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Stablecoins occupy a unique space within the realm of finance, straddling the worlds of traditional and cryptocurrency finance. These digital assets aim to achieve price stability by tethering their market value to external references such as fiat money. Stablecoins blend the characteristics of cryptocurrencies with the stability of traditional assets like the U.S. dollar or commodities such as gold, resulting in digital tokens with limited volatility. By stabilizing their purchasing power, stablecoins offer a level of reliability currently absent in pure, decentralized cryptocurrencies. Let’s delve into what stablecoins are, the various types available, and their origins. Stablecoins: Bridging Crypto and Fiat for Price Stability Today, the bustling stablecoin ecosystem boasts an impressive total value of $123 billion, encompassing numerous projects. Having been a prominent presence in the financial landscape for nearly a decade, stablecoins have firmly established themselves as pillars in the crypto universe. Leading the market in terms of capitalization are renowned stablecoins such as tether (USDT), usd coin (USDC), dai (DAI), trueusd (TUSD), and binance usd (BUSD). Stablecoins aim to achieve price stability by pegging their market value to external references, such as fiat currency or commodities. These digital assets blend elements of cryptocurrencies with traditional payment and value storage methods, offering a form of price reliability. In contrast to decentralized cryptocurrencies like BTC or ETH, the majority of stablecoins are typically centralized, under the control of central issuers. These central entities possess the authority to freeze tokens pegged to fiat currencies and take control of the funds. Conversely, decentralized digital currencies like BTC or ETH are immune to such intervention, providing them with a distinct advantage in terms of trustlessness and fostering innovation. The 4 Types of Stablecoin Token Assets There are four primary types of stablecoins: fiat-collateralized, crypto-collateralized, commodity-collateralized, and algorithmic stablecoins. Fiat-backed stablecoins are linked to government-issued currencies like the US dollar, British pound, and the eurozone’s euro. For every stablecoin in circulation, there must be an equivalent dollar held in reserve, maintaining a 1:1 ratio. Tether’s USDT is the most popular fiat-backed stablecoin, both in terms of activity and market capitalization. Crypto-collateralized stablecoins utilize other cryptocurrencies as reserves instead of fiat. Makerdao’s DAI stablecoin accepts ether as collateral. Holders deposit ether into smart contracts to support the minting of DAI tokens. Tron’s USDD operates similarly, leveraging TRON (TRX) for USDD backing. Commodity-backed stablecoins tie their value to real-world assets such as precious metals. Tether Gold uses gold bars stored in vaults to back its XAUT token. This gold collateral provides XAUT with intrinsic value beyond the realm of cryptocurrencies. Other precious metals and commodity-backed stablecoins follow similar pegging methodologies. Algorithmic stablecoins, on the other hand, lack collateral. They rely on smart contracts and supply adjustments to maintain a consistent price. When demand increases, additional coins are issued, and when demand decreases, coins are repurchased and removed from circulation. Terra’s stablecoin UST was initially an algorithmic stablecoin, but it lost its entire value when the Terra blockchain ecosystem collapsed. The History of Stablecoins Stablecoins first emerged around 2014, driven by crypto enthusiasts’ desire to mitigate volatility. Bitshares, founded by Dan Larimer, introduced BITUSD, one of the earliest stablecoins, pegged to the US dollar. In the same year, Tether introduced USDT, also tied to the dollar. Today, there are over 200 stablecoins in existence, reflecting the demand for stability within the crypto space. In November 2018, BITUSD lost its peg with the U.S. dollar and has not regained it since. Tether has remained a leader since its inception and boasts the largest market valuation, standing at $82 billion. The Benefits and Risks of Stablecoins Serving as a bridge between fiat currencies and digital assets, stablecoins enhance the utility of blockchain for payments, lending, and trading. They provide the price stability necessary for cryptocurrencies to function as everyday money, ensuring that the transferred value remains constant without price fluctuations. Their emergence represents a significant milestone in blockchain’s gradual journey towards mainstream adoption. In conclusion, stablecoins have emerged as a crucial component of the cryptocurrency ecosystem, offering benefits such as price stability and reliability in an otherwise volatile market. With a total value exceeding $123 billion and a variety of types to choose from, stablecoins have proven their worth in facilitating payments, lending, and trading. However, it’s essential to acknowledge that not all stablecoins have succeeded; some have experienced failures, underscoring the risks associated with this space. Nonetheless, as the crypto landscape continues to evolve, stablecoins remain a pivotal bridge between traditional finance and digital assets, shaping the path toward wider adoption and financial innovation. What do you think about stablecoins? Share your thoughts and opinions about this subject in the comments section below. View the full article

The CEO of collapsed Turkish crypto exchange Thodex has been sentenced to 11,196 years, 10 months, and 15 days in prison. He purportedly absconded with more than $2 billion in cryptocurrency belonging to more than 400,000 customers. The court found his crypto trading platform to be a criminal organization. Thodex Chief Sentenced to 11,196 Years in Prison The CEO of collapsed Turkish cryptocurrency exchange Thodex, Faruk Fatih Özer, was reportedly sentenced to 11,196 years, 10 months and 15 days in prison on Thursday. AFP reported that prosecutors had requested a prison sentence of 40,562 years for the 29-year-old crypto exchange boss. Özer was found guilty of various charges including fraud, leading a criminal organization, and money laundering. The court also found Thodex to be a criminal organization and that Özer acted with fraudulent intent from the beginning. In addition, Özer’s sister Serap and brother Guven were found guilty of the same charges. The Thodex CEO refuted the finding that his intentions were criminal. He told the court he would “not have acted so amateurishly” if that was the case, according to state-run news outlet Anadolu Agency. The publication quoted him as saying: I am smart enough to lead any institution on Earth … That is evident in this company I established at the age of 22. Thodex, founded in 2017, was one of the largest crypto exchanges in Turkey before it abruptly collapsed in April 2021. The platform went offline and Özer disappeared, leaving over 400,000 customers unable to access their cryptocurrency holdings reportedly worth a total of $2 billion. Özer was arrested in Albania in August last year following an Interpol-issued red notice. After a lengthy legal process, he was extradited back to Turkey in June and found guilty of money laundering, fraud, and organized crime. What are your thoughts on the crypto exchange CEO receiving a prison sentence of over 11,196 years? Let us know in the comments section below. View the full article

The Federal Reserve’s vice chair for supervision has affirmed that the U.S. central bank is “a long way” from making a decision on whether to issue a central bank digital currency (CBDC). The Fed official also voiced concerns regarding USD stablecoins, emphasizing that they “could pose significant risks to financial stability, monetary policy, and the U.S. payments system.” Fed Official on Digital Dollars and Stablecoins The Vice Chair for Supervision of the Board of Governors of the Federal Reserve System, Michael Barr, talked about the Fed’s central bank digital currency progress on Friday at the Seventh Annual Fintech Conference hosted by the Federal Reserve Bank of Philadelphia. “As the pace of innovation increases, the payments landscape continues to evolve with the emergence of new programmable payments platforms, including those built on distributed ledger technology and blockchain technology, and new forms of digital assets, such as cryptocurrencies, stablecoins, and central bank digital currencies (CBDCs),” he said. “In my view, as both the issuer of U.S. currency and an operator in the payments system, the Federal Reserve must understand these developments and the tradeoffs they introduce.” The Fed official emphasized: Of course, investigation and research are very different from decision making about next steps in terms of payments system development, and we are a long way from that. “The Federal Reserve has made no decision on issuing a CBDC and would only proceed with the issuance of a CBDC with clear support from the executive branch and authorizing legislation from Congress,” he clarified. Barr’s statements echo those made by Federal Reserve Chair Jerome Powell, who has similarly stressed that the Fed will not proceed with the issuance of a digital currency without clear authorization from Congress. Powell also stated in September last year that it will take at least a couple of years for the Fed to come to a decision on whether to issue a digital dollar. Regarding U.S. dollar-denominated stablecoins issued by the private sector, Barr opined: “I remain deeply concerned about stablecoin issuance without strong federal oversight.” He cautioned: If non-federally regulated stablecoins were to become a widespread means of payment and store of value, they could pose significant risks to financial stability, monetary policy, and the U.S. payments system. In August, the Fed issued guidelines for banks to follow before engaging in the issuance, possession, or transactions involving U.S. dollar stablecoins. In addition, Congress is currently considering the Clarity for Payment Stablecoins Act, which the House Financial Services Committee recently greenlighted. Do you want the Fed to issue a central bank digital currency soon? Let us know in the comments section below. View the full article

Lately, the crypto sphere, with bitcoin aficionados in particular, has been buzzing with chatter about the fees pocketed by BTC miners. They’re pondering if these fees will adequately offset the impending 2024 halving and the accompanying drop in revenue. On the other hand, Ethereum, the runner-up in the crypto world, is raking in significantly higher weekly fees. Here’s an insight into the leading blockchain networks and where users are truly shelling out for block space. Bitcoin Proponents Discuss the 2 Leading Blockchains and Transfer Fees Many of today’s leading blockchain networks come with transfer fees, designed to motivate miners or validators to oversee and validate transactions, fortifying the network. Besides ensuring security, these fees deter spam, prioritize transactions, and cater to distinct economic policies based on each blockchain’s consensus guidelines. In the Bitcoin realm, when miners discover a block, they’re rewarded with the fees associated with that particular block. There’s a prevailing sentiment that, for Bitcoin’s security to remain robust after multiple halvings, its fees might need an uptick. Yet, if there’s a surge in user adoption and peer-to-peer interactions, fees could potentially be reduced. However, this assumes the network can seamlessly scale to meet such intense demand. This week, the crypto community has been abuzz with chatter about BTC fees, especially as data indicates Ethereum (ETH) validators are raking in significantly more than BTC miners. Dive into archived stats from cryptofees.info on September 9, and you’ll find that in the past week, ETH validators bagged around $3.54 million in fees. In contrast, BTC miners amassed just $694,632. Crunch the numbers, and ETH’s fees were 5.1 times higher than BTC’s. But here’s an intriguing throwback: two years ago, just before BTC’s and ETH’s record highs, Bitcoin ranked sixth in the fee league. 3 months ago high fees were going to be the end of #BTC, now low fees are going to be the end of BTC. https://t.co/dBGC9RTTqS — DAX Skywalker (@DAX_Skywalker) September 7, 2023 During the week of September 27, 2021, BTC miners gathered $548,425 within seven days, while ETH hit a staggering $24.16 million. That means, back in that 2021 week, ETH’s fees overshadowed BTC’s by an astonishing 44.1 times. Fast forward to this week, BTC bagged the silver medal for seven-day fees, with Uniswap trailing at $519,144 and BNB chain logging $242,101. Over the past month, of the massive $807.01 million revenue BTC miners generated, a mere 2.13% came from fees. But the last nine days paint a rosier picture: BTC miners have witnessed an average fee intake of 2.91% relative to the reward subsidy, marking an uptick since September 1, 2023. On September 7, 2023, the X account, known as “Fiatjaf” and boasting 18,600 followers, sparked a conversation by querying opinions on data from cryptofees.info. Fiatjaf’s post on X showed the data from cryptofees.info and how Ethereum’s seven-day fees were much higher. “What is your honest take on this?” he asked. Coinkite’s founder, Rodolfo Novak, weighed in, asserting, “Bitcoin is more efficient at transporting value.” Joel Valenzuela, a crypto aficionado, countered, stating, “Ethereum is the top cryptocurrency right now.” Honest take: Bitcoin settles an order of magnitude more value at a fraction of the cost. https://t.co/Ern9i1W77J — Unhosted Marcellus #371 (@oomahq) September 7, 2023 John Carvalho expressed skepticism about the fee comparison on cryptofees.info, quipping, “You may as well add Apple and Visa and Twitter and JPMorgan and every other centralized thing to your Bitcoin FUD list.” Engaging with Carvalho’s critique, Fiatjaf retorted, “So you think Bitcoin is losing to Ethereum as much as it is losing to Apple and Visa?” Ethereum advocates in the discussion defended high fees as a testament to the robustness of the smart contract-driven blockchain. Adding another perspective, Cobra Bitcoin, the mysterious curator of Bitcoin.org, commented, “We should be grateful Ethereum didn’t adopt SHA256 as its mining algorithm.” He elaborated, “Miner incentives will always be influenced not just by activity within Bitcoin, but also outside of it. If more profitable SHA256 sh**coins appear, miners would be stupid to not go mine them.” What do you think about ethereum validators obtaining more in fees than bitcoin miners? Share your thoughts and opinions about this subject in the comments section below. View the full article

America’s biggest bank by assets, JPMorgan Chase, is exploring a blockchain-based deposit token for cross-border payments and interbank transfers. If approved by regulators, the banking giant may create the digital asset, which would be different from its existing JPM Coin as it could be used to send money to accounts in other banks. JPMorgan Considers Digital Token for Cross-Border Payments and Settlement JPMorgan is in the early stages of exploring a blockchain-based digital deposit token, Bloomberg reported quoting a person with knowledge of the matter. The token could be used to speed up cross-border payments and settlement. According to the source who chose to remain anonymous, most of the underlying infrastructure that would be necessary to run the new means of payment has been developed. However, the token will not be issued without U.S. regulatory approval. The bank may launch it less than a year after it gets a green light and offer it to corporate clients, the report unveils. JPMorgan has already issued deposit tokens as part of the Monetary Authority of Singapore’s Project Guardian last year and highlighted their potential in a study: We believe deposit tokens will become a widely used form of money within the digital asset ecosystem, just as commercial bank money in the form of bank deposits makes up over 90% of circulating money today. Deposit tokens represent a deposit claim against a commercial bank, a digital version of deposits held by customers in their accounts. The tokens can be transferred and as their transactions are processed on a blockchain, settlement can be instantaneous and arguably cheaper. A JPMorgan spokesperson has been quoted as elaborating: Deposit tokens bring plenty of potential benefits, but we also appreciate that regulators would want to be thoughtful and diligent … Should that appetite develop, our blockchain infrastructure would be able to support the launch of deposit tokens relatively quickly. JPMorgan has been at the forefront of Wall Street’s attempt to employ the technology that underpins cryptocurrencies, the report notes. The issuance of a deposit token would expand the banking behemoth’s efforts in the sphere of blockchain. So far, JPMorgan has developed several applications utilizing blockchain, including the JPM Coin, which was announced a few years ago. It allows some of the financial institution’s corporate clients to move dollars and euros from their various accounts within the bank. However, a deposit token would differ in that it could be easily used to send money to clients of other banks, Bloomberg’s source pointed out. It can also facilitate the settlement of trades of tokenized securities or financial instruments issued on a blockchain. The token, users of which will be subject to know-your-customer and other checks, would most likely be denominated in U.S. dollars initially but could later become available in other fiat currencies. And it should be noted that its purpose would not be to purchase cryptocurrencies or replace fiat-pegged stablecoins. Do you think JPMorgan would get a regulatory nod to issue a digital deposit token? Share your expectations in the comments section below. View the full article

The U.S. government has charged the founders of crypto mixing and privacy tool Tornado Cash with money laundering, calling them “criminals.” In other news, the U.S. Court of Appeals for the District of Columbia has ruled in favor of crypto asset manager Grayscale against the United States Securities and Exchange Commission (SEC). This and much more just below, in the latest Bitcoin.com News Week in Review. Founders of Crypto Mixer Tornado Cash Accused of Laundering $1 Billion The founders of the cryptocurrency mixing service Tornado Cash were charged last week with allegedly helping to launder more than $1 billion in digital currency, including funds taken by North Korean hackers. Read More Court Rules in Favor of Grayscale Against SEC in Bitcoin ETF Conversion Lawsuit A D.C. court has ruled in favor of Grayscale, the largest crypto asset manager, in its lawsuit challenging the U.S. Securities and Exchange Commission’s decision to deny the conversion of GBTC to a spot bitcoin exchange-traded fund (ETF). The securities regulator “failed to explain its different treatment of similar products,” said the Circuit judge presiding over the Grayscale-SEC case. Read More Economist Peter Schiff Warns of ‘Full-Blown Financial Crisis’ Hitting US Economy Before Fed Reaches Inflation Target Economist Peter Schiff has warned about an impending “full-blown financial crisis” that he expects to hit the U.S. economy before the Federal Reserve reaches its inflation target. He further predicted that the financial crisis will force the Fed to raise its inflation target. Read More Oil Giants Joining BRICS a Strategic Success for China and Russia, Expert Says A German expert says that the BRICS economic bloc adding several oil giants as new members “is a strategic success for China and Russia.” The BRICS leaders announced at their recent annual summit that they have invited Saudi Arabia, the UAE, Iran, Argentina, Egypt, and Ethiopia to join as new members. Read More What are your thoughts on this week’s stories? Be sure to let us know in the comments section below. View the full article

The French body overseeing the protection of personal data has carried out “checks” at the Paris office of Worldcoin. The news of the French inspections comes amid heightened regulatory pressure on the cryptocurrency project co-founded by the current chief executive of Chatgpt developer Openai. French Data Protection Agency Visits Worldcoin Office as Part of Probe The National Commission on Informatics and Liberty of France, known by its French abbreviation, CNIL, has carried out “checks” at the Worldcoin’s office in the country’s capital this week, Reuters reported. These come when the crypto firm finds itself under increased global regulatory scrutiny. CNIL is France’s independent watchdog tasked to ensure that the French data privacy law is applied to the collection, storage, and use of personal data. In July, it said it was investigating Worldcoin for what it describe as the “questionable” legality of its biometric data. Worldcoin has been developed by a U.S.-German company called Tools for Humanity and founded in 2019 by Sam Altman, the CEO of Openai, the Microsoft-backed artificial intelligence (AI) research laboratory behind the AI-based chatbot Chatgpt. The project has stirred controversy as it requires users to have their iris scanned in exchange for a digital ‘World ID’ and, in some jurisdictions, cryptocurrency as well. It claims this is done to authenticate people online and counter AI-facilitated virtual identities. On Thursday, a CNIL spokesperson said that the “checks took place at the Worldcoin offices,” confirming an earlier report by Politico, according to which the visit was made on Wednesday. The representative of the French watchdog declined to provide more details. The Worldcoin Foundation told Reuters: The team at Worldcoin welcomes any opportunity to address questions regarding the project’s purpose and technology. Reacting to CNIL’s initial investigation in July, the Cayman Islands-based entity also said that Worldcoin was designed to protect individual privacy and that it had built a robust privacy program. The project was also committed to meeting requirements of regulators. According to Worldcoin’s website, it has already signed up 2.1 million people. Why do you think the French data watchdog visited Worldcoin’s office in Paris? Share your thoughts on the subject in the comments section below. View the full article

In a recent submission to the U.S. Securities and Exchange Commission (SEC), Bitwise has decided to retract its registration for its Bitcoin and Ether Market Cap Weight Strategy exchange-traded fund (ETF). The reasoning behind this action remains unknown, but Bitwise’s chief legal officer, Katherine Dowling, briefly noted that the company has postponed plans to launch the fund. Bitwise Halts Plans for Bitcoin and Ether Market Cap Weight Strategy ETF Launch Subsequent to the postponement of seven spot bitcoin ETFs, Bitwise Asset Management has rescinded its Bitcoin and Ether Market Cap Weight Strategy ETF, as stated in an SEC filing on August 31, 2023. The digital asset manager submitted the fund to the SEC on August 3, 2023. It relies on a five-year-diluted market cap among other qualifying factors to ascertain the weight of each cryptocurrency. Owing to the market cap of bitcoin (BTC) and ethereum (ETH), the combined allocation of these crypto assets within the proposed ETF would have been constrained at 75%. The most recent filing presented by Dowling does not divulge any justifications for the company’s withdrawal. The document declares: The Trust no longer intends to seek effectiveness of the Fund and no securities of the Fund were sold, or will be sold, pursuant to the above-mentioned Post-Effective Amendment to the Trust’s Registration Statement. Bitwise was one of the seven ETF filings that experienced a delay this past week, which encompassed Wisdomtree, Valkyrie, Fidelity’s Wise Origin, Vaneck, Blackrock, and Invesco Galaxy. Regardless of this setback, Bloomberg’s senior ETF analyst Eric Balchunas mentioned that he and James Seyffart still assign a 75% probability for spot BTC ETF approval in 2023. It is essential not to mistake the Bitwise Bitcoin and Ether Market Cap Weight Strategy ETF for their spot BTC ETF since it is a physically-backed Bitcoin ETF that monitors bitcoin’s price. This particular proposed fund owns BTC intending to grant investors exposure to the crypto asset’s price fluctuations without directly holding BTC. The Bitwise spot bitcoin ETF aspires to be listed on the NYSE Arca under the ticker symbol “BITW.” The ticker for the Bitwise Bitcoin and Ether Market Cap Weight Strategy ETF was going to be “BITC,” before the fund was withdrawn. What do you think about Bitwise withdrawing its Bitcoin and Ether Market Cap Weight Strategy ETF (BITC)? Share your thoughts and opinions about this subject in the comments section below. View the full article

Online broker Robinhood is going to buy back the stake purchased by a company of crypto exchange FTX founder Sam Bankman-Fried (SBF). The fintech intends to pay $605.7 million for the shares that were transferred to the custody of the U.S. government after the bankruptcy of SBF’s businesses. Robinhood to Proceed With Planned Buyback of Shares From USMS Online stock and crypto brokerage Robinhood Markets announced on Friday it had entered into a stock repurchase agreement with the United States Marshals Service (USMS) for shares acquired by crypto entrepreneur Sam Bankman-Fried’s Emergent Fidelity Technologies. The stock was seized after FTX and Emergent filed for bankruptcy in 2022 and later transferred to the custody of the U.S. government, Reuters noted in a report. The collapse of the exchange, one of the largest in the crypto space, led to the arrest and indictment of SBF, whose trial on fraud and conspiracy charges is set to begin in October. The Menlo Park, California-headquartered financial services firm is going to pay $605.7 million for 55.3 million shares. Robinhood first unveiled its plan to buy back the stake in February of this year after the company’s board authorized it to pursue purchasing most or all of the stock. The deal was approved by U.S. District Judge Lewis Kaplan in Manhattan who oversees Sam Bankman-Fried’s case. In an order issued on Monday, he described Robinhood’s proposed share purchase agreement as “appropriate” and said it was “in the best interest of the relevant stakeholders.” FTX collapsed amid liquidity issues and Bankman-Fried has been accused of misappropriating funds of the exchange’s customers worth billions of U.S. dollars to buy expensive property, make political donations, and finance his other businesses such as the Alameda Research hedge fund. The crypto mogul announced the purchase of a 7.6% stake in Robinhood Markets just six months before his company filed for bankruptcy in November. At the time, he said he had no intention to take control of the online broker but interest in partnering with the platform. SBF was arrested in the Bahamas and extradited to the United States about a month after the collapse of FTX. He had been living under house arrest at his parents’ home in California before his $250 million bond was revoked and he was jailed in August for alleged witness tampering. What do you think about Robinhood’s decision to buy back its shares? Let us know in the comments section below. View the full article

U.S. Securities and Exchange Commission’s former chairman Jay Clayton has explained why he believes the approval of a spot bitcoin exchange-traded fund (ETF) is inevitable. “It is clear that bitcoin is something that retail investors want access to, institutional investors want access to,” he stressed. Former SEC Chief Says Approval of Spot Bitcoin ETFs Inevitable Former U.S. Securities and Exchange Commission (SEC) Chair Jay Clayton offered his perspectives on the likelihood of the securities regulator approving a spot bitcoin exchange-traded fund (ETF) in an interview with CNBC on Friday. The interview followed the SEC delaying its decisions on several bitcoin ETF applications, including one proposed by Blackrock, the world’s largest asset manager. Without stating whether he would approve a spot Bitcoin ETF if he were still the chairman of the SEC, Clayton detailed: It is clear that bitcoin is not a security. It is clear that bitcoin is something that retail investors want access to, institutional investors want access to. “And importantly, some of our most trusted providers, who are fiduciaries or have duties of best interest, want to provide this product to the retail public,” the former SEC chairman added. Regarding whether the SEC will approve a spot bitcoin ETF, Clayton emphasized: Approval is inevitable. The dichotomy between a futures product and cash product can’t go on forever. So far, the securities regulator has not approved a spot bitcoin ETF even though it has approved some bitcoin futures ETFs. Clayton explained that when he was the chairman of the SEC, the securities regulator was “uncertain whether cash trading was so easily manipulable that retail folks should not have access to it.” However, he stressed: “There are now large institutions with surveillance mechanisms who are coming in and saying: ‘No, that’s not the case.’ We can rely on the efficacy of the cash market to a sufficient extent where we believe it’s a legitimate product. That’s a shift.” Earlier this week, the United States Court of Appeals for the District of Columbia Circuit ruled in favor of Grayscale Investments against the SEC regarding the crypto asset manager’s proposal to convert its flagship bitcoin trust (GBTC) into a spot bitcoin exchange-traded fund (ETF). Do you agree with former SEC Chair Jay Clayton about institutional demand for bitcoin and the inevitable approval of spot bitcoin ETFs? Let us know in the comments section below. View the full article

U.S. presidential candidate Robert F. Kennedy Jr. (RFK Jr.) has explained that China does not want a war with the U.S. However, he warned that China wants to “bury” the U.S. economically. “I’m not afraid of the United States competing with China head to head and countries around the world. I think that’s good for us. I think we win that competition,” the presidential hopeful stated. RFK Jr on China and BRICS Competing With US U.S. presidential candidate Robert F. Kennedy Jr. (RFK Jr.) shared his views on several topics in an interview with CNBC on Wednesday. RFK Jr. is a son of former U.S. Attorney General and Senator Robert F. Kennedy and nephew of former U.S. President John F. Kennedy. Among the topics RFK Jr. delved into were China’s global influence and the expansion of the BRICS alliance, which currently consists of Brazil, Russia, India, China, and South Africa. The group recently held its annual summit and invited six countries to join as new members. The BRICS economic bloc, often seen as a counterweight to the West, is actively advocating for the use of local currencies in international trade instead of the U.S. dollar. “Nobody wanted to start BRICS. Nobody wanted an alternative to the U.S. dollar. This happened because of our weaponization of the U.S. dollar and the weaponization of our foreign policy, unilateral weaponization, and the weaponization of our control of the world currency,” Kennedy opined. “We were pounding people’s, you know, their personal assets if the government misbehaves.” Commenting on the relationship between the U.S. and China, Kennedy detailed: China does not want a war with the United States. We spent three times on our on our military what they do. We have 800 bases abroad, they have one and a half. However, the presidential candidate clarified: “They want to compete with us. They want to bury us but they want to do it on an economic playing field. And they need us. You know, they cannot survive without us.” Regarding the U.S. competing with China economically, Kennedy said: “I’m not afraid of the United States competing with China head to head and countries around the world. I think that’s good for us. I think we win that competition.” He added: I’m not somebody who thinks that we should divide the world … I don’t think we should cut off trade with China. Earlier this month, Kennedy warned about the severe consequences of a nuclear war between the U.S. and Russia. He also said last month that President Joe Biden is “preparing for a ground war with Russia” by signing the executive order to mobilize select reserve forces in order to augment Operation Atlantic Resolve. Do you agree with presidential candidate Robert F. Kennedy Jr. about China and the BRICS economic bloc? Let us know in the comments section below. View the full article

Ripple Labs has filed its opposition to the U.S. Securities and Exchange Commission’s request for Judge Analisa Torres to certify an interlocutory appeal of her ruling regarding XRP. The crypto firm has argued that “the exceptional circumstances required for interlocutory appeal are absent.” Ripple Says Court Should Deny SEC’s Motion On Friday, Ripple Labs filed its response to the motion by the U.S. Securities and Exchange Commission (SEC) to certify an interlocutory appeal. The securities watchdog is seeking to appeal the ruling by District Judge Analisa Torres regarding the “programmatic” offers and sales of XRP over crypto trading platforms and Ripple’s “other distributions.” The regulator also seeks to stay the district court proceedings. The Ripple legal team wrote: The court should deny the SEC’s motion for certification. The court should also deny the SEC’s request for a stay pending appeal. In Friday’s court filing, Ripple argued that “the exceptional circumstances required for interlocutory appeal are absent.” Firstly, the crypto firm’s lawyers claimed, contrary to the SEC’s assertion, that “the court’s summary judgment order does not present a controlling question of law suitable for interlocutory appeal.” Secondly, they argued that the “supposed substantial ground for disagreement is merely the SEC’s dissatisfaction with the court’s application of Howey to most of the defendants’ transactions in XRP.” In addition, Ripple’s lawyers stated that the SEC “concedes that protracted litigation is necessary regardless of whether its requested interlocutory appeal succeeds.” They stressed that this means “certification has no chance of hastening the end of this litigation.” This week, the SEC lost another legal battle against a crypto firm. The United States Court of Appeals for the District of Columbia Circuit ruled in favor of Grayscale Investments against the securities regulator on Tuesday regarding the crypto asset manager’s proposed bitcoin exchange-traded fund (ETF) conversion. Do you think Judge Analisa Torres will certify the SEC’s motion for an interlocutory appeal in the Ripple-XRP case? Let us know in the comments section below. View the full article

The newest layer two (L2) blockchains are being adopted at record speeds, with some reaching one million users within weeks rather than months, according to a study by Coingecko. L2 Blockchains Hit One Million Users Faster Than Ever, Coingecko Study Shows A layer two (L2) blockchain runs alongside an existing blockchain like Ethereum to improve transaction speeds and reduce fees. The Ethereum network now has several popular L2 solutions, but they haven’t always seen rapid adoption. Coingecko recently published a report on the subject which highlights the growth of today’s top L2s. Arbitrum, an ETH-based L2, took 303 days to reach one million unique addresses after its mainnet launch on August 31, 2021, according to Coingecko’s contributor Shaun Paul Lee. The L2 solution Optimism, launched in January 2022, hit the same milestone in 191 days. Zksync, which launched its mainnet on March 25, 2023, needed 71 days to reach one million addresses. But Base, which launched its mainnet on August 9, 2023, gained over a million addresses in just 11 days. The study notes that Base benefited from a wave of popularity around new meme coins launching on the new network. Base is an Ethereum L2 blockchain network developed by the San Francisco-based crypto firm Coinbase. Lee’s research further shows L2s without native tokens onboard users even faster. Both Base and Zksync reached a million users quickly without having launched tokens yet. The study suggests users are hoping for airdrops of governance tokens as rewards for early adoption. Meanwhile, L2s like Arbitrum and Optimism have already distributed tokens through airdrops. Polygon zk-EVM, which has the MATIC token, has seen slower growth compared to Base and Zksync. Despite rapid growth from L2s, Lee’s research notes that Ethereum still dominates with over 241 million unique addresses as of August 20, 2023. However, the researcher opines that new solutions like Base are rapidly gaining trust and providing meaningful scaling benefits to Ethereum. What do you think about Coingecko’s report on L2 networks and their growth? Share your thoughts and opinions about this subject in the comments section below. View the full article

The realm of decentralized finance (defi) is grappling with the aftermath of the sweeping crypto market slump that marked the close of August. As it stands, the total value locked (TVL) in defi, pegged at $37.59 billion, has plummeted to a low last witnessed in the second week of February 2021. Crypto Winter’s Grip on Defi: TVL Stumbles to $37 Billion The total value locked in defi is on a steady decline, and as of September 1, 2023, it’s teetering at roughly $37.59 billion. Rewinding to February 9, 2021, this was the last time the TVL stood at such a level, right before it surged to its record peak. By May 11, 2021, it swelled to an impressive $121 billion, and by November 8, 2021, it soared to a staggering $178 billion. Although there was a brief resurgence to $161 billion on April 2, 2022, the TVL has been in a consistent descent since the all-time high. As of the first of September this year, Lido reigns supreme as defi’s leading protocol by TVL, boasting a $14.06 billion TVL. Hot on its heels are Makerdao, Aave, Justlend, and Uniswap, completing the top-tier quintet of defi protocols based on TVL size. Makerdao stands at $5.05 billion, Aave at $4.49 billion, Justlend at approximately $3.33 billion, and Uniswap close behind with about $3.27 billion this weekend. Curve Finance claims the sixth spot, with $2.33 billion tucked away. While all six experienced percentage dips recently, Lido saw a 0.73% uptick this past week, and Makerdao enjoyed a 0.99% rise. In the realm of defi TVLs by blockchains, Ethereum wears the crown with a dominant 57.26%, translating to $21.427 billion locked. Tron secures the runner-up position with $5.223 billion, representing 13.96% market share. Following them are Binance Smart Chain (BSC), Arbitrum, and Polygon, rounding off the top five chains by TVL. BSC emerged as the week’s market performer with a 2.35% ascent, while Polygon leaped 0.90% higher. However, the remaining three in the top five blockchains witnessed a week of losses. Much like other crypto sectors, defi is grappling with the chill of a prolonged crypto winter. What do you think about the recent defi downturn? Share your thoughts and opinions about this subject in the comments section below. View the full article

In recent weeks, buzz within the crypto sphere has centered on prominent bitcoin and ethereum holders. Some addresses are awash with speculation, while others have earned distinct labels. Interestingly, a handful have purportedly been unmasked, leading to many of the top ten BTC addresses being tagged. The following is a closer peek at the top ten bitcoin wallets featured in ‘Bitcoin’s Rich List’ of addresses. From Exchanges to the U.S. Government — Shining a Light on the Largest Bitcoin Wallets in 2023 Recently, chatter in the crypto world zeroed in on the identity of the third-largest bitcoin (BTC) wallet. Both OXT researcher Ergo and crypto data analytics firm Arkham Intelligence believe it’s likely affiliated with Robinhood — a sentiment echoed on Arkham’s dashboard. However, as curiosity mounted about this wallet, wild and baseless rumors emerged around the fifth-largest BTC wallet, linking it to the late Yevgeny Prigozhin. Contrary to this fabrication or ‘tall tale,’ this particular wallet is overseen by U.S. government law enforcement officials. The following investigation offers a glimpse into our understanding of the top ten bitcoin wallets as of September 2023. At the pinnacle of the famed ‘Bitcoin Rich List,’ spotlighting the top 100 wallets by BTC count, Binance holds the crown with the lead wallet. As of September 1, 2023, the wallet labeled “34xp4,” overseen by Binance, boasts a staggering 248,597 BTC, valued at $6.4 billion based on current BTC exchange rates. Created on October 18, 2018, its most recent transaction was on January 7, 2023. Given its nature as a cold wallet, in contrast to a frequently-used exchange hot wallet, it experiences limited activity. On the first day of September 2023, the second-largest BTC wallet held 178,010 BTC worth $4.58 billion. The wallet, known as “bc1qg,” is owned and operated by the crypto exchange Bitfinex. It was created on February 2, 2020, and its most recent BTC transaction occurred on March 30, 2023. The third-largest wallet was recently identified as Robinhood’s cold wallet. Presently, the specific wallet “bc1ql” holds 118,300 BTC worth slightly over $3 billion. The fourth-largest BTC wallet is also controlled by Binance, and the address “39884” holds 115,177 BTC worth $2.9 billion. The fifth wallet is owned and operated by the U.S. government, as indicated in the Arkham dashboard. This wallet, labeled as “bc1qa,” is associated with fabricated stories about the deceased Russian oligarch Yevgeny Prigozhin. The funds originate from the 2016 Bitfinex hack and were consolidated into the address when U.S. law enforcement officials seized the stash. The U.S. government’s stash of 94,643 BTC is valued at $2.4 billion. The sixth-largest bitcoin address, “37XuV,” lacks labeling on Arkham’s dashboard; however, an annotation from 2020 is available on the blockchain explorer oxt.me. On January 19, 2020, a user named “Wolf755” claimed that the sixth-largest bitcoin wallet belonged to Huobi. The wallet was established on July 4, 2021, and no further funds have been sent since. This particular wallet holds 94,505 BTC worth $2.4 billion as of September 1, 2023. The seventh-largest BTC address, “1Feex,” is famous and labeled as the “Mt Gox Hacker” on Arkham. The eighth-largest BTC wallet on September 1 is “bc1qa,” controlled and owned by the U.S. government. The funds in this wallet originate from the Silk Road hack, and law enforcement intends to sell the coins this year. The “bc1qa” address holds approximately 69,370 BTC worth $1.78 billion. The ninth-largest BTC wallet, known as “3LYJf,” is also owned by Binance. The 68,200 BTC worth $1.75 billion backs the synthetic bitcoin issued on the Binance Smart Chain, known as BTCB. On Arkham, it is labeled as the “BTCB Reserve,” created on November 18, 2022, with its last transaction also occurring on the same day. Lastly, the tenth-largest BTC address, “bc1qd,” appears to be unknown and holds 59,300 BTC worth $1.5 billion. On oxt.me, the onchain researcher Ergo annotates whether the wallet is BFX cold storage. This means that two of the top ten largest BTC wallets are unidentified or unflagged. In the realm of Bitcoin’s elite wallets, Binance stands tall, holding a staggering 41.34% (431,974 BTC valued at approximately $11.1 billion) of the BTC from the top 10 addresses. Trading platforms, including Bitfinex, Robinhood, and possibly Huobi, collectively own 37.4% (390,815 BTC valued around $10 billion). The U.S. government supervises 15.6% (163,013 BTC, estimated at $4.2 billion), resulting from its law enforcement activities. Curiously, 5.67% (59,300 BTC worth about $1.5 billion) remains unidentified. This distribution paints a vivid picture of centralized exchanges and governmental bodies as dominant players in Bitcoin’s storage landscape. What do you think about the top ten bitcoin addresses? Share your thoughts and opinions about this subject in the comments section below. View the full article

PRESS RELEASE. DeOrderBook, a groundbreaking decentralized finance (DeFi) optionality protocol, is gearing up for its Ethereum mainnet launch, ushering in a new era for DeFi users who seek unprecedented capital flexibility, advanced hedging mechanisms, and sustainable real yield. At launch, the protocol supports $WBTC and $USDC although the team is actively working on support for further coins and chains. What makes DeOrderBook especially interesting? DeOrderBook’s unique design represents a significant departure from traditional DeFi protocols by providing an automated way to monetise an optionality position — think about it as a Uniswap for optionality. We created a coherent demand-and-supply system for the $DOB token to act as the magnet for optionality-writing liquidity while simultaneously providing a robust auction-like mechanism for the demand side that catches the whole range of optionality-rights generated by the protocol. Combined with fee-sharing, this gives DeOrderBook a significant advantage in mechanism design that is built around sound tokenomics. Moreover, from a security perspective, DeOrderBook’s strategy is that the big movers in DeFi need a protocol where their risk can be completely bound. To deliver on that premise, we designed a protocol that is truly trustless (i.e. 100% DeFi) where not only we managed to eliminate all sorts of counterparty (including custodial risks) and credit risks but even removed oracles completely from the design by working through the fundamentals of options design and game theory. The result is an optionality protocol that is unparalleled in its utility and security in either CeFi or DeFi. This innovative model guarantees a fair and transparent trading environment that eliminates “black box mechanisms” and other sources of catastrophic failures (e.g. oracle hacks, bad debt, or custodial malfeasance) that precipitated the bearish cycle we see in crypto today (i.e. preventable collapses of Terra, 3AC, and FTX). How to participate On DeOrderBook, the main user action is the placement of DeOrders, which work similarly to warrants in CeFi as a minimal-risk way to write upside or downside optionality. Once a user places their funds in a DeOrder, they instantly begin accruing rewards in $DOB, the platform’s native token. Even if a DeOrder doesn’t end up ‘in the money’, users are able to receive back the majority of their original collateral (plus their $DOB), less a 0.2% fee. Join the Gerege NFT Program DeOrderBook’s launch is also accompanied by its unique Gerege NFT program which is designed to further incentivize user engagement with the protocol. The NFT program was inspired by ancient passports granted by the Mongolian empire to facilitate free trade, and in the same vein this program allows users to access the maximal level of functionality offered by the protocol. NFTs can be leveled up through active participation in the community, which in turn increases the percentage of fee-sharing that users can enjoy. In addition, users are incentivized to get in early with a unique system of pricing mechanics with a 25% increase every 500 mints, subject to change by the community. A 1 year guaranteed buyback scheme for the first 500 NFTs minted ensures that early adopters get a risk-free trial of the benefits of holding a Gerege NFT. The first collection of Silver Gerege NFTs is already live on the Ethereum mainnet and currently on private mint. In order to whitelist all you have to do is register and validate your wallet. Users with mainnet balances of 0.005 $WBTC will be eligible for whitelisting. DeOrderBook’s Mainnet Launch By combining advanced tokenomics, oracle-free operations, and a user-centric approach, DeOrderBook’s imminent mainnet launch is set to disrupt the DeFi landscape, pushing the boundaries of what has been done before and empowering every user to make the most of their crypto holdings. To learn more, follow DeOrderBook on Twitter or join the Discord to get the latest updates on the protocol. The protocol’s Youtube channel features deep dives and tutorials into the protocol, while its Mirror page regularly updates with new articles and community updates. About DeOrderBook DeOrderBook is a truly trustless optionality protocol that offers real yield, works without oracles, and solves capital inefficiency in both DeFi and TradFi optionality markets. Users may join its fee-sharing NFT program to further boost their rewards. DeOrderBook is launching eminently in the Ethereum mainnet with a Bitcoin optionality market. Press Contact: Renee Product Marketing Manager renee@deorderbook.com This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release. View the full article

According to Louis Tsu, the CEO of Venom Foundation, governments that are seeking to introduce central bank digital currencies (CBDCs) are not being driven by the fear that privately issued digital currencies may soon become the preferred method for cross-border and micropayments. Instead, some countries view CBDCs as a technology that could make their countries “more economically and financially efficient” and this ultimately improves their competitiveness. Regulated Digital Assets ‘a Requirement for Mass Adoption’ While stablecoins issued by private entities such as Tether are increasingly seen as the go-to digital currencies when moving funds across borders, Tsu told Bitcoin.com News that CBDCs may turn out to be a better option because they are underpinned by regulation. According to the CEO of Venom Foundation — a platform that aims to create a bridge between traditional finance and the Web3 world — such an attribute can be a key “requirement for mass adoption and harmonization of markets and economies.” When asked about claims that CBDCs could be used by governments to exercise greater control over people’s financial lives, Tsu insisted that the issue is not necessarily about the technology but those in control of it. To support his argument, Tsu pointed to Paypal, a privately owned entity that recently announced the launch of its own stablecoin — the PYUSD. The CEO said Paypal can unilaterally freeze or pause the transfer of PYSUD if this is in line with its fiduciary and legal responsibilities. He suggested that the same argument can also be applied to central banks when it comes to their ability to censor CBDC transactions. Meanwhile, in other answers to questions sent to him via Telegram, Tsu also offered his thoughts on how governments can use CBDCs to lower the cost of sending remittances. He further offered his views on what he sees as challenges that could hinder the adoption of CBDCs. Below are all of the Venom Foundation CEO’s written answers to questions sent. Bitcoin.com News (BCN): Why do governments and central banks around the world feel the need to introduce CBDCs? Is it driven by the fear of crypto becoming the go-to mode of cross-border payments and micropayments? Louis Tsu (LT): It is not fear of crypto that is driving this massive interest in CBDCs. Sovereign nations see a far greater opportunity to access new digital asset classes, be more economically and financially efficient and ultimately raise the competitiveness of their country. This is game theory in full swing, no country wants to miss the boat. The smart money already played their hand. There are hundreds of billions of dollars of tokenization projects already live. What’s a token? There are non-fungible tokens, NFTs, which could represent a financial product like a bond or fungible tokens which is a unit of value that can represent a dollar or a euro. CBDCs are a subset of this bigger opportunity and I believe governments want in, this can be analogous to the last time when fibre optics were being laid down, the digital currency or the CBDC is the final crucial component. BCN: Why would users — both institutional and retail — want to adopt CBDCs when they already have stablecoins to serve this purpose? LT: As we are not yet in this scenario, I can only assume how this future will unfold. For centuries we have had private money issued by individuals and companies which went into steep decline as central banks were formed and more so since the Modern Monetary Theory (MMT) garnered more support. Nevertheless, this trend is going in reverse with the advent of the internet and blockchain technology progressively private money has come back into circulation. My definition of private money is not exclusively stablecoins like USDT which alone has risen from nothing to about $150 billion in a few years. Let’s take the JP Morgan coin used by its clients to settle transactions since 2019. It has already handled $300 billion worth of transactions. There are multiple commodity stablecoins backed by various precious metals. Tokens both fungible and non-fungible are daily being created to represent value that touches all different parts of our economy. Many of these instruments are ahead of regulation and thus self-regulating. As CBDCs roll out at both retail and wholesale levels, they will not be in isolation but underpinned by regulation and this is a requirement for mass adoption and harmonization of markets and economies. BCN: It seems cross-border payments are still complicated and expensive. When you send money to someone in another country, it goes through a complex web of interlinkages between banks. The fees for this could go as high as 6.5%, which may be a lot for the poor immigrants sending remittances to their loved ones back home. Do you foresee CBDCs getting this right? LT: Things have already improved dramatically compared to 6.5%. My Kenyan colleagues used to send money across the country in a bus, back in the day the amount that was skimmed off the top was erratic and occasionally the envelope never even arrived! Can CBDCs improve? Yes, they can, but this is only a part of the picture. Technology and the private industry are moving far quicker than governments can deploy CBDCs. There are an array of different types of cryptocurrencies, stablecoins and institutional tokens already on the market. The delivery mechanism to retail is via a ‘wallet’ and already we see the green shoots of a multitude of blockchain use cases, for example, aid.technology is currently delivering humanitarian aid through a digital wallet. By the time governments start to deploy CBDCs, there will be wallets with proven applications such as remittances, lending and borrowing protocols battle-tested for the retail market. The CBDCs will play a critical role in mass adoption because they will have government backing and hence acceptance in every aspect of everyday life. BCN: According to reports, Venom is working with the relevant authorities in Kenya, Bangladesh, and a few other countries to increase financial inclusion. Micropayments are at the heart of financial inclusion. Can you talk about how Venom is using blockchain to bring financial services to the underserved? LT: Venom’s vision is to leverage its highly scalable technology to bring blockchain into many emerging markets including Kenya and Bangladesh. In tandem with regulation from the Abu Dhabi Global Markets (ADGM), we are seeing a smooth acceptance thus far. Micropayments are at the heart of helping people. It can touch the lives of millions who do not even have the basics like a bank account. Through a digital wallet, small farmers who need a $10 loan for fertilizer, a refugee who wants to send $0.50 to a family member peer-to-peer, or an entrepreneur housewife working from home performing part-time remote administration services can invoice cross-border a dollar-a-day; all done with minimum transaction costs. At the same time, this low-income category currently has virtually no option to save for the future. Once a digital wallet is in their hands, the option to ‘stake’ and earn interest on savings will become highly attractive. Especially since very small sums of money can be invested into “staking” again with little friction. BCN: While CBDCs may offer certain benefits, many fear that they will give governments greater control over people’s financial lives and transactions. To illustrate, the Brazilian central bank recently published the CBDC pilot project on its Github profile and it is said that developers have since discovered that the central bank has the ability to freeze users’ accounts, decrease target balances, confiscate, and mint new units of the digital currency. Do you think such red flags could hurt the adoption of CBDCs? LT: For decades, global financial systems have had AML/KYT/KYC monitoring systems and if a transaction breaches a rule or demonstrates suspicious activity, the institution has a fiduciary and legal responsibility to act. It is not the technology that is invasive, it is the policymakers and they will differ from one country to another. All the above actions you enumerate are already possible. For example, “minting new units” has been a common practice since the 1970s by central banks. They call it quantitative easing. These are design decisions. The following example is not a government but a private company Paypal that issued a stablecoin, PYUSD. Paypal can freeze an address, i.e. an account. They can pause all transfers and mint more tokens whenever they want. Just like anything, give a man a hammer and he can build a house or hit someone over the head. BCN: What are wholesale and retail CBDCs and why is there a need for two different sets of CBDCs? LT: For the sake of clarity when I talk about CBDCs I’m also referring to digital currency, which could be a stablecoin either private, institutional or sovereign. Wholesale is for corporate and retail is for individuals. The difference between the two are policies. In wholesale the rules are far more complex, with multiple asset classes, vast account limits, stringent risk management, and more detailed regulation, with bigger sums of money; settlement and clearing are points of pain. For many years, companies have been using blockchain DLT to develop solutions to solve some of these issues. However, I personally see we have reached a tipping point. It is a major advantage for a CBDC design if the technology supports account abstraction as in the Venom blockchain. Put simply, it means rules such as wholesale risk management can be natively programmed into the account. BCN: In your opinion, what are the biggest roadblocks to large-scale adoption of CBDCs? LT: Wealthy economies do not need digital currencies as much as developing economies, so if we slice the world in two, I would say governments and central banks in rich countries do not have the same incentives as developing countries. Developing countries view the shift to blockchain in a holistic way, it is not a currency in isolation, it is a regime of transparency, access to capital markets, improved supply chain, and tokenization of their raw assets. So I think we will see a slow lane and a fast lane in the near future. Regulation has to be resolved for large-scale adoption and it is not any regulator trying to throw a spanner in the works. It is just a highly complex system that has to be coordinated on a global basis. Trying to harmonize different countries and regions is a time-consuming task. What are your about this interview? Let us know what you think in the comments section below. View the full article

Vietnam, the Philippines, and Brunei will join a QR payment system to settle cross-border payments using local currencies within the Association of Southeast Asian Nations (ASEAN) bloc. The network, already being used between Indonesia and Malaysia, aims to interconnect all ASEAN nations to reduce their dependence on the U.S. dollar. Vietnam, the Philippines, and Brunei to Join ASEAN Payments System Vietnam, the Philippines, and Brunei will join a payments initiative that aims to connect all countries of the Association of Southeast Asian Nations (ASEAN) bloc, according to Perry Warjiyo, governor of the Central Bank of Indonesia. The payment system, which uses QR codes to simplify the settlement of cross-border payments, uses national currencies to reduce the bloc’s dependence on the U.S. dollar. Warjiyo detailed that Vietnam is currently in talks with the local industry to agree on a national QR system and is expected to join the system later this year, while the Philippines is organizing industry leaders to achieve regional connectivity. Meanwhile, Brunei is in the initial steps of regulating its internal payment industry. The payment system has been operating between Indonesia and Malaysia since May, allowing citizens of both countries to travel between the nations and pay using QR codes, simplifying the process of making cross-border payments. Warjiyo detailed that Indonesia, Thailand, Malaysia, and Singapore were working to implement bilateral and multilateral payments using this system, indicating that the final goal was to interconnect Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. Warjiyo stated: This commitment will help facilitate seamless and secure cross-border payments. Gradually all of the countries will be connected in their payments with local currencies being used. De-Dollarized Payments a Priority Countries of the ASEAN bloc have declared that moving away from the U.S. dollar in financial settlements is a priority, including this issue as part of the final declaration of the 42nd ASEAN Summit held in Indonesia in May. At the time, leaders of ASEAN stated that they “encourage the use of local currencies for economic and financial transactions among ASEAN member states to deepen regional financial integration.” Indonesian President Joko Widodo has also reinforced the need to stop using foreign payment systems and focus on national currencies to avoid “possible geopolitical repercussions,” citing the sanctions enacted against Russia as an example. What do you think about Vietnam, the Philippines, and Brunei joining an ASEAN-wide payment system? Tell us in the comments section below. View the full article

According to Ivaibi Festo, the founder of Mitroplus Labs, a crypto and blockchain education organization, cybercriminals continue to find success in Africa because not enough is being done to educate residents on the basics of digital assets or the technology that underpins such assets. To make matters worse, the few African individuals who have made it either as traders or entrepreneurs often lack the desire to help their fellow residents become acquainted with the basics. Using Education to Strike Back Against Scammers However, Festo, who claims to have bought his first bitcoins in 2009, said African governments’ negative disposition as well as the stigma surrounding cryptos and the blockchain industry have helped convince some successful traders and entrepreneurs to reconsider. Meanwhile, the Mitroplus founder told Bitcoin.com News that in addition to educating residents and prospective users, his organization is also working to include regulators and legislators in its classes. Festo argued that doing this ensures regulators and legislators are better informed when dealing with crypto assets. Concerning the approach to regulating cryptocurrencies that African countries should adopt, Festo said governments should consider creating “a friendly environment for this tech to grow as they study and learn how to regulate them” as the biggest and most valuable industry participants will only “run to places where they are welcome.” Below are Festo’s written answers to all questions sent to him via Whatsapp. Bitcoin.com News (BCN): The utility of crypto assets and blockchain has become more apparent in the past few years. However, the increasing number of scams or criminals who hide behind cryptocurrencies like bitcoin has slowed the uptake of the technology by those who need it most. In your opinion, why are criminals and scammers still able to steal using the same crypto scams? Ivaibi Festo (IF): As would be the case with any other new technology, many people still know little about cryptocurrencies and their underlying technology, architecture, white papers, security etc. And the fact that there are still little or no regulations in many countries, criminals are taking advantage of the anonymity, the hype and the fear of missing out (FOMO) to target their prey. Entry into cryptocurrencies hasn’t been easy for at least 95% of the adopters but this can change with education. Some bad actors in the space intentionally scam people using hype, greed & FOMO and the decentralised nature of the industry which allows them to do this for quick money even without showing their faces. BCN: Many players in the crypto industry agree that a lack of knowledge or the right information on cryptocurrencies is one reason why criminals continue to succeed in their endeavors. However, in places like Africa where many victims of crypto scams are found, there is a sense that the current efforts to educate prospective crypto users fall short of what is expected. Do you agree that not enough is being done to raise awareness or educate prospective users? IF: I agree that not enough has been done to create awareness in Africa for blockchain and cryptocurrencies. This is a tech that not so many people went to school for, many blockchain participants and cryptocurrency traders quietly go about their business without needing so much external interaction and interference. This leaves the other population at the mercy of network marketers who are eager to earn commission from unregulated crypto projects or initial coin offerings (ICOs). Unfortunately, this has created a stigma in the African market which can only be healed through education and awareness campaigns run by genuine and successful industry leaders. The only problem is that there is not enough to be earned from education and raising awareness hence there is often little or no motivation for this. However, the negative government attitude towards cryptocurrency and the industry at large as well as the public’s outcry over the growing number of crypto scams are factors that motivate some leaders to act. They understand that this problem affects everyone including both legit and non-legit industry players. BCN: Scammers predate cryptocurrencies and they will certainly be around for years to come. How, then, can players in the crypto industry make it more difficult for criminals to successfully defraud victims using the allure of cryptocurrencies like bitcoin? IF: Through education and awareness even in rural areas. Mitroplus Labs is setting up blockchain literacy centres in cities and small towns of Africa for free blockchain, Web3, metaverse and cryptocurrency education. Mitroplus is also blending education and earning with entertainment through free online blockchain and fintech classes, marketmania competitions, translation of the tech and new updates into local languages and Gorilla hub competitions for blockchain startups. For Mitroplus Labs, this is a better solution to the problems than migrating to crypto-friendly countries as many successful traders and blockchain enthusiasts from the African continent have done. Since there is not any sort of fee collection or deposit-taking, this approach comes with no risk of financial loss to scholars and affiliates. Some governments have welcomed this for their learning as well, a step towards regulations. BCN: In one of your past interviews, you suggested educating government officials and regulators as one way of driving adoption. Why do you believe that this can make a difference? IF: Blockchain and cryptocurrencies are disruptive technologies to mainstream financial architecture and other sectors. This is a technology that no one went to school for, all governments are learning. Thereafter they can be able to regulate what is known. So education to governments and regulatory aid is one good step towards citizen protection. BCN: Since the start of the year 2023, the U.S. government has upped the ante against digital assets. We have heard of the so-called Operation Chokepoint 2.0 and we have seen how the Gary Gensler-led SEC is attempting to hound out crypto firms. In contrast, Asian countries and the EU have adopted a very different approach. In your opinion, what is the most effective approach that African governments should follow when seeking to regulate cryptocurrencies? IF: We must understand that African governments are younger than many Western governments if not all. Therefore, African governments should now understand the politics behind the whole monetary system. In disruptive innovations, there is usually chaos before order, they should create a friendly environment for this tech to grow as they study and learn how to regulate them. The biggest and most valuable industry participants will run to places where they are welcome. We have seen this in UAE and Hong Kong which are now earning a lot from the presence of these billion-dollar enterprises. This change in the financial and monetary system is going to be bigger and more impactful than any other that the world has ever seen. All countries have an equal opportunity to participate in this transition. Register your email here to get a weekly update on African news sent to your inbox: What are your thoughts on this interview? Let us know what you think in the comments section below. View the full article

Several U.S. lawmakers have objected to the Federal Reserve’s stablecoin regulatory guidelines, which they believe “will undoubtedly deter financial institutions from participating in the digital asset ecosystem.” According to the lawmakers, “The Fed has chosen to effectively prevent banks from issuing payments stablecoins — or engaging in the payment stablecoin ecosystem.” Fed’s Efforts ‘Subvert Progress Made by Congress’ Three U.S. representatives sent a letter to Federal Reserve Chairman Jerome Powell regarding stablecoin regulation last week. The letter, dated Aug. 23, was signed by Patrick McHenry (R-NC), chairman of the House Financial Services Committee; French Hill (R-AR), chairman of the Subcommittee on Digital Assets, Financial Technology and Inclusion; and Bill Huizenga (R-MI), chairman of the Subcommittee on Oversight and Investigations. Congressman Hill stated Monday on the social media platform X: I sent a letter alongside Rep. Patrick McHenry and Rep. Bill Huizenga to the Federal Reserve objecting to their efforts to undermine the Financial Services Committee’s progress on stablecoin legislation. The Fed has chosen to effectively prevent banks from issuing payment stablecoins. In their letter, the lawmakers expressed concerns regarding “the Federal Reserve Board’s recent Supervision and Regulation Letters titled ‘Creation of Novel Activities Supervision Program’ (SR 23-7) and ‘Supervisory Nonobjection Process for State Member Banks Seeking to Engage in Certain Activities Involving Dollar Tokens’ (SR23-8).” Both letters were issued on Aug. 8. The lawmakers stressed: We are concerned that these actions are being taken to subvert progress made by Congress to establish a payment stablecoin regulatory regime. Moreover, if these letters are left in place, they will undoubtedly deter financial institutions from participating in the digital asset ecosystem. Noting that the House Committee on Financial Services recently passed a bill titled “Clarity for Payment Stablecoins Act,” which has bipartisan support, the congressmen stated that “instead of working with Congress to establish a workable regime, less than two weeks after the Committee’s action, the Fed released SR 23-7 and SR 23-8.” The lawmakers explained that the Fed’s Novel Activities Supervision Program “appears designed to impose additional regulatory burdens on banking institutions to engage with crypto assets and to provide the Fed with additional tools to deny crypto asset-related activities.” Moreover, they pointed out that “SR 23-7 and SR 23-8 were not issued in accordance with the notice and comment process as required under the Administrative Procedure Act. This guidance represents an effort by the Fed to set policy without being held accountable to market participants and the public, which is unacceptable.” The lawmakers concluded their letter to Chair Powell with a request for written answers to a number of questions pertaining to SR 23-7 and SR 23-8. They include how the Fed intends to “implement a fair and consistent process for determining which banking organizations will be subject to supervisory examinations.” The congressmen also asked the Federal Reserve chairman to provide documents pertaining to SR 23-7 and SR 23-8, including all related records and communications among employees and all related records and communications of Vice Chair for Supervision Michael Barr. The lawmakers emphasized: By issuing the letters, the Fed has chosen to effectively prevent banks from issuing payments stablecoins — or engaging in the payment stablecoin ecosystem. What do you think about the lawmakers opposing the Federal Reserve’s stablecoin regulatory guidelines? Let us know in the comments section below. View the full article

Sam Bankman-Fried’s high-powered legal team is pushing for the FTX founder’s temporary release from jail ahead of his October trial on fraud charges. In a motion filed Thursday, lawyers Mark Cohen and Christian Everdell claim Bankman-Fried’s Sixth Amendment rights are being violated by inadequate access to discovery documents needed to help prepare his defense against allegations he misled investors and misused FTX client funds. Letter Claims FTX Founder’s Rights Breached: Lawyers Demand Expanded Trial Prep Access The lawyers argue Bankman-Fried needs “constant access” to an internet-connected laptop so he can review millions of pages of documents, conduct online research for context, draft analysis of evidence, and share information with his legal team. Under the current plan allowing Bankman-Fried just 12 hours per week at a courthouse computer with no internet, the lawyers say he is deprived of the 80-100 hours he spent prepping pre-jail. They also object to the government dumping 4 million more pages of discovery documents on them this week, calling it “fundamentally unfair” so close to the October trial start. The lawyers want Bankman-Fried temporarily released, or at minimum granted expanded computer access at jail, so he can adequately help build his defense. Bankman-Fried’s lawyers state: Even if Mr. Bankman-Fried were out on bail and had unlimited time to review these documents, it would likely be impossible for him to finish reviewing them by the time of trial. This is yet another example of the government dumping a huge volume of discovery on the defense months after the discovery deadlines that the government represented to the court. Judge Lewis Kaplan, who revoked Bankman-Fried’s $250 million bail last month, had previously indicated the founder would have liberal jail access for trial prep. But Bankman-Fried’s lawyers say what’s been provided so far is inadequate compared to his previous prep while out on bail. “The government’s solution, such as it is, is unacceptable and violates Mr. Bankman-Fried’s Sixth Amendment rights,” Everdell’s missive opines. “Nor does it satisfy the Court’s expectation that Mr. Bankman-Fried would have ‘very liberal’ access to discovery ‘nine, ten, eleven, twelve hours a day,’” the lawyer concluded. What do you think about Bankman-Fried’s motion to get temporary release ahead of his upcoming trial in October? Share your thoughts and opinions about this subject in the comments section below. View the full article

From the genesis of Bitcoin’s inception to the contemporary landscape, the mystery surrounding the true identity of its architect, Satoshi Nakamoto, persists as an unrivaled enigma within the cryptocurrency realm. Despite the global reverberations stemming from bitcoin (BTC) and the revolutionary blockchain technology underpinning it, Nakamoto’s identity, modus operandi, and motivations for upholding an unwavering cloak of secrecy continue to be shrouded in the shadows. The Cryptic Enigma of Satoshi Nakamoto: A Virtuoso of Concealment in the World of Crypto Behind the moniker Satoshi Nakamoto, presumed to be a pseudonymous entity, lies the individual or collective entity credited with unleashing the Bitcoin network upon the world stage. Their hands penned the seminal Bitcoin white paper, forged the initial blueprint for its practical implementation, and orchestrated the debut of the inaugural blockchain ledger in January 2009. In the chronicles of Bitcoin’s evolution, Nakamoto played an instrumental role, their active engagement enduring until December 2010. Yet, the tapestry of their personal particulars, origins, and current locale remains a canvas left untouched by revelation. Through the passage of time, a whirlwind of conjecture has been spun regarding the elusive identity concealed beneath this cryptographic pseudonym. Reportedly, in an email to Gavin Andresen in 2011, Nakamoto wasn’t a fan of being dubbed mysterious and dark. Satoshi said: I wish you wouldn’t keep talking about me as a mysterious shadowy figure, the press just turns that into a pirate currency angle. Maybe instead make it about the open source project and give more credit to your dev contributors; it helps motivate them. Monikers of diverse software and cryptographic savants hailing from both the United States and Europe have emerged as putative contenders. Yet every single person has failed to prove that they had a part in creating Bitcoin. Nonetheless, Nakamoto’s sole breadcrumb — namely, their proclamation of being a male residing in Japan, housed within the creator’s P2P Foundation bio — is weighed with skepticism, given the profound layers of their clandestinity. Satoshi’s Wiki page indicates that most experts believe Nakamoto did not descend from Japan. The apparition of Nakamoto in 2008 did more than merely usher in a groundbreaking technology; it heralded a persona meticulously crafted to thrive in obscurity. The blockchain, the bedrock of Bitcoin, furnished the digital realm with an unprecedented stratum of intrinsic value. Nakamoto’s momentous reveal of this innovation was as abrupt as their subsequent retreat into the shadows. Shrouded in obscurity, Nakamoto wielded a profound latitude in the crafting of Bitcoin. This latitude extended beyond the realm of code and computation, allowing Nakamoto to weave together fragments of simulated personal information, further entwining the tapestry of their concealed identity. Nakamoto’s Secrecy: The Underlying Bedrock of Bitcoin’s Technological Marvel The brilliance underpinning Bitcoin was more than just a technological marvel; it resided in the creator’s unparalleled knack for eluding identification. Nakamoto’s strategic maneuvers ensured that even as their creation attained global acclaim, they themselves remained enshrouded in anonymity. In a manner mirroring Bitcoin’s genesis, this achievement of preserving secrecy should not be trivialized. Some proponents posit that Nakamoto’s preference for anonymity stems from a desire to safeguard against prospective legal or political reprisals, given Bitcoin’s potential to disrupt the status quo’s monetary system. Others contend it constitutes a philosophical assertion, underscoring Bitcoin’s decentralized, trustless essence. To date, Nakamoto has reaped the dual rewards of evading governmental persecution and sidestepping conjecture surrounding centralized dominion. Irrespective of the driving forces, Nakamoto’s veil of anonymity serves as a testament to the potency of privacy in the digital epoch. Amidst a landscape where personal data is frequently imperiled, leaked, and monitored by state entities, Nakamoto stands as an emblem of digital discretion. Through their cloaked identity, Satoshi Nakamoto has not merely altered the financial landscape but has also etched an enduring legacy in the annals of digital-era privacy’s paramountcy. What are your thoughts on Satoshi’s capacity to maintain privacy while developing Bitcoin and remaining absent for many years after the creator’s departure? Please share your viewpoints and opinions regarding this matter in the comments section below. View the full article

The Securities and Exchange Commission (SEC) has charged Los Angeles-based media company Impact Theory with offering and selling unregistered securities in the form of crypto asset tokens. Notably, this marks the SEC’s first lawsuit targeting an NFT offering. SEC Sues Impact Theory Over $30M in NFT Sales From October 2021 to December 2021, Impact Theory raised nearly $30 million by selling non-fungible tokens (NFTs) called Founder’s Keys without filing a registration statement or qualifying for an exemption, the SEC complaint details. The SEC found that the company violated Sections 5(a) and 5(c) of the Securities Act. The SEC order states that Impact Theory offered and sold NFTs known as Founder’s Keys at three pricing tiers, describing them as an investment opportunity and promising “tremendous value” to purchasers. Impact Theory compared the investment potential to investing early in successful companies like Disney and Youtube, claiming the proceeds would fund business growth to enrich token holders. However, the company did not register the tokens as securities or qualify for an exemption. “Absent a valid exemption, offerings of securities, in whatever form, must be registered,” Antonia Apps, director of the SEC’s New York Regional Office stated in the regulator’s press release. “Without registration, investors of all types are deprived of the protections afforded them by the robust disclosures and other safeguards long provided by our securities laws.” Impact Theory sold nearly 14,000 Founder’s Keys to at least hundreds of investors across the U.S., raising almost $30 million worth of ether cryptocurrency. The company pooled the proceeds in a crypto wallet and used some funds to pay vendors. After the unregistered offering began, Founder’s Keys also traded on secondary markets where Impact Theory programmed the tokens to earn royalties from sales. As a result of failing to register the securities or qualify for an exemption, the SEC found Impact Theory violated federal securities laws. The company agreed to pay over $6 million in disgorgement, interest, and penalties without admitting or denying the findings. Impact Theory also agreed to destroy tokens in its possession and revise the NFT smart contract code to remove royalties. What do you think about the SEC suing Impact Theory over its NFT sales? Share your thoughts and opinions about this subject in the comments section below. View the full article

During the Rare Evo blockchain and cryptocurrency convention, Cardano’s founder Charles Hoskinson expressed his conviction that ADA will eventually become the “biggest cryptocurrency in the world.” Simultaneously, ADA’s value has plummeted 15.2% against the U.S. dollar over the last month, earning it the seventh-largest spot based on crypto market capitalizations. Cardano Poised to Outshine Bitcoin and Ethereum, Claims Founder Charles Hoskinson At the recent Rare Evo blockchain event, Charles Hoskinson, an Ethereum co-founder and Cardano founder, shared his thoughts on ADA. He anticipates that ADA will eventually overtake Bitcoin (BTC) and Ethereum (ETH) by climbing to the top of crypto asset rankings worldwide. “So, that is our challenge, and this is why I think that Cardano is probably going to become the biggest cryptocurrency in the world,” Hoskinson opined from the main stage. “I think that it’s going to become more than just a cryptocurrency. I think it’s going to become the backbone of a new digital nation, a new society—a place where we can finally begin to trust each other again, where we move from ‘don’t be evil’ to ‘can’t be evil,'” added Hoskinson. Nonetheless, ADA, the digital currency built on Cardano, has recently struggled in the market. Over the past month, ADA has lost 15.2%, and two-week figures reveal a 9.2% drop against the greenback. Furthermore, in U.S. Securities and Exchange Commission (SEC) lawsuits, ADA has been identified as a security by authorities. The Cardano development team fired back with their response, stating: Under no circumstances is ADA a security under U.S. securities laws. Cardano currently has $161.8 million in total value locked (TVL) within its decentralized finance (defi) ecosystem. Base, a defi blockchain backed by Coinbase and launched just weeks ago, already surpassed Cardano in TVL amounts with $185.53 million. In terms of weekly non-fungible token (NFT) sales, Cardano falls below Bitcoin, taking eighth place with $1,507,729 in digital collectible sales over the past week. Cryptoslam.io all-time statistics reveal that Cardano holds the sixth-largest position, amassing $612,699,836 in sales. What do you think about Charles Hoskinson’s opinion shared at the Rare Evo blockchain event? Share your thoughts and opinions about this subject in the comments section below. View the full article

Polygon climbed higher for a third straight session on Monday, as the token continued to move away from a recent support point. After a mostly bearish weekend, crypto markets eased back into the green to start the week. Shiba inu was a notable exception, as it extended a recent downtrend. Polygon (MATIC) Polygon (MATIC) continued to move away from a recent support point of $0.5380 on Monday, as bulls’ momentum made a partial return to the market. After trading at a low of $0.5479 on Sunday, MATIC/USD surged to an intraday peak of $0.5624 earlier today. The rally saw polygon climb for a third straight day, pushing price closer to a one-week high in the process. From the chart, it appears that the surge took place as the 14-day relative strength index (RSI) broke out of a ceiling at 31.00. As of writing, price strength is now tracking at 33.61, which is its highest point since August 16. Should momentum continue to surge, the next target for bulls will likely be around the 43.00 mark. Shiba Inu (SHIB) Shiba inu (SHIB) dropped lower for a fifth straight session to start the week, hitting a six-day low in the process. SHIB/USD fell to a bottom of $0.000007911 earlier in the day, following a high of $0.000008118 the day prior. However, as the day progressed, the cryptocurrency has rallied, and as of writing is currently trading at $0.000008156. This comes as the RSI bounced from a floor of 40.00, and is now tracking at 43.93, marginally below a ceiling of 45.00. In the event that this upcoming resistance point is broken, it is likely SHIB will move past $0.00000850. Register your email here to get weekly price analysis updates sent to your inbox: Can shiba inu bulls regain market sentiment this week? Let us know your thoughts in the comments. View the full article