29 September

The BOE on Wednesday morning said it will begin to buy long-dated gilts in unlimited quantities to stabilize the U.K.’s bond market, which has recently turned volatile on concerns that the government’s plan to cut taxes will put its finances on an unsustainable path. The bank also said it was suspending planned bond sales under its quantitative-tightening program.

The announcement raised hopes that central banks, including the U.S. Federal Reserve, are nearing their pain threshold concerning the market turmoil and might soon abandon the policy tightening that has roiled crypto and traditional assets this year.

Bond purchases are typically associated with quantitative easing (QE), whereby central banks freely conjure money out of thin air by creating reserves on their balance sheet and then use those new reserves to snap up securities from the open market, thereby injecting cash into the system.”

See Also: Chinese Investors Could Snap Up Cryptocurrencies as Yuan Slides, Hedge Fund Says
See Also: The Fed May Not Be Able to Pivot Even If It so Desires
See Also: Ethereum Merge Vaults Cryptocurrency Past Bitcoin in Hard-Money Allure

“SWIFT is working with Chainlink on a cross-chain interoperability protocol (CCIP) in an initial proof-of-concept. CCIP will enable SWIFT messages to instruct on-chain token transfers, helping the interbank network to be able to communicate across all blockchain environments.

This will help accelerate the adoption of distributed ledger technology (DLT) blockchains and benefit various institutions across capital markets, Chainlink co-founder Sergey Nazarov said at the SmartCon 2022 conference. The partnership between Chainlink and SWIFT in cross-chain interoperability will help bridge the gap between traditional and digital assets for TradFi institutions.

Interest from institutional investors moving into crypto has been “undeniable,” according to SWIFT’s Strategy Director. Traditional finance (TradFi) players want access to various digital and traditional assets on one network that can connect different types of asset classes.”

See Also: Chainlink Announces Staking Plans, Aiming to Be AWS of Web3
See Also: Coinbase Cloud, Chainlink Launch Price Oracles for NFT Floor Pricing
See Also: Google Web3 Lead Says Google Cloud Is a “Layer Zero” for Crypto

“At the Converge22 conference in San Francisco, Jeremy Allaire, CEO of stablecoin issuer Circle, said that the world is finally moving from the speculative value phase of crypto to the utility phase.

We need safe, scalable and energy-efficient public blockchains‘ just as we did with the internet, he stated, raising the example of new developments such as Ethereum’s recent move to proof-of-stake and the emergence of layer-2 scaling models. He said the step was ‘necessary for this [blockchain] to become something that is used by everyday society for mission-critical applications.’

Allaire believes that privacy and identity are two fundamental pillars of a new Web3. Allaire explained that for mass crypto adoption to happen, participants would need to be introduced to a much more simplified version of the underlying technology.

People don’t need to know what chain they’re on or even what stablecoin they’re using. They just need to know that it’s frictionless interaction with data and money.”

See Also: Circle Expands USDC Stablecoin to Five New Chains, Unveils Cross-Chain Transfer Protocol

“Lightning Network infrastructure firm Lightning Labs has released a test version of the Taro daemon, a new piece of software that will allow Bitcoin developers to create, send and receive assets.

Taro is a Taproot-powered protocol that was introduced in April and that allows bitcoiners to issue assets such as stablecoins on the Bitcoin blockchain. Those assets can then be transferred over the Lightning Network for instant, high-volume and low-fee transactions.

With Taro we can build a world where users have [U.S. dollar]-denominated balances and BTC-denominated balances (or other assets) in the same wallet.”

See Also: Ethereum Project Ribbon Finance Launches Crypto Options Exchange

“The new collaboration, called Project Icebreaker, involves the BIS Innovation Hub’s Nordic Centre, and it will test key functions and technical aspects of interlinking different domestic CBDC systems.

Project Icebreaker will test near-instant retail CBDC payments across borders at lower costs. A final report on the project is expected in the first quarter of 2023.”

See Also: Bank of England Deputy Governor Says Existing Financial Regulations Should Extend to Crypto
See Also: EU Set to Ban Russian Crypto Payments After ‘Sham’ Referenda