“Overshadowed lately by the crypto bull market, JPM Coin runs in conjunction with the 400-bank Liink payment network and powers things like securities settlement (in repo trades) across JPMorgan’s client base. But according to Farooq, it’s only the beginning.
We are getting into the programmability of JPM Coin. Actually programming what money can do for you, whether it’s conditional payments, whether it’s things like tax assessments. That’s all very rule based and, in the past, you would have to send specific instructions to a bank like JPMorgan. We increasingly want you to be able to program these things, and actually tell the money what to do.
That desire helps explain why JPMorgan chose to build its various blockchain projects on Ethereum. Ethereum was designed specifically to enable complex “if this, then that” programs.
We are keeping a very close eye on the DeFi evolution. Although it’s very much in the public crypto sphere currently, there is clearly a future for DeFi as other assets start to get put on blockchains.
As well as the allure of DeFi, there are even some banks said to be eyeing the possibilities offered by proof-of-stake (PoS) participation on networks like Ethereum.
When it comes to ETH 2.0 staking, that’s going to be a very interesting development. I think that might open more doors for people to interact with the Ethereum ecosystem.”
“CoinShares ETNs tracking bitcoin, ethereum and litecoin will allow investors to gain exposure to those coins without the need to set up a crypto wallet.
In June of last year, Deutsche Börse claimed a first when it introduced trading in centrally cleared crypto products. The Frankfurt-based exchange now offers a choice of some 15 ETNs from six providers on bitcoin, bitcoin cash, ethereum and litecoin.”
“Deutsche Bank, Germany’s largest lender, says the U.S. might be headed for one of its worst inflationary periods in history, arguing that elevated government spending and loose monetary policy could combine to create conditions similar to prior episodes in the 1940s and 1970s.
Adding to the pressures are some $2 trillion of “excess savings” that consumers have amassed over the past year, when many businesses were closed and travel mostly shut down.
Consumers will surely spend at least some of their savings as economies reopen. This raises the very real specter of consumer-driven inflation. A lack of preparation for the return of inflation is concerning.
The Deutsche Bank authors warned that when inflation does eventually appear, the Fed might have to react forcefully, which could ‘create a significant recession and set off a chain of financial distress around the world.’“
“While it was billed as the “one of the biggest announcements in Bitcoin’s history,” the market seems to be puzzling over the landmark reveal that El Salvador’s sitting President will be submitting legislation to recognize Bitcoin as legal tender. While the announcement led to widespread elation at the conference, the market response has been tepid.
Part of the muted response may be due in part to the exact nature of the announcement being unclear. A self-described hacker on Twitter noted that Strike is not trustless and is censorable, meaning that this implementation of BTC as legal tender won’t be the anarcho-capitalist utopia some hodlers long for.”
“MicroStrategy said it intends to offer $400 million senior secured notes to raise funds to purchase more bitcoin even as the bitcoin it already has will likely result in a massive impairment.
While MicroStrategy has raised money to buy bitcoin from the proceeds of notes offerings before, it was always done by notes that were convertible into the company’s shares. This time the notes are to be guaranteed on a senior secured basis by MicroStrategy Services Corp, a subsidiary of MicroStrategy.
It’s typical for software companies that have steady recurring revenues to be highly leveraged, in the range of 6 to 10 fold.
For MicroStrategy to flow $400 million in senior notes when it is tracking to post something in the neighborhood of $90 to $100 million of adjusted EBIDTA does not seem particularly onerous in our view.”
“The MIIT suggested that blockchain could enhance the real economy by improving supply chain management, product traceability, data sharing and more. However, blockchain would also be used to improve the collection of data for the purposes of judicial deposit, real estate registration and law enforcement.
China should promote the deep integration of blockchain and economy and society and accelerate the promotion of blockchain technology for application and industrial development.”
“The committee said it met on June 4 and discussed the development of methods for treating banks that provide exposure to crypto assets. It plans to canvas the views of external stakeholders on banks’ exposures to crypto assets, and a consultation paper will be published this week.
Growing interest in crypto assets and the pace of innovation in the industry ‘could increase global financial stability concerns and risks to the banking system,’ the committee said.”
“FBI Deputy Director Paul Abbate said federal officials had seized a bitcoin wallet that held the proceeds from the Colonial attack. It appears that the perpetrators still have about $2 million in crypto. The funds were seized as part of a ransomware task force created by the DOJ.
Victim funds were seized from that wallet, preventing Darkside actors from using them. The private key for the Subject Address is in the possession of the FBI in the Northern District of California.”
“MyPower tokenizes solar-panel assets, allowing customers to purchase shares in Austria’s solar-energy industry. Customers bought shares in a small solar-panel plant, for which they received tokens based on the energy produced by the plant. The users were able to use the tokens to pay their electricity bills.
The project has turned its users from consumers into prosumers.”
“Bitcoin, it just seems like a scam […] I don’t like it because it is another currency competing against the dollar. Essentially, it is a currency competing against the dollar. I want the dollar to be the currency of the world, that’s what I’ve always said.
The Trump administration specifically sought to enact anti-crypto policies, with Trump allegedly telling former Treasury Secretary Steve Mnuchin to ‘go after Bitcoin.'”