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Tonight at 6:30 pm ET: Join us for our discussion with J. Christopher Giancarlo, Chairman Emeritus of the CFTC. We'll discuss U.S. crypto regulation, the Digital Dollar, and his new book "CryptoDad."
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In plain language, it's a separate layer that allows companies to do fast, secure transactions, then write them to the blockchain. Instead of Ethereum's 300 transactions per second, they claim 10,000 TPS.
Investor takeaway: This is the first "Layer 2 solution" from industry heavyweights ConsenSys and Mastercard. For long-term investors, ETH still looks like the best blockchain bet. (Consider MA stock, too.) |
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Mastercard's filed its first blockchain patent in July 2018. Now the company has filed nearly 100 blockchain patents, with several hundred more patents pending, and the stock price has nearly doubled: |
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Investor takeaway: There are many other factors behind Mastercard's rising fortunes, but the investment in blockchain technology shows it is preparing for the future -- and ConsenSys Rollups show it's delivering. |
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Hi all, You already know the objectives of cryptocurrencies — decentralization, transparency and financial inclusion.
This week, the stablecoin tether made another giant step forward, this time as a means of providing humanitarian relief.
The Southeast Asian country of Myanmar is suffering from political and economic upheaval.
Back in February, the military seized control of the nation, preventing Aung San Suu Kyi's National League for Democracy, which won most of the legislative seats in the 2020 election, from setting up a new government.
In the months since the military junta took over, there has been violence and chaos. Further, the country’s financial system is failing.
Myanmar’s currency, the kyat, has been severely devalued, pushing the nation close to economic collapse.
Citizens are facing rapid inflation, GDP fell 18% during the fiscal year through September, and investors are fleeing the country.
Facing an acute cash shortage and desperate for contributions, a parallel government, led by the supporters of ousted leader Suu Kyi, has declared tether its national currency.
From the Facebook page of the National Unity Government (NUG) of Myanmar: |
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Myanmar's dire situation includes allegations that incoming world financial aid is being confiscated by the military. By declaring tether as the official currency, the shadow government hopes to make it faster and easier to raise funds and provide transaction efficiency as it seeks to regain power.
The use of tether will complicate attempts by the military to track or prevent funds from going to those who oppose the current military state.
Stablecoins are digital currencies designed to maintain price stability by having their value tied to some reserve asset, for example a fiat currency. In the case of tether, the asset happens to be the U.S. dollar.
These stablecoins are seeing increased usage in other regions suffering from volatility and economic uncertainty. After the bolivar was re-denominated for a third time in October, Venezuelans increasingly turned to the Reserve app tool and the Reserve Dollar (RSV) to exchange fiat currency for U.S. dollars.
Users are able to both use the coin and exchange it for either the bolivar or the dollar without having to go through the black market, which can help them get a better exchange rate and safeguard against inflation. The Reserve project is backed by Coinbase and billionaire Peter Thiel.
And as emerging market countries increasingly adopt crypto, developed countries are concentrating on producing proper regulatory frameworks.
In Japan, the nation's Financial Services Agency plans to introduce legislation that would limit the issuance of stablecoins, restricting it to wire transfer companies and banks.
In the United States, the debate over stablecoins continues.
Treasury Secretary Janet Yellen’s recommendation that only federally insured banks be allowed to issue stablecoins has come under fire, and Federal Reserve Chair Jerome Powell believes they are useful and efficient but should be "properly regulated."
The global economic impact of stablecoins, and cryptocurrencies in general, is undeniable.
The benefits presented by these coins include increased financial inclusion, easier cross-border transactions, and, as is being attempted with Myanmar, the ability to provide funds for humanitarian access.
And that is the most admirable benefit of all. |
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Evamarie Augustine Market Analyst |
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Ask yourself: Does the throne fit? |
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Bitcoin Market Journal is a daily newsletter focusing on blockchain and crypto investments. It is written and edited by Evamarie Augustine, Charles Bovaird, Mati Greenspan, and John Hargrave.
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