This week on the Blockchain Weekly pedestal:
- WEF Publishes Report on the State of Distributed Ledger Technology (DLT) in Capital Markets
- Etherium Breaks Through $3,000 Token Valuation
- S&P Dow Jones Welcomes Bitcoin and Ethereum with Crypto Index
1. WEF Publishes Report on the State of Distributed Ledger Technology (DLT) in Capital Markets
Late this week, the Word Economic Forum (WEF) published an insight report to discuss several aspects of distributed ledger technologies, specifically as the technology relates to digital assets within the capital markets.
The report, Digital Assets, Distributed Ledget Technology and the Future of Capital Markets, is a 100-pager capturing the findings of a global survey that the WEF conducted virtually over the course of 2020.
Gathering opinions from a range of executives, policy makers and industry actors, a several takeaways were discovered including:
- Discussions around DLT as an Enabler for Digital Assets are Loundening — Something that is true about distributed ledger technologies is that more and more projects are being sought out by larger and larger institutional players.
- Uptake in DLT and Smart Contracts Projects are Increasing the Value Proposition of the Technology — Over the recent weeks specifically, projects and research partnerships around central bank digitalcurrencies (CBDCs) have been gaining steady traction. WEF’s report and the subsequent participants aligned with this macro trend, pointing at what may be described as a general increase in optimism on blockchain technology comforting bank service lines.
- The Pathway to Scale is Not Clear — At the same that narrow use cases and pilot projects are being publicized and stress-tested, a prevailing concern is on the lack of an “industry-wide vision of the future [of DLT and digital assets in the capital markets] in most jurisdictions”. Added to the regulatory uncertainty are other meandering discussions on the implementation of DLT systems, and the affect that may have on business operations.
To paraphrase Anthony Day, IBM Blockchain Partner; Blockchain will not save the world. People will. And reports such as the most recent one by WEF are invaluable tools in assisting people make informed decisions on the technology.
Critically, reports such as this provide perspective on the thoughts of a community on the potential of distributed ledger technology (DLT), but as well the barriers of entry yet to be overlept before enough of the community can conform as an industry. And that, will continue to propel more constructive approaches to distributed ledget technology.
2. Ethereum Breaks Through $3,000 Token Valuation
Not one to let Bitcoin have all the crypto fun, Ethereum (and Ether) are enjoying a bullish run of late, that is seeing major inflection points for the company and underlying crypto.
In passing the $3,000 token price, Ethereum adds another pin in reaffirming itself as a solid bet for investors and institutions of the platform's value proposition.
Naturally, the steady rise that has been experienced by the cryptocurrency comes after a string of favorable movements related to Ethereum. Most notably with the European Investment Bank’s to-be 2-year digital bond, expected to be worth in excess of $100 billion announced in the previous weeks.
With little signs to slowing down — at the time of writing Ethereum is hovering at $3,900, according to indexes — and an EIP fork, London, just around the corner, the current number two crypto will look to continue its recent run in form over the next couple of weeks.
3. S&P Dow Jones Welcomes Bitcoin and Ethereum with Crypto Index
Early this week the S&P Dow Jones welcomed major cryptocurrencies, Bitcoine and Ethereum, as part of the crypto indexes platform, marking a step-change in normalizing interactions between investors and crypto.
Ethereum (ticker symbol, ‘SPETH’), Bitcoin (‘SPBTC’) as well as an amalgamated crypto index to the two, MegaCap (‘SPCMC’) went live on the S&P on Monday.
As one Coindesk piece describes the event, the S&P adoption of the two biggest players in the crypto industry as part of their suite of indexes is a strong positive indicator of broader investment confidence.
In the context of investors as well general onlookers of the index, the interesting part will now be in tracking the changes (up as well as down) in the respective crypto indexes. This can be expected to serve as another metric measure on assessing the continued growth in the crypto sector.
More Blockchain Weekly
- [CBDC] — Goldman Sachs’ Thoughts on IP-Driven CBDC, “CBDCs will likely be tied to personal accounts that include personal data, credit history and other forms of relevant information.”
- [CBDC / Digital Dollar] — The Digital Dollar Project Unveils 5 CBDC Pilot Programs, “Central bank digital currencies will play an important role in how we modernize our financial systems.”
- [NFT] — eBay Actively Looking at Potential Introduction of NFT Integration, “We are excited about the underlying capabilities and how blockchain-driven collectibles bring trust and authenticity, key components of a marketplace, to the digital space”
And there you have it! That brings us to the end of this Blockchain Weekly newsletter, an extract from my other personal newsletters I keep up.
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Cheers and keep safe 🚀,
Blockchain Weekly (BW) is a newsletter of mine that is driven by my personal database of collected resources throughout a particular week. More than anything else, it’s a medium through which I can systemize the plethora of information that gets loaded and refreshed onto my socials on a daily basis.
Focusing on blockchain and DLT but not just, Blockchain Weekly keeps me sane and steadfast on the tech areas that I am prioritizing from week to week.
Once more, cheers ✋.
Disclaimer: Topics, talking points, and takes presented are my personal views extracted from my personal set of trusted sources that are being shared for informational purposes only.