• The US Treasury recently conducted a study on CBDCs, and found that its introduction could destabilize the banking sector while potentially increasing household welfare.
• Before now, US lawmakers expressed dissatisfaction with developing central bank digital currencies (CBDCs).
• The study also revealed that apart from banks’ destabilization and boost in household welfare, introducing the central bank digital currency may decrease the financial system volatility.
Introduction Of Central Bank Digital Currency (CBDC)
A recent study by the United States Treasury revealed that the introduction of central bank digital currency (CBDC) could potentially destabilize the banking sector while also having the potential to boost household welfare. Before now, US lawmakers expressed dissatisfaction with developing central bank digital currencies (CBDCs). In a new bill, the board noted that the Fed has no authority to develop and issue a central bank digital currency, as it may affect the privacy protection of digital asset investors.
Impact Of CBDC On Banks
Based on the Office of Financial Research’s study, the effect of these central bank digital currencies could be drastic given the economy’s current condition, and introducing a central bank digital currencies could lead to instability and reduced bank equity. It believes establishing a CBDC or stablecoin in the economy may raise competition between digital currency and bank deposits. This may push banks to increase deposit interest rates to reduce the spread between deposit and lending transactions. However, this will result in reduced equity for banks as they rely on deposits for their lending activities.
The research board claims there will be a slight gain for consumers amid this competition between digital currency and banks – up to 2%. Don’t wait! Jump on this Crypto Deal and get a 150% Welcome Bonus plus 100 Free Spins on your deposit today! The benefit might not last if competition favors digital currency however, as households will face financial instability due to this shift.
The study also revealed that apart from banks’ destabilization and boost in household welfare, introducing CBDC may decrease financial system volatility – asset price volatility dropping after integrating CBDC into economy. BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? 570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day only at Wild.io Play Now!
US Government Attacks Bitcoin In New Report While Promoting A CBDC It added that though introducing Central Bank Digital Currency (CBDC) can have potential benefits such as decreased system volatility and increased household welfare; it can also harm banks by reducing their equity levels due to increased competition from crypto-assets like Bitcoin or Ethereum .
• The US Securities and Exchange Commission (SEC) case against Ripple Labs is still pending a ruling from the judge in charge of the Southern District Court of New York.
• Bankrupt crypto lender Voyager Digital recently received approval from bankruptcy judge Michael Wiles to sell its assets and transfer its customers to Binance.US.
• According to Paul Grewal, Chief Legal Officer (CLO) at Coinbase, a striking passage in the ruling may provide a winning argument for Ripple based on the “fair notice” defense against the SEC.
SEC’s Case Against Ripple Labs Awaits Ruling
The US Securities and Exchange Commission’s (SEC) case against Ripple Labs continues to await a ruling by the judge in charge of the Southern District Court of New York.
Voyager Digital Approved To Sell Assets
Bankrupt crypto lender Voyager Digital recently received approval from bankruptcy judge Michael Wiles through a ruling to sell its assets and transfer its customers to Binance.US (even though the Department of Justice vetoed the decision).
Striking Passage In Ruling May Provide Winning Argument For Ripple
In his ruling, Wiles addresses the ambiguous legal situation for the crypto industry with strong words. Paul Grewal, Chief Legal Officer (CLO) at Coinbase, recommended via Twitter that everyone should read the ruling, pointing in particular to a striking passage which states: Regulators themselves cannot seem to agree as to whether cryptocurrencies are commodities that may be subject to regulation by the CFTC, or whether they are securities […] subject to securities laws, or neither, or even on what criteria should be applied in making the decision. This uncertainty has persisted despite the fact that cryptocurrency exchanges have been around for a number of years. According to Jeremy Hogan, an attorney popular in XRP community circles, this wording could be a winning argument based on Ripple’s “fair notice” defense against SEC enforcement actions.
Operation Choke Point
In recent days and weeks, US government’s “Operation Choke Point” against crypto industry has become increasingly apparent – with more pressure likely growing ahead as SEC plans expands enforcement actions beyond 100 entities according XRP community attorney John E Deaton . Fox Business journalist Charles Gasparino also noted similar sentiment via tweet about DoJ’s ‘Operation Choke Point’ style campaign targeting banks doing business with Crypto firms
“Fair Notice” Defense
The fair notice defense stems from Due Process Clause of U.S Constitution requiring criminal statute wording clear enough objectively show what is prohibited -looks like Ripple likely file Voyager Judge’s bankruptcy decision supporting Fair Notice Defense – good see judge put into words problem that Crypto projects face
What is Going On?
- The UK financial watchdog, the Financial Conduct Authority (FCA), has taken legal action against unregulated crypto ATMs in London.
- The FCA believes that unregistered crypto ATMs are “high risk” and could be used for illicit activities such as money laundering.
- The FCA is working with law enforcement partners to take action against operators of illegal crypto ATMs.
UK FCA Crackdown on Crypto ATMs
Crypto ATMs are one of the most popular technologies within the cryptocurrency industry. They are stand-alone machines that allow users to buy and sell crypto assets such as Bitcoin and Ethereum in exchange for cash. However, the UK’s Financial Conduct Authority (FCA) has seen this technology as a threat if it does not comply with regulations or register itself under any legal force. Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA stated “Crypto ATMs operating without FCA registration is illegal” and “we [FCA] will take action to stop this.” Last month, the FCA issued warnings to unregistered crypto ATM providers in the UK region, ordering them to cease all operations immediately. Legal proceedings shall be taken against providers who fail to comply with its warnings.
High Risk of Illicit Activities
The FCA believes that unregistered crypto ATMs pose a high risk when it comes to illicit activities such as money laundering. The regulatory body is currently working with National Economic Crime Centre and Metropolitan Police officers to inspect several sites suspected of hosting illegally operating crypto ATMs using their enforcement powers.
Regulation of Crypto Assets
As cryptocurrency adoption continues to grow rapidly around the world, regulators like the FCA have been trying their best to stay up-to-date with developments in the industry by introducing regulations and laws. This means that businesses need to register themselves in order for their products or services related to cryptocurrencies or blockchain technology can be legally accepted by customers across countries.
“Illegal” Crypto ATM Providers Face Severe Action
The FCA has made it clear that any providers who fail adhere its warning will face legal actions from them if they continue operating their business without registering first. The regulator aims at curbing any risks associated with unregistered crypto ATM providers by taking appropriate measures against them.
Regulators Take Stance on Regulation of Crypto Industry h2 >
Regardless of market conditions, regulators have continued clamping down on various sectors within the cryptocurrency industry. It seems like they want every business related to cryptocurrencies or blockchain technology should conform with necessary laws before they can start offering their services or products else face legal actions from them if they don’t adhere these regulations.
• Exodus wallet suggests potential support for Shiba Inu’s Shibarium layer 2 network.
• MetaMask launches SDK in Unity Asset Store that could massively benefit the Shiba Inu ecosystem.
• Chief developer of Shiba Inu, Shytoshi Kusama, draws attention to the launch of the MetaMask SDK.
Exodus Wallet Checks Shibarium Integration
One of the oldest non-custodial crypto wallets, Exodus, has announced via Twitter that it has “logged” Shiba Inu’s upcoming layer 2 network with its asset team. A SHIB community member requested the wallet provider via Twitter to integrate Shibarium and Exodus responded by noting that the request had been forwarded to the relevant department and suggesting an alternative way for SHIB army to add Shibarium’s ERC20-based tokens to their Exodus wallets themselves.
MetaMask Launches SDK
Chief developer of Shiba Inu, Shytoshi Kusama, drew attention to the launch of the MetaMask SDK which was launched in the Unity Asset Store. The SDK will allow developers to build decentralized applications (dApps) on top of Ethereum directly from within a game or virtual world created with Unity Engine. This could potentially open up new opportunities for developers to create innovative dApps based on NFTs or DeFi protocols such as Uniswap and Synthetix that are already integrated into MetaMask’s browser extension and mobile application.
Benefits For Shiba Inu Ecosystem
The integration of MetaMask into Unity opens up a vast range of possibilities for projects within the larger Ethereum ecosystem, especially those built using ERC20-compatible tokens such as those used by Shiba Inu’s layer 2 network Shibarium. With this new feature, developers can now easily create dApps that leverage both Unity’s powerful engine and MetaMask’s secure infrastructure – all without having to leave their current virtual environment or switch between multiple platforms. This could potentially be hugely beneficial for projects like Shibarium which are looking to build out their own ecosystems around NFTs and DeFi protocols by making them more accessible through games built with Unity Engine.
Growing Support For Shibarium
Should Exodus declare support for Shibarium, it would join a growing list of multiple platforms including Atomic Wallet and hardware wallet manufacturer Ledger who have already announced their support. This increasing level of external interest is likely further proof that projects like Shibarium are quickly gaining traction within both traditional finance circles as well as among crypto enthusiasts due to their potential ability to bridge traditional financial services with innovative blockchain solutions such as NFTs and DeFi protocols.
With its integration into Unity Asset Store via MetaMask’s new SDK, it looks like there is now even more potential for projects like Shibarium which are looking to revolutionize how people interact with blockchain technology in a fun yet secure way thanks to features like NFTs and DeFi protocols being made available through games built with Unity Engine . Combined with growing external interest from companies like Exodus who may soon announce official support for Shibariam , things look promising indeed!
• Jack Mallers, CEO of BTC payment provider Strike, compares the top cryptocurrency Bitcoin to a central bank.
• The first block in the Bitcoin chain, called the Genesis block, contains a newspaper headline from 2008 about banks seeking emergency assistance.
• Despite being created in protest to such policies as those implemented by central banks and governments, central banks bailing out other banks is exactly what they’re supposed to do.
Bitcoin Compared to a Central Bank
Bitcoin is often thought of as digital gold, a speculative investment, an experiment or decentralized replacement for fiat money. However, Strike CEO Jack Mallers has recently compared it to a central bank — more specifically the “central banking system of the internet.”
The Genesis Block
Within the coinbase of the first block in the Bitcoin chain (known as the Genesis block), there is text that reads “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.” This refers back to efforts by governments and central banks to save smaller banks from collapse during The Great Financial Crisis of 2008.
Central Banks are designed to control money supply, inflation and interest rates as well as act as lender of last resort — preventing bank runs which occurred prior to 1929 Wall Street Panic. Despite Bitcoin being created in protest against these policies which citizens have no say in — it is ultimately what they are designed for.
Internet Banking System?
This raises questions over whether it is accurate enough to call Bitcoin “the ‘central banking system of the internet'”, or compare it at all with traditional centralized banking systems.
BTC vs Stock Market Since 2008
To help understand this debate further we can look at how BTC performance has compared with stock markets since The Great Financial Crisis. From 2009-2019 BTC rose from 0-3200% while S&P500 stocks grew approximately 180%.
• Shytoshi Kusama, lead developer of Shiba Inu, hinted that the highly anticipated Shibarium layer-2 blockchain could launch as soon as before May.
• Despite the potential hint given by Kusama, tokens backing the soon-to-be-launched layer 2 networks are still in the red along with other altcoins in the market.
• An influencer named Lucie shared a screenshot of a conversation between Kusama and a person where he jokingly suggested that maybe Shibarium will be released on Valentine’s day.
Shibarium Layer-2 Blockchain
The crypto market is currently abuzz with speculation surrounding the upcoming launch of Shiba Inu’s Shibarium layer-2 blockchain. Lead developer Shyoshi Kusama recently provided a hint on its potential launch date – before May 2021.
Excitement Among SHIB Community
The updated hint has further stoked excitement among members of the SHIB community who have been eagerly awaiting this much anticipated catalyst which could move the price of SHIB significantly higher.
Kusama Urges Community To Be Sympathetic
Kusama has urged members of the community to be more sympathetic and read the room as one of its developers recently lost his father. He asked them to focus on mourning instead of worrying about when Shibarium would be released.
SHIB Plummeting Despite Launch Date Hint
Despite the potential hint given by Kusama, tokens backing Shibarium are still very much in the red along with other altcoins in the market over recent weeks. SHIB started 2021 positively but is now struggling with shorters over recent days due to regulatory scrutiny faced by cryptocurrencies across markets.
Shiba Inu’s highly anticipated Shibarium layer-2 blockchain is expected to potentially launch sometime before May 2021, according to its lead developer Shyoshi Kusama. Although there is an air of excitement within its community, tokens backing it remain largely bearish against broader markets despite speculations surrounding its projected release date.
• Genesis Trading and Digital Currency Group (DCG) have reached an agreement over a debt dispute.
• To raise capital to pay creditors, DCG is selling shares in Grayscale Bitcoin (GBTC) and Ethereum (ETHE) Trusts at a discount.
• Selling these shares could have a massive impact on the discount to NAV of the trust, though DCG may not be allowed to sell more than 1% of its outstanding shares without separate approval from the SEC.
Genesis Trading and DCG Reach Agreement
After a long back-and-forth, Genesis Trading and Digital Currency Group (DCG) have reached an agreement regarding their debt dispute.
DCG Selling Shares in Grayscale Trusts
In order to generate funds to pay creditors from Genesis Trading, DCG has begun selling shares in several of its most valuable Grayscale trusts at a steep discount. According to US securities records seen by the Financial Times, Grayscale’s Ethereum Trust is currently the focus of DCG’s sales activities, with about a quarter of its shares sold since January 24th for around $22 million. Each share entitles investors to $16 worth of Ether but is being sold for about $8 per share.
Selling GBTC Could Impact Discount To NAV
At this time it remains unclear whether or not DCG plans on selling any of its GBTC holdings as well in order to raise liquidity. However if they do so it could have a major impact on GBTC’s discount rate relative to Net Asset Value (NAV). Currently GBTC’s discount rate stands at 43%. Furthermore, according to US law, DCG cannot sell more than 1% of its outstanding GBTC shares each quarter without receiving separate approval from the Securities and Exchange Commission. If they were allowed that much it would take 2.5 years for them to sell all their holdings in the trust.
Future Uncertainty For Crypto Markets
The future looks uncertain for both Bitcoin and Ethereum markets as there are still many unanswered questions surrounding this situation such as how much impact will these sales have on their respective prices? What if no SEC approval is granted? Will other shareholders follow suit? All these questions remain unanswered at this time but crypto traders should keep an eye out for any further developments regarding this story as it may affect their investments significantly in the near future.
Though both parties involved have come to an agreement over their debt dispute with Genesis Trading, there are still plenty of unknowns when it comes to what implications this might have for cryptocurrency markets moving forward – especially if DCGs sales continue or increase beyond what regulators allow them legally without prior approval from the SEC. For now traders should just keep an eye out for any new news related to this incident as it might affect their portfolios greatly moving into 2021
• FTX crypto exchange recently collapsed, leading to intensified regulation of crypto-related activities and platforms like Binance.
• Bitzlato is under investigation by the US DoJ for unlicensed money transfers, and Binance is the most significant Bitcoin counterparty.
• Customers on Binance have complained about their accounts being blocked without warning.
The collapse of the crypto exchange FTX recently has put the entire crypto industry on high alert. While the cause of the collapse is still under investigation, most global regulators have intensified their watch on crypto-related activities and platforms like Binance. One such platform under investigation is the crypto exchange Bitzlato, which is currently being probed by the United States Department of Justice (DoJ).
The DoJ has discovered incriminating facts regarding money laundering activities on the platform and has subsequently charged the crypto exchange’s founder and majority owner for unlicensed money transfers. FinCEN’s recent report has revealed that Binance is the most significant Bitcoin counterparty for Bitzlato, with large transactions from Bitzlato using Binance as their landing custody in an attempt to conceal the source of the illicit funds.
As a result of these investigations, Binance has been taking action and is closing some accounts related to Bitzlato’s probe into money laundering, as noted by some users. This has led to an outcry from customers, who have taken to Telegram to complain about their inability to withdraw funds from their accounts on the exchange platform. Over 1,000 users are estimated to be affected by the account blocks on Binance, which were implemented without warning.
Overall, the collapse of FTX has led to a heightened level of regulation and scrutiny being placed on crypto-related activities and platforms like Binance. As a result, Bitzlato is currently under investigation by the US DoJ for unlicensed money transfers, and Binance is the most significant Bitcoin counterparty for the exchange. Customers on Binance have been affected by the account blocks, which were implemented without warning, sparking an outcry from those affected.
– Elon Musk’s influence on the Dogecoin community and the price of the meme coin is still very prominent.
– If Musk were to start promoting Dogecoin again, the price would quickly reach a new all-time high.
– A 70,000% rally from Musk’s shilling in 2021 took the altcoin from $0.0011 to $0.78, and another consistent push from Musk could easily put Dogecoin ahead of the rest of the market.
The influence of Elon Musk on the Dogecoin community and the price of the meme coin is undeniable. Since 2021, Musk has been an avid supporter of Dogecoin, and his promotion of the cryptocurrency saw the price of DOGE rally over 70,000%, taking it from $0.0011 to $0.78. Even though the price of Dogecoin has trended low since its all-time high of $0.7, there is always the possibility of Musk resuming his very public support for the meme coin.
Under such circumstances, the price of Dogecoin would quickly reach a new all-time high. The current position of DOGE’s price is much lower than it was before Musk started posting about it, and if he started doing that again, the price of the meme coin could easily surpass $5. If Musk were to repeat his 2021 success with Dogecoin, the price could go as high as $60. While this may not be realistic, it is undeniable that Musk’s full weight of publicity would cause the price of Dogecoin to soar.
However, the price of Dogecoin is not the only factor that is influenced by Musk’s presence. His promotion of the cryptocurrency has also caused the community around Dogecoin to grow. Due to his influence, more and more people have become aware of the cryptocurrency and its potential, and as a result, the Dogecoin community has seen an increase in its user base.
All in all, it is clear that Elon Musk’s influence on Dogecoin is still very significant, and if he were to start promoting the meme coin again, it would have a drastic effect on the price of the cryptocurrency. Whether or not the price of Dogecoin will reach its 2021 heights remains to be seen, but there is no doubt that Musk’s presence in the Dogecoin community would have a positive effect on the cryptocurrency.
• South Africa has mandated new guidelines to protect consumers from unethical advertising related to cryptocurrency products and services.
• These guidelines include that crypto adverts must “expressly and clearly state that investments may result in the loss of capital as the value is variable and can go up as well as down”.
• Crypto adverts must also give balanced messages around returns, features, benefits, and risks related to the associated product or service.
The South African Advertising Regulatory Board (ARB) recently released an updated code of advertising practice to address the need for consumer protection in the rapidly developing crypto market. The code includes a set of newly implemented guidelines for companies and individuals dealing with cryptocurrency products and services in South Africa.
The ARB is aiming to ensure that crypto adverts are transparent and properly inform consumers of the risks associated with investing in the volatile cryptocurrency market. Adverts must include detailed explanations of the offer, including a “clear and easily understandable” explanation of the product or service being advertised. Additionally, it must “expressly and clearly state that investments may result in the loss of capital as the value is variable and can go up as well as down”.
The ARB has also mandated that crypto adverts provide balanced messages related to returns, features, benefits and risks associated with the product or service. Companies and individuals must be upfront about potential investment losses and refrain from sugar-coating or denying warnings related to these risks.
The ARB is taking these steps to ensure that South African consumers are informed and protected from unethical, misleading or deceptive advertising practices related to cryptocurrency products and services. The board believes that, by providing clear and transparent information, crypto adverts can help protect consumers from the potential risks associated with investing in the volatile cryptocurrency market.