woes to the price cap imposed on Russia’s oil by Western countries. The price cap seeks to stop Russia — a major oil exporter — from benefiting from rising oil prices. While the effectiveness of the price cap is still debatable, some economists including Robin Brooks have repeatedly urged the G7 countries to consider lowering the price cap. Russian Ruble is falling (black), while the global Brent oil price (blue) is rising. This kind of decoupling is highly unusual and is the best piece of evidence that the G7 oil price cap is working. Putin isn't getting a windfall from rising oil prices like he did in 2022… pic.twitter.com/Rqmfm35WYb — Robin Brooks (@RobinBrooksIIF) August 10, 2023 China Unwilling to Take Rubles According to a BBC report, the ruble’s fall to its lowest rate versus the dollar in 16 months can be attributed to the sanctions imposed by Western countries on Russia after the latter invaded Ukraine. The report added that the move by countries like Germany to ditch Russian oil has also deprived Moscow of an important revenue source. Reduced export revenues have in turn restricted Russia’s ability to fund its budget. Meanwhile, Russ Mould, an investment director at AJ Bell, is quoted in the report suggesting that China’s unwillingness to take rubles may be another reason why the Russian currency is losing ground. “Exports are down, so hard currency inflows are down, and imports are up, and even reliable trading partners such as China appear reluctant to take rubles,” Mould said. The investment director added that Russia’s removal from the Society for Worldwide Interbank Financial Telecommunications (SWIFT) could also be a factor that explains the currency’s slide. However, Mould also suggested that the ruble’s fall may be down to the U.S. dollar’s appreciation in the past few months. What are your thoughts on this story? Let us know what you think in the comments section below. View the full article

In filings with securities authorities released on Monday, renowned hedge fund manager Michael Burry, whose exploits were famously captured in the film “The Big Short,” took a bearish stance on the market. Burry’s Scion Asset Management shorted the S&P 500 and Nasdaq 100 for the close of the second quarter, wagering approximately $1.6 billion on an impending stock market collapse. A New ‘Big Short’? Michael Burry Wagers $1.6 Billion Against QQQ and SPY Michael Burry appears to be taking a bearish stance on Wall Street once more, with Scion Asset Management’s latest Securities and Exchange Commission (SEC) 13F filing revealing a substantial acquisition of put options against Invesco QQQ ETF (NASDAQ: QQQ) and SPDR S&P 500 ETF Trust (NYSEARCA: SPY). These options have a notional value of $1.62 billion, comprising a staggering 93% of Scion’s disclosed assets. Of this substantial wager, $738.8 million has been placed against QQQ, while $886.6 million targets SPY. Despite the S&P 500 and Nasdaq 100 performing robustly thus far in 2023, the specifics of Burry’s filings, such as purchase prices and expiration dates, remain concealed. Given Burry’s successful bets during the 2008 financial crisis, his market moves are closely watched. Yet in a surprising turn, Burry shifted from a selling stance in January 2023 to admitting he was mistaken by April. He openly acknowledged his error in advising sales, even extending congratulations to the “BTFD generation.” Alongside these bold moves, Scion’s latest filing reveals long positions in companies such as Stellantis, Discovery, Expedia, CVS, MGM Resorts, Iheartmedia, and Cigna. It was around this same time last year, in August 2022, when Burry began to predict a multi-year recession in the United States, adopting a more bearish outlook. In March, Burry likened three major bank collapses to the Panic of 1907, and the latest SEC filings indicate that Scion eliminated exposure to Western Alliance Bancorp and Pacwest. As August 2023 progresses, both the S&P 500 and Nasdaq 100 have retreated against the U.S. dollar, shedding 2% to 3% respectively this month. The 13F filing additionally reveals that Scion has divested its holdings in Alibaba Group and JD.com. What do you think about Michael Burry’s short bets? Share your thoughts and opinions about this subject in the comments section below. View the full article

The U.S. Federal Deposit Insurance Corporation (FDIC) flagged escalating risks from cryptocurrencies in its annual review of risks facing the banking industry. FDIC: Cryptos and Climate Top Risk List for Banks in 2023 Cryptocurrencies present “novel and complex risks” that are difficult to assess amid recent volatility, according to the report. Growth in crypto assets corresponded with more banks expressing interest in crypto activities last year. However, the sector then experienced a crash that exposed vulnerabilities. The FDIC is closely monitoring crypto activities at banks and said additional guidance is likely. “Part of the difficulty in assessing these risks arises from the dynamic nature of crypto-assets, the crypto marketplace, and the rapid pace of innovation,” the report said. “Some of the key risks associated with crypto-assets and crypto-asset sector participants include those related to fraud, legal uncertainties, misleading or inaccurate representations and disclosures, risk management practices exhibiting a lack of maturity and robustness, and platform and other operational vulnerabilities.” The news follows a report about Signature Bank’s (SBNY) collapse that discusses the risks involved with crypto assets and the FTX failure. In the SBNY report, a sharp uptick in withdrawals of uninsured deposits due to liquidity risk management is prominently highlighted. The FDIC delved deeply into the chaos within the crypto industry, pinpointing it and the FTX collapse as a significant factor in SBNY’s downfall. At the same time, the FDIC claims U.S. banks face increasing physical risks from alleged climate change issues as severe weather causes more damage. The FDIC highlights that there were 18 natural disasters in 2022 that each caused over $1 billion in damages, the third most expensive year on record. “Increased frequency and severity of climate and weather events present challenges and emerging risks to the banking industry,” the report said. “Changes in climate conditions, including [the] increasing frequency and intensity of severe climate and weather events and other natural disasters, will likely pose additional risks.” What do you think about the FDIC’s 2023 risks report? Share your thoughts and opinions about this subject in the comments section below. View the full article

Solana was one of Tuesday’s big gainers, rising to a multi-week high following a ‘death cross’ of moving averages. The move came despite the global market cap falling marginally lower as of the time of writing. Toncoin was another notable mover, rising for a sixth-straight day. Solana (SOL) Solana (SOL) surged higher on Tuesday, as sentiment in the token has remained largely bullish in recent days. SOL/USD peaked at $25.24 during today’s session, which follows up from a low of $24.35 to start the week. This climb saw solana trade at its highest point since July 29, when price reached a high of $25.39. The move came as the 10-day (red) moving average crossed over its 25-day (blue) counterpart. Should upward momentum continue to intensify, the next target for traders will likely be around the $26.00 mark. At the time of writing, SOL is trading at $24.82. Toncoin (TON) Toncoin (TON) was also in the green in today’s session, as the price climbed for a sixth-consecutive session. Following a low of $1.42 to start the week, TON/USD raced to an intraday peak of $1.49 earlier in the day. As a result of today’s surge in price, toncoin moved to its strongest level since July 23, and closer to a ceiling of $1.50. Similar to solana above, the rally came as the 10-day and 25-day moving averages neared an upwards cross. One area of concern for bulls is the current reading of the RSI indicator, which is tracking at 66.91. This is the highest area it has reached in the coin’s history, meaning it is greatly overbought, with bears potentially waiting to take advantage of this. Register your email here to get weekly price analysis updates sent to your inbox: Could toncoin begin to move lower in the coming days? Let us know your thoughts in the comments. View the full article

In the wake of financial upheavals and regulatory hurdles, Prime Trust, a digital currency custodian, has formally sought Chapter 11 bankruptcy protection. This move closely follows the appointment of John Guedry as the company’s overseer, bolstered by a designated committee to steer the restructuring process. Crypto Custodian Prime Trust Files for Chapter 11 Bankruptcy Protection Despite the chaos, Prime Trust pledges to operate with transparency, prioritizing its stakeholders’ best interests. The push for bankruptcy protection marks a new episode in an ongoing drama ignited by claims of financial instability and failures to process customer withdrawals. As the gravity of Prime Trust’s monetary woes intensified, the Nevada Financial Institutions Division stepped in, signaling its plan to dismantle Prime Trust and seize its holdings. Under a directive from the Eighth Judicial District Court in Nevada, John Guedry, flanked by John Wilcox and Michael Wyse, will helm the restructuring committee. This panel, dubbed the “special committee,” wields the power to navigate Prime Trust’s Chapter 11 endeavors. Upcoming on Prime Trust’s agenda is the submission of multiple proposals to the Bankruptcy Court. These proposals are designed to refine the assessment of all viable approaches, potentially encompassing the sale of company assets and ongoing operations. These deliberations emerge from Prime Trust’s recent ordeals, notably its ties with crypto entities like Stably, which encountered disruptions due to their affiliations with the beleaguered custodian. Notably, Stably had to hit pause on most of its offerings, attributing it to Prime Trust’s fiscal setbacks. Moreover, a notable motion from Prime Trust seeks to uphold standard salary and perks for its existing staff members. Given the mounting concerns over Prime Trust’s fiscal health and looming debts, the emphasis is on safeguarding stakeholder interests. The custodian’s path has been marred by obstacles, ranging from purported inaccessibility of legacy digital currency wallets to facing charges of neglecting fiduciary duties. Documentation from the Chapter 11 submission pinpoints Prime Trust’s debts in the ballpark of $100 million to $500 million. What do you think about Prime Trust filing for bankruptcy protection? Share your thoughts and opinions about this subject in the comments section below. View the full article

Bitcoin mostly consolidated on Tuesday, as traders anticipated the release of July’s retail sales data from the United States. Sales rose by 0.7%, better than the 0.4% expected, and this comes following a 0.2% increase in June. Ethereum also remained unchanged prior to the data. Bitcoin Bitcoin (BTC) was trading in the red for the majority of the day, as price consolidated prior to the release of U.S. retail sales data. After peaking at $29,660.25 to start the week, BTC/USD fell to a low of $29,272.35 earlier in today’s session. Since moving above $30,000 on August 8, the world’s largest cryptocurrency has mostly trended sideways. One reason for a lack of direction appears to be due to the relative strength index (RSI) tracking between a support and resistance of its own. The index is currently at a reading of 47.57, and has mostly moved between a floor at 47.00, and ceiling at 49.00 in recent days. For bulls, a breakout above the 49.00 zone will also likely be the straw needed to break the camel’s back. Ethereum Ethereum (ETH) has remained largely unchanged in the past few days, rising by 0.11% in the past week. ETH/USD bottomed out at $1,837.21 so far during today’s session, which is almost $20.00 lower than Monday’s high. Price has mostly consolidated around a support point of $1,830 in recent days, however the prospect of a moving average crossover is keeping bullish hopes alive. The 10-day (red), and 25-day (blue) moving averages are on the cusp of an upwards crossover, which could likely send prices above $1,900. Similar to BTC, there will first need to be a breakout above a ceiling on the RSI indicator for this to take place. On this occasion the resistance point is at 47.00, and the index is currently tracking at 45.23. Register your email here to get weekly price analysis updates sent to your inbox: Is a bullish run on the cards in the next few weeks? Leave your thoughts in the comments below. View the full article

As the cryptocurrency market has witnessed a decline for over a year, many investors have chosen to liquidate their assets or move to alternative markets. However, 2023 has painted a different picture, positioning cryptocurrency as one of the best-performing investments. According to CoinMarketCap, the total crypto market capitalization rebounded from a low of $780.9 billion to a staggering $1.2198 trillion. Amid this resurgence, LBank, after a few years of dormancy, has announced the reboot of its IEO. Official participation link: https://www.lbank.com/launchpad-list/pins/ With Lbank’s IEO making a comback, let’s dive deep into it’s historical performance to gauge it’s potential. Historical Gains of LBank IEO – 8 IEOs with an Average Surge of 1274% Here’s a breakdown of LBank’s past eight IEOs and their respective gains: Key Insights from the Data: Extreme Performers: VEN stands out remarkably with an opening surge of 100% and a jaw-dropping peak surge of 5300%. DBC, with its 300% opening and 2096% peak, also highlights the potential of high return for investors when the right project is picked. Steady Climbers: Projects like BLOC, SEER, and INK might not have the most impressive opening surges, but their peak surges underline the importance of holding onto investments and the potential for long-term gains. Consistent Performers: Both CMT and DDD had modest opening surges but still managed to deliver reasonable peak surges. These indicate that even projects that start with a quieter entry can offer profitable opportunities. Risky Endeavors: While the data predominantly showcases successes, it’s also essential to note projects like INK and DDD. Their minimal to zero opening surges serve as a reminder of the risks inherent in IEO investments. This data also showcases a strong correlation between the initial surge and peak surge. In simpler terms, projects with an impressive opening usually fare well in the long run. From the data, it’s evident that investing in LBank’s IEOs can provide returns in the short term. Holding onto these investments for an extended period might amplify the gains further, as exemplified by the metaverse project SAND. LBank’s Current Market Stance: While LBank carries a notable legacy, it is essential to consider contemporary metrics when assessing its present standing. According to the H1 report from CoinMarketCap, LBank is featured among the top five global exchanges, an indication of its continued relevance and adaptability in the fast-evolving crypto landscape. Holding a 4.6% market share in spot trading volume, it’s intriguing to observe their strategic emphasis on MEME coins. This focus, often seen as a blend of calculated risk and innovative market positioning, distinguishes LBank from many of its counterparts. To conclude, based on the available data and recent market performances, one can argue that LBank remains a significant player in the exchange arena. As they reboot their IEO, it might be a space to watch for investors keen on exploring fresh avenues. This is a sponsored post. Learn how to reach our audience here. Read disclaimer below. View the full article

The top 15 traders in the Ethereum non-fungible token (NFT) market have amassed up to $101.6 million in profits, as revealed in Coingecko’s latest NFT report. These traders lucratively capitalized on early investments in esteemed blue-chip NFT collections such as Cryptopunks, Bored Ape Yacht Club (BAYC), and Art Blocks. Navigating the NFT Gold Rush: Coingecko Uncovers Strategies of Top 15 Profitable Traders In its latest NFT analysis, Coingecko details that the top traders in the NFT arena have earned between $3.3 million and $101.6 million individually, cumulatively exceeding $300 million. The report explains the strategic investment choices and collections that have fueled the success of the foremost NFT traders. Delving into the profits of the top 100 Ethereum NFT traders, Coingecko’s study discloses the most significant victors of the market thus far. This analysis focuses on traders’ realized profits, meaning the tangible earnings secured through NFT sales. To qualify for this elite list of 100, traders were required to exhibit consistent activity over the past half-year and possession of no fewer than two collections. The study illustrates that the leading NFT traders predominantly wagered on blue chip NFT collections at an early stage, an investment that has subsequently skyrocketed in value. Notably, Larva Labs’ Cryptopunks constitute an astonishing 70.6% of total profits for the top 15, followed by Art Blocks’ generative art at 12.2% and Bored Ape Yacht Club at 5.5%. Occupying the zenith of the rankings, the NFT trader dubbed “Seths” boasts $101.6 million in realized gains to date. This vast fortune was cultivated across nine distinct addresses brimming with valuable Cryptopunks and other sought-after blue chip NFTs. Trailing in prestige, “Punks OTC” and “Mr.703” secure the next upper echelons with profits of around $29 million and $27 million, respectively. Of the 15 top earners, 11 have extracted millions solely from Cryptopunks. For instance, trader 0x7eb2..3f6b clinched fifth place chiefly by selling one specific Cryptopunk to a renowned buyer. Conversely, some elite traders, such as Akira, directed their focus more towards Art Blocks. Though these NFT moguls have reaped monumental wealth, the report underscores that this prosperity hinged substantially on early bets on the correct collections. Without astute identification of the upcoming blue chip collections, replicating such returns appears highly improbable. The study cautions average traders to diversify, to avoid losing opportunities in the few collections poised for explosive growth. Coingecko’s NFT report can be read in its entirety here. What do you think about the top NFT traders? Share your thoughts and opinions about this subject in the comments section below. View the full article

Chainlink surged by nearly 4% during Tuesday’s session, as the token moved towards a one-week high. The move came as cryptocurrencies rebounded, following a slow start to the week. Solana was another big mover, as it headed towards the $24.00 level. Chainlink (LINK) Chainlink (LINK) was one of Tuesday’s biggest movers, as price surged by as much as 4% during the session. LINK/USD hit an intraday peak of $7.42 earlier in the day, following a low of $7.00 to start the week. Yesterday’s bottom was also a long-term support point, with bulls choosing to reject a breakout on this occasion. This comes as the 14-day relative strength index (RSI) continued to move away from a floor at the 48.00 mark. As of writing, price strength is tracking at 52.20, close to a resistance zone of 53.00. In the event this level is breached, there is a strong possibility that LINK could move towards $7.50. Solana (SOL) Solana (SOL) also made strong gains on Tuesday, with bulls pushing price towards the $24.00 level. After starting the week at a low of $22.49, SOL/USD raced to an intraday peak of $23.68, earlier in the day. Momentum seems to have shifted in favor of the bulls, with solana now trading at its highest point since last Wednesday. This is now the third consecutive day that SOL has edged higher, resulting in the RSI nearing a collision with a ceiling at 53.00 Currently, price strength is tracking at 51.87, with a move to the aforementioned target likely to result in SOL moving above $24.00. Register your email here to get weekly price analysis updates sent to your inbox: Has the recent spell of market consolidation ended? Let us know your thoughts in the comments. View the full article

In recent weeks, Treasury yields have skyrocketed, igniting a Wall Street dispute over whether the precipitous sell-off is now overextended. A small group of prominent investors are wagering that bond prices will bounce back following the abrupt escalation in rates. Hedge Funds Place Bold Wagers Against Treasuries Amid Soaring Yields Analysts at Goldman Sachs and JPMorgan contend that the recent plunge in Treasuries has been excessive, urging investors to seize the opportunity to buy. Warren Buffett, unfazed by Fitch’s downgrade of U.S. debt, persists in purchasing billions in Treasuries weekly for Berkshire Hathaway. Meanwhile, billionaire investor Bill Ackman has unmasked a colossal short position against Treasuries, motivated by his anticipation of enduringly elevated inflation. The benchmark 10-year Treasury note’s yield broke the 4% barrier last week, a movement inversely related to prices. This upswing trails the Federal Reserve’s assertive shift towards steep interest rate hikes aimed at quelling inflation. First image is the treasury bond yeild curve on February 1 2022 (normal) Second image is the treasury bond yield curve today (inverted) pic.twitter.com/vEHF8ARaD3 — Ryan Patrick Kirlin (@RyanPKirlin) August 7, 2023 Goldman Sachs‘ strategists argue that the confluence of supply dynamics and Fitch’s downgrade doesn’t warrant the spike in yields. They forecast a “tactical” recovery in Treasuries and endorse purchasing 30-year inflation-protected bonds subsequent to yields reaching an 11-year zenith. JPMorgan, too, views the sell-off as exaggerated. Their analysts attribute the downturn to the liquidation of overpopulated long positions rather than fresh economic insights, expressing particular optimism about 5-year Treasuries. Billionaire Bill Ackman caused a sensation last week, disclosing a substantial short bet against 30-year Treasuries. He foresees the yield on the 30-year bond surging to 5.5%, driven by forecasts of sustained higher inflation coupled with the corresponding risk premium. I have been surprised how low US long-term rates have remained in light of structural changes that are likely to lead to higher levels of long-term inflation including de-globalization, higher defense costs, the energy transition, growing entitlements, and the greater bargaining… — Bill Ackman (@BillAckman) August 3, 2023 Conversely, Warren Buffett’s Berkshire Hathaway persists in acquiring Treasuries at a staggering $10 billion per week. Buffett brushes off apprehensions over Fitch’s U.S. debt downgrade, portraying Treasuries as a “no-brainer” investment, notwithstanding climbing yields. The divergent wagers underscore the ongoing Wall Street debate regarding the potential longevity of the Treasury yield’s upsurge. Moreover, an inverted yield curve, where short-term rates have surpassed long-term yields, has intensified recession concerns. This trend in bond markets is considered unusual and is often seen as a sign of an upcoming economic downturn, and it’s been this way for quite some time now. The inversion of the yield curve is a reliable indicator that has historically been followed by a recession in the following six to eighteen months. What do you think about the wagers over U.S. Treasuries over the last few weeks? Share your thoughts and opinions about this subject in the comments section below. View the full article

Bitcoin rebounded on Tuesday, following the news that Paypal was launching a USD stablecoin on the ethereum blockchain. The company hopes the move will bridge the gap between fiat and cryptocurrencies for all of its stakeholders. Ethereum was marginally higher today. Bitcoin Bitcoin (BTC) was back in the green on Tuesday, as the cryptocurrency made marginal gains during today’s session. The move came as Paypal announced its USD stablecoin, which will be hosted on the ethereum blockchain. Following the news, CEO Dan Schulman said: “Our commitment to responsible innovation and compliance, and our track record delivering new experiences to our customers, provides the foundation necessary to contribute to the growth of digital payments through Paypal USD.” BTC/USD rose to a peak of $29,402.65 on the news, following a low of $28,724.14 the day prior. Today’s peak sees bitcoin trade at its highest point since last Wednesday, when it was last above $30,000. Tuesday’s rally has also brought the 10-day (red) moving average to the cusp of an upwards crossover with its 25-day (blue) counterpart. Ethereum Ethereum (ETH) rose marginally after the Paypal news, with price moving away from a recent support point. Following a low of $1,804.72 to start the week, ETH/USD jumped to an intraday high of $1,836.06 on Tuesday. Despite the slight rise in price, ethereum continues to trade below a recent resistance level of $1,850. A positive for bulls, however, comes as the 14-day relative strength index (RSI) broke out of its ceiling at the 43.00 mark. Currently, the index is tracking at a reading of 43.88, with the next resistance zone near the 50.00 point. In the event this target is reached, ETH will likely be back above $1,900. Register your email here to get weekly price analysis updates sent to your inbox: Will more companies follow Paypal in launching stablecoins? Leave your thoughts in the comments below. View the full article

Representative Patrick McHenry, chairman of the House Financial Services Committee, weighed in positively on the launch of PYUSD, a dollar-pegged stablecoin issued by Paypal, a U.S.-based payments company. McHenry stated that if properly regulated, stablecoins “hold promise as a pillar of our 21st-century payments system,” calling on Congress to put clear rules on the sector by enacting stablecoin-specific regulation. Representative McHenry States Stablecoins Might Become ‘Pillar’ of Current Payment Systems U.S. Representative Patrick McHenry issued a statement on Monday, weighing in on the significance of the recent U.S. dollar-pegged stablecoin launched by payments behemoth Paypal. McHenry, chairman of the House Financial Services Committee, viewed this development positively, stating that Paypal’s announcement was “a clear signal that stablecoins—if issued under a clear regulatory framework—hold promise as a pillar of our 21st-century payments system.” Paypal announced the launch of an in-house managed stablecoin on Monday, dubbed “Paypal USD” (PYUSD). Paypal CEO Dan Schulman said the company’s vision was to integrate this stablecoin into its overall payments infrastructure. McHenry also reinforced the need to bring clarity to the sector to grow the stablecoin industry in the country. He stated: Clear regulations and robust consumer protections are essential to enabling stablecoins to achieve their full potential. That’s why it’s more important than ever that Congress enact legislation to provide comprehensive digital asset regulation, especially for stablecoins. Stablecoin Regulation Advances McHenry has been one of the supporters of bringing cryptocurrency and stablecoin-specific regulations to the U.S. In July, the House Financial Services Committee passed four cryptocurrency bills. The Clarity for Stablecoins Act, a stablecoin-specific bill, was among these, having been approved with bipartisan support. McHenry also detailed that the Clarity for Stablecoins Act was built on top of the already existent crypto regimes that some states like New York have built, offering strong regulation to cryptocurrency companies. Regulating digital assets and stablecoins is of significant importance for the U.S., McHenry detailed, declaring that the future of the leadership of the country in the digital asset industry was linked to the regulations. He concluded: We are currently at a crossroads to keep America at the forefront of digital asset innovation. Congress is making significant, bipartisan progress on legislation to ensure the U.S. leads the financial system of the future. We must finish the job. What do you think about Representative Patrick McHenry’s position on Paypal’s stablecoin launch and the usage of stablecoins as payment tools? Tell us in the comments section below. View the full article

Palauan senator Mark Rudimch has called for an audit of Palau’s stablecoin pilot program, launched by the country’s ministry of finance in partnership with Ripple in July. In a letter sent to the public auditor Satrunino Tewid, Rudimch reported the Palauan senate had concerns regarding the “constitutionality, security, accountability, statutory authority, and oversight of the program.” Palau’s Ripple-Backed Stablecoin Pilot Faces Senate Opposition Palau’s Ripple-backed stablecoin program, launched and announced in July, faces opposition from the Palauan senate. According to local reports, Senator Mark Rudimch, chairman of the Senate Resources, Commerce, Trade and Development Committee, has requested Public Auditor Satrunino Tewid audit the program, voicing various concerns regarding the ongoing test. In a letter sent to Tewid, Rudimch stated: The Senate has some concerns regarding the constitutionality, security, accountability, statutory authority, and oversight of the program. Rudimch’s concerns point in two different directions. The first is related to the program’s legality, as he says the Ministry of Finance might not have the authority to run a program of this kind in Palau. “Is this a setup for an unconstitutional precedent?” he asked. The second aspect has to do with the use of government resources without following proper procedure. On this, Rudimch declared: Can this practice, if allowed under this discretionary ‘private partnering with government project,’ be used on other experimental/ pilot programs for corporate profits such as this alternative payment system? Rudimch explained that using Ripple’s research and development grant as collateral to secure 1:1 dollar stablecoin redemptions “supersedes or suspends existing laws and regulations” to fund the pilot program. Still a Small Program The Palau Stablecoin pilot program is currently ongoing on a small scale. The Ministry of Finance has only distributed a limited amount of PSC, Palau’s stablecoin, using the Ripple network for this purpose. “It is still a very small, secure, and controlled pilot to test the concept. Limited to 200 executive branch government employees only,” said Jay Hunter Anson, who leads Palau’s stablecoin project. Each one of the participants will get $100 to spend in qualified retailers in the country. Palau’s president Surangel S. Whipps Jr. voiced his support for the program last month, explaining that he hoped it could help Palau to “mobilize our economy and government processes to improve financial transactions and empower our citizens.” The pilot program will be evaluated for two months. After this period, the government will decide if it gets expanded. What do you think about Palau’s stablecoin program and its legality? Tell us in the comments section below. View the full article

Federal Reserve Governor Michelle Bowman says additional interest rate increases will likely be needed to get inflation on a path down to the Fed’s target. “I will also be watching for signs of slowing in consumer spending and signs that labor market conditions are loosening,” the Fed governor added. More Interest Rate Hikes Likely Needed, Says Fed Governor Federal Reserve Governor Michelle Bowman indicated in her remarks on Saturday at an event hosted by the Kansas Bankers Association in Colorado that the U.S. central bank may need to implement additional interest rate increases to completely restore price stability. She also affirmed her endorsement of the rate hike decision made at last month’s Federal Open Market Committee (FOMC) meeting. In July, Fed officials raised the federal funds rate to a range of 5.25% to 5.5%, the highest level in 22 years. Governor Bowman stated: Additional rate increases will likely be needed to get inflation on a path down to the FOMC’s 2% target. “The recent lower inflation reading was positive, but I will be looking for consistent evidence that inflation is on a meaningful path down toward our 2% goal as I consider further rate increases and how long the federal funds rate will need to remain at a restrictive level,” she detailed. “I will also be watching for signs of slowing in consumer spending and signs that labor market conditions are loosening,” the Fed governor continued, noting that Fed policymakers will be monitoring incoming data and will be willing to raise interest rates in the future if inflation progress stalls. Federal Reserve Chairman Jerome Powell said on July 26 after the Fed announced its latest rate hike decision that prevailing economic conditions suggest that monetary policy will likely need to be restrictive for longer. “I would say that what our eyes are telling us is that policy has not been restrictive enough for long enough to have its full desired effects,” Powell stressed, adding: We intend to keep policy restrictive until we’re confident inflation is coming down sustainably to our 2% target, and we’re prepared to further tighten if that’s appropriate. Do you think the Fed will raise interest rates again this year? Let us know in the comments section below. View the full article

Brazil’s President Luiz Inacio Lula da Silva has reaffirmed his call to shift away from the U.S. dollar in global trade. He also revealed his stance on the expansion of the BRICS economic bloc ahead of the group’s upcoming summit. “I have said publicly, why does Brazil need the dollar to trade with China?” he stressed. “We can do it in our own currency.” President of Brazil on De-Dollarization, BRICS Expansion Brazilian President Luiz Inacio Lula da Silva reiterated his call for the abandonment of the U.S. dollar in international trade during a press briefing with international journalists last week. Lula has long been a vocal critic of the U.S. dollar’s dominance in international trade and has called on nations to abandon the dollar in favor of national currencies. He maintains that countries should opt for their respective currencies rather than relying on the USD. Regarding de-dollarization and using national currencies in trade settlements, the Brazilian president stressed: Everyone knows that I defend the idea that we have our own currency to trade between countries. I have said publicly: why does Brazil need the dollar to trade with China? We can do it in our own currency. Why does Brazil need the dollar to trade with Argentina? The Brazilian leader also supports the idea of establishing a unified BRICS currency that many expect to undermine the dominance of the U.S. dollar. However, Leslie Maasdorp, vice president and chief financial officer of the New Development Bank, also known as the BRICS Bank, said last month that the creation of anything alternative to the USD is “a medium to long-term ambition.” Lula additionally said: “I think the BRICS Bank needs to be more effective and more generous than the IMF [International Monetary Fund] — that is, the bank is there to help save countries and not to help sink countries, which the IMF often does.” The Brazilian president also talked about BRICS expansion. The BRICS nations comprise Brazil, Russia, India, China, and South Africa. The bloc’s leaders’ summit is scheduled for Aug. 22-24 in Johannesburg. More than 40 countries have expressed interest in joining the BRICS group, with 22 nations having formally applied for membership. Sixty-nine countries have been invited to the summit, including all African heads of state. “We are going to discuss the entry of new countries” into BRICS, President Lula said. While there are reports that Brazil has raised concerns over the expansion of the economic bloc, Lula stressed: I am of the opinion that as many countries want to enter, if they are in compliance with the rules we are establishing, we will accept the countries’ entrance. What do you think about the statements by Brazilian President Lula? Let us know in the comments section below. View the full article