18 November

“Outgoing U.S. President Donald Trump has nominated Acting Comptroller of the Currency Brian Brooks, an advocate for crypto-friendly reforms, to lead the national bank regulator on a permanent basis.

Brooks has been serving as Acting Comptroller after his predecessor, Joseph Otting, announced his decision to step down in early May. The U.S. Senate Banking Committee oversees the OCC, and will likely hold a confirmation hearing before the entire Senate votes to confirm or reject Brooks’ nomination.

Since being named Acting Comptroller by Treasury Secretary Steven Mnuchin, Brooks has made a number of moves to integrate crypto with the historically gun-shy banking sector.”

See Also: Cynthia Lummis, Wyoming’s Incoming Senator, Wants to Explain Bitcoin to Congress

“The top 10 decentralized applications (dapps) on the Ethereum blockchain have reached 1,017,760 daily active users on average over the past month.

Unsurprisingly, decentralized finance (DeFi) platforms accounted for over 94% of this activity.”

“Open interest, or the total number of outstanding derivative contracts, on CME Group’s bitcoin futures market reached its highest level since mid-August as iconic players in traditional markets, like Stanley Druckenmiller and Bill Miller, expressed optimistic opinions about bitcoin.

CME’s growth relative to other exchanges is ‘indicative of institutional investors wanting exposure to bitcoin.'”

See Also: Ray Dalio admits he ‘might be missing something’ about Bitcoin as it surges past $17K

A closed-end investment fund, it will invest directly in bitcoin and will be priced using the Bloomberg Galaxy Bitcoin Index.

The firms aim to bring fund investors access to bitcoin via an “institutional-quality” platform.”

See Also: This $29B Asset Advisory Is Giving Wealth Managers and Clients a Bitcoin On-Ramp

The company’s future success will … depend on our ability to adapt to emerging technologies such as tokenization, cryptocurrencies [and] new authentication technologies.

It further lists distributed ledger and blockchain technologies, as well as biometrics, artificial intelligence, virtual and augmented reality and cloud technologies, as being possibly key at a future time.”

“With this release, a new range of new assets and chains enter the world of interoperability: Bitcoin (BTC), Bitcoin Cash (BCH), DigiByte (DGB), Dogecoin (DOGE), Filecoin (FIL), Terra (LUNA), Zcash (ZEC) on Ethereum.

With the release of the Multichain into RenVM, adding new assets will be increasingly more efficient. Achieving interoperability from one chain to another was just the beginning, and now, RenVM is beginning to take the first concrete steps towards a fully connected ecosystem of chains.”

“The total value of assets locked in leading decentralized exchange Uniswap has plummeted by 38% in 24 hours amid the conclusion of its UNI liquidity rewards program on Nov. 17.

Meanwhile, “vampire” clone SushiSwap has doubled its TVL and is aggressively pursuing additional liquidity.

Following the sharp decline in Uniswap’s liquidity, token holders have embarked on the process of voting for a new governance proposal that seeks to reinstate rewards. The new proposal cuts the amount of UNI rewards in half compared to the former program.”

How To Survive & Thrive In DeFi

“At the beginning of October, we invited the Ethereum community to join us at ETHOnline, ETHGlobal’s largest event of 2020. After HackMoney and HackFS, ETHOnline was our third longform virtual hackathon in 2020.

  • Over 1,000 Applications
  • 710 Hackers participating
  • participation from 65 countries, 19 timezones
  • 175 Project Submissions
  • 39 hacker focused events (Playlist here): workshops, AMAs, brainstorm / team formation/ feedback sessions
  • 36 judges (Judging Sessions Playlist here)
  • 12 Finalists (see their Finale presentations here)

We were amazed to see the high quality of submissions across the board. Check out the Finalist list below.”

“Chinese conglomerate Tencent Holdings is joining forces with blockchain company ShareRing to launch a new digital identification system to streamline international travel amid the COVID-19 pandemic.

Specifically, ShareRing will use Tencent Cloud’s optical character recognition and facial recognition technology to help improve its “self-sovereign identity app.”

Blockchain is said to provide more secure management and storage of digital identities, which may enable seamless travel, background checks, health record collection and streamlined Know Your Customer protocols.”

17 November

A senior analyst at U.S.-based financial giant Citibank has penned a report drawing on similarities between the 1970s gold market and bitcoin. The whole of bitcoin’s existence has been characterized by major price swings, ‘exactly the kind of thing that sustains a long-term trend.’

A decoupling of gold from fiat currencies, the COVID-19 pandemic and the desire for central banks to pursue aggressive quantitative easing policies could lead to future explosive price growth in bitcoin, according to Fitzpatrick.

Fitzpatrick pointed to bitcoin’s weekly chart and used technical analysis (TA) of prior highs and lows to determine a target of $318,000 by December 2021.”

See Also: $1T market cap is ‘next big resistance’ for Bitcoin — Bloomberg analyst
See Also: Coinbase Goes Down as Bitcoin Nears $17K

“The value of the Global Negative-Yielding Debt Index from Bloomberg and Barclays is now at a record level of $17.05 trillion, surpassing the previous lifetime high of $17.04 trillion reached in 2019. The figure has more than doubled in the past eight months.

A negative-yielding bond offers less money at maturity than the original buying price. The sharp rise in volume is the result of the massive liquidity-boosting bond purchases by the U.S. Federal Reserve and other major central banks.

The towering stockpile of bonds yielding negative returns is said to be an incentive for investors and corporations to pour money into inflation-resistant assets such as bitcoin.

The more central banks print money and push bond yields lower to contend with ongoing stress in the global economy, the more compelling the economics around bitcoin become.

John Ng Pangilinan, a managing partner at Singapore-based Signum Capital, expects yield-hungry investors to pour money into bitcoin. ‘On our end, we are seeing an uptick in the number of investors looking at earning yield from lending out bitcoin.'”

“In a series of filings with the U.S. Securities and Exchange Commission published Friday and Monday, the $9.2 billion asset manager helmed by the one-time spokesman of U.S. President Trump signaled that two of its funds ‘may seek exposure to digital assets.’

According to the filing, SkyBridge seeks exposure to all forms of “digital assets” – even the riskiest.

Investment Funds may invest in digital assets without restriction as to market capitalization or technological features or attributes (including lesser-known or novel digital assets known as ‘altcoins’) and may invest in initial coin offerings, which have historically been subject to fraud.”

“Lewis told conference attendees that the majority of jurisdictions have now transposed the guidelines into domestic law.

However, when it comes to crypto businesses—known formally as “virtual asset service providers,” or VASPs—Lewis said that their adaptation to the travel rule and wider FATF framework remains “relatively nascent.” The travel rule is ‘not yet being implemented globally or effectively.’

Lewis indicated that the FATF plans to publish a second review of the implementation of its guidelines worldwide in June 2021.”

See Also: Why FinCEN Wants Details on All Cross-Border Transactions Over $250
See Also: SEC Chairman Jay Clayton Stepping Down at End of Year

Blockchain gaming platform Enjin is launching a bid to attract more enterprise business, and it has hired an executive with two decades of experience at Microsoft to lead the effort.

Solomon will work with corporate clients looking to create digital experiences using blockchain tech to improve customer retention, acquisition and engagement.

The aim is to offer a full-service stack enabling businesses to create token projects through a template-driven experience.”

See Also: Yearn Finance formalizes operations budget as YFI rallies
See Also: MakerDAO Loans Can Be Gamed to Hold Out Funds From Liquidation, Startup Finds

At press time, Bitcoin Cash ABC (BCH ABC) has received no hashpower, meaning that it is possible Bitcoin Cash Node (BCHN) will become the dominant software of the Bitcoin Cash network.

To recap, a group of Bitcoin Cash developers led by Amaury Sechet, known as BCH ABC, proposed an update on the Bitcoin Cash network, which has included a controversial new “Coinbase Rule,” which requires 8% of mined bitcoin cash to be redistributed to BCH ABC as a means of financing protocol development.

The upgrade is opposed by another group from the Bitcoin Cash community, known as Bitcoin Cash Node, who removed this so-called “miner tax” from their source code.

Before the fork, 80% of miners were signaling support for BCHN. Most major crypto exchanges have announced that they are likely to support BCHN and it will inherit the “BCH” ticker.

See Also: Coin.Dance

As Chinese authorities make it harder than ever to exchange cryptocurrency into fiat, miners may be forced to move to other jurisdictions, local sources say.

On Monday, crypto industry blogger Colin Wu tweeted that miners in China have been struggling to pay for electricity after the authorities started cracking down on over-the-counter (OTC) brokers in the country.

It’s currently a “challenge” for Chinese miners to convert bitcoin or tether into yuan because ‘many people have had their bank accounts frozen when exchanging crypto for [renminbi] on OTC platforms.'”

“In late 2015, Ethereum co-founder Vitalik Buterin sold half a million Ethereum (ETH) to Galaxy Digital CEO Mike Novogratz in an over-the-counter transaction. He sold each ETH for just $0.99. Today that nest egg would have been worth $229 million.

When buying a stake in ConsenSys became more complicated than Novogratz initially thought, he figured he should at least buy some Ethereum. ‘I was at least intelligent enough to say I’m not leaving until I buy some of the ethers.’

I called him [Ethereum cofounder, Vitalik Buterin] up; I had met him once at a dinner. He remembered me but didn’t know me. He thought it was good for the community to have a Wall Street guy buying, so I bought half a million ether at $0.99 maybe, $0.98. He changed the price on me at the last minute from 98 to 99 because I had waited too long, and the price went up.

And then I really became much more of a crypto maniac.”

The Disrupt Weekend

“Last week saw reports of voter intimidation, closed polling sites, fears of lost and late ballots and accusations of voter fraud. The COVID-19 pandemic has driven unprecedented levels of mail-in voting, a method which is secure but relies on an infrastructure that is already defunded and spread thin. These problems all build on top of the usual low turnout numbers and the legacy of voter suppression in the U.S.

What if we had a system in which everyone could vote from their mobile phone and open a browser to verify the results of an election, all without having to place trust in any central authority?

This system would enable civic participation to fundamentally shift as trust in collective decision-making grows and the barriers to direct democracy shrink. Many of the problems elections currently face, from poor security to voter turnout and beyond, could be ameliorated – if not completely solved – through blockchain voting.

Many projects claim to use blockchain for voting, but most only leverage it as a mechanism to publish votes that are collected and processed by another system.

In order to offer end-to-end verifiability, a blockchain voting system must allow ballots to be directly cast onto the blockchain. Under such a scheme, any voter can ensure that their vote has been counted. Furthermore, auditors can check the integrity of the system from start to finish.

The main problem with voting can be summarized as a dilemma between two seemingly opposed properties: anonymity and trust. An anonymous voting system would need to decouple transactions (ballots) from their origins. Enter zk-SNARKs.

Applied to voting, a zk-SNARK circuit could permit a voter to prove he or she belongs to a census and is able to cast a ballot, all without revealing their identity or allowing their ballot to be traced by others.

We now have a ballot that has no signature, and therefore can’t be traced back to an address, along with a proof that allows this ballot to be included in a completely end-to-end verifiable blockchain.”

This week the EF announced the Eth2 Staking Community Grants round in an effort to support a more delightful staking experience. This is an open call for proposals for grants that aim to enhance all things staking – tools, documentation, educational resources, etc.

This week, client developers led by protolambda launched the Toledo devnet – a 16k validator testnet with v1.0 mainnet configuration. Toledo is for initial v1.0 testing and continued developer experimentation.

Next week, we aim to launch Pyrmont – a 100k validator testnet mimicking mainnet conditions as closely as possible. Once Pyrmont is launched and stable, the testnet will be opened up to the community. Pyrmont can serve as a final place to test mainnet software releases and hardware setups in the run-up to mainnet launch.”

See Also: Eth2 Dev Update
See Also: The State of 1559 – Update 003

“The GridPlus cofounders began planning and designing the Lattice1 hardware wallet in 2017 and this week customers got their hands on the first wave of preordered units.

The Lattice1 is a next generation hardware wallet designed to replace the legacy hardware security options available today. It’s built for the current era in which people use cryptocurrency and decentralized systems every day instead of just storing them.

  • Back up your account to a PIN-protected SafeCard instead of keeping your seed phrase in a sock drawer. Firmware updates will enable support for easy N-of-M hardware multisig using SafeCards.
  • Securely sign your transactions from multiple paired devices via WiFi. The included Zigbee antenna enables communication with IoT devices.”

The Chinese government appears to view the payments giant as a destabilizing force to China’s economy, and the digital yuan is a way to keep companies like this in check.

Ant’s booming lending business has struck a nerve with China’s top financial regulators at a time when the country is already battling increasing default risks and weak banks. To curb fintech giants’ growing influence over the country’s economy, Beijing’s authorities proposed a new set of anti-monopolistic practices on fintech companies on Wednesday.

Industry watchers say the People’s Bank of China (PBoC) might use the digital yuan as part of a broader effort to curb the growth of Alipay and WeChat Pay. One way for the central bank to control Alipay’s lending business is to require the company to convert cash into the digital yuan to underwrite consumer loans.

The digital yuan can increase financial transparency and efficiency by helping banks better track and analyze non-performing assets.

For the central bank, it is very important that the underlying asset becomes the digital yuan. It can help the bank to solve many chronic problems in the financial system, including shadow banking, non-performing loans and too much informal financing.”

“The launch of 1inch V2 includes Pathfinder which is an API for an optimized discovery and routing algorithm. It also shipped with a more intuitive UI that’s a whole lot more customizable. Pathfinder is nice because it uses multiple ‘market depths’ within the same protocol—long-story short: this helps ensure the best rates on trades across 21 different DeFi liquidity source and cuts response time by a lot.

Traders can choose between the ‘Maximum return’ and ‘Lowest gas cost’ options. If you choose the ‘Maximum return’ option, the algorithm will use complex routes for the swap to make sure that you get the best rates. Alternatively, you can go for the ‘Lowest gas cost’ option where the pathfinder algorithm will find the best option in terms of gas costs.

With the advanced settings, the user can set slippage tolerance, the gas price and choose between the 22 liquidity sources 1inch offers.

In short, we think 1inch provides one of the best trading experience in DeFi.

Fidelity wants the world to warm up to Bitcoin. It spent an entire blog post yesterday defending the largest cryptocurrency by market cap—a technology that many consider would one day make Fidelity, a centralized financial institution, redundant.

Ria Bhutoria, director of research at Fidelity Digital Assets, the department at Fidelity responsible for handling cryptocurrencies, outlined a six-pronged defense for Bitcoin.

Most critics neglect the trade-offs Bitcoin purposely makes, conflating them for weaknesses, according to Fidelity’s evaluation.”

Grayscale, a digital assets management company, this week bought another 15,114 Bitcoin ($241 million), bringing the total number of Bitcoin the company owns to 506,000, or $8.1 billion. The company now manages a total of $10 billion worth of cryptocurrency.

Its total investments comprise 2.29% of Bitcoin’s entire market cap. On Thursday the company ‘raked in over $115 million in Bitcoin alone.'”

See Also: Galaxy Digital Makes Twin Acquisitions in Bid to Strengthen Institutional Appeal

14 November

“The Bitcoin (BTC) price, which is currently sitting at $16,320, has only been at this level or higher for 12 days in the coin’s entire 4,332-day history, representing just 0.28% of the cryptocurrency’s life.

By contrast, the majority of altcoins are yet to enter proportionally rare price ranges. Ether’s (ETH) current price of $464 has been exceeded 201 days in the past, representing more than 10% of the entire 1,933 days since the Ethereum network went live.

Bitcoin’s strong rise past $16,000 has also seen record volumes recently. With more than $5.5 billion in Bitcoin trading volume recorded on Nov. 5, only nine days have seen stronger volume in Bitcoin’s history.”

Blockchain to ‘Out-coordinate’ the Nation-state, and the Potential of Public Goods Funding Mechanisms to Overtake Government Services (Highly Recommended)

“Bank of England Deputy Governor Jon Cunliffe said it was not his central bank’s responsibility to protect banks from whatever impacts digital currency projects may bring.

Politicians must fast-track their analysis of central bank digital currencies to stay ahead of the private sector, he said.

Our job is not to protect bank business models.”

See Also: Privacy should be at the core of CBDCs, says Boston Fed research director
See Also: This Crypto Custody Breakthrough Will Bring Banks Closer to Digital Assets

“With UNI farms closing on Nov.17, the community has discussed what comes next. The call ended with no clear direction from Uniswap, and no proposals submitted for extending UNI farming or launching new pools.

Up to $1.1 billion dollars’ worth of ETH could be withdrawn from these four pools and either sold or reinvested into higher earning incentives.”

“Bitcoin flows to Binance from Huobi reached an all-time high since the Huobi chief operating officer, Robin Zhu, allegedly went missing on Nov. 2. For months, Chinese regulators have been clamping down on many crypto trading platforms.

A lot of users went to Binance because Chinese users are more familiar with Binance and Binance’s executives are all overseas.

The sentiment is very bad for all countries outside of China looking to do business with China at this time.

A possible, positive, long-term outcome of the crackdown for exchanges could be that it may encourage the regulators in China to eventually push some sort of a compliance process for crypto exchanges instead of banning them.”

“The innovation comes through the understanding that electric vehicles aren’t just alternatively-powered cars, but batteries on wheels.

This allows them to be used in a bi-directional charging scenario whereby they are charged up overnight using cheap electricity and can then supply excess power to the building at peak times during the day. The car owners are then credited for the power they provide. Blockchain is used to keep an automated ledger of transactions.

This technique can be used to stabilize the requirements placed on the power grid, and smooth out fluctuations in the provision of renewable energy sources.

You are going to have an abundance of battery reserve storage that’s just sitting there — most people only drive their vehicles 10% of the time.”

How to Hedge with Hegic On-Chain Put Options

“BitPay Send is a payout service with a focus on international and gig-economy companies looking to pay multiple recipients online simultaneously.

With the new service, companies don’t need to buy, own or manage cryptocurrency, while the recipients receive payment more efficiently and at a reduced cost. Recipients need to have a BitPay ID and cryptocurrency wallet in order to receive payment and companies are charged a 1% fee.

Blockchain payment adoption is growing because it offers an easy way to send and receive payments on a global scale.”

See Also: Ripple Files Trademark for Possible New Payments Service

13 November

All eligible PayPal account holders in the U.S. can now buy, hold and sell cryptocurrency. By acting so quickly and raising the purchase limit yet again, PayPal is clearly finding a warm reception for its crypto offerings.

Due to initial demand from our customers, we’ve also increased our weekly cryptocurrency purchase limit from $10K/week to $20K/week.

Plans to bring crypto services to Venmo and international customers in the first half of 2021 remain unchanged.”

You can now carry exposure to world oil markets in your decentralized finance (DeFi) portfolio. Outside of fiat-backed stablecoins, the product is one of the first real world assets to enter DeFi trading.

Pricing data for sOIL is supplied by data provider Chainlink, further sourced from ICE for an undisclosed sum.

Connecting key financial infrastructure to next-generation smart contracts is a key step in the continued evolution of the DeFi ecosystem.”

See Also: Total Value Locked in DeFi Sector Hits Record $13.6B
See Also: DeFi Dashboard Zapper Snags New Funding From Delphi and Coinbase Ventures
See Also: Tezos ‘Delphi’ Upgrade Slashes Gas Costs by 75%

“The move ended a week of consolidation in the range of $14,000 to $16,000. Bitcoin is now up 123% on a year-to-date basis and has gained nearly 50% so far this quarter.

Against the backdrop of stimulus from the Federal Reserve, we expect investors holding cash to continue to allocate to bitcoin.

The interest so far in 2020 has been primarily from institutions and we could see more retail participation when bitcoin breaks its previous all-time highs of $20,000.”

See Also: Bitcoin’s Options Market Shows Strongest Bullish Mood on Record

Lagarde said a digital euro would take extensive time to develop, including not just the underlying technology but anti-money-laundering controls and prevention of terrorism financing.

A digital euro will not be a substitute for cash. It will be a complement.”

See Also: EU will decide on digital euro in January 2021: ECB president

“Blockchain analytics platform BlockSeer has launched the private beta version of a new Bitcoin (BTC) mining pool — Blockseer Mining Pool — that censors transactions from blacklisted wallets.

The pool will use BlockSeer and Walletscore’s labeling data, among other verified sources such as the United States Office of Foreign Assets Control, or OFAC, blacklist for crypto to identify BTC transactions it does not wish to process. The pool also requires all miners to pass Know-Your-Customer protocols.

This is not an imminent problem, but it is coming. Now is the time to prepare for it.

The Stratum V2 draft is a complete overhaul that implements BetterHash, a secondary protocol that enables mining pool constituents to decide the composition of the block they will mine, instead of pools having control over which transactions to include in each block. This should make pool censorship impossible.

See Also: BitMEX crypto exchange steps up AML and trade surveillance measures
See Also: Listed firm sells $14M of shares for 1 EH/s in Bitcoin mining power

Available to users of MetaMask and any wallet that uses the WalletConnect protocol, Retrievable Transfer allows users to reclaim funds sent to the wrong address by generating a password that is entered by the sender. The receiver of the funds must also enter the matching password.

The use of our logic layer finally eliminates the need to send a test transaction, sharply reducing the level of anxiety users feel when transferring funds to a third party.”

“On Thursday, Chainalysis unveiled a program for storing and selling forfeited crypto. The program will likely cater to many of the same government clients that already pay Chainalysis millions of dollars annually to help trace illicit crypto transactions.

The U.S. Marshals Service, which runs those auctions, has been asking since April for a private-sector partner to help it manage and dispose of forfeited cryptocurrency.”

12 November

“China Construction Bank (CCB) has tapped Hong Kong-based digital asset exchange Fusang for the issuance of $3 billion worth of debt securities over a blockchain.

Notably, the digital securities will be exchangeable for bitcoin on the Fusang exchange, as well as U.S. dollars. Trading is slated to commence this Friday.”

See Also: World Economic Forum calls blockchain key to sustainable digital finance

“Announced Wednesday, LiquidStake, which is being launched by crypto trading firm DARMA Capital, will allow ether (ETH) stakers to take out USDC stablecoin loans against their staked assets while earning staking rewards from the new network.

Participants will not be able to ‘unstake’ those assets. So we’ve created LiquidStake, wherein users can earn staking rewards, and have their staked ETH be pledged as collateral to receive a USDC loan.

LiquidStake offers an ideal solution for ETH holders looking to stay liquid while staking.

LiquidStake is by no means the only attempt to solve this problem. Indeed, a taxonomy for liquid staking includes a number of smart contract protocols issuing tokenized claims on staked assets, such as Rocket Pool, Blox or StakerDAO.

In addition, U.S.-registered investment fund DARMA intends to allocate over $50 million worth of ETH to Ethereum’s new deposit contract.

One billion Dai in circulation is a huge milestone and a powerful validation that people around the world want more access, more transparency and more opportunity to maximize their economic potential.

MakerDAO was built to help people find a better, less biased and more transparent way to participate in the global financial system.

Maker currently has $2.3 billion in assets locked according to DeFi Pulse, making it the second biggest DeFi application on Ethereum, after Uniswap.”

See Also: DAI Stats

Uniswap’s current liquidity mining program is scheduled to end on Nov. 17, with the call set to discuss whether to extend the existing program or revise the scheme. The initial program allocated 5 million UNI for airdrop to liquidity providers in total, equal to 83,333 tokens daily.

Many believe the UNI airdrop and liquidity rewards program helped the exchange secure its position as the leading DEX in the face of numerous “vampire attacks.” However, the program may now have a negative impact on the price performance of Uniswap’s governance token — with the rewards program airdropping more than $260,000 worth of tokens daily.”

The cryptocurrency’s uptrend appears to have coincided with a meeting of high-ranking officials from China’s Hubei Province, VeChain and DNV GL Global, a global risk management firm, early last week. The meeting centered on the use of digital tools to revamp the public health system in the wake of COVID-19.

The new environment requires an innovative management model. VeChain’s blockchain technology can ensure the transparency, security, and credibility of all critical information, increase the cost of data fraud to infinitely high, and minimize the cost of supervision.”

“The Ethereum blockchain network suffered issues Wednesday morning, with knock-on effects at related service providers.

Those who haven’t been upgrading their Geth nodes for a while (I presume several months at least) got split with those with new Geth versions.

Third-party services need to upgrade to fix the issue.”

See Also: Ethereum withdraws / services were unavailable – Infura major outage (Video)
See Also: Ethereum’s ‘Unannounced Hard Fork’ Was Trying to Prevent the Very Disruption It Caused

“Crypto fund Polychain Capital has picked up a further 141 YFI—the token that powers Yearn Finance—in a move yesterday that expanded on its investment in the decentralized finance (DeFi) protocol.

The firm purchased 329 YFI just last week, and the token’s prices have jumped by more than 100% since then.”

See Also: Bitfinex to compete with DeFi with new borrowing service

“Dalio, who runs the world’s biggest hedge fund, Bridgewater Associates, said in the interview that he instead expects the world to increasingly turn to central bank digital currencies—such as a digitalized US dollar, euro or renminbi.

Theoretically, [Bitcoin] is good, but there are three basic things—a currency has to be an effective medium of exchange, a storehold of wealth, and the governments want to control it.

And they’ll [governments] use whatever teeth they have to enforce that, they’ll say you can’t transact a Bitcoin, you can’t have it. Then you’d have to be like, is it a felony, am I gonna be a felon? They outlawed gold.”

“Lyu said that the recovery process involved ‘on-chain tracking, contract upgrade and judicial recovery.‘ He also noted that the exchange will publish more details on reimbursement once the case is closed.

KuCoin has resumed full services for 176 tokens trading on its platform. He said that services for the remaining coins are scheduled to be reopened before Nov. 22.”

See Also: Cyberattackers Demand $11M in Bitcoin From Japanese Gaming Giant Capcom

11 November

“[Gensler] testified before Congress about cryptocurrency and blockchain on multiple occasions, pushing back against comparisons between cryptocurrencies and Ponzi schemes and declaring that the still-unlaunched Libra token met the requirements of being a security under U.S. law. At an MIT conference two years ago, he opined that there was a “strong case” XRP (XRP, +1.26%), the cryptocurrency closely associated with startup Ripple, is a security. Gensler called blockchain technology a “change catalyst” in a 2019 op-ed for CoinDesk.

Also on the list for the Biden review team for financial regulators are several other policy experts who have paid careful attention to cryptocurrency, blockchains and related matters:

  • Simon Johnson, an economist and professor at the MIT Sloan School of Management, where he led digital currency research.
  • Chris Brummer, a law professor and the faculty director of Georgetown University’s Institute of International Economic Law, testified in front of the U.S. Congress regarding Facebook’s Libra project.
  • Mehrsa Baradaran, a University of California at Irvine School of Law professor, specializes in banking law and also testified as an expert witness at a Senate Banking Committee hearing on regulatory frameworks for blockchain and cryptocurrencies.
  • Lev Menand, one of the original creators of the digital dollar concept, is an academic fellow and law professor at Columbia University.”

“The Acting Comptroller of the Currency presented the growing role of crypto in general and stablecoins in particular to the Senate today.

Today, roughly 60 million Americans own some type of cryptocurrency, with a total market cap of nearly $430 billion.

These figures clearly illustrate that this payment mechanism is now firmly entrenched in the financial mainstream. Cryptocurrency has become a popular mechanism for sending and receiving payments for goods and services because transactions post in real time and provide convenience and security.

It appears many Chinese miners have completed their annual migration from Sichuan, with Bitcoin’s hash rate spiking more than 40% in two days.

The sudden spike in mining activity suggests the network is likely to produce another significant difficulty adjustment.”

Bitcoin’s market cap is rapidly surpassing the monetary base of multiple national currencies, and it looks like the Canadian dollar is next.

As Bitcoin (BTC) blasted through the $14,000 level, its market capitalization surpassed the monetary base of the Russian ruble. This measure includes both physical currency and bank reserves, both of which are typically held by a country’s central banks.

This move is no small feat for a cryptocurrency that is only 11 years old. In order for Bitcoin’s market capitalization to match the U.S. base money figure, the price would need to surpass $263,000.”

See Also: Nearly $360M in Bitcoin Moved to Ethereum in October Despite DeFi Cool Off

Lebanon’s central bank is reportedly launching a digital currency in 2021. The intention has changed from affordable payments to confidence in Lebanon’s banks.”

See Also: Argentina’s Parliament will see a new bill presenting a framework for crypto

At press time, BCH/BTC traded at 0.017 BTC, comfortably beating its previous record low of 0.0245 BTC seen in December 2018.

The hard fork of Bitcoin has seen little attention this year, as investors focused on Bitcoin and then the decentralized finance phenomenon. The announcement of another hard fork of the Bitcoin Cash network, set for Nov. 15, has done little to buoy the coin’s prospects.

For Litecoin (LTC), price data shows a similar story. LTC/USD traded at 0.0038 BTC on Nov. 10, increasingly close to its extant bottom of 0.003 BTC from March 2017. On the weekly chart, the pair printed its lowest close in history this month.

“Cryptocurrency exchange Gemini is developing a “Wrapped Filecoin” (wFIL) service enabling the decentralized storage platform’s native token (FIL) to be used on the Ethereum network.

The Filecoin network is a decentralized alternative to platforms like Amazon Web Services on which users can use FIL to purchase storage space via an open market.”

See Also: Ethereum Stakers Commit 50,000 ETH to Upcoming Launch

“The one-year-old blockchain company is the latest tokenization outfit hoping to capture even a sliver of the hulking marketplace for private securities.

Most [private] securities do not trade in a secondary market.’ According to Texture CEO Richard Johnson, the right tech stack can fix that.

Texture hopes to have 20 issuers on its platform in the next six months. For comparison, tZero, one of the best-known security token marketplaces, only has three.”

See Also: Crypto Custodian Anchorage Gets SOC 1 Security Certification With Big 4 Auditor EY
See Also: Celsius reports it doubled its crypto holdings to $2.2B in six months

“Aiming to facilitate trading of physical grains, Cerealia is focusing on the international market for Russia, the world’s largest wheat supplier. Allowing shipments as big as 20,000 metric tons, Switzerland-based Cerealia aims to provide faster trades and more traceability using blockchain tech.

Traders can now be 100% certain they really did the trade, versus traditional over-the-phone brokerage.”

10 November

“Aware of the difficulties that may arise from privately-issued stablecoins, Rishi Sunak, the Chancellor of the Exchequer, tweeted that the Treasury will ‘publish a consultation to ensure new privately-issued currencies, stablecoins, meet the high standards we expect of other payment methods.’

New technologies such as stablecoins – privately-issued digital currencies – could transform the way people store and exchange their money, making payments cheaper and faster.

Traditionally, equities and bonds move inversely. In an economic slump, central banks would lower interest rates to reanimate the economy. This would push up bond prices, which would partially offset the slump in equities, delivering a performance superior to that of an unbalanced fund.

Since the crisis of 2008, that relationship has broken down. Central banks no longer have interest rates in their recession-fighting toolbox. While negative rates are possible, they are unlikely to reanimate the economy enough to turn around a stock market falling on recession expectations. So, there’s no reason to expect equities to have a pronounced down year, and no reason to expect bonds to rise when they do, as long as central banks maintain their current policies.

Another reason to hold a portion of bonds in portfolios is to have a guaranteed income. That has been taken off the table by record low interest rates. And as for the “safe” aspect of government bond holdings, the sovereign debt/GDP ratio is at all-time highs.

Government bonds used to provide risk-free interest. Now they provide interest-free risk.

Where, then, is the hedge? What should a portfolio hedge for?

The traditional mix hedged against the business cycle: In years of economic growth, equities did well, and in years of contraction, bonds stepped in. Only, the business cycle no longer exists. The signals that interest rates used to send have been overridden by central banks.

What is the biggest investment risk faced by savers of today? It’s currency debasement. Expansionary monetary policy in the past has counted on the resulting economic growth to absorb the new money supply.

In this situation, the ideal hedging vehicles are assets that are immune to monetary policy and economic fluctuations: Assets that don’t depend on earnings for their valuation, and whose supply cannot be manipulated. Gold is one such asset. Bitcoin is another, with an even more inelastic supply.

Investors and advisers need to question old assumptions in the face of a new reality. They need to rethink what hedging means, and what risks their clients really are facing long-term. Not doing so is financially irresponsible.”

See Also: Billionaire Hedge Fund Investor Druckenmiller Says He Owns Bitcoin in CNBC Interview
See Also: Family Offices May Now See Bitcoin as Alternative to Gold: JPMorgan Report

“In a report titled “Central Bank Digital Currency: A Literature Review,” Fed economists Francesca Carapella and Jean Flemming compile research exploring the potential impact of a digital dollar on commercial banking and monetary policy.

From a theoretical standpoint, the introduction of a central bank digital currency (CBDC) raises long-standing questions relating to the provision of public and private money […] and the ability of the central bank to use CBDC as a means for transmitting monetary policy directly to households.”

See Also: Beijing Municipal Government Conference Notes Plans to Pilot CBDC in China’s Capital

Lawmakers in the European Union may push for access to end-to-end encrypted chats in popular apps such as Signal and WhatsApp, according to a draft proposal circulated by the German government—currently president of the EU—over the weekend.

Privacy advocates and defenders of end-to-end encryption decried the news, suggesting that the European Union is using recent terror attacks—including a shooting in Vienna last week that left four dead and 23 injured—as an opportunity to clamp down on individual freedoms.

Anyone who finds an open back door into my house can enter it. The same is true for back doors in software. The proposed EU regulation is an attack on the integrity of digital infrastructure and therefore very dangerous.”

“With CBDCs, the central banks would possess the necessary plumbing to directly deliver a digital currency to individuals’ bank accounts, ready to be spent via debit cards. Such a mechanism could open veritable floodgates of liquidity into the consumer economy and accelerate the rate of inflation.

That one-two punch could bring about far more inflation than central bankers bargain for.

In other words, liquidity will flow directly to Main Street instead of Wall Street, as has been the case with the Fed’s bond purchase, popularly known as quantitative easing (QE).”

“New Jersey has inched closer to implementing a cryptocurrency license similar to the “BitLicense” mandated in neighboring New York.

The proposed law would require the issuance of a license for any entity looking to provide digital asset trading, storage, purchase, sales, exchange, borrowing/lending or issuance services.”

The Disrupt Weekend

Recommended read.

“Identity is one of our most fundamental human rights. Yet, in the age of surveillance, commodification and centralization, it is under threat.

Major internet platforms such as Facebook, Twitter and Google established themselves partially by achieving a sufficient level of consensus over their legitimacy as credential providers. Authentication systems are the key pathway through which these networks lock-in their subjects into extractive, scarcity-based, economic and social contracts.

The underlying architecture and ownership structure of these centralized identity protocols exposed society to surveillance, political manipulation and data theft. Eventually, this wealth of data accrues into credential monopolies, a perfect apparatus for anti-democratic practices.

Authentication mechanisms fundamentally shape socioeconomic, sociopolitical and socio-technical systems.

While Web 2.0 served, to an extent, to democratize content, it failed to drive meaningful political inclusion, partly due to a lack of protections against the creation of fake identities. Blockchain networks have similarly decentralized the creation of money, but the possibility of distributing this value equitably (e.g. in the form of a Universal Basic Income) was equally hampered by the lack of robust identity frameworks that could safeguard these currencies from attackers creating fake accounts to obtain more than their fair share of value. Addressing this foundational problem is the raison d’etre of Proof of Personhood.

Proof-of-personhood shifts the prevailing perspective on authentication. Instead of asking “who are you” – and then unilaterally exploiting and monetizing that personal data – it limits itself to “is this the only account you control?”

To formalize such unique online personas, new solutions entirely abstract objective markers of identity (such as name and nationality), which can easily be controlled, aggregated, repackaged, manipulated and subverted; instead favoring the use of subjective, human inputs (such as interpreting, conversing, or vouching).

In contrast to hyper-individualistic applications such as dark markets, where anonymity comes at the expense of accountability, these protocols are designed to foster prosocial, community-oriented behavior, where both users and applications are significantly limited in their ability to exploit and attack each other.

Paradoxically, the constraints they impose lead to unprecedented levels of both individual and collective agency. For the first time, they are creating a viable framework for social applications to be constructed upon an enduring bedrock of collective agency, consent and data dignity. In doing so, the heightened assurances and social richness of the offline world can be harnessed by online environments – moving them away from the current wild west paradigm of power concentration, inaccessibilities, fake identities and distorted social signaling.

In their earliest applications, proof-of-personhood networks are already manifesting several of cypherpunk’s most far-fetched dreams. Universal Basic Income cryptocurrencies, peer-to-peer democracies and public goods funding are simply a few of these newly piloted applications — which are now for the first time operationally possible. Human-only networks make space for cooperative and collective modes of economic functioning.”

The launch of Eth2 staking is the bond offering for the decentralized economy. A decentralized, global economy entirely built on the internet. And people are just starting to wrap their heads around it.

In a matured state, the yield of the internet’s new settlement layer can become the risk free rate of a decentralized financial ecosystem and a benchmark for valuing the cost of trustless value transfer.

As internet bonds grow in popularity, creating a shared terminology and understanding around them will be critical to global adoption.

The Internet bond is an entirely new asset for financial markets. It allows anyone in the world to invest, participate, and profit off an open-sourced, decentralized digital economy.

The Eth2 Internet Bond is here.”

See Also: How to protect your Ethereum wallet

“However you feel about Joe Biden’s apparent victory in the most difficult presidential election in living memory, you’d be foolish to believe all is well in this country. Governance itself is broken. Too many people feel they have no agency, their voices aren’t heard, they have no means to shape policies that are dictated by vested interests.

We need a system designed for a globalized economy and an internet-connected society, one that favors transparency, accountability and efficiency, and which mitigates the influence of hidden, vested-interest money.

Applying the lens of decentralization and programmable contracts to big societal issues can help expose where current thinking is wrong. It can reveal how centralized control of information and transactions enables powerful interests to influence policy and, in so doing, undermine the free market.

Quadratic voting is designed to help small groups of voters who care deeply about particular issues while still constraining them from overly skewing results.

Blockchain-based tracing systems might not only give taxpayers a transparent view of how their taxes are being spent but also incorporate programmability. For example, the actual, uniquely identified dollars that you contribute could be channeled directly and transparently into identifiable services that immediately benefit you and your community.

Whether these ideas work or not, policymakers must restore the social covenant between those who govern and those who are governed. And that comes down to trust.

We are the principals in this relationship. As our representatives, government leaders are supposed to be our agents. But if there is insufficient trust in them, people instead see them as competitors.

As has been seen in countless failed states, a vicious, self-fulfilling cycle can arise. People avoid paying taxes so as not to feed the kleptocracy, which starves the state of the resources it needs, encouraging more corruption and theft by police and other employees of the state. The endgame in all that is a collapse in the most important expression of the state’s relationship with its people: its currency.

Buying bitcoin is one way for people to protect themselves from future governance failures. But it’s more important that we find solutions to prevent those failures.”

Gensler taught a course at MIT about how Bitcoin and blockchain could be used in finance. He also penned an op-ed for Coindesk last December, in which he called Bitcoin a “catalyst for change,” despite its being prone to scams and manipulation.

As Biden cinches the presidency, adding Gensler to his roster suggests that pro-crypto regulation could—could—be on the cards.”

See Also: Crypto Impact Unclear After Joe Biden Unseats Donald Trump as Next US President

“The Associated Press today logged its projection that Joe Biden will be the next president of the United States on the blockchain.

The idea is to publish the results of the US election cryptographically on the blockchain because, ‘In an era of misinformation, the need for verifiable information has never been greater.‘”

Ethereum has just become the top 200th asset in the world, according to AssetDash. The cryptocurrency had to overtake a company that manufactures aircraft and spacecraft to achieve this feat. Ethereum also beat Volkswagen AG and Spotify.

In contrast, Bitcoin currently sits 21st on the list of top 200 assets by market capitalization.

“When he was managing the Legg Mason Capital Management Value Trust Fund, Miller beat the S&P 500 for 15 years. On Friday, Miller warned of inflation “coming back” with the Federal Reserve “gunning the money supply” and future fiscal relief coming from Congress.

Following MicroStrategy’s purchase of $425 million in bitcoin, Square’s $50 million bitcoin investment and PayPal’s support of crypto buying and selling on its platform, Miller said every major investment bank and high net worth firm will eventually have exposure to bitcoin or commodities like gold.

Everybody is going to want to own at least some bitcoin because of its asymmetric properties.”

The world of decentralized finance (DeFi) could be picking back up after adding over $1 billion to its smart contracts in just one week.

In the past 24 hours, the price of yearn.finance is up 32%, while Aave has risen by 15.13% and Chainlink, nearly 7%.”

See Also: Circle’s high-yield USDC business accounts take aim at DeFi

Unknown miner(s) grabbed control of 57.4% of the network’s hashpower. While the attack is underway, the protocol is warning users to wait for extra confirmations on transactions for payment finality.

GRIN coins were down 2.23% to $0.235 at press time.”

“Cred listed estimated assets of between $50 million and $100 million and liabilities between $100 million and $500 million.

In October, the lender published a cryptic letter saying that it has experienced “irregularities” in the handling of “specific” corporate funds by a “perpetrator of fraudulent activity.””

“The Tokyo-based company said that the new system will meet the technical needs of electronic voting, including the prevention of double voting, accurate storage of voting content, voter confidentiality, and management of operation records.

In addition, it will enable voters to check their own voting results, providing the cryptographic ability to verify that the recording and aggregation processes for the votes on the blockchain network was performed correctly.”

7 November

Ethereum founder Vitalik Buterin has sent his first ether for staking on the next iteration of the blockchain network.

Buterin’s “VB2” address sent 100 transactions for 32 ether each, all in totaling 3,200 units of the cryptocurrency. The amount is worth around $1.4 million at press time.

The transactions were sent to Ethereum 2.0’s newly launched deposit contract, which went live Wednesday as a means for network participants to move funds from the current proof-of-work blockchain to the soon-to-launch proof-of-stake (PoS) blockchain.

The deposit contract now holds 38,693 ether, worth some $17 million. The “Genesis” launch requires 16,384 validators to deposited funds equivalent to 524,288 ether into the contract. At that point the Beacon chain, the core of Ethereum 2.0, will go live.”

Red-hot spot markets are primarily fueling bitcoin’s recent rally suggesting the bull market may have room to continue. Unlike previously rallies, derivatives markets are playing a markedly less prominent role, demonstrated by mild liquidation volumes.

The market is clearly spot-dominated, and it appears that most of the bidding is coming out of the U.S.”

The Bank of England said Thursday it would buy up over £150 billion ($196 million) worth of government bonds as it seeks to revive an ailing economy as the country enters a second lockdown. The stimulus is “larger-than-expected” and will be used to fuel bond purchases.

Meanwhile, to further provide for its citizens, the UK also announced the extension of its furlough program yesterday—which would see the government pay up to 80% of the wages of 9 million people working in various sectors. The cost of this is expected to be another £25 billion.”

“In October, transaction volume surpassed $47 billion. The DeFi ecosystem accounts for 99% of total transaction volume. Daily active wallets grew by 341% year-on-year and by 14% month-on-month. The biggest contributors were still DeFi ecosystem dapps that accounted for 83% of total daily active wallets.”

See Also: Ethereum’s Daily Active Addresses Headed for Highest Divergence vs. Price in Three Weeks

“Cash App, the Bitcoin-friendly mobile payments app from U.S. financial services firm Square, has reported Bitcoin (BTC) has overtaken all other revenue sources, making up almost 80% of its entire revenue in the third quarter.

Cash App’s Bitcoin-derived revenue of $1.63 billion in Bitcoin marked a massive increase of more than 1,100% when compared to the same period in 2019.

“The “Central Bank Governors’ Club,” including institutions from the Central Asia, the Black Sea region and the Balkans, said the pandemic has brought growth to e-commerce and digital settlement technologies.

The group further said the economic crisis brought by COVID-19 will have “far-reaching global implications,” including a higher debt burden and “financial vulnerability.””

See Also: Licensed Swiss Crypto Bank Launches Tezos Trading and Staking

“These days my wealth management peers are still making the same mistake with Bitcoin they did with Amazon in 2005. (See the list above of criticisms of Amazon stock 15 years ago – bubble, competition, low usage, criminality, inability to scale and no cashflow.)

Wealth managers who didn’t buy bitcoin for their clients will be like those wealth managers who never bought Amazon: out of business.”

“EY has so far found $29.8 million through selling assets from Cotten’s estate, settling with Cotten’s widow, and retrieving funds from a third-party payments firm used by the exchange.

The trustee plans to convert all recovered assets into Canadian dollars and allocate funds to users based on cryptocurrency prices from either April 15, 2019 — when QuadrigaCX declared bankruptcy, or Feb. 5, 2019 — when users were blocked from accessing the exchange.

Mr. Cotten proceeded to trade these account balances with Affected Users that had deposited real assets, as such, Quadriga’s assets likely never matched the liabilities owed to Affected Users.”