24 September

“The Chamber of Digital Commerce, a blockchain advocacy group based in Washington, D.C., announced Wednesday that former acting White House chief of staff Mick Mulvaney has joined the group’s board of advisors. The blockchain advocacy group also said Visa, Goldman Sachs and Six Digital Exchange (SDX) have joined the group as executive committee members.

The advocacy group’s founder, Perianne Boring, said that diverse leadership with experience in both the public and private sectors was needed to assure the future of blockchain technology in the United States.

I believe U.S. advancement of blockchain development and policy is crucial to our continued success as a global leader in technological evolution.”

See Also: Coinbase Hires Executives From Venmo, Adobe and Google

“Last week, Vitalik and I released EIP-2982: Serenity Phase 0.

The release of this EIP, together with the selection of the final v1.0 mainnet parameters and the launch of the deposit contract (tbd, very soon), are some of the final remaining milestones before mainnet.

Phase 0 mainnet is coming soon (no “™️” necessary), and everyone involved is making their final preparations for launch🚀”

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“[The Fed] propose creating a monetary tool that they call recession insurance bonds, which draw on some of the advances in digital payments, which will be wired instantly to Americans.

Congress would grant the Federal Reserve an additional tool for providing support—say, a percent of GDP [in a lump sum that would be divided equally and distributed] to households in a recession. The Cleveland Fed president writes that:

“The experience with pandemic emergency payments has brought forward an idea that was already gaining increased attention at central banks around the world, that is, central bank digital currency (CBDC).

Legislation has proposed that each American have an account at the Fed in which digital dollars could be deposited, as liabilities of the Federal Reserve Banks, which could be used for emergency payments.

In launching digital cash, the Fed would then be able to scrap “anonymous” physical currency entirely, and track every single banknote from its “creation” all though the various transactions that take place during its lifetime. And, eventually, the Fed could remotely “destroy” said digital currency when it so decides. Oh, and in the process the Fed would effectively disintermediate commercial banks, as it would both provide loans to US consumers and directly deposit funds into their accounts, effectively making the entire traditional banking system obsolete.

To summarize, the wheels are already turning on a plan that sees the Fed depositing “digital dollars” to “each American”. Why? Absent a massive burst of inflation in the coming years which inflates away the hundreds of trillions in federal debt, the unprecedented debt tsunami that is coming would mean the end to the American way of life as we know it.

“Bitcoin Lightning developer, Joost Jager, has outlined an exploit of the micro-payments network that could result in channels being compromised with very little effort and negligible cost.

The attack could be carried out on wumbo channels, which essentially allow larger transactions between mutually agreeing parties on the Lightning network.

If the script kid is lucky, they only need to send 54 payments to get it done. A single tiny channel takes double-digit amounts of Bitcoin out of business.

When asked whether this ‘griefing attack’ is the biggest unsolved attack vector on LN today, he added:

That depends on how you define biggest. There are other attacks that can make you lose money which seems worse. But this one is one of the biggest in terms of not knowing how to solve it.

“OUSD will be backed one-for-one by the three big stablecoins on Ethereum: Tether’s USDT, Circle and Coinbase’s USDC and MakerDAO’s DAI. Users can mint OUSD by depositing any of those three into Origin’s new app, or they can just buy it on Uniswap. Either way, the OUSD will just start growing in their wallet, no further action needed.

On the backend, Origin will take deposits and start yield farming them in different protocols, starting with the DeFi money market Compound. OUSD will also be integrated into all the stores in Origin’s DShop, its ecommerce platform.

For merchants that have traditionally been skeptical of receiving cryptocurrency payments, being able to accept a yield-bearing instrument that beats traditional savings accounts is a powerful motivator.

We want to make DeFi much more accessible.”

See Also: Europe’s central bank is concerned about possible runs on stablecoins

“The move is part of a broader crackdown on money laundering in China. Facing the brunt are China’s over-the-counter (OTC) crypto dealers. The move has to lead to many crypto OTC dealers shutting down their business in fear of repercussions.

Some crypto OTC accounts have reportedly been put on a “blacklist” maintained by the PBoC and are forbidden to use bank-issued cards for the next three years or conduct online transactions in the next five years.

However, some industry observers say the blacklisting does not apply to simple cryptocurrency sales. ‘Normal cryptocurrency transactions are not illegal, and only those involving black money and illicit assets will be frozen.’

China has no concrete laws on cryptocurrencies however, making the asset class a legal gray area and hence susceptible to the judgment of individual banks.”

Bitcoin Market Cycle ROI

“Parity Technologies has released the second version of its blockchain building kit, Substrate 2.0.

The new release gives developers additional tools to customize a blockchain ‘precisely for your application or business logic.’ Substrate 2.0 also includes modules for bringing off-chain data onto the blockchain using what it calls “off-chain workers.””

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“DeFi is a segment of the blockchain industry consisting of automated lending and trading platforms that aim eventually to displace banks and Wall Street firms. ‘This has got the potential to really change the way finance is carried out.

Cryptocurrency analysts say DeFi systems are likely to grow over the long term, though short-term risks are high in the nascent market.

Panxora’s new hedge fund, based in the Cayman Islands and scheduled to start trading on Nov. 2, will primarily buy tokens listed on big centralized cryptocurrency exchanges. That’s primarily because few if any decentralized exchanges can guarantee sufficient compliance with anti-money-laundering rules, and also because a token listing from an exchange theoretically implies some level of vetting.”

See Also: This Ethereum Startup Is Building a ‘DeFi Firewall’ for Institutional Investors
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“The government department responsible for regulating cryptos has legalized the mining industry. Any local entity wishing to mine cryptos must apply for a licence.

Unusually, all mining activities must be carried out through an official National Digital Mining Pool, with those who operate outside it to face penalties.

Centralizing mining in this way will mean that the government is able to control any income earned from the pool’s combined mining rewards. Thus the government could potentially freeze or delay miners’ payments or levy any taxes before payments have been made.”

See Also: Russian government prioritizes blockchain development
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“Nigeria has led the continent’s growth in 2020, posting weekly P2P volumes of between $5 million to $10 million, followed by Kenya and South Africa with between $1 million and $2 million a week each.

The increasing demand for crypto is being driven by the benefits that virtual currency offers over the notoriously exclusive local banking sector. Reitz notes that crypto assets are seeing increasing popularity among Africa’s large community of workers who live away from their home countries.”

“Part of an art project that combines 40 paintings carrying a transcription of the code behind the Bitcoin blockchain is set to go under the hammer at Christie’s New York. 

The auctioned artwork is also associated with an Ethereum-based non-fungible token (NFT), which will serve both as a way to prove authenticity and be a digital representation of the physical painting.

This is Christie’s first time presenting a work that explores crypto culture at auction and, as ever, we are very excited to welcome new audiences and collecting communities.”