6 October

“On Monday DOJ prosecutors unsealed a criminal indictment against McAfee, who faces charges of tax evasion and willful failure to file tax returns that could land him behind bars for over five years if convicted. His extradition to the U.S. is pending.

The announcement comes the same day that U.S. Securities and Exchange Commission (SEC) sued McAfee for allegedly pumping initial coin offerings (ICOs) without disclosing he was being paid to do so.

McAfee allegedly received BTC and ETH worth more than $11.6 million for promoting seven ICOs in 2017 and 2018. He also allegedly received $11.5 million in the promoted tokens.

McAfee’s extravagant posts (such as tweeting predictions about BTC price increases and promising to ‘eat my d**k on national television’ if such predictions did not pan out) … generated an enormous amount of publicity.

The SEC is seeking civil penalties and an order prohibiting McAfee from serving as a public officer again in future.”

“If passed, [the Bill] would recognize digital signatures on the blockchain as enforceable by law.

This is particularly important for the enforceability of smart contracts, which automate transactions or other contractual obligations according to binding, pre-specified rules.”

Three of the largest asset managers are diversifying their funds to hold blockchain stocks, throwing more establishment financial might behind bitcoin’s technology.

Charles Schwab has begun purchasing shares of Riot Blockchain, joining Fidelity and Vanguard – already investors in Riot, HIVE Blockchain Technologies, Hut 8 and BC Group – in allocating mutual fund holdings to a cryptocurrency company.

Riot Blockchain, based in the U.S., and HIVE Blockchain Technologies, based in Canada, provide services for mining bitcoin.”

ETHOnline: Scaling Ethereum in 2020 and Beyond – Vitalik Buterin

“Strong over-the-counter demand for wrapped bitcoin continues [with] a more than 160% increase over the $232 million minted in August.

Beyond WBTC, the supply of all forms of tokenized bitcoins grew 120% in September to over 121,000 BTC, up from nearly 55,000 BTC in August.”

Privacy-enhanced wallet services using coinjoin concepts (for example Wasabi and Samurai wallets) have emerged as a top threat in addition to well established centralised mixers.

Privacy coins may present a considerable obstacle to law enforcement investigations.

These statements echo comments made in June by the agency.

Europol’s report also included decentralized marketplace protocols as a “high priority threat”, specifically naming OpenBazaar. Actors labeled as threats in the report have also been ‘increasingly using hardware wallets‘ to securely store funds and private keys.”

See Also: The Web Wasn’t Built for Privacy, but It Could Be

“The report explained the pros and cons of personal wallets and storage versus centralized asset storage opportunities, such as exchanges.

An anonymous token-based central bank digital currency (CBDC) would pose particular security risks. These risks arise from how balances are aggregated and stored, how CBDC is used for transactions, and how various solutions such as e-wallets, crypto exchanges and banks compete to attract users.

In the digital asset world, tokenholders can make a huge number of wallets, spreading their funds in different allotments across those wallets. In response, possible solutions include caps on wallet holdings built into the CBDC.”

The next decade of innovation will prove decisive as state powers, global corporations and an increasingly assertive digital civil society vie for control over the lifeblood of our economic lives. Each of these new stakeholders has a vastly different set of aims and objectives.

For some, the reinvention of money is a chance to break free from state and corporate control. For others, it’s an opportunity to further entrench the dominant businesses of today – such as Facebook and Goldman Sachs, two of many big firms with their eye on the reinvention of money. And for governments, it is a chance to either defend the status quo in the case of the U.S. dollar, or create a new global hegemon, in the case of China’s central bank digital currency. If you want to understand our collective future, follow the money.

The digital economy that is emerging from this crisis will require digital money. But what kind? Who will win this battle for the lifeblood of our economic lives?”

“As the COVID-19 pandemic pushed the Egyptian economy into recession and deepening unemployment, more and more Egyptians see the benefits of trading and mining Bitcoin as an alternative source of income.

But while more Egyptians become interested in mining and trading cryptocurrencies, many are concerned that people could be targeted and accused of fraud without proper legislation. A law clarifying what activities can be considered legal or not around cryptocurrencies could come soon, according to experts.”

See Also: IBM Expands on Thailand’s Blockchain Solution for Government Bonds