March 26

“CBDCs are rising up the mainstream agenda. In a few short days, CBDCs have gone from being fringe to getting support from U.S. senators. Many in the crypto community see this as validation of both an asset class and a set of ideas about the future of the financial system.  

‘[CBDCs] aren’t a question of if, but when.’ A dollar stimulus airdrop is the perfect test application.

But not everyone takes such a rosy view of this solution.

There are huge security concerns. The Fourth Amendment is at stake here. Digital Dollar Fed Accounts for consumers [are] worse than the Bank Secrecy Act. Why? Because now the Fed will have direct access to all of your financial transactions AND direct control over the ledger.”

“The report did not mention any specific stablecoins by name (though the example looks a lot like the Facebook-led Libra project).

The 31-page examination stressed that jurisdiction and regulation ultimately depend on project specifics. IOSCO argues in the report, though, that ‘the more decentralised the arrangements are, the higher the challenges may be.

If the coin project were to grow to become a financial market infrastructure (FMI), ‘it would be expected to comply with’ the principles for FMIs (PFMIs) from the Bank for International Settlements.”

“A U.S. judge ordered messaging platform Telegram to refrain from issuing its gram cryptocurrency next month as planned.

In a preliminary injunction the US District Judge said the SEC had demonstrated a plausible case that Telegram had sold unregistered securities.

Considering the economic realities under the Howey test, the Court finds that, in the context of that scheme, the resale of Grams into the secondary public market would be an integral part of the sale of securities without a required registration statement.”

See Also: Telegram Appeals Court Ruling Barring Gram Token Distribution

A U.S. court order may have barred Telegram from launching its blockchain, but that doesn’t mean others can’t.

In order to get recognized, we will need to come to an agreement with investors.

According to one of the investors who asked to stay anonymous, approximately half of the investors at the moment want their money back, on any terms, while the other half would like to see Telegram come up with some way to still issue tokens.

The foundation’s response underscores the limits of government powers to regulate open-source technology. As with 3D-printed firearms, the state can stop specific individuals or groups from running code, but if it’s in the public domain others can take up the mantle.”

Chico Crypto talks Bailouts

“Vitalik Buterin posted a tweet on March 24 claiming that the continuing lack of easy movement between the Ethereum and Bitcoin networks was embarrassing.

As a solution, he proposed putting resources into building a decentralized exchange (DEX), to act as a trustless bridge between the two.

“Crypto-lending platform Nexo has today opened up the option of using PAX Gold (PAXG) as collateral against its loans to retail investors.

Nexo’s announcement means that collateralized borrowing against high-grade gold is now no longer the preserve of the ultra-rich.”