“I see this all playing out in a complicated, multifaceted clash of power, one that ultimately compels governments to accelerate the implementation of new regulatory framework for the coming era of digital money.
On one level, the bank failures underscore the need to divorce payments from crisis-prone fractional reserve banking – precisely the solution for which fully reserved stablecoins are designed.
Given the USDC stablecoin’s hiccups this past week, the argument will grow for requiring stablecoin issuers to hold banking licenses with access to the Fed’s discount window, rather than storing their reserves at third-party traditional banks. This is what Wyoming-based Custodia Bank applied to do, only to be rejected by the Fed last month, in what now seems an especially bone-headed response. Circle, too, has long expressed a goal to become a bank.
Might governments revert to direct control via a central bank digital currency (CBDC)? Complicating things for governments, people could just exit their national currency altogether and put their savings in cryptocurrencies like bitcoin. As the struggle to control the digitization of fiat money progresses, the OG digital currency will stand as a hard-money alternative.
The countervailing force in all this is the public perception of crypto technology, which right now is deep in negative territory following the blowups of last year.
At its core, money is a confidence game, a matter of faith and trust among the population that uses it. It’s likely confidence in governments and their banking partners will wane in the aftermath of this banking crisis. But crypto is, for now, dealing with an even bigger mistrust problem.
As this battle to redefine money unfolds, it’s incumbent on members of the crypto community to engage in behavior that breeds confidence. If they can achieve that, the future is theirs.”
See Also: It’s Not Just Fraud That Chilled Crypto Regulation
“Carole House, co-author of President Biden’s executive order on crypto, said keeping crypto in the country is a matter of national security. It is also important that crypto and financial innovation stays under the guidance of U.S. regulators, she said.
Driving any of the actors in cryptocurrency and other financial markets to have centers of gravity outside of the United States is also counter to U.S. national security objectives.
House, who is chairwoman of the Commodity Futures Trading Commission’s new Technology Advisory Committee, said her committee is trying to figure out the ‘practical reality of what the developments in the technologies look like [and] where the greatest risks are.'”
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“Web3 gaming developer platform Immutable is forming a strategic partnership with blockchain protocol Polygon Labs to accelerate the development of Web3 gaming.
By combining the number one Web3 gaming platform – currently serving hundreds of game studios and millions of players – with Polygon’s best-in-class zkEVM technology, we are building an Ethereum-centric gaming ecosystem that is poised to take Web3 mainstream and bring digital ownership to millions of people around the world.
Billions of dollars of skins are sold each year with no rights for players – we’re changing that so players are in control, and ownership is the expectation.
In June, Immutable launched a $500 million venture fund for Web3 games, while Polygon launched a business unit devoted to advancing Web3 gaming in July. Immutable also launched an all-in-one passport system in January to make the sign-in and management process easier for Web3 gamers, while gaming engine Unity expanded support for Immutable X in its developer toolkit last month.”
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“A legislative proposal from Florida Gov. (and possible Republican U.S. presidential candidate) Ron DeSantis would prohibit the use of a national central bank digital currency (CBDC) as money within his state.
Today’s announcement will protect Florida consumers and businesses from the reckless adoption of a ‘centralized digital dollar’ which will stifle innovation and promote government-sanctioned surveillance.
In addition to privacy concerns, DeSantis said a federal CBDC would diminish the role of community banks and credit unions. The proposed law would also prohibit in Florida the use of a CBDC issued by any overseas central bank. The governor’s statement calls on other states to adopt similar legislation.”
See Also: U.S. Supreme Court to Hear First Crypto Case Tuesday
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“First Republic Bank’s (FRC) deposit rescue package by multiple institutions should make it obvious that this is a “generic banking problem” and crypto isn’t to blame.
This is the perfect setting for bitcoin, ethereum and the rest of the decentralized-financial system to stand out as an alternative system, delinked from the traditional centralized banking system.
The banking on-ramp to crypto may be weaker in the U.S, but continues to be stable internationally, with access through over-the-counter hubs in Asia and Europe, the note said. OTC hubs in the U.S. also seem to be working without interruption, the note added. As more outside money is forced to participate, the moves higher should become sharper.”
See Also: Bitcoin, Ether Trade Lower After Breaching Technical Indicator
“Noncrypto-related deposits held by former Signature Bank (now Signature Bridge Bank) will be assumed by Flagstar Bank, N.A., a subsidiary of New York Community Bancorp, as of Monday under a purchase and assumption agreement.
Flagstar Bank’s bid did not include $4 billion of deposits related to the former Signature Bank’s digital banking business. The FDIC will provide these deposits directly to customers whose accounts are associated with the digital banking business, according to the press release.“
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The Disrupt 