TronWeekly

Crypto World News

You are here: Home / Archives for Digital Currency

Digital Currency

Non-crypto ‘e-cash’ in the making; More details

by

A bill directing the US Secretary of the Treasury to develop and test an electronic version of the US dollar that is not a cryptocurrency and yet is simple to use for those who are economically disadvantaged or technologically handicapped has been introduced. This bill was introduced on Monday when the United States House of Representatives presented the Electronic Currency and Secure Hardware Act (ECASH Act).

Congressman Stephen Lynch

According to Representative Stephen Lynch, chair of the House Financial Services Committee’s Fintech Task Force, the bill will also “maximize” consumer protection and data privacy.

The effort isn’t intended to prevent a Central Bank Digital Currency (CBDC) from being issued by the federal government. According to Lynch, the ECASH Act’s pilot program will,

“complement, and advance ongoing efforts undertaken by the Federal Reserve and President Biden to examine the potential design and deployment options for a digital dollar.”

The CBDC project, on the other hand, has made substantial progress. The digital dollar set a record speed of 1.7 million transactions per second (TPS) in one of two recent pilot tests, far quicker than most crypto networks.

The CBDC initiative is still in its early phases, according to CNBC, and is nicknamed ‘Project Hamilton.’ It’s being built in such a way that it’ll be able to resist transaction outages caused by server outages and other problems. As a result, the major purpose of ‘Project Hamilton’ is to address the worldwide CBDC sector’s technological and regulatory issues.

The conceit of cryptocurrency a downer

The United States Treasury Department, not the Federal Reserve Boar As a result, it is intended to “replicate the privacy-respecting aspects of actual cash,” such as coins and notes, as closely as feasible.d, would issue e-cash, as previously stated. As a result, it would not be a CBDC or cryptocurrency.

The electronic dollar would be a digital token—a bearer instrument similar to paper currency—rather than a cryptocurrency or CBDC based on blockchain. This means that if it’s misplaced, it’s lost forever.

The e-cash would be legal tender, and transactions would not require internet access. This type of e-cash, on the other hand, would allow for peer-to-peer transactions.

Users would not be subject to the same strict know-your-customer [KYC] procedures as anyone trying to use cash, according to Lynch’s plan. They can obtain e-cash dollars through a bank account, a peer-to-peer transaction, or a retailer, and then use them for anything.

This has the potential to benefit people who are unable to open bank accounts due to minimum balance limitations. The adoption of e-cash would be aided in the same way.

Within 90 days of enactment, the measure calls for the implementation of a two-phase e-cash pilot program. In reality, no later than 48 months following enactment, e-cash will be available to the general population in the United States.

BIS to develop multi-CBDC platform prototypes; collaborates with 4 central banks

by

The Bank for International Settlements (BIS) Innovation Hub collaborated with central banks from Australia, Malaysia, Singapore, and South Africa to develop prototypes of two versions for an international settlement platform that uses different central bank digital currencies (CBDCs).

According to the executive summary of the report, the project’s first phase was successful in developing functioning prototypes and demonstrating practical solutions, meeting its goal of demonstrating that the notion of multi-CBDCs was technically realistic.

Screenshot 16

Project Dunbar is the name of the collaboration. It focuses on how, as detailed in that paper, a shared platform including numerous CBDCs could aid enable cross-border payments “cheaper, faster, and safer.”

Project Dunbar, led by the Innovation Hub’s Singapore Centre, established that financial institutions may use CBDCs granted by participating central banks to interact directly with each other on a shared platform, according to a press release, on 22 March 2022, from the BIS. The release further articulated,

“This has the potential to reduce reliance on intermediaries and, correspondingly, the costs and time taken to process cross-border transactions.”

The project was divided into three work streams: one for high-level functional requirements and design, and two parallel technical streams for prototyping on various technological platforms (Corda and Partior).

Key challenges emphasized in the BIS report

When it comes to settling transactions using a shared platform, the BIS collaborated research identified three major problems. The first concern is regarding the issues of access to the platform’s CBDCs, like whether banks should be able to utilize CBDCs from nations where they do not have a presence. Another problem was figuring out how to make cross-border payments as simple as possible while yet adhering to each country’s standards. Finally, the third problem was devising a governance framework that would allow countries to share their payment facilities while also taking national security concerns into account.

Enabling entities to directly hold and conduct business in CBDCs from different jurisdictions, according to Michele Bullock, assistant governor at the Reserve Bank of Australia, could reduce the desire for intermediaries in cross-border payments, but it would have to be done in a way that conserves the security and resilience of these payments.

While there is still more work to be done in terms of thinking about the viability and design of multi-CBDC platforms, Bullock believes Project Dunbar’s findings give a sound foundation for future research in this area.

Cambridge University begins crypto research initiative

by

Globally renowned Cambridge University is now collaborating with one of the world’s most reputable financial institutions and private firms to launch a new cryptocurrency research initiative.

Cambridge University has partnered with the International Monetary Fund (IMF) and the Bank of International Settlements (BIS) to create a cryptocurrency data analysis initiative.

imf cover

The Cambridge Center for Alternative Finance, or CCAF, disclosed to local media on Monday that it has begun a research program aimed at providing further understanding into the fast-increasing cryptocurrency business. Furthermore, the Cambridge Digital Assets Programme, or CDAP, is a public-private partnership involving 16 organizations, including the BIS Innovation Hub and the IMF. Also, big exchange-traded providers of capital like Invesco, financial behemoths like Mastercard and Visa, and banks like Goldman Sachs are also part of the program.

Bryan Zhang, Cambridge University’s executive director of CCAF said,

“The Cambridge Digital Assets Programme that we are launching today aims to meet the resulting need for greater clarity by providing data-driven insights through collaborative research involving public and private sector stakeholders.”

It was also reported that the British International Investment, Dubai International Financial Center, Ernst & Young, Fidelity, the Foreign, Commonwealth, and Development Office of the United Kingdom, Inter-American Development Bank, London Stock Exchange Group, MSCI, and the World Bank are among the other participants.

The CDAP’s main objective is to foster evidence-based open interaction about the benefits and hazards of cryptocurrency acceptance. The initiative will emphasize three primary areas: the environmental consequences of cryptocurrency, infrastructure, and digital assets, such as stablecoins, central bank digital currencies (CBDCs), and cryptocurrencies.

Cambridge University’s CCAF’s prior work lays base for this initiative

The program builds on the CCAF’s previous establishments in the crypto business, such as the creation of the Cambridge Bitcoin Electricity Consumption Index (CBECI), according to the statement. The CBECI is a frequently used indicator that shows the worldwide spread of Bitcoin (BTC) mining hash rates across countries.

The Global Cryptoasset Benchmarking Study collection, aiming to tackle ecological trends, educate regulation and policy discussion, as well as others, is also another CCAF crypto research initiative.

Michel Rauchs, the CCAF’s digital assets lead, believes that the CDAP will equip decision-makers with unbiased analysis and quantitative facts to help them manage the digital assets business.

FBI plans to form a new team dedicated to cryptocurrency

by

According to the Department of Justice, the FBI is developing a new squad dedicated to cryptocurrencies (DOJ). The Department of Justice stated Thursday that the new squad would collaborate closely with the National Cryptocurrency Enforcement Team.

The National Cryptocurrency Enforcement Team’s first director will be prosecutor Eun Young Choi, who has a history in cyber-related offenses.

“The department has been at the forefront of investigating and prosecuting crimes involving digital currencies since their inception,” said Director Choi. “The NCET will play a pivotal role in ensuring that as the technology surrounding digital assets grows and evolves, the department in turn accelerates and expands its efforts to combat their illicit abuse by criminals of all kinds. I am excited to lead the NCET’s incredible and talented team of attorneys and to get to work on this critical priority for the department.

Choi will resume her full-time duties on Thursday.

FBI’s decision to control rising crypto crimes

Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division stated that criminals had increased their illicit use with the rapid innovation of digital assets and distributed ledger technologies. They use them to fund cyberattacks, ransomware, and extortion operations, as well as to trade in drugs, hacking tools, and illicit items online, perpetrate thefts and frauds, and launder the proceeds of their crimes, according to him.

He mentioned that NCET would be the focal point for the department’s efforts to combat the rise in technology-related crime.

The enforcement team will concentrate on the problems that arise from the illicit usage of cryptocurrencies and digital assets. The group will also include prosecutors with expertise in cryptocurrencies, cybercrime, money laundering, and forfeiture from throughout the agency.

The squad will collaborate with others throughout the department, along with the FBI’s new cryptocurrency task force.

The FBI’s new unit will be comprised of crypto professionals who will aid the bureau with analysis, support, and training. According to the department, the team will also reinvent its cryptocurrency technologies to remain ahead of new threats.

With the growing popularity of crypto, crimes are also on the rise. A dedicated team to investigate cryptocurrency crimes ensure that the culprits will be caught on time and also it will help to reduce the crimes from happening.

European commission hints at digital euro bill that will be out by early 2023

by

The European Commission intends to launch a digital euro bill in 2023. The commission’s plans to introduce a bill are the most unambiguous indication yet that a digital euro might be implemented in the coming years. The ECB has been sending confusing signals regarding the future of a digital euro since last year.

An ECB official indicated in September, shortly before the start of the two-year research into a digital euro, that the initiative wouldn’t ensure the deployment of a digital currency. Later, Fabio Panetta, a European Central Bank’s executive board member, stated that a possible digital euro would ‘likely’ be legal tender.

Before becoming legislation, the European Commission will have to coordinate the bill with the governments and legislatures of the member states. The ECB is now conducting tests with the digital euro. By the end of 2023, the monetary authority intends to have a prototype for the CBDC.

To complete the project, an impact assessment will be conducted by the European Commission to determine if the digital euro has the potential to undermine the financial system. The governors of the eurozone will assess if it is worthwhile to mint a virtual currency, and the digital euro might be produced by 2025.

Why a digital euro?

For everyday payments, a digital euro would be a quick, simple, and safe option. It would promote the digitization of the European economy and aggressively promote retail payment innovation.

The European Central Bank (ECB) and the euro area’s national central banks examine the advantages and dangers to ensure that money continues to serve Europeans well.

“Our work aims to ensure that in the digital age citizens and firms continue to have access to the safest form of money, central bank money.”

Christine Lagarde, President of the ECB

A digital euro would ensure that citizens in the euro region have free access to a simple, generally acknowledged, safe, and trustworthy method of payment in this new era.

A digital euro would be a supplement to money rather than a substitute. The Eurosystem will continue to make it possible to obtain currency anywhere in the eurozone. It would provide you with more options for paying and make it easier to do so, increasing accessibility and inclusion.

European Commission’s decision to release a digital euro will pave the way to revolutionize the world of digital currencies.

Myanmar’s military government plans to launch a digital currency

by

According to Bloomberg, Myanmar’s military is preparing to launch its own digital currency in the area to improve its economic growth. A top spokesman at the State Administration Council said that the country is now assessing how to go ahead with the digital currency launch.

The debut of its digital currency will be geared at facilitating domestic payments.

“We are unclear whether we should accomplish it as a joint venture with local firms or by the government alone.”

Deputy Minister of Information Major General Zaw Min Tun

However, Major General Min Tun subsequently commented that the digital currency introduction would actively contribute to encouraging financial operations in the country. “A digital currency can assist boost financial activity in Myanmar.” Min Tun subsequently added.

Myanmar and their decision with crypto

Myanmar’s military government had unveiled a cyber security bill that would restrict the use of virtual private networks under punishment of jail and penalties as per the reports by the register.

The draft law, dated January 13, is signed by Soe Thein, permanent secretary of the military’s transport and communications ministry. It is undergoing a request for opinions through January 28. Upon implementation, it will condemn VPN users to between one and three years imprisonment and fines of up to five million Myanmar Kyats ($2,800).

The bill also forbids the use of digital money, under penalty of jail for six months to a year, and the same punishment used to prevent VPN usage.

Myanmar’s GDP plummets

According to the projections presented by the World Bank, Myanmar’s GDP dropped by 18 percent in the fiscal year ending in September 2021. The World Bank research also forecasted that the nation would enjoy barely 1 percent economic growth in the fiscal year ending in September this year.

Earlier in December, the National Unity Government (NUG) had formally recognized Tether as the official currency of the area to make domestic transfers more straightforward and compact. NUG has repeated similar comments before, claiming that Tether, as the official currency, will assist speed up the general business, services, and payments.

Myanmar military and other decisions regarding virtual assets are unclear. Earlier, they proposed banning cryptocurrencies, and now they are in talks of launching their digital currency. Countries including India are also planning to launch their digital currency. Sometimes the governments forget that the entire concept of cryptocurrencies is on the reality that it is decentralized.

Rock icon, Gene Simmons to sell mansion in exchange for cryptocurrency

by

Kiss’s bassist and vocalist, the rock icon and a successful entrepreneur Gene Simmons who is also known for the early adoption of cryptocurrency, announced on 1 February 2022 that he will accept cryptocurrency as a medium of exchange for his Las Vegas Estate. The estate is currently listed on the market for $13,500,00.

Simmon’s modern desert mansion is located in the Ascaya community in Henderson, south of the Las Vegas strip. The mansion is more than 11,000 square feet, being well perched above the valley, and with a private orchard adjacent to it.

The rock icon has asserted to accept payments through either Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Try.Finance, Uniswap (UNI), Polkadot (DOT) or Aave. He has also said that aggregation of all these coins would be accepted as well.

In perspective, Kiss’s bassist and vocalist, Simmon’s, told Blabbermouth,

“I have been an outspoken proponent of cryptocurrency from the beginning. It is the future of money, and it just makes sense to offer interested parties the option of using cryptocurrency to purchase the estate.”

It has come to light, that The Ivan Sher Group of Berkshire Hathaway Home Services Nevada Properties was selected to represent the rockstar’s luxury estate. Furthermore, Evangelina Duke Petroni, the salesperson in charge, of Berkshire Hathaway Home Services clarified that parties interested in purchasing the mansion should be verified through closing costs, along with commissions and taxes.

The rockstar goes way back with crypto

The bassist and vocalist of the classic rock band Kiss, spoke about cryptocurrencies on Twitter about a year ago, on 1 February 2021. A few months before this, Simmons tweeted about the subject with Cameron Winklevoss on 15 September 2020.

This message was decoded eventually when the Simmon’s said that he bought and now owned some digital currencies. Through the tweet, he made it clear that he wasn’t recommending it to anyone, but he had bought and will own Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and others.

Furthermore, Simmons joined forces with the Tesla founder Elon Musk and hip hop star Snoop Dogg, to show support of Dogecoin (DOGE).

Screenshot 12
Rock icon, Gene Simmons to sell mansion in exchange for cryptocurrency 5

The rockstar, also known for his on-stage persona as ‘The Demon’ embraced Dogecoin through this tweet and disclosed that he had bought the meme token.

Grayscale improvised DeFi fund portfolio

by

The cryptocurrency asset management platform, Grayscale Investments in unison with CoinDesk DeFi Index methodology, announced their updated fund component weightings for each product in connection with their respective quarterly reviews.

The firm, on 3 January 2022, announced an overturn in the components of its DeFi index as part of its quarterly rebalancing. This is the second time the firm has re-balanced its DeFi fund since its outset in July 2021.

The firm had announced on 1 October 2021 that, it had adjusted the Digital Large Cap Fund’s portfolio and had added Uniswap (UNI) and Solana (SOL). As per Tron Weekly Journal’s article on this move of Grayscale, Solana and Uniswap had joined the elite list of a portfolio known as Grayscale Digital Large- Cap Fund (GDLC).

Grayscale has affirmed that it will remove Bancor (BNT) and Universal Market Access (UMA) from the index and add Amp (AMP). Bancor and UMA together had been estimated to be 2% or 2.9% of the index at the time of its launch, respectively. The firm had launched the fund and its index back in July 2021 to support investors with exposure to the fats-pacing crypto market without supervising tokens themselves.

AMP constitutes 7.39% of Grayscale’s DeFi Fund

AMP is the primitive token of the Flexa network, a payment network that enables crypto-collateralized payments at physical and online stores. Flexa uses the AMP token to collateralize digital asset payments while they are confirmed on their respective blockchains and settles the payments in sanction to the beneficiary.

By enabling payments through the Flexa network, Aiding merchants can easily and without stress accept payment in BTC, ETH, and other digital assets. The Flexa network is one of several projects intended to speed up the development of the blockchain into a mature ‘peer-to-peer’ money system.

As reported, DeFi Fund’s fund components constituted of the following tokens and weightings:

  • Uniswap (UNI), 42.33%
  • Aave (AAVE), 13.06%
  • Curve (CRV), 10.63%
  • MakerDAO (MKR), 8.99%
  • Amp (AMP), 7.39%
  • Yearn Finance (YFI), 6.34%
  • Compound (COMP), 5.02%
  • Synthetix (SNX), 3.15%
  • SudhiSwap (SUSHI), 3.09%

Grayscale has affirmed that it intends to enhance its GBTC product into a primitive exchange-traded fund. The firm has also applied with financial regulators to launch an ETF that would track the companies that operate in the digital asset world.

Cryptocurrency to be bought on BitPay at 0 fees

by

Cryptocurrency can now be bought on the BitPay wallet app for no fees at all, but only for a limited period. This statement was out in a press release that was published by BitPay on 20 December 2021. BitPay also took to Twitter and announced that it has partnered with Simplex to offer 0% fees on the next cryptocurrency purchase.

One of the world’s largest bitcoin providers and digital asset payment services, BitPay had announced in a promoted collaboration with Simplex, that BitPay Wallet users can now buy virtual coins without any additional charges through their wallet debit cards and ApplePay, only for a limited time.

According to BitPay CEO, Stephen Pair, this is a straightforward way for the residents of the USA that want to try out the world of digital assets for the first time to buy, store and spend crypto. He also adds,

 “BitPay wants to help consumers start to live life on crypto and by working with Simplex, we make it simple to acquire crypto by eliminating the need for users to navigate to a cryptocurrency exchange to fund the wallet.”

Typically, this collaboration is meant to counter-check the requirement of people to use a crypto exchange to fund their wallets. It was announced that users can instantly buy gift cards from hundreds of top retailers in-store and online with Bitcoin (BTC), Bitcoin Cash (BCH), Dogecoin (DOGE), Ethereum (ETH), Litecoin (LTC), Shiba Inu (SHIB) Wrapped Bitcoin (WBTC), as well as five USD-pegged stable coins BUSD, DAI, GUSD, USDP, and USDC.

Cryptocurrency market highs to be capitalized by users through this solution

The founder and CEO of Simplex, Nimrod Lehavi said that buying crypto usually involves fees to make a purchase with a debit or credit card making it difficult for those new to crypto, so by working with BitPay they are waving those fees for users so anyone, anywhere has the opportunity to enter into the crypto space and capitalize through this solution.

At the time of writing, Bitcoin (BTC) enjoyed a bullish market price at $48,660.41 with a daily high of 5.26%.

Crypto operations opposed by the Bank of Russia

by

According to the Russian legislation, it is not prohibited for individuals or legal entities to buy cryptocurrencies in foreign markets, but it is prohibited to issue them on domestic platforms and use them as means of payment within the Russian Federation.

In an interview on Friday the 17 December 2021, by the local media house finmarket.ru, the Governor of the Bank of Russia, Elvira Nabiullina enlarged the fear around the future of digital assets regulation in the country.

“You know our attitude towards cryptocurrencies, to put it mildly, skeptical, connected with the fact that these are big risks for retail investors, the volatility of this asset is very large. Cryptocurrencies are often used for illegal operations of a criminal nature, they are not transparent, so we cannot welcome investments in such kind of assets. And we advocate that the Russian financial infrastructure is not used for transactions with cryptocurrency, it is quite possible to implement it”

Central Bank of Russia sees high risks in development of the Cryptocurrency market

The bank of Russia has repeatedly articulated that it is looking at the purchasing of blockchain technology-based assets by individuals with a lot of apprehensions. The fact that Nabiullina’s statement came exactly a day after there were reports about the absolute ban on the exchanges of these virtual assets in Russia increases speculations about the fate of the virtual coin market.

In proportionate views, the most rigorous degrees against digital currency were enforced by China, which in September prohibited foreign exchanges from providing services for buying digital assets in the country and also banned miners from working in the country. At the same time, plenty of European countries and the United States of America are slowly removing constraints on the use of cryptocurrencies as a financial means of payment. In particular, in Sweden, the use of cryptocurrency is allowed by the authorities, while its purchase is considered as a transaction with assets, and anti-money laundering laws are observed.