Rolling, Doubling, Consuming and 20 Crypto Jokes
This week in crypto news on Cryptonews.com: Bitcoin whale population growth might be a mirage, retail may consume 50% of BTC supply after next halving, and young Roobinhooders might propel the next BTC rally. IOTA announced the release of Pollen, the first phase towards the decentralized IOTA 2.0, and Vitalik Buterin pushed for rollups as Ethereum’s scaling solution. Celsius token skyrockets over 800% since March, and Kyber Network doubled in a month. As DeFi attackers got more creative while stealing USD 500,000 from Balancer, Russian blockchain-powered voting platform said it withstood a node attack.
Meanwhile, while the BIS said CBDCs might increase central banks' footprint on financial system, South Korea pledged to inject USD 111 million into the development of blockchain, and the government will allow the use of blockchain-powered public certificates beginning in December. RenrenBit's CEO Zhao Dong was reportedly detained by police in China, but Beijing will set up blockchain fund and foster ’unicorn’ firms. BHP Group completed a USD 14 million blockchain-powered iron ore transaction with China’s Baosteel, and SBI Holdings will buy a USD 30 million minority stake in Britain-based crypto player B2C2.
This week in crypto news on Cryptonews.com: Bitcoin whale population growth might be a mirage, retail may consume 50% of BTC supply after next halving, and young Roobinhooders might propel the next BTC rally. IOTA announced the release of Pollen, the first phase towards the decentralized IOTA 2.0, and Vitalik Buterin pushed for rollups as Ethereum’s scaling solution. Celsius token skyrockets over 800% since March, and Kyber Network doubled in a month. As DeFi attackers got more creative while stealing USD 500,000 from Balancer, Russian blockchain-powered voting platform said it withstood a node attack.
Meanwhile, while the BIS said CBDCs might increase central banks' footprint on financial system, South Korea pledged to inject USD 111 million into the development of blockchain, and the government will allow the use of blockchain-powered public certificates beginning in December. RenrenBit's CEO Zhao Dong was reportedly detained by police in China, but Beijing will set up blockchain fund and foster ’unicorn’ firms. BHP Group completed a USD 14 million blockchain-powered iron ore transaction with China’s Baosteel, and SBI Holdings will buy a USD 30 million minority stake in Britain-based crypto player B2C2.
Cryptoverse Talks Hypocrisy After Crypto Companies Take Gov't Millions
The Cryptoverse is in an uproar, arguing over money, hypocrisy, and morality. This comes after The US Small Business Administration (SBA) published the Paycheck Protection Program (PPP) data, per which dozens of blockchain and crypto-related companies have taken millions from the government in payroll loans.
Per SBA's website, PPP is a loan meant to provide a direct incentive for small businesses to keep their workers on the payroll.
Among the companies from the crypto and blockchain industries who've received the loans are ConsenSys, crypto exchanges Bittrex, ShapeShift, bitFlyer USA, company behind Cardano (ADA) IOHK, Polychain Capital, Circle, Celsius Network, Messari, The Block, and others.
Though specific amounts are not available, some received several hundred thousands, while others collected several millions, with ConsenSys being in the highest range (USD 5m - USD 10m).
Unsurprisingly, the news has caused a major discussion in the Cryptoverse about the industry's very nature, what is / should be legal, and even if legal - what is moral?
Wealth advisor Kevin Prendergast claimed that he talked to small business owners "in the "real economy"," and these don't hesitate to apply for PPP. He asked why a prudent business owner would "turn down low/no cost source of capital in this challenging environment."
Former Goldman Sachs trader and the founder of liquidity provider B2C2, Max Boonen, argued that even if a company's survival doesn't depend on a grant, it's still a matter of competitiveness to pursue it. "One can argue that it's "noble" to decline but does that make it "vile" not to?"
This has brought another matter into light, which Boonen noticed himself - possible hypocrisy within the industry.
"Contemptible if your public persona is built around banging the “all tax is theft” and “who needs government when you have Bitcoin” drums," said Senior Research Analyst a Decentral Part, adding: "Fair game otherwise."
And while some wondered if the companies that earn money by selling tokens (like TRON) or those that provide grants (like IOHK) should even be eligible for a program like this, others said it might be better for them to collect that money than distribute fewer grants.
IOHK CEO, Charles Hoskinson, came to the defense of the company's decision to take the government money, saying it "is a small business that employees Americans" and also invests in universities, helping create jobs there.
Meanwhile, according to economist Michael Stepner, as quoted by CBS, "the program spent vastly more money than the number of jobs it saved." A paper Stepner co-authored found that c. 90% of "workers whose paychecks were paid out of the fund were not at risk of being laid off in the first place."
The Cryptoverse is in an uproar, arguing over money, hypocrisy, and morality. This comes after The US Small Business Administration (SBA) published the Paycheck Protection Program (PPP) data, per which dozens of blockchain and crypto-related companies have taken millions from the government in payroll loans.
Per SBA's website, PPP is a loan meant to provide a direct incentive for small businesses to keep their workers on the payroll.
Among the companies from the crypto and blockchain industries who've received the loans are ConsenSys, crypto exchanges Bittrex, ShapeShift, bitFlyer USA, company behind Cardano (ADA) IOHK, Polychain Capital, Circle, Celsius Network, Messari, The Block, and others.
Though specific amounts are not available, some received several hundred thousands, while others collected several millions, with ConsenSys being in the highest range (USD 5m - USD 10m).
Unsurprisingly, the news has caused a major discussion in the Cryptoverse about the industry's very nature, what is / should be legal, and even if legal - what is moral?
Wealth advisor Kevin Prendergast claimed that he talked to small business owners "in the "real economy"," and these don't hesitate to apply for PPP. He asked why a prudent business owner would "turn down low/no cost source of capital in this challenging environment."
Former Goldman Sachs trader and the founder of liquidity provider B2C2, Max Boonen, argued that even if a company's survival doesn't depend on a grant, it's still a matter of competitiveness to pursue it. "One can argue that it's "noble" to decline but does that make it "vile" not to?"
This has brought another matter into light, which Boonen noticed himself - possible hypocrisy within the industry.
"Contemptible if your public persona is built around banging the “all tax is theft” and “who needs government when you have Bitcoin” drums," said Senior Research Analyst a Decentral Part, adding: "Fair game otherwise."
And while some wondered if the companies that earn money by selling tokens (like TRON) or those that provide grants (like IOHK) should even be eligible for a program like this, others said it might be better for them to collect that money than distribute fewer grants.
IOHK CEO, Charles Hoskinson, came to the defense of the company's decision to take the government money, saying it "is a small business that employees Americans" and also invests in universities, helping create jobs there.
Meanwhile, according to economist Michael Stepner, as quoted by CBS, "the program spent vastly more money than the number of jobs it saved." A paper Stepner co-authored found that c. 90% of "workers whose paychecks were paid out of the fund were not at risk of being laid off in the first place."
8 Ethereum Miners Wield ‘Overwhelming Influence’ Over the Network
The Ethereum (ETH) network is dominated by just over 50 powerful mining pools – with an inner cabal of eight maintaining the lion’s share of the blockchain, according to the findings of a new report.
The ConsenSys-produced “The Ethereum Proof of Work” report concluded that as recently as Q2 of FY2020, just two mining pools had a majority of “just over 51%” of the network’s hashrate – only the second time in history this has occurred on the network.
The two pools in question are Ethermine and Spark Pool.
Last time this occurred was back in Q2 of 2017, when Ethermine and F2Pool accounted for nearly 60% of the network’s total hashrate for the quarter.
However, although the report’s authors believe that the Q2 dominance coincided with “skyrocketing” ethereum (ETH) prices “perhaps suggesting that mining rigs were rushing to contribute,” they seem less certain of what lies behind the latest Ethermine and Spark Pool “centralization” trend.
Instead, the authors noted that the movement “has been the result of a gradual upward trend since Q1 2018,” and is a “gradual increase” that should be “a greater warning signal to the Ethereum community.”
They wrote,
“Gradual power concentration over the last two years (compared to sudden power concentration in Q2 2017) also means that a +51% dominance might be harder to mediate.”
The authors wrote that they identified “notable mining ‘whale’ outliers such as Ethermine, Spark Pool, F2Pool and Nanopool,” but added that “for the last two years, at most 56 mining pools have been responsible for over 90% of the block production and block rewards, and over 80% of the hashrate on Ethereum.”
And they went on to add:
“Since the launch of the network in 2015, through significant on- and off-chain events, we have seen power and influence concentrate in the hands not just of mining pools, but of a very select few mining pools. It can assuredly be said that the majority of activity on the Ethereum blockchain is maintained by at most 56 miners, and is overwhelmingly influenced by fewer than eight.”
However, as Ethereum aims to move from the Proof of Work consensus mechanism to the Proof of Stake (PoS), this might change.
"With reduced barriers to entry and the elimination of concerns about minimizing electricity costs, PoS networks are significantly more decentralized at the node level than PoW networks," ConenSys argued.
The Ethereum network is the closest challenger to the superpower Bitcoin (BTC) network, whose own mining pool stats also make interesting reading.
Although over 36% of miners are unknown in origin, F2Pool is the largest single, identifiable mining pool, with almost 9% of the hasrate, marginally ahead of AntPool’s almost 8%.
From there, it is a significant drop down to two pools on just over 5%: SlushPool and BTC Guild, with nobody else mustering more than just over 3.5%.
The Ethereum (ETH) network is dominated by just over 50 powerful mining pools – with an inner cabal of eight maintaining the lion’s share of the blockchain, according to the findings of a new report.
The ConsenSys-produced “The Ethereum Proof of Work” report concluded that as recently as Q2 of FY2020, just two mining pools had a majority of “just over 51%” of the network’s hashrate – only the second time in history this has occurred on the network.
The two pools in question are Ethermine and Spark Pool.
Last time this occurred was back in Q2 of 2017, when Ethermine and F2Pool accounted for nearly 60% of the network’s total hashrate for the quarter.
However, although the report’s authors believe that the Q2 dominance coincided with “skyrocketing” ethereum (ETH) prices “perhaps suggesting that mining rigs were rushing to contribute,” they seem less certain of what lies behind the latest Ethermine and Spark Pool “centralization” trend.
Instead, the authors noted that the movement “has been the result of a gradual upward trend since Q1 2018,” and is a “gradual increase” that should be “a greater warning signal to the Ethereum community.”
They wrote,
“Gradual power concentration over the last two years (compared to sudden power concentration in Q2 2017) also means that a +51% dominance might be harder to mediate.”
The authors wrote that they identified “notable mining ‘whale’ outliers such as Ethermine, Spark Pool, F2Pool and Nanopool,” but added that “for the last two years, at most 56 mining pools have been responsible for over 90% of the block production and block rewards, and over 80% of the hashrate on Ethereum.”
And they went on to add:
“Since the launch of the network in 2015, through significant on- and off-chain events, we have seen power and influence concentrate in the hands not just of mining pools, but of a very select few mining pools. It can assuredly be said that the majority of activity on the Ethereum blockchain is maintained by at most 56 miners, and is overwhelmingly influenced by fewer than eight.”
However, as Ethereum aims to move from the Proof of Work consensus mechanism to the Proof of Stake (PoS), this might change.
"With reduced barriers to entry and the elimination of concerns about minimizing electricity costs, PoS networks are significantly more decentralized at the node level than PoW networks," ConenSys argued.
The Ethereum network is the closest challenger to the superpower Bitcoin (BTC) network, whose own mining pool stats also make interesting reading.
Although over 36% of miners are unknown in origin, F2Pool is the largest single, identifiable mining pool, with almost 9% of the hasrate, marginally ahead of AntPool’s almost 8%.
From there, it is a significant drop down to two pools on just over 5%: SlushPool and BTC Guild, with nobody else mustering more than just over 3.5%.
South Korean MP Makes Bid to Impose Capital Gains Tax on Crypto
An influential South Korean MP has put forward a private members’ bill that would see crypto taxed under the nation’s capital gains tax laws.
Per Jose Ilbo, Yang Kyung-sook, an MP for the ruling Democratic Party and a member of the National Assembly’s Planning and Finance Committee, said she has put forward a draft bill that would see the country’s tax code revised – forcing traders and crypto earners to pay tax on their crypto profits.
Yang said that other countries – such as Japan and the United States – have already implemented crypto-related capital gains tax regulations, and claims it is high time that Seoul followed suit.
Yang also sent a copy of her proposals to the nation’s top financial regulator, the Financial Services Commission.
In her supporting documentation, Yang noted that some tens of thousands of transactions were being made on the country’s four biggest crypto exchanges every year. Yang also claimed that the cumulative worth of all transactions carried out on leading crypto exchanges in the period from 2015 until May 2020 was a whopping USD 1.8 trillion.
Yang added that over the same time period, an average of 780,000 transactions per day were carried out on the platforms – with the taxman apparently unaware of any of the scale of this activity.
The MP also stated that the law should apply not only to residents of South Korea, but also to South Koreans living abroad and conducting crypto-related business or carrying out crypto trades.
An influential South Korean MP has put forward a private members’ bill that would see crypto taxed under the nation’s capital gains tax laws.
Per Jose Ilbo, Yang Kyung-sook, an MP for the ruling Democratic Party and a member of the National Assembly’s Planning and Finance Committee, said she has put forward a draft bill that would see the country’s tax code revised – forcing traders and crypto earners to pay tax on their crypto profits.
Yang said that other countries – such as Japan and the United States – have already implemented crypto-related capital gains tax regulations, and claims it is high time that Seoul followed suit.
Yang also sent a copy of her proposals to the nation’s top financial regulator, the Financial Services Commission.
In her supporting documentation, Yang noted that some tens of thousands of transactions were being made on the country’s four biggest crypto exchanges every year. Yang also claimed that the cumulative worth of all transactions carried out on leading crypto exchanges in the period from 2015 until May 2020 was a whopping USD 1.8 trillion.
Yang added that over the same time period, an average of 780,000 transactions per day were carried out on the platforms – with the taxman apparently unaware of any of the scale of this activity.
The MP also stated that the law should apply not only to residents of South Korea, but also to South Koreans living abroad and conducting crypto-related business or carrying out crypto trades.
Major Bitcoin Exchange Coinbase Prepares For Stock Market Listing - Report
US-based major crypto exchange Coinbase could list its shares on a stock exchange this year or early next year, Reuters reported, citing "three people familiar with the matter."
The company has already been in talks to hire investment banks and law firms, the report said, adding that Coinbase is exploring going public via a direct listing. In this case, a company does not sell new shares as it does in an Initial Public Offering (IPO). Also, existing investors are not bound by lock-up restrictions on when they can divest their holdings following the market debut.
The listing would need the US Securities and Exchange Commission's blessing, Reuters said, adding that "it would represent a landmark victory for cryptocurrency advocates vying for mainstream endorsement."
According to Reuters, Coinbase and the SEC declined to comment.
As reported in May, Coinbase, together with another US-based crypto exchange, Gemini, became the first crypto clients of the major investment bank JPMorgan Chase. Back then, Kelvin Koh, Co-founder and Partner at Spartan Capital, opined that the bank made this move "to position its IB investment banking for Coinbase’s and Gemini’s IPO in the not too distant future."
In 2018, Coinbase was valued at USD 8bn following a mega funding round.
Now the company claims it has more than 35 million users worldwide.
Meanwhile, Changpeng Zhao, CEO of another major crypto exchange, Binance, congratulated Coinbase as it's "pushing/paving the way for other crypto businesses."
US-based major crypto exchange Coinbase could list its shares on a stock exchange this year or early next year, Reuters reported, citing "three people familiar with the matter."
The company has already been in talks to hire investment banks and law firms, the report said, adding that Coinbase is exploring going public via a direct listing. In this case, a company does not sell new shares as it does in an Initial Public Offering (IPO). Also, existing investors are not bound by lock-up restrictions on when they can divest their holdings following the market debut.
The listing would need the US Securities and Exchange Commission's blessing, Reuters said, adding that "it would represent a landmark victory for cryptocurrency advocates vying for mainstream endorsement."
According to Reuters, Coinbase and the SEC declined to comment.
As reported in May, Coinbase, together with another US-based crypto exchange, Gemini, became the first crypto clients of the major investment bank JPMorgan Chase. Back then, Kelvin Koh, Co-founder and Partner at Spartan Capital, opined that the bank made this move "to position its IB investment banking for Coinbase’s and Gemini’s IPO in the not too distant future."
In 2018, Coinbase was valued at USD 8bn following a mega funding round.
Now the company claims it has more than 35 million users worldwide.
Meanwhile, Changpeng Zhao, CEO of another major crypto exchange, Binance, congratulated Coinbase as it's "pushing/paving the way for other crypto businesses."
DOGETok Jumps, Playgrounds, Presidential Runs and 20 Crypto Jokes
This week in the Cryptosphere, BTC miners were not selling them coins, and Venezuelan military intercepted a truck full of mining rigs. Chainlink hit an all-time high, and Dogecoin soared as TikTokers attempted to pump it, with Justin Sun joining the scene too, followed by a few exchanges. Cardano entered a custody agreement with Coinbase, and its founder Charles Hoskinson raised the idea of a collaboration with Litecoin, while Terra revealed Anchor, governed by a newly formed organization, and the Cryptoverse went in an uproar after dozens of blockchain and crypto-related companies took millions from the government in payroll loans.
Meanwhile, the Bank of Lithuania opened a ‘playground’ for testing CBDCs, digital yuan is set for real-world ride while sharing pilot with the Apple-backed Didi, and Chinese authorities added “blockchain developer” to the official list of jobs. In the meantime, South Korea’s Gyeonggi Province is talking about launching a local stablecoin-powered universal basic income, and Travala.com integrated hotels offered by Expedia. Then we learned that Centre froze an address holding USD 100,000 worth of the stablecoin, early Voice users are unimpressed with its design, and Russian investors in the failed Telegram token launch reported the British brokerage they said is withholding almost USD 1.5 million of their funds. Lastly, Brock Pierce announced his candidacy for President of the US.
This week in the Cryptosphere, BTC miners were not selling them coins, and Venezuelan military intercepted a truck full of mining rigs. Chainlink hit an all-time high, and Dogecoin soared as TikTokers attempted to pump it, with Justin Sun joining the scene too, followed by a few exchanges. Cardano entered a custody agreement with Coinbase, and its founder Charles Hoskinson raised the idea of a collaboration with Litecoin, while Terra revealed Anchor, governed by a newly formed organization, and the Cryptoverse went in an uproar after dozens of blockchain and crypto-related companies took millions from the government in payroll loans.
Meanwhile, the Bank of Lithuania opened a ‘playground’ for testing CBDCs, digital yuan is set for real-world ride while sharing pilot with the Apple-backed Didi, and Chinese authorities added “blockchain developer” to the official list of jobs. In the meantime, South Korea’s Gyeonggi Province is talking about launching a local stablecoin-powered universal basic income, and Travala.com integrated hotels offered by Expedia. Then we learned that Centre froze an address holding USD 100,000 worth of the stablecoin, early Voice users are unimpressed with its design, and Russian investors in the failed Telegram token launch reported the British brokerage they said is withholding almost USD 1.5 million of their funds. Lastly, Brock Pierce announced his candidacy for President of the US.
Bitcoin Mining Difficulty Set For New All-Time High. What Comes Next?
Miners' machines seem to be on and hard at work as mining Bitcoin (BTC) is about to get more difficult - reaching a brand new all-time high, thus increasing operational costs to mine the coin. Two industry players weighed in on what might come next.
Bitcoin mining difficulty, which is the measure of how hard it is to compete for mining rewards, is about to reach two milestones: an all-time high, and stepping into the never-before-seen 17 T territory.
The mining difficulty, if the current estimations by mining pool BTC.com come true, will rise 8.92% in little less than three days - completely skipping over the 16 T range this time, and climbing to 17.19 T.
This follows an unchanged difficulty level during the previous adjustment, and the highest jump in two years recorded in mid-June, which itself was preceded by the eight highest drop.
The last time the difficulty was above 16 T was in early May, before the third Bitcoin halving. But the previous all-time high happened even before that, in early March this year, with 16.55 T.
The price of bitcoin has been keeping steady in the lower USD 9,000 level, not making any major swings lately. At the time of writing (13:26 UTC), the coin is changing hands at USD 9,228, having dropped just above 2% in 24 hours and appreciated less than 1% in a week. The price is down by 6% in a month and 21% in a year.
The mining difficulty of Bitcoin is adjusted every two weeks (every 2016 blocks, to be precise) to maintain the normal 10-minute block time. Since June 30, it was below 10 minutes and dropped below 9 minutes yesterday.
Miners' machines seem to be on and hard at work as mining Bitcoin (BTC) is about to get more difficult - reaching a brand new all-time high, thus increasing operational costs to mine the coin. Two industry players weighed in on what might come next.
Bitcoin mining difficulty, which is the measure of how hard it is to compete for mining rewards, is about to reach two milestones: an all-time high, and stepping into the never-before-seen 17 T territory.
The mining difficulty, if the current estimations by mining pool BTC.com come true, will rise 8.92% in little less than three days - completely skipping over the 16 T range this time, and climbing to 17.19 T.
This follows an unchanged difficulty level during the previous adjustment, and the highest jump in two years recorded in mid-June, which itself was preceded by the eight highest drop.
The last time the difficulty was above 16 T was in early May, before the third Bitcoin halving. But the previous all-time high happened even before that, in early March this year, with 16.55 T.
The price of bitcoin has been keeping steady in the lower USD 9,000 level, not making any major swings lately. At the time of writing (13:26 UTC), the coin is changing hands at USD 9,228, having dropped just above 2% in 24 hours and appreciated less than 1% in a week. The price is down by 6% in a month and 21% in a year.
The mining difficulty of Bitcoin is adjusted every two weeks (every 2016 blocks, to be precise) to maintain the normal 10-minute block time. Since June 30, it was below 10 minutes and dropped below 9 minutes yesterday.
South Korean Central Bank Launches CBDC Legal Advisory Unit
South Korea is once again intensifying the pace of its central bank digital currency (CBDC) progress – with a central bank-run team now investigating legal obstacles that might stand in the way of digital won issuance.
Bitter political and financial rival Japan last week took a step closer to launching a digital yen. The country’s central bank launched operations to examine ways of using a CBDC offline. Tokyo is keen to ensure that a digital token could offer universal access and meet a range of stringent tech specifications. Earlier this month, the Japanese central bank also launched a feasibility pilot.
But per a report from Fn News, the Bank of Korea (BOK) is determined to “speed up” the pace of its own CBDC operations. Industry insiders have told Cryptonews.com that Seoul is determined not to fall behind Japan and China, whose own digital yuan project is reportedly on the verge of a real-world pilot with a private ride-share firm.
As previously reported, the BOK could launch a pilot as early as December this year after completing a technical survey. And, on Monday, the bank has announced the launch of a new legal advisory unit, which it says will work with the BOK until May next year.
The unit will review legal issues related to potential CBDC issuance, and could recommend possible legal amendments, with a progress report due “in the second half of 2020.”
The group will comprise a number of the BOK’s own legal experts, as well as six non-BOK affiliated legal experts, including leading academics. Cryptocurrency- and blockchain-specific law experts from Seoul’s Yonsei University and Sungkyunkwan University were named as members.
Fn News claims that the BOK has changed its interest in CBDC issuance from “passive” to “active,” although the BOK is still non-committal on CBDC issuance. Instead, the central bank insists that it is conducting its research to prepare for issuance “if a need to do so arises.”
South Korea is once again intensifying the pace of its central bank digital currency (CBDC) progress – with a central bank-run team now investigating legal obstacles that might stand in the way of digital won issuance.
Bitter political and financial rival Japan last week took a step closer to launching a digital yen. The country’s central bank launched operations to examine ways of using a CBDC offline. Tokyo is keen to ensure that a digital token could offer universal access and meet a range of stringent tech specifications. Earlier this month, the Japanese central bank also launched a feasibility pilot.
But per a report from Fn News, the Bank of Korea (BOK) is determined to “speed up” the pace of its own CBDC operations. Industry insiders have told Cryptonews.com that Seoul is determined not to fall behind Japan and China, whose own digital yuan project is reportedly on the verge of a real-world pilot with a private ride-share firm.
As previously reported, the BOK could launch a pilot as early as December this year after completing a technical survey. And, on Monday, the bank has announced the launch of a new legal advisory unit, which it says will work with the BOK until May next year.
The unit will review legal issues related to potential CBDC issuance, and could recommend possible legal amendments, with a progress report due “in the second half of 2020.”
The group will comprise a number of the BOK’s own legal experts, as well as six non-BOK affiliated legal experts, including leading academics. Cryptocurrency- and blockchain-specific law experts from Seoul’s Yonsei University and Sungkyunkwan University were named as members.
Fn News claims that the BOK has changed its interest in CBDC issuance from “passive” to “active,” although the BOK is still non-committal on CBDC issuance. Instead, the central bank insists that it is conducting its research to prepare for issuance “if a need to do so arises.”
Singapore & JPMorgan to Rollout Blockchain-powered Payments Platform
Singapore’s central bank says its prototype blockchain-powered cross-border payments network is now ready for commercial rollout.
As previously reported, the Monetary Authority of Singapore (MAS) began “industry testing" for its new solution with JPMorgan and the state-operated Singaporean holding company and investor Temasek late last year.
And it seems the pilots have proven successful. Per Reuters, MAS now says it is “ready” to commercialize the “multi-currency payments network.”
The media outlet quotes MAS and Temasek as stating,
“An international settlement network, modeled after the new payments network prototype, could enable faster and cheaper transactions than conventional cross-border payments channels.”
The organizations appear keen to speed up adoption for their new platform by making “some of the technical specifications for the prototype network” publically available.
The MAS has previously spoken about the potential wide-ranging uses for its new solution, which could be used for faster foreign currency exchange, “cross-border payments in multiple currencies” and foreign currency-denominated securities transactions.
The MAS hopes that other central banks will also turn to blockchain-powered solutions – and help avoid state-run cross-border finance-related matters falling behind the private sector. The MAS underlined the importance of central banks “making cross-border transactions faster, cheaper and safer."
The MAS stated, back in November,
"We hope this development will encourage other central banks to conduct similar trials. We will make the technical specifications publicly accessible to accelerate these efforts."
Singapore’s central bank says its prototype blockchain-powered cross-border payments network is now ready for commercial rollout.
As previously reported, the Monetary Authority of Singapore (MAS) began “industry testing" for its new solution with JPMorgan and the state-operated Singaporean holding company and investor Temasek late last year.
And it seems the pilots have proven successful. Per Reuters, MAS now says it is “ready” to commercialize the “multi-currency payments network.”
The media outlet quotes MAS and Temasek as stating,
“An international settlement network, modeled after the new payments network prototype, could enable faster and cheaper transactions than conventional cross-border payments channels.”
The organizations appear keen to speed up adoption for their new platform by making “some of the technical specifications for the prototype network” publically available.
The MAS has previously spoken about the potential wide-ranging uses for its new solution, which could be used for faster foreign currency exchange, “cross-border payments in multiple currencies” and foreign currency-denominated securities transactions.
The MAS hopes that other central banks will also turn to blockchain-powered solutions – and help avoid state-run cross-border finance-related matters falling behind the private sector. The MAS underlined the importance of central banks “making cross-border transactions faster, cheaper and safer."
The MAS stated, back in November,
"We hope this development will encourage other central banks to conduct similar trials. We will make the technical specifications publicly accessible to accelerate these efforts."
Village in El Salvador Turns its Back on Fiat in Favor of Bitcoin
Foundering fiats, a global pandemic and an anonymous donor’s generosity have led to the creation of a bitcoin (BTC)-powered economy in a village in El Salvador, the smallest and the most densely populated country in Central America.
Per an article written by a Forbes contributor, a village named El Zonte – population 3,000 – has “developed a proposal for a bitcoin circular economy which factored in remittances, tourism, public service and small business” as a response to the coronavirus pandemic.
The outbreak has hit tourism, the village’s main economic driver, particularly hard, but the village has responded with a bitcoin-powered alternative to conventional financial solutions.
The project was kickstarted by an anonymous donor who found a “forgotten thumb drive loaded with bitcoin” purchased when BTC 1 could be snapped up for around USD 5-10. The donor has since “allocated a multi-year six-figure donation to El Zonte.”
The donor teamed up with Michael Peterson, a San Diego resident who “spends up to nine months of the year volunteering in El Zonte.”
Bitcoin funds were also “injected into another beach community three hours away” named Punta Mango.
The article author states that all-comers can now use BTC and the Lightning Network to “buy anything from tacos to hardware supplies,” and can even pay their utility bills using the token.
The project has also seen young people paid in BTC for cleaning trash, as well as bitcoin grants for promising students – and even bitcoin-funded school buses.
El Salvador all but abandoned its national currency, the colon, back in 2001, when it adopted the USD as an official national fiat.
Foundering fiats, a global pandemic and an anonymous donor’s generosity have led to the creation of a bitcoin (BTC)-powered economy in a village in El Salvador, the smallest and the most densely populated country in Central America.
Per an article written by a Forbes contributor, a village named El Zonte – population 3,000 – has “developed a proposal for a bitcoin circular economy which factored in remittances, tourism, public service and small business” as a response to the coronavirus pandemic.
The outbreak has hit tourism, the village’s main economic driver, particularly hard, but the village has responded with a bitcoin-powered alternative to conventional financial solutions.
The project was kickstarted by an anonymous donor who found a “forgotten thumb drive loaded with bitcoin” purchased when BTC 1 could be snapped up for around USD 5-10. The donor has since “allocated a multi-year six-figure donation to El Zonte.”
The donor teamed up with Michael Peterson, a San Diego resident who “spends up to nine months of the year volunteering in El Zonte.”
Bitcoin funds were also “injected into another beach community three hours away” named Punta Mango.
The article author states that all-comers can now use BTC and the Lightning Network to “buy anything from tacos to hardware supplies,” and can even pay their utility bills using the token.
The project has also seen young people paid in BTC for cleaning trash, as well as bitcoin grants for promising students – and even bitcoin-funded school buses.
El Salvador all but abandoned its national currency, the colon, back in 2001, when it adopted the USD as an official national fiat.
CBDC Week: Another G7 Country Mulls Joining Digital Fiat Race
After the UK admitted it is mulling digital fiat plans this week, the Japanese government has also announced that it is considering the launch of a central bank digital currency (CBDC).
Per Nikkei, the cabinet is set to make a formal decision on whether or not it will include the issuance of a CBDC in its policy framework in the near future – adding that that should it do so, this would make digital yen issuance “official government policy.”
The government could include CBDC plans in its forthcoming budget plan, the Honebuto-no hoshin. The plan is formulated by 11 financial council members, including the central Bank of Japan (BoJ), and is chaired by Prime Minister Shinzo Abe.
Like its East Asian neighbor South Korea, Japan has long been of the opinion that a digital yen would not be necessary. But like Seoul, Tokyo appears to have made a dramatic u-turn – possibly as a result of China’s own digital yuan project, which Chinese media outlets say is already posed to start real-world pilots with two major firms.
Nikkei says that the Japanese government wants to make its move in conjunction with other major economies, and has been participating in CBDC study and research groups with European nations for several months.
The media outlet stated that the government and the BoJ are hoping to hold “full-scale talks with the United States and European countries” on the matter.
In February, the Japanese Ministry of Finance, the regulatory Financial Services Agency and the BoJ held three-party talks on CBDC research.
The Bank of England also admitted that it is mulling a CBDC launch this week, while the South Korean central bank launched a CBDC legal advisory unit, and the Bank of Lithuania opened a 'playground' for testing CBDCs.
Should Tokyo decide to go ahead with a digital yen launch, it would have no shortage of private companies ready to offer their assistance.
Readers may recall that a Japanese blockchain firm is currently piloting a token at a university in the country, as well as co-developing a digital fiat project with the Cambodian central bank.
After the UK admitted it is mulling digital fiat plans this week, the Japanese government has also announced that it is considering the launch of a central bank digital currency (CBDC).
Per Nikkei, the cabinet is set to make a formal decision on whether or not it will include the issuance of a CBDC in its policy framework in the near future – adding that that should it do so, this would make digital yen issuance “official government policy.”
The government could include CBDC plans in its forthcoming budget plan, the Honebuto-no hoshin. The plan is formulated by 11 financial council members, including the central Bank of Japan (BoJ), and is chaired by Prime Minister Shinzo Abe.
Like its East Asian neighbor South Korea, Japan has long been of the opinion that a digital yen would not be necessary. But like Seoul, Tokyo appears to have made a dramatic u-turn – possibly as a result of China’s own digital yuan project, which Chinese media outlets say is already posed to start real-world pilots with two major firms.
Nikkei says that the Japanese government wants to make its move in conjunction with other major economies, and has been participating in CBDC study and research groups with European nations for several months.
The media outlet stated that the government and the BoJ are hoping to hold “full-scale talks with the United States and European countries” on the matter.
In February, the Japanese Ministry of Finance, the regulatory Financial Services Agency and the BoJ held three-party talks on CBDC research.
The Bank of England also admitted that it is mulling a CBDC launch this week, while the South Korean central bank launched a CBDC legal advisory unit, and the Bank of Lithuania opened a 'playground' for testing CBDCs.
Should Tokyo decide to go ahead with a digital yen launch, it would have no shortage of private companies ready to offer their assistance.
Readers may recall that a Japanese blockchain firm is currently piloting a token at a university in the country, as well as co-developing a digital fiat project with the Cambodian central bank.
Bitcoin Pioneer LN Markets Raising Capital, Building 'Liquidation Killer'
LN Markets, the first bitcoin (BTC) derivatives exchange built on top of the Lightning Network (LN), reached USD 6m in total aggregate trading volume and is now raising capital in order to accelerate its growth.
The platform was launched in December 2019 in Beta, while their Alpha version went live in March this year. Since December, the exchange has processed over 22,000 trades.
The company started their fundraising process a few weeks ago, LN Markets co-founder Romain Rouphaël told Cryptonews.com, declining to elaborate any further.
Currently, the platform has around 1,000 daily active users. Trading limits are still small because the platform is still in Alpha. Traders can only trade up to BTC 0.01 (USD 92) at this point in time.
According to Rouphaël, in their product pipeline, there are bitcoin options, a bitcoin volatility index, and a new financial instrument called “liquidation killer.”
The idea behind the liquidation killer is to prevent traders from getting their positions liquidated from sharp price movements as is often the case on existing exchange offerings. To prevent that from happening, a trader can purchase a liquidation killer that prevents liquidation, for example, for a 24-hour period. The option to purchase a liquidation killer will be available for all trades and the payment of the premium will be automatically added when the margin is paid.
Additionally, LN Markets is keen to develop financial products on top of the Lighting Network using the RGB Protocol.
It is a smart contract system built for the Lightning Network that enables the issuance of fungible and non-fungible digital assets as well as digital identities, similar to ERC smart contract standards for the Ethereum (ETH) network.
Using the new LN smart contract technology, the platform plans to add stablecoins to its platform to enable financial products to be quoted in dollars and euros in addition to bitcoin.
A trading API is also on the roadmap to enable traders to plug into LN Markets directly.
LN Markets, the first bitcoin (BTC) derivatives exchange built on top of the Lightning Network (LN), reached USD 6m in total aggregate trading volume and is now raising capital in order to accelerate its growth.
The platform was launched in December 2019 in Beta, while their Alpha version went live in March this year. Since December, the exchange has processed over 22,000 trades.
The company started their fundraising process a few weeks ago, LN Markets co-founder Romain Rouphaël told Cryptonews.com, declining to elaborate any further.
Currently, the platform has around 1,000 daily active users. Trading limits are still small because the platform is still in Alpha. Traders can only trade up to BTC 0.01 (USD 92) at this point in time.
According to Rouphaël, in their product pipeline, there are bitcoin options, a bitcoin volatility index, and a new financial instrument called “liquidation killer.”
The idea behind the liquidation killer is to prevent traders from getting their positions liquidated from sharp price movements as is often the case on existing exchange offerings. To prevent that from happening, a trader can purchase a liquidation killer that prevents liquidation, for example, for a 24-hour period. The option to purchase a liquidation killer will be available for all trades and the payment of the premium will be automatically added when the margin is paid.
Additionally, LN Markets is keen to develop financial products on top of the Lighting Network using the RGB Protocol.
It is a smart contract system built for the Lightning Network that enables the issuance of fungible and non-fungible digital assets as well as digital identities, similar to ERC smart contract standards for the Ethereum (ETH) network.
Using the new LN smart contract technology, the platform plans to add stablecoins to its platform to enable financial products to be quoted in dollars and euros in addition to bitcoin.
A trading API is also on the roadmap to enable traders to plug into LN Markets directly.
Venezuela Tells Citizens in Gov’t Houses to Stop Mining Crypto
The Venezuelan government is set to ban crypto mining in government-provided housing, per an official announcement.
The announcement was made in a video tweeted by state-owned television station VTV Canal 8.
In the video, Ildemaro Villarroel, the Minister of Housing, stated that the central government had issued an edict banning the installation of equipment that is capable of mining bitcoin (BTC) and other cryptocurrencies in homes provided by the state.
The minister said that the move was being made as part of a campaign to promote the sensible and conservative use of electricity.
He stated,
“The installation of cryptocurrency mining machines has now been prohibited as per the amended Great Mission Housing Venezuela housing plan.”
The Great Mission Housing Venezuela housing plan, introduced by the Hugo Chávez administration in 2011, was set up to provide housing for families living in precarious conditions.
Villarroel added that the decision had been taken in conjunction with the Ministry of Electric Energy, and spoke of the “harmful effects” crypto mining has had “on electricity demand and consumption in state-built urban developments.”
Cryptocurrency mining is legal in Venezuela, and the country is among the world’s top 10 electricity consumers for crypto mining, per data compiled by the University of Cambridge.
Earlier this month, the Venezuelan army announced the seizure of a truck loaded with 315 unregistered Antminer 9 crypto mining rigs.
The Venezuelan government is set to ban crypto mining in government-provided housing, per an official announcement.
The announcement was made in a video tweeted by state-owned television station VTV Canal 8.
In the video, Ildemaro Villarroel, the Minister of Housing, stated that the central government had issued an edict banning the installation of equipment that is capable of mining bitcoin (BTC) and other cryptocurrencies in homes provided by the state.
The minister said that the move was being made as part of a campaign to promote the sensible and conservative use of electricity.
He stated,
“The installation of cryptocurrency mining machines has now been prohibited as per the amended Great Mission Housing Venezuela housing plan.”
The Great Mission Housing Venezuela housing plan, introduced by the Hugo Chávez administration in 2011, was set up to provide housing for families living in precarious conditions.
Villarroel added that the decision had been taken in conjunction with the Ministry of Electric Energy, and spoke of the “harmful effects” crypto mining has had “on electricity demand and consumption in state-built urban developments.”
Cryptocurrency mining is legal in Venezuela, and the country is among the world’s top 10 electricity consumers for crypto mining, per data compiled by the University of Cambridge.
Earlier this month, the Venezuelan army announced the seizure of a truck loaded with 315 unregistered Antminer 9 crypto mining rigs.
Crypto Insider Traders Run Free, Hurting Unregulated Market
The crypto industry has an insider trading problem. While no official laws or regulations explicitly prohibit insider trading within crypto, industry observers suspect that it happens more often than you think.
Few crypto exchanges and companies are actually listed on traditional stock exchanges, so ‘insider trading’ in the normal sense doesn’t happen in crypto. Nonetheless, insider trading has its forms within crypto. It could be a group of people, such as founders, team members, who have knowledge not shared by the whole market and use it to buy/sell tokens before the market gets the news. Also, it might be exchanges buying a coin before announcing plans to list it.
These forms of trading have a toxic effect on crypto, undermining confidence in exchanges, startups, and deterring the wider public from investing. That’s why regulation might be necessary to make crypto’s own forms of insider trading illegal.
Suspicions
“It is obvious some people will always have access to information not readily available to others,” said Fawad Razaqzada, an analyst with ThinkMarkets. “For example, when a particular cryptocurrency is about to be listed on an exchange, some people that work in that exchange will obviously know about it. Whether they act on that information is dependent on the person or persons.”
Speaking to Cryptonews.com, Razaqzada added, “I strongly believe a lot of such activity goes on, but can’t prove it.”
He’s not alone. Traders have accused Coinbase of insider trading on various occasions, stretching back to its listing of bitcoin cash (BCH) in 2018 and occurring as recently as May, when Coinbase’s listing of omisego (OMG) caused the token to jump dramatically in price.
This is ridiculous. This morning OMG traded at $3.90 on Coinbase while trading at $2.14 on Binance (82.34% premium…
— Matt Casto (@mcasto_)
Similar accusations have been levelled at other major exchanges, such as Binance (which listed XRP in January, before an XRP pump) and BitMEX (which Nouriel Roubini has directly accused of insider trading).
Coinbase, Binance, BitMex, and other crypto exchanges deny all accusations of insider trading.
However, Prof. Philipp Sandner, the head of the Frankfurt School Blockchain Center, argued that in the area of cryptoassets we primarily encounter price manipulations rather than insider trading.
“This especially holds true for alternative cryptocurrencies with a much lower market capitalization than bitcoin (BTC) or ethereum (ETH). Here, so-called pump-and-dump schemes or sell walls are used to artificially manipulate prices,” he said.
Sandner also thinks insider trading involving security token offerings (STOs) is also possible. However, he’s “not aware of any case so far.”
The crypto industry has an insider trading problem. While no official laws or regulations explicitly prohibit insider trading within crypto, industry observers suspect that it happens more often than you think.
Few crypto exchanges and companies are actually listed on traditional stock exchanges, so ‘insider trading’ in the normal sense doesn’t happen in crypto. Nonetheless, insider trading has its forms within crypto. It could be a group of people, such as founders, team members, who have knowledge not shared by the whole market and use it to buy/sell tokens before the market gets the news. Also, it might be exchanges buying a coin before announcing plans to list it.
These forms of trading have a toxic effect on crypto, undermining confidence in exchanges, startups, and deterring the wider public from investing. That’s why regulation might be necessary to make crypto’s own forms of insider trading illegal.
Suspicions
“It is obvious some people will always have access to information not readily available to others,” said Fawad Razaqzada, an analyst with ThinkMarkets. “For example, when a particular cryptocurrency is about to be listed on an exchange, some people that work in that exchange will obviously know about it. Whether they act on that information is dependent on the person or persons.”
Speaking to Cryptonews.com, Razaqzada added, “I strongly believe a lot of such activity goes on, but can’t prove it.”
He’s not alone. Traders have accused Coinbase of insider trading on various occasions, stretching back to its listing of bitcoin cash (BCH) in 2018 and occurring as recently as May, when Coinbase’s listing of omisego (OMG) caused the token to jump dramatically in price.
This is ridiculous. This morning OMG traded at $3.90 on Coinbase while trading at $2.14 on Binance (82.34% premium…
— Matt Casto (@mcasto_)
Similar accusations have been levelled at other major exchanges, such as Binance (which listed XRP in January, before an XRP pump) and BitMEX (which Nouriel Roubini has directly accused of insider trading).
Coinbase, Binance, BitMex, and other crypto exchanges deny all accusations of insider trading.
However, Prof. Philipp Sandner, the head of the Frankfurt School Blockchain Center, argued that in the area of cryptoassets we primarily encounter price manipulations rather than insider trading.
“This especially holds true for alternative cryptocurrencies with a much lower market capitalization than bitcoin (BTC) or ethereum (ETH). Here, so-called pump-and-dump schemes or sell walls are used to artificially manipulate prices,” he said.
Sandner also thinks insider trading involving security token offerings (STOs) is also possible. However, he’s “not aware of any case so far.”
Is There A World Beyond YouTube for Crypto?
The relationship between the communications giant Google and the cryptoasset industry can be characterized as somewhat antagonistic.
Now, its video-sharing platform, YouTube seems to be on the offensive, de-platforming some crypto-related content creators, leaving them looking for viable alternatives.
No tube for you
As early as 2019, reports began to emerge from content creators within the cryptosphere who claimed that they were receiving warnings from YouTube about the content in their videos. In many cases, videos were removed, forcing the content creators to appeal the decision. In more extreme cases, some content creators found their YouTube channels de-platformed.
Towards the end of 2019, these claims reached a fever pitch as the crypto community noticed a purge of crypto-related material on YouTube. Channels like BTC Sessions, ChrisDunnTV, and Crypto Tips received warnings and had numerous videos deleted.
On December 23, 2019, Chris Dunn questioned YouTube’s choices saying, "YouTube just removed most of my crypto videos citing "harmful or dangerous content" and "sale of regulated goods"... it's been 10 years of making videos, 200k+ subs, and 7M+ views. WTF are you guys doing?!”
Given the widespread nature of the deletions, speculation rose about YouTube’s motives. Considering restrictions on crypto and blockchain ads on Google, some members of the crypto community believed the video-sharing platform was purposefully participating in censorship.
YouTube eventually released a statement, saying that the deletions were accidental and urging content creators to appeal any decisions they feel were made in error. For content creators like Chris Dunn, however, going through the appeal process in order to have the videos reinstated did not always work. Dunn said, “Today, YouTube not only took down the videos that they reinstated yesterday, but they took down at least one other video that they’d never taken down before.”
The relationship between the communications giant Google and the cryptoasset industry can be characterized as somewhat antagonistic.
Now, its video-sharing platform, YouTube seems to be on the offensive, de-platforming some crypto-related content creators, leaving them looking for viable alternatives.
No tube for you
As early as 2019, reports began to emerge from content creators within the cryptosphere who claimed that they were receiving warnings from YouTube about the content in their videos. In many cases, videos were removed, forcing the content creators to appeal the decision. In more extreme cases, some content creators found their YouTube channels de-platformed.
Towards the end of 2019, these claims reached a fever pitch as the crypto community noticed a purge of crypto-related material on YouTube. Channels like BTC Sessions, ChrisDunnTV, and Crypto Tips received warnings and had numerous videos deleted.
On December 23, 2019, Chris Dunn questioned YouTube’s choices saying, "YouTube just removed most of my crypto videos citing "harmful or dangerous content" and "sale of regulated goods"... it's been 10 years of making videos, 200k+ subs, and 7M+ views. WTF are you guys doing?!”
Given the widespread nature of the deletions, speculation rose about YouTube’s motives. Considering restrictions on crypto and blockchain ads on Google, some members of the crypto community believed the video-sharing platform was purposefully participating in censorship.
YouTube eventually released a statement, saying that the deletions were accidental and urging content creators to appeal any decisions they feel were made in error. For content creators like Chris Dunn, however, going through the appeal process in order to have the videos reinstated did not always work. Dunn said, “Today, YouTube not only took down the videos that they reinstated yesterday, but they took down at least one other video that they’d never taken down before.”
A Date for Final Ethereum 2.0 Public Testnet Announced; Attacknets Live
Step by step, or rather one testnet by another, Ethereum 2.0 (ETH 2.0) seems to be on track for launch - as the date for the final public testnet has been announced.
Ethereum Core developer Danny Ryan posted on the testnet’s Discord site that the next multi-client testnet is fast-approaching, now being just two weeks away, on August 4, if everything goes according to the plan.
"After discussions with client teams, the next multi-client testnet (mainnet config including min validator numbers) will have a min genesis time of August 4," Ryan wrote.
He further added that the likely time would be 13:00 or 14:00 UTC, but also that additional information will be made available to the public in the "next couple of days."
Furthermore, "the test educational deposit interface aimed at hobbyists" called Launchpad will also be included in this testnet. Product Manager at Ethereum-focused blockchain company ConsenSys, Jimmy Ragosa, posted back in May that the official Ethereum 2.0 deposit launchpad had been open-sourced, providing a UX (user experience) review.
This is supposedly the last public testnet leading to the long-awaited and much-discussed first phase of ETH 2.0, called Phase 0 or Beacon Chain. As reported previously, this is far from being the only testnet the developers launched so far, as they've been going live with both single-client and multi-client testnets for months now.
Back in April, the Sapphire testnet was launched, allowing users to make small deposits, which was then followed by Topaz in May and Onyx in June. A coder from Prysm, Terence Tsao, shared a few days ago a blog post containing certain issues with and subsequent fixes for Onyx, also saying that the developers are "so close to official multiclient testnet."
Also in April, Prysm and Lighthouse released the multi-client testnet Schlesi, which was followed by Witti and then Altona, launched in early July.
Altona "appears to be stable," Afri Schoedon, release manager at blockchain infrastructure company Parity Technologies, said recently, adding that the official multi-client testnet Medalla would be coming "very soon, which would mark the final step towards an Ethereum 2.0 mainnet launch."
As reported, Schoedon also gave November as the possible Phase 0 launch time, provided that no critical issues are found.
This Monday, Ryan announced that the attacknets are live, calling for anybody willing to try and attack the small, four-node versions of the Lighthouse and Prysm ETH 2.0 clients, with the possible reward of USD 5,000 for each network awaiting successful white hat hackers.
Step by step, or rather one testnet by another, Ethereum 2.0 (ETH 2.0) seems to be on track for launch - as the date for the final public testnet has been announced.
Ethereum Core developer Danny Ryan posted on the testnet’s Discord site that the next multi-client testnet is fast-approaching, now being just two weeks away, on August 4, if everything goes according to the plan.
"After discussions with client teams, the next multi-client testnet (mainnet config including min validator numbers) will have a min genesis time of August 4," Ryan wrote.
He further added that the likely time would be 13:00 or 14:00 UTC, but also that additional information will be made available to the public in the "next couple of days."
Furthermore, "the test educational deposit interface aimed at hobbyists" called Launchpad will also be included in this testnet. Product Manager at Ethereum-focused blockchain company ConsenSys, Jimmy Ragosa, posted back in May that the official Ethereum 2.0 deposit launchpad had been open-sourced, providing a UX (user experience) review.
This is supposedly the last public testnet leading to the long-awaited and much-discussed first phase of ETH 2.0, called Phase 0 or Beacon Chain. As reported previously, this is far from being the only testnet the developers launched so far, as they've been going live with both single-client and multi-client testnets for months now.
Back in April, the Sapphire testnet was launched, allowing users to make small deposits, which was then followed by Topaz in May and Onyx in June. A coder from Prysm, Terence Tsao, shared a few days ago a blog post containing certain issues with and subsequent fixes for Onyx, also saying that the developers are "so close to official multiclient testnet."
Also in April, Prysm and Lighthouse released the multi-client testnet Schlesi, which was followed by Witti and then Altona, launched in early July.
Altona "appears to be stable," Afri Schoedon, release manager at blockchain infrastructure company Parity Technologies, said recently, adding that the official multi-client testnet Medalla would be coming "very soon, which would mark the final step towards an Ethereum 2.0 mainnet launch."
As reported, Schoedon also gave November as the possible Phase 0 launch time, provided that no critical issues are found.
This Monday, Ryan announced that the attacknets are live, calling for anybody willing to try and attack the small, four-node versions of the Lighthouse and Prysm ETH 2.0 clients, with the possible reward of USD 5,000 for each network awaiting successful white hat hackers.
S Korea To Discriminate Crypto Traders Against Stock Traders With A New Tax
The South Korean government has unveiled its crypto tax proposals – with traders who earn over USD 2,100 a year set to pay 20% tax on their earnings.
This limit is considerably lower for stock market traders, who do not need to pay tax on earnings (also 20%) of up to USD 42,000 from investments in KOSDAQ-listed companies. These proposals still need to be confirmed by the parliament.
Per multiple South Korean media outlets, including SBS, as well as Fn News and the Electronic Times, if confirmed by the parliament, the measures are set to come into force in October next year. Anyone earning under USD 2,100 from crypto trading would not need to pay tax on their earnings.
Crypto traders would be asked to submit tax declarations in May every year.
And those who attempt to bypass tax measures by trading on overseas-based exchanges were also issued with a warning. Tax authorities would have the power to issue undeclared traders with additional tax bills (also of 20%) – on top of the 20% payable from the undisclosed trades.
However, media outlets and experts appear to agree that tax evasion will likely be rife when the measures come into force, as there appear to be no provisions included to prevent or police peer-to-peer (P2P) transactions.
Furthermore, the government has stipulated that two different methodologies can be used while making tax declarations – another factor that could lead to “tax loopholes,” concluded Fn News.
Media outlets also added that the fact that declarations need to be made in May may complicate matters. As the price of tokens fluctuates throughout the year, the process of calculating the precise fiat value of tokens at the moment they were traded could be fraught with errors and confusion.
The South Korean government has unveiled its crypto tax proposals – with traders who earn over USD 2,100 a year set to pay 20% tax on their earnings.
This limit is considerably lower for stock market traders, who do not need to pay tax on earnings (also 20%) of up to USD 42,000 from investments in KOSDAQ-listed companies. These proposals still need to be confirmed by the parliament.
Per multiple South Korean media outlets, including SBS, as well as Fn News and the Electronic Times, if confirmed by the parliament, the measures are set to come into force in October next year. Anyone earning under USD 2,100 from crypto trading would not need to pay tax on their earnings.
Crypto traders would be asked to submit tax declarations in May every year.
And those who attempt to bypass tax measures by trading on overseas-based exchanges were also issued with a warning. Tax authorities would have the power to issue undeclared traders with additional tax bills (also of 20%) – on top of the 20% payable from the undisclosed trades.
However, media outlets and experts appear to agree that tax evasion will likely be rife when the measures come into force, as there appear to be no provisions included to prevent or police peer-to-peer (P2P) transactions.
Furthermore, the government has stipulated that two different methodologies can be used while making tax declarations – another factor that could lead to “tax loopholes,” concluded Fn News.
Media outlets also added that the fact that declarations need to be made in May may complicate matters. As the price of tokens fluctuates throughout the year, the process of calculating the precise fiat value of tokens at the moment they were traded could be fraught with errors and confusion.
US Banks Offering Crypto Custody is 'Insanely' Bullish and Risky
While many in the Cryptoverse celebrate a decision by the US Office of the Comptroller of the Currency to allow all federally chartered banks in the US to provide cryptoasset custody services to their customers, it also brings an "existential" risk to Bitcoin (BTC).
The OCC published a letter stating that all national and state banks and federal savings associations can hold their clients' digital assets. It also acknowledged BTC as "the first widely-adopted cryptocurrency."
"The OCC concludes that providing cryptocurrency custody services, including holding unique cryptographic keys associated with cryptocurrency, is a modern form of traditional bank activities related to custody services," their press release said. "Crypto custody services may extend beyond passively holding "keys"."
Acting Comptroller Brian Brooks, who joined OCC this year after leaving his position of an executive at major crypto exchange Coinbase, said:
"This opinion clarifies that banks can continue satisfying their customers' needs for safeguarding their most valuable assets, which today for tens of millions of Americans includes cryptocurrency."
The letter recognized the need for banks to leverage new technologies, particularly given the increasing digitization of the financial markets. Furthermore, national banks providing cryptocurrency custody might signal recognition of cryptos by these financial authorities, which could be reassuring to people who place their trust in traditional institutions. After all, the letter described fiat as an instrument that doesn't "have intrinsic value but that individuals and institutions are willing to use for purposes of purchase and investment because they are issued by a government."
"This clarification from the OCC may open the doors for larger financial institutions to be more comfortable providing traditional bank accounts to cryptocurrency companies, as well as actually provide custodial services for customers’ private keys," Hailey Lennon, a legal counselor to crypto and fintech companies, wrote, adding that the OCC acknowledged the difference between custodial services for fiat money versus cryptocurrency.
While many in the Cryptoverse celebrate a decision by the US Office of the Comptroller of the Currency to allow all federally chartered banks in the US to provide cryptoasset custody services to their customers, it also brings an "existential" risk to Bitcoin (BTC).
The OCC published a letter stating that all national and state banks and federal savings associations can hold their clients' digital assets. It also acknowledged BTC as "the first widely-adopted cryptocurrency."
"The OCC concludes that providing cryptocurrency custody services, including holding unique cryptographic keys associated with cryptocurrency, is a modern form of traditional bank activities related to custody services," their press release said. "Crypto custody services may extend beyond passively holding "keys"."
Acting Comptroller Brian Brooks, who joined OCC this year after leaving his position of an executive at major crypto exchange Coinbase, said:
"This opinion clarifies that banks can continue satisfying their customers' needs for safeguarding their most valuable assets, which today for tens of millions of Americans includes cryptocurrency."
The letter recognized the need for banks to leverage new technologies, particularly given the increasing digitization of the financial markets. Furthermore, national banks providing cryptocurrency custody might signal recognition of cryptos by these financial authorities, which could be reassuring to people who place their trust in traditional institutions. After all, the letter described fiat as an instrument that doesn't "have intrinsic value but that individuals and institutions are willing to use for purposes of purchase and investment because they are issued by a government."
"This clarification from the OCC may open the doors for larger financial institutions to be more comfortable providing traditional bank accounts to cryptocurrency companies, as well as actually provide custodial services for customers’ private keys," Hailey Lennon, a legal counselor to crypto and fintech companies, wrote, adding that the OCC acknowledged the difference between custodial services for fiat money versus cryptocurrency.
Fiat Will Be a Passing Fad In the History of Money - Deutsche Bank Strategist
Fiat money will be a passing fad in the long-term history of money, while gold, as a hedge against government money, is outperformed by equities in the long run, according to Jim Reid, Research Strategist at German banking giant Deutsche Bank.
In a note to clients on Wednesday, he admitted that even as he's 'a gold bug' due to the bleak future of fiat money "in my long-term work I’ve always found many commodities difficult to recommend on a buy and hold basis as most underperform inflation over the long run."
"Indeed, between 1860 and 1971 (when we moved from a gold-based system to fiat money) the real price of Gold fell by 75% and over 80% for Oil and Silver. Since then, Oil and Silver have only doubled in real terms and are still less than half their 1860 values, but Gold is up 7 times, double its 1860s real level. For context, however, the S&P 500 is up 22 times in real total return terms (including dividends) since 1971 and 40,000 times since 1860," Reid wrote.
He concluded that while gold is definitely a fiat money hedge, on a total return basis equities have tended to do much better in the long run.
Reid did not comment on the role of Bitcoin (BTC) in the long-term history of money when contacted by Cryptonews.com.
However, in December last year, Deutsche Bank Research said that the forces that hold the fiat money system together look fragile and, over the next decade, some of these forces could begin to unravel and demand for alternative currencies, from gold to crypto, could take off.
According to the researchers, it is possible that inflation will become more and more embedded in our system and doubts will rise about the sustainability of fiat money.
Fiat money will be a passing fad in the long-term history of money, while gold, as a hedge against government money, is outperformed by equities in the long run, according to Jim Reid, Research Strategist at German banking giant Deutsche Bank.
In a note to clients on Wednesday, he admitted that even as he's 'a gold bug' due to the bleak future of fiat money "in my long-term work I’ve always found many commodities difficult to recommend on a buy and hold basis as most underperform inflation over the long run."
"Indeed, between 1860 and 1971 (when we moved from a gold-based system to fiat money) the real price of Gold fell by 75% and over 80% for Oil and Silver. Since then, Oil and Silver have only doubled in real terms and are still less than half their 1860 values, but Gold is up 7 times, double its 1860s real level. For context, however, the S&P 500 is up 22 times in real total return terms (including dividends) since 1971 and 40,000 times since 1860," Reid wrote.
He concluded that while gold is definitely a fiat money hedge, on a total return basis equities have tended to do much better in the long run.
Reid did not comment on the role of Bitcoin (BTC) in the long-term history of money when contacted by Cryptonews.com.
However, in December last year, Deutsche Bank Research said that the forces that hold the fiat money system together look fragile and, over the next decade, some of these forces could begin to unravel and demand for alternative currencies, from gold to crypto, could take off.
According to the researchers, it is possible that inflation will become more and more embedded in our system and doubts will rise about the sustainability of fiat money.
Angry South Korean Crypto Traders Threaten to Quit over New 20% Tax
Active crypto traders in South Korea said they are prepared to walk away from the scene forever – slamming “unfair” 20% crypto trading tax law proposals unveiled by the government earlier this week. It is a sign, perhaps, of what traders in other nations will have to deal with in the near future, with draft crypto tax laws now being drawn up by governments all over the planet.
The proposals, which will be bundled with a range of other tax changes, are almost certain to be voted into law in the next parliamentary session, which will convene in autumn. This would allow the law to promulgate in October 2021, and will see anyone earning over around USD 2,100 in crypto trading profits obliged to cough up 20% of their earnings to the taxman.
Speaking to Cryptonews.com, Mira Kim, a South Korea-based blockchain consultant, stated,
“A lot of people really seem to think that it’s not fair, that the bar has been set too high. Stock traders, for example, are allowed to offset their tax payments for up to five years [depending on the size of their trading profits], but it doesn’t look like that will be an option for crypto traders.”
Kim added that many people have told her that going from paying nothing to paying 20% is just too much of a jump, that the government should introduce taxes more gently if it wants to make money from traders instead of just scaring them off.
"I don’t know if it’s just angry talk, but a couple of very active traders have told me that as of the end of this year, they will stop crypto trading for good,” Kim said.
Per Chosun, even legal experts agreed that crypto traders and stock traders were “clearly being treated differently.”
Those hoping to find legal loopholes to help them evade the taxman’s grasp might also find themselves frustrated.
An unnamed lawyer told the media outlet,
"Even [people trying to] bypass [the tax] by using an overseas exchange will eventually have to use a fiat ramp at a domestic exchange. That process will involve clarifying how you acquired the funds."
Eventually, said the lawyer, the tax authorities would be able to pick on the deal, and would come with questions. Furthermore, the taxman has been given the power to hit would-be crypto tax evaders with a second 20% tax bill should they fail to declare their earnings correctly.
Tax authorities might still struggle to identify and tax peer-to-peer (P2P) trading, said lawyers – a fact that could lead to a boom in harder-to-trace crypto deals.
Active crypto traders in South Korea said they are prepared to walk away from the scene forever – slamming “unfair” 20% crypto trading tax law proposals unveiled by the government earlier this week. It is a sign, perhaps, of what traders in other nations will have to deal with in the near future, with draft crypto tax laws now being drawn up by governments all over the planet.
The proposals, which will be bundled with a range of other tax changes, are almost certain to be voted into law in the next parliamentary session, which will convene in autumn. This would allow the law to promulgate in October 2021, and will see anyone earning over around USD 2,100 in crypto trading profits obliged to cough up 20% of their earnings to the taxman.
Speaking to Cryptonews.com, Mira Kim, a South Korea-based blockchain consultant, stated,
“A lot of people really seem to think that it’s not fair, that the bar has been set too high. Stock traders, for example, are allowed to offset their tax payments for up to five years [depending on the size of their trading profits], but it doesn’t look like that will be an option for crypto traders.”
Kim added that many people have told her that going from paying nothing to paying 20% is just too much of a jump, that the government should introduce taxes more gently if it wants to make money from traders instead of just scaring them off.
"I don’t know if it’s just angry talk, but a couple of very active traders have told me that as of the end of this year, they will stop crypto trading for good,” Kim said.
Per Chosun, even legal experts agreed that crypto traders and stock traders were “clearly being treated differently.”
Those hoping to find legal loopholes to help them evade the taxman’s grasp might also find themselves frustrated.
An unnamed lawyer told the media outlet,
"Even [people trying to] bypass [the tax] by using an overseas exchange will eventually have to use a fiat ramp at a domestic exchange. That process will involve clarifying how you acquired the funds."
Eventually, said the lawyer, the tax authorities would be able to pick on the deal, and would come with questions. Furthermore, the taxman has been given the power to hit would-be crypto tax evaders with a second 20% tax bill should they fail to declare their earnings correctly.
Tax authorities might still struggle to identify and tax peer-to-peer (P2P) trading, said lawyers – a fact that could lead to a boom in harder-to-trace crypto deals.
