USD IS DEAD, LONG LIVE USD!
The Reserve 24.08
In the beginning, crypto was an unknown entity. Criminal underworlds, drug lords and the dark web were among the connotations associated with it.
But as the truism goes, “the more things change, the more they stay the same”. Governments are slowly accepting crypto as a viable form of currency, which signals digital currencies becoming more mainstream. This theme was recently reported by the BBC who mooted stable coins’ potential as a “smart currency” to re-incentivise institutional investment into the space.
The oddity is that these stable coins are not necessarily issued by the governments themselves. [Although as an aside — over the past week the Chinese government has taken a stand against privately issued cryptocurrencies — is this perhaps in preparation for a digital currency Yuan?] Instead we see the likes of Tether who are “converting cash into digital currency, to anchor or tether the value to the price of national currencies like the US dollar, the Euro, and the Yen” and Circle who are issuing a coin pegged to the USD.
Crypto bulls (see Tim Draper here) have long predicted the the end of fiat currencies, largely due to the fact that fiat currencies are ultimately controlled by inflation-loving governments. Interesting then that some of the highest profile new cryptocurrency projects (see TrueUSD among others), want to mimic these ‘undesirable’ fiat currencies. Maybe then the USD is not dead after all. Perhaps it may even reach crypto levels of fandom now that more and more proxy versions of it reside on a blockchain.
Innovative attempts to create virtual currencies that are not pegged to a fiat currency will not end, but given the fear and speculation in the crypto space recently, it’s far more likely that fiat-linked stable coins will be the short-term winners in the DLT space. When they are actually usable and scalable that is…
// MUST READS
- 3 Tips For Staying On Top Of The Rapidly-Changing Blockchain Industry — article here.
- South Korea Is Cementing Its Place As A Global Blockchain Leader — article here.
// DISASTER OF THE WEEK
The recent Chinese crypto crack-down has banned venues from hosting crypto events in Beijing’s finance district. Twitter influencers think they are serious this time.
// TRACTION
- Downward pressure on crypto asset prices does not change the dynamic of the evolution of leveraging blockchain technology across global financial markets.
- Kenya’s electoral agency intends to use blockchain technology to offer real-time results, as part of reform efforts to enhance the integrity of voting.
- Blockchain could help Netflix curtail account sharing.
- Venezuela’s 95% devaluation of the bolivar over the weekend is generating fresh interest in its cryptocurrency, which was designed to be devaluation-proof.
- Part of JP Morgan’s big digital reform is the launch of a blockchain-based debt-issuance application to sell certificates of deposit.
- Analysts at UBS modelled demand for bitcoin, estimate that 70% of price action is speculative.
- Pure Diamond Lab, a Tokyo-based company uses blockchain technology to sell unique lab-grown diamonds, which have identical qualities of naturally-occurring ones and therefore qualify to be certified by the GIA (Gemological Institution of America).
// ROAD TO REGULATION
- SEC Commissioner, Hester Peirce, stated that the SEC will review the disapproval orders for nine bitcoin ETFs issued on Wednesday.
- Partly to answer its critics in the SEC, the Winklevosses are supporting the growth of a self-regulatory organisation, the Virtual Commodity Association, to help police crypto markets and prove to the world that cryptocurrency exchanges are cleaning up their act and clamping down on manipulation. In a boost to its ranks, Bitstamp, BitFlyer USA and Bittrex have all just agreed to join the organisation.
- The Chinese crypto crack-down continues…
- A bird’s eye view on how the EU regulates virtual currencies.
// PROJECTS
- The central bank of Thailand is developing a digital currency based on R3 Tech. The central bank expects to complete the first phase of their proof of concept by March 2019. The goal of the proof of concept is to use the digital currency to facilitate interbank transactions.
- Seven Stars Cloud Group listed on the NASDAQ has won a deal to help raise $24 billion to fund large-scale electric bus upgrades for China’s largest full service operator for electric buses. Under the contract with the National Transportation Capacity Co Ltd (NTS), Seven Stars Cloud group will issue fixed income lease-financing based products.
// YOUR CHANCE TO WIN
- In partnership with Keynote, we’re offering 20 tickets to the world’s most influential community members and blockchain enthusiasts for the World Blockchain Forum in London, 3–5 September 2018.
- Your tickets will give you access to 2 full days of inspiring speakers, exhibitors, and panellists and the opportunity to join the conversations changing the future at the renowned industry networking parties.
- To win a free ticket (valued at over £1000), simply fill out this 1 minute survey by 25 August 2018. Winners will be notified by 29 August 2018.
// EVENTS
API Days — Melbourne, Australia — Sep 3–4, 2018
ASEAN Blockchain Summit 2018 — Kuala Lumpur, Malaysia — Sep 3–4, 2018
World Blockchain Forum London — London, UK — Sep 3–5, 2018
Crypto Investment and ICO Summit 2018 — Sydney, Australia — Sep 5–7, 2018
Disrupt SF 2018 — San Francisco, CA, USA — Sep 5–7, 2018
BlockChainConf.Tech Atlanta — GA, USA — Sep 6–7, 2018
