Amidst public interest, the Bank of England and HM Treasury have addressed key concerns regarding the digital pound, reassuring the public of stringent legislative measures for privacy and control, alongside the maintenance of traditional cash.

HM Treasury and Bank of England Respond to Public’s Digital Currency Concerns, No Final Decision yet on Digital Pound

The Bank of England and HM Treasury have unveiled their response to the public consultation on the potential introduction of a digital pound, following engagement from the public and industry experts. Over 50,000 responses were received, indicating the public’s interest in the future of digital currency in the United Kingdom.

Key concerns raised by the respondents centered around privacy and control of funds, along with the continued availability of traditional cash. The authorities have assured that robust legislative measures will be implemented to safeguard user privacy and control before the roll-out of any digital pound. This includes primary legislation to ensure that neither the Bank of England nor the government will have access to users’ personal data.

The digital pound is envisaged as a supplement to existing forms of money, not a replacement. Economic Secretary to the Treasury, Bim Afolami said, “We will always ensure people’s privacy is paramount in any design, and any rollout would be alongside, not instead of, traditional cash.“

Sarah Breeden, Deputy Governor for Financial Stability, underscored the importance of trust in all forms of money and pointed out that, “[i]t is essential that we build that trust and have the support of the public and businesses who would be using it if introduced.”

No final decision has been made to pursue the digital pound, also known as a central bank digital currency (CBDC). The ongoing work involves exploring the feasibility and potential design choices of a digital pound in the UK economy. This phase will focus on how the digital currency can provide greater choice, convenience, and innovation for everyday payments.

The digital pound aims to coexist with cash in a digital era, offering an alternative for everyday transactions. It would be issued by the Bank of England and designed to be convenient, widely available, and easily exchangeable with other forms of money. The proposed digital currency would be accessible through digital wallets and intended primarily for transactions rather than savings, without paying interest. Initial restrictions on how much an individual or business could hold are also part of the plan.

Before the launch of a digital pound, detailed legislative processes and further public consultations are planned. The proposed design of the digital pound has been generally well-received, but concerns about access to cash and control over personal data led to the commitment to introduce primary legislation for user protection. The future legislation will also prevent the government from programming the digital pound.

The Bank of England currently proposes a holding limit of 10,000-20,000 British pounds, though this may be subject to future reviews. The digital pound is expected to be accessible in several countries, barring those under sanctions. Experiments and further public consultations are planned to test the digital pound in real-world scenarios.

Would you be open to using the digital pound if it were available? Share your thoughts and opinions about this subject in the comments section below.

A survey of European Central Bank (ECB) staff has revealed widespread dissatisfaction with President Christine Lagarde’s leadership. More than half of the respondents rated Lagarde’s performance as “very poor” or “poor.” Some expressed concerns that the former International Monetary Fund (IMF) chief “does not necessarily act according to the values she proclaims.”

Lagarde Spends ‘Too Much Time on Topics Unrelated to Monetary Policy’

The International and European Public Services Organisation (IPSO), a union founded by European Central Bank (ECB) staff, conducted a survey among ECB staff asking them to assess the performance of Christine Lagarde as a president of the ECB. The survey was conducted between Dec. 12 and Dec. 22, 2023. Lagarde was France’s finance minister between 2007 and 2011. She then served as the managing director of the International Monetary Fund (IMF) between 2011 and 2019.

According to the survey results, released earlier this week, 50.6% of 1,159 respondents rated Lagarde’s performance in the first half of her eight-year term as “very poor” or “poor.” The IPSO also revealed that many respondents expressed dissatisfaction with Lagarde spending “too much time on topics unrelated to monetary policy,” citing her frequent engagement in political discussions.

Moreover, 53.5% disagreed that she was the “right president for the ECB at the current juncture.” Some respondents expressed concern about Lagarde’s potential political aspirations, suggesting she may be using the ECB as a platform for future political endeavors. Only 38% of respondents backed the monetary policy decisions taken under Lagarde. One staff member was quoted as saying:

The ECB has been focusing on topics beyond its mandate in a period where inflation was at the highest level in the EU history.

An ECB spokesperson said the survey was flawed, stating: “The President and the Board are fully focused on their mandate and have implemented policies to respond to unprecedented events in recent years such as the pandemic and wars.”

In its summary of comments for the survey, the IPSO noted:

Christine Lagarde is generally reported as being an autocratic leader who does not necessarily act according to the values she proclaims.

Do you think Christine Lagarde is a good ECB leader? Let us know in the comments section below.

The cryptocurrency lending platform Nexo has submitted a $3 billion arbitration claim against the Republic of Bulgaria, following a raid on its office in 2023 and a subsequent probe by the Bulgarian Prosecutor General’s Office. Nexo alleges that these actions harmed its business prospects.

‘Politically Motivated’ Allegations

The Switzerland-based crypto lending platform Nexo AG has filed a $3 billion arbitration claim against the Bulgarian government for damages and lost opportunities after the latter dropped its money laundering and Russian sanctions violations allegations. Nexo said the “politically motivated” allegations against it by the Prosecutor General’s Office in January 2023 harmed its brand and reputation.

In a statement released on Jan. 24, the digital asset platform revealed that the U.S. law firm Pillsbury Winthrop Shaw Pittman submitted the claim to the Secretariat of the World Bank’s International Centre for Settlement of Investment Disputes (ICSID). As reported by Bitcoin.com News, the Bulgarian Prosecutor General’s Office dropped charges against the crypto lender after an investigation found no evidence of criminal activity.

However, Nexo insists that the raid on its offices in January 2023 and the subsequent investigations derailed many of its planned activities, including a capital-raising initiative. The actions of the Bulgarian Prosecutor General’s Office also led to the collapse of a lucrative sponsorship deal with an unnamed major European football club.

Reputational and Financial Damages

Explaining why the crypto lender has chosen to take on Bulgaria, Antoni Trenchev, a co-founder at Nexo, said:

“Our growth path has been slowed down and opportunities lost or significantly delayed. I personally promised 10 months ago that we would explore all legal means available to secure financial compensation for Nexo. Now that the Bulgarian Prosecutor’s Office itself has finally exonerated us, the time is right for us to file our claim and receive reparations for the enormous reputational and financial damage suffered.”

Trenchev said the claim will also serve as a warning and deterrent to power-abusing individuals or regulators elsewhere. The co-founder added that Nexo’s expected vindication at ICSID will be a positive outcome for “all good actors” in the blockchain space.

What are your thoughts on this story? Let us know what you think in the comments section below.

The head of enforcement at South Africa’s financial industry watchdog said on Jan. 24 that he expects the organization to decide the fate of 50 crypto firms’ license applicants in the coming weeks. The watchdog stated that from the more than 100 entities that applied for a license, 20 have since withdrawn from their respective applications.

The Cost of Obtaining a License

An official with the Financial Sector Conduct Authority (FSCA), South Africa’s financial industry watchdog, announced on Jan.24 that the organization expects to determine the fate of some 50 crypto firms’ license applications in the coming weeks. Gerhard van Deventer, the head of enforcement at the FSCA, revealed that out of the 90-plus applicants, 20 have since withdrawn.

As reported by Bitcoin.com News in late 2023, the South African watchdog had received a total of 93 applicants just days before the Nov. 30 deadline. This figure, which ultimately rose to 105, consisted of both current holders of FSP licenses and fresh applicants. At the time, Diketso Mashigo, the FSCA’s compliance head, confirmed that some applicants had decided against pursuing the license. Some eventually opted to operate outside the South African market.

Deventer, who made the remarks during a podcast, said he agrees with the assertion that some of the applicants may have chosen to withdraw because they have may been spooked by the cost of obtaining the financial service provider (FSP) license.

Applicants Fail to Meet Key Requirement

The FSCA’s head of enforcement however suggested that some of the withdrawing applicants only did so after they became aware of the burden of getting the license. Deventer suggested that many of those applicants had no realistic chance of meeting one key requirement.

“Applicants got stuck on the requirement of having an appropriate key individual because such an individual will need to have a very specific and relevant experience, qualifications and skills. And there is not a lot of that around if you take into account that crypto has not been around for a long time,” the FSCA’s Head of enforcement said.

Some of the applicants who found themselves in this situation said they would only reapply when a suitable individual is found, Deventer added.

Meanwhile, when asked about the changes to regulations proposed by the FSCA, Deventer said tackling scammers who purposely choose to operate outside its regulatory ambit is what motivated it to make the amendments. According to Deventer, once the new regulations kick in it will now be impossible for such entities to avoid regulation of their activities.

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What are your thoughts on this story? Let us know what you think in the comments section below.

Former Bitmex CEO Arthur Hayes has predicted that bitcoin will find a support level between $30,000 and $35,000. He contends that the ongoing bitcoin selloff is not due to outflows from Grayscale’s bitcoin trust (GBTC). “That argument is bogus,” he claimed, adding that bitcoin’s price movement is “anticipating the Bank Term Funding Program (BTFP) will not be renewed.”

Ex-Bitmex Chief’s Bitcoin Price Prediction

Arthur Hayes, co-founder and former CEO of crypto exchange Bitmex, has shared his bitcoin price prediction, explaining that he believes the cryptocurrency will form support between $30,000 and $35,000. In a blog post published Tuesday, Hayes detailed:

I think bitcoin will find a local bottom between $30,000 and $35,000.

Referring to his statement earlier this month that he expects a 30% correction for bitcoin, Hayes elaborated in Wednesday’s blog post that “A 30% correction from the ETF approval high of $48,000 is $33,600.” He also previously noted, “The washout could be even more severe if the slate of U.S.-listed spot bitcoin ETFs has already commenced trading.”

The U.S. Securities and Exchange Commission (SEC) approved 11 spot bitcoin exchange-traded funds (ETFs) on Jan. 10. Most of them started trading the next day. The price of bitcoin pushed above $47K in anticipation of the approval but dropped below $40K on Monday and $39K on Tuesday.

Discussing why the price of bitcoin plummeted following the ETF launches, the former Bitmex executive said: “The first argument for bitcoin’s recent dump is the outflows from the Grayscale Bitcoin Trust (GBTC). That argument is bogus because when you net the outflows from GBTC against the inflows into the newly listed spot bitcoin ETFs, the result is, as of January 22nd, a net inflow of $820 million.”

The former Bitmex boss continued:

The second argument, which is my position, is that bitcoin is anticipating the Bank Term Funding Program (BTFP) will not be renewed. This event will not be positive as the Fed still has yet to cut rates to a level that pushes the 10-year Treasury into the 2% to 3% range.

On Wednesday, the Federal Reserve Board announced that the Bank Term Funding Program will cease making new loans as scheduled on March 11. The Fed announced the creation of the Bank Term Funding Program on March 12 last year following the collapse of Silicon Valley Bank (SVB) and Signature Bank.

Hayes previously explained that he expects bitcoin will dip before the Bank Term Funding Program renewal decision on March 12. “As the SPX [S&P 500] and NDX [Nasdaq-100] dump due to a mini financial crisis in March, bitcoin will rise as it will front-run the eventual conversion of rate cuts and money printing talk on behalf of the Fed into the action of pressing that Brrrr button,” the former Bitmex executive noted.

What do you think about former Bitmex CEO Arthur Hayes’ bitcoin price prediction? Let us know in the comments section below.

Polymer Labs, the inter-blockchain communication (IBC)-based networking layer two (L2), recently disclosed that it had raised $23 million via a Series A funding round. Polymer said only Ethereum and all chains under the IBC control will initially be compatible with its interoperability solution.

‘Connecting Billions of Dollars in Value Across Rollups’

Polymer Labs, one of the first modular Inter-Blockchain Communication (IBC)-based networking layer two (L2), recently announced that it had closed a $23 million Series A funding round. The funding round was co-led by Blockchain Capital, Maven 11, and Distributed Global, with the participation of Coinbase Ventures, Placeholder, Digital Currency Group, North Island Ventures, and Figment Capital.

According to a statement, Polymer Labs will use the funds raised to further develop the L2, which serves as an Ethereum Interoperability Hub. The L2, which is yet to be launched, seeks to connect billions of dollars in value across rollups. Polymer said it is hopeful that this solution will not only bring scalability benefits but will also prove to be reliable and less susceptible to hacking attacks.

“Polymer’s mission is to establish the next generation of the internet by ensuring that the interoperability layer connecting all blockchains is neutral, open, modular, and permissionless across ecosystems,” Peter Kim, a Polymer co-founder said.

Meanwhile, Yuan Han Li, an investor with Blockchain Capital, has said that his organization now supports Polymer’s goal of bringing interoperability standards to Web3. However, the statement said only Ethereum and all chains under the IBC control will initially be compatible with Polymer’s solution.

Commenting on the partnership between his organization and Polymer, he said: “We are really excited that Polymer is bringing the generalized IBC primitive into the Ethereum rollup landscape by building a versatile transport hub, and thrilled that we at Eigenlayer have the pleasure of partnering with the passionate team at Polymer.”

What are your thoughts on this story? Let us know what you think in the comments section below.

Following an examination launched in November 2022, FINRA claims widespread potential violations in the way member firms communicate about crypto assets.

FINRA Report Alleges Misinformation in Crypto Asset Marketing

In a report released on Jan. 23, the Financial Industry Regulatory Authority (FINRA) has found that approximately 70% of public communications related to crypto assets by its member firms contain potential violations. This revelation comes from a targeted examination initiated by FINRA in November 2022, following the high-profile collapse of cryptocurrency exchange FTX.

FINRA, a non-governmental organization authorized by Congress to protect American investors, reviewed over 500 retail communications concerning crypto assets. These communications ranged from traditional advertising to more modern forms, including mobile app promotions and digital media content.

The regulator sees these misleading or false statements in communications as a concerning trend. The reviewed materials often failed to differentiate clearly between crypto assets offered by member firms and third parties. Additionally, many communications falsely represented crypto assets as secure or equivalent to traditional financial instruments like cash.

Ira Gluck, Senior Director at FINRA, said on an appearance on FINRA’s “Unscripted” podcast just after the report was released, “With the growth in this market and increased interest in crypto assets, the potential harm caused by problematic communications has also increased … [I]n order to have enough information to evaluate a crypto asset investment or service, communications need to clearly describe its risks and features.”

The review also identified issues with how crypto assets were compared to other investment options, such as stocks or gold, often without a sound basis for comparison. Furthermore, several communications misleadingly suggested that crypto assets were protected under federal securities laws or by organizations like the Securities Investor Protection Corporation (SIPC).

In response to these findings, FINRA has posed a series of questions to its member firms, urging them to reevaluate their communication strategies concerning crypto assets. These questions focus on ensuring that firms provide balanced presentations of risks associated with crypto assets and clearly distinguish between different types of products and services offered.

Have you found crypto asset communications to be misleading or outright false? Share your thoughts and opinions about this subject in the comments section below.

On Wednesday, Solana Labs unveiled the launch of token extensions, marking a noteworthy advancement in the SPL Token standard. The blockchain network’s token extensions aim to provide a suite of solutions for businesses transitioning to distributed ledger technology, emphasizing security, compliance, and ease of use.

Solana’s New Token Extensions Set to Boost Blockchain Adoption

According to the announcement, Solana-based token extensions are designed to cater to a wide range of industries, including stablecoins, real-world assets (RWAs), and payments. These extensions offer features like transfer hooks, transfer fees, confidential transfers, permanent delegate authority, and non-transferability. Each of these features serves a specific purpose, from providing control over token interactions to ensuring compliance with regulatory frameworks.

Anatoly Yakovenko, co-founder and CEO of Solana Labs, highlighted the significance of this development. “Token extensions build on the characteristics that make Solana the ideal destination for developers,” Yakovenko stated. “Solana is the first network to offer this level of integrated developer and user experience in a single token program. We’re already seeing the potential to build using token extensions via deployments from some of the most recognizable names in crypto.”

According to the press release, companies such as Paxos and GMO-Z.com Trust Company Inc. are early adopters of these new token extensions. In late December 2023, Bitcoin.com News covered Paxos’s expansion of its stablecoin offerings onto the Solana blockchain. Additionally, Circle disclosed the introduction of its EURC stablecoin on Solana during the same month. Furthermore, GMO Trust declared the launch of the first regulated Japanese yen stablecoin, alongside a U.S. dollar stablecoin, on the Solana platform.

“The Solana network is the blockchain of choice for enterprise-grade companies looking to enter the Web3 space,” Sheraz Shere, the head of payments at the Solana Foundation remarked. “Companies like Visa, Worldpay, Stripe, Google, and Shopify have already seen the performance advantages inherent to the Solana network and have launched solutions and applications that are only possible on Solana.”

Shere added:

With token extensions, we are expanding what is possible for enterprise adoption of blockchain by natively enabling features that matter to large regulated enterprises.

Solana (SOL), the native cryptocurrency of the layer one (L1) blockchain, has experienced a 3.3% increase in the past 24 hours. However, SOL’s performance over the past week shows a decline of over 10%. In the last month, SOL has seen a 22% decrease in value compared to the U.S. dollar.

Despite this recent downturn, six-month data reveals a significant upswing for SOL, with a 246% surge during this period. Having slipped from the top ten rankings during the crypto winter, SOL has reclaimed its spot among the leading ten, now standing as the fifth-largest cryptocurrency by market capitalization.

What do you think about Solana’s token extension announcement? Let us know what you think about this subject in the comments section below.

The Internal Revenue Service (IRS) has revised the question about digital assets included on income tax forms. Moreover, the tax authority has added the question to four additional tax forms. “The question must be answered by all taxpayers, not just by those who engaged in a transaction involving digital assets in 2023,” the IRS emphasized.

IRS Adds Digital Asset Question to 4 More Tax Forms

The Internal Revenue Service (IRS) announced Monday that the digital asset question on income tax forms “was revised this year to update wording.” Moreover, the question has been added to four additional tax forms. The IRS also reminded U.S. taxpayers that they must “answer a digital asset question and report all digital asset related income when they file their 2023 federal income tax return, as they did for their 2022 federal tax returns.”

The tax authority detailed that the digital asset question varies depending on the form, “with appropriate variations tailored for corporate, partnership or estate and trust taxpayers.” On Form 1040 for reporting U.S. Individual Income Tax Return, the question reads:

At any time during 2023, did you: (a) receive (as a reward, award or payment for property or services); or (b) sell, exchange, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?

The IRS defines a digital asset as “a digital representation of value that is recorded on a cryptographically secured, distributed ledger or any similar technology.” The tax authority specifically mentioned that common digital assets include convertible virtual currencies, cryptocurrencies, stablecoins, and non-fungible tokens (NFTs).

The IRS emphasized:

The question must be answered by all taxpayers, not just by those who engaged in a transaction involving digital assets in 2023.

In 2022, the digital asset question on Form 1040 was slightly different. It read: “At any time during 2022, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell, exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?” In 2021, the digital asset question simply read: “At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency?”

Besides Forms 1040 (Individual Income Tax Return), 1040-SR (U.S. Tax Return for Seniors), and 1040-NR (U.S. Nonresident Alien Income Tax Return), the digital asset question now appears on four other tax forms: 1041 (U.S. Income Tax Return for Estates and Trusts), 1065 (U.S. Return of Partnership Income), 1120 (U.S. Corporation Income Tax Return), and 1120-S (U.S. Income Tax Return for an S Corporation).

What do you think about the IRS updating its question about digital assets and adding the question to more tax forms? Let us know in the comments section below.

Daniel Batten, co-founder of CH4 Capital, reported that bitcoin mining has reached all-time high levels of sustainable energy usage and emissions mitigation. According to Batten, 54.5% of the energy used for this activity is sustainable, and the industry is mitigating 7.3% of all its emissions directly, which constitutes a new record for any industry without offsets.

CH4 Capital Co-Founder Daniel Batten: Bitcoin Mining Is Getting Greener

Bitcoin mining is getting greener, according to a recent article issued by Daniel Batten, co-founder of CH4 Capital, a methane mitigation solutions provider. He estimates that, according to his calculations, the Bitcoin mining grid is now using 54.5% sustainable energy, being the only global industry that is majorly powered by this kind of energy.

In his Bitcoin ESG Forecast #003, Batten disputes the idea that Bitcoin mining is a fossil fuel-powered industry. He acknowledges that until Q3 2022, it was. However, after the Chinese mining ban was enacted, miners moved their operations to greener on-grid sites or sustainable off-grid locations.

Criticizing Cambridge’s model on bitcoin emissions as outdated, Batten stated:

There are no longer any independent models or studies using contemporary data that support the thesis Bitcoin is mainly powered by fossil fuels.

In addition, Batten’s research revealed that more Bitcoin miners were using methane emissions than previously accounting for, with undisclosed companies using vented gas to power their mining operations. The process, that uses methane to provide electricity for these operations, still leaves a carbon dioxide byproduct; nonetheless, Batten explained that methane is 84x more warming than CO2 over 20 years, and using it is better than letting it vent straight into the atmosphere.

22 mining companies are mitigating methane emissions, providing a direct offset of 7.3% of network emissions without relying on carbon instruments. While Bitcoin still produces more emissions than what the network mitigates, Batten stressed that it “can become the fastest industry to go greenhouse negative without offsets.”

What do you think about Daniel Batten’s revelations about Bitcoin’s environmental impact? Tell us in the comments section below.

UBS, a financial services company, predicts that 2024 will be fruitful for gold, forecasting a price increase of 10% over current market prices. According to UBS analysts, this price increase will be powered by a pivot in the current policy of the U.S. Federal Reserve, which is projected to start cutting interest rates as soon as May.

UBS Predicts Gold Price Rise, Rate Cuts

UBS, a Swiss financial services company present in over 50 countries, has predicted a bullish year for gold. In a note released on Friday, USB analysts predicted that gold prices could rise to 10% over current market prices despite the price reduction that the precious metal faced in December.

The institution expects that gold might be able to reach $2250 per ounce this year, given that there are still different factors that could push the demand for gold. One is the possibility of a U.S. Federal Reserve interest rate cut, that would awaken new interest in gold markets.

In this sense, UBS states that the “power of the Federal Reserve’s policy pivot should not be underestimated.” While there is still not a clear answer on the issue of when will the Federal Reserve start cutting interest rates, UBS expects a 100 basis points rate cut as soon as May. This would start “putting pressure on the U.S. dollar and real interest rates, which should spark fresh demand, particularly from exchange-traded gold funds.”

In December, the World Gold Council (WGC) anticipated a flat performance for gold in case of a “soft landing” scenario, which U.S. Treasury Secretary Janet Yellen has already declared as reached.

UBS concluded that “ongoing macro and elevated geopolitical risks continue to justify holding exposure to gold for hedging and diversification purposes,” given that the asset is traditionally considered a crisis hedge due to its lack of credit risk and negative correlation to risk assets, according to WGC’s analyst Johan Palmberg.

What do you think about UBS’s prediction about gold prices in 2024? Tell us in the comments section below.

The number of global crypto owners surged 34% in 2023, reaching 580 million by December, a new report shows. In particular, bitcoin ownership surged 33% while Ethereum saw an even steeper rise of 39%. The report pinpoints the approval of spot bitcoin exchange-traded funds (ETFs) and the Bitcoin Ordinals protocol as key drivers of bitcoin adoption growth, alongside strong institutional interest.

Number of Global Cryptocurrency Owners Jumped 34% in 2023

Crypto trading platform Crypto.com published its annual Crypto Market Sizing Report on Monday. The firm explained that the number of crypto owners globally has notably risen despite several macro headwinds, including monetary tightening by Western central banks to curb inflation, ongoing conflicts in Europe and the Middle East, and the pandemic’s lingering impacts. Crypto.com detailed:

Global cryptocurrency owners increased by 34% in 2023, rising from 432 million in January to 580 million in December.

Specifically, “Bitcoin (BTC) owners grew by 33%, from 222 million in January to 296 million in December, accounting for 51% of global owners” and “Ethereum (ETH) owners grew by 39%, from 89 million in January to 124 million in December, accounting for 21% of global owners,” the report states.

“The main catalyst behind BTC’s adoption growth was the development in bitcoin exchange-traded funds (ETFs) and the introduction of the Bitcoin Ordinals protocol, which enabled non-fungible tokens (NFTs) and fungible tokens to be minted on the Bitcoin network,” the report explains.

Crypto.com further pointed out:

Strong interest from institutional investors also contributed to the increase in BTC’s adoption.

Regarding Ethereum, the report notes that “ETH’s adoption growth was mainly driven by liquid staking after Ethereum’s Shanghai Upgrade, which allowed the withdrawals of staked ETH after the transition to the Proof of Stake (PoS) blockchain.”

The U.S. Securities and Exchange Commission (SEC) approved 11 spot bitcoin ETFs on Jan. 10, including one from Grayscale, which converted its bitcoin trust (GBTC) into an ETF. Since launch, Grayscale has seen major outflows while several other spot bitcoin ETFs, particularly Blackrock’s Ishares Bitcoin Trust, have seen significant inflows.

What do you think about the number of crypto owners globally? Let us know in the comments section below.

The U.S. Securities and Exchange Commission (SEC) has admitted that a SIM swap attack compromised its X account, where a fake announcement about the approval of spot bitcoin exchange-traded funds (ETFs) was posted. “The unauthorized party obtained control of the SEC cell phone number associated with the account in an apparent ‘SIM swap’ attack,” the regulator said.

SEC Says It’s a Victim of a SIM Swap Attack

The U.S. Securities and Exchange Commission (SEC) provided an update on Monday regarding the unauthorized access of its @SECGov account on social media platform X. The attack occurred on Jan. 9 and the SEC’s X account was used to post an unauthorized message claiming the agency had approved spot bitcoin exchange-traded funds (ETFs). Notably, the agency had not approved spot bitcoin ETFs at that time.

The securities regulator detailed:

Two days after the incident, in consultation with the SEC’s telecom carrier, the SEC determined that the unauthorized party obtained control of the SEC cell phone number associated with the account in an apparent ‘SIM swap’ attack.

“Once in control of the phone number, the unauthorized party reset the password for the @SECGov account,” the SEC described. The regulator stressed: “Access to the phone number occurred via the telecom carrier, not via SEC systems. SEC staff have not identified any evidence that the unauthorized party gained access to SEC systems, data, devices, or other social media accounts.”

The SEC further shared: “While multi-factor authentication (MFA) had previously been enabled on the @SECGov X account, it was disabled by X Support, at the [SEC] staff’s request, in July 2023 due to issues accessing the account.” The regulator added:

Once access was reestablished, MFA remained disabled until staff reenabled it after the account was compromised on January 9. MFA currently is enabled for all SEC social media accounts that offer it.

The securities watchdog emphasized that the SEC staff continue to coordinate with several law enforcement and federal oversight entities, including the Federal Bureau of Investigation (FBI), the Department of Homeland Security (DHS), the Commodity Futures Trading Commission (CFTC), the Department of Justice (DOJ), and the SEC’s own Division of Enforcement.

“Among other things, law enforcement is currently investigating how the unauthorized party got the carrier to change the SIM for the account and how the party knew which phone number was associated with the account,” the SEC detailed.

A significant number of SIM swap attacks are targeting crypto investors. Besides the SEC, other notable victims of SIM swap attacks include Ethereum co-founder Vitalik Buterin. Our guide explains how to avert a SIM swap attack.

What do you think about how the SEC got SIM swapped? Let us know in the comments section below.

PRESS RELEASE. Payu Coin ($PAYU) aims to become the premier platform bringing together meme coins on the Binance Smart Chain (BSC). Its strategic features set it apart in the competitive market which is often highly volatile and unpredictable with plenty of participants.

What Makes Payu Coin Stand Out?

Firstly, there is the efficiency of BSC. Payu Coin leverages the speed and cost-effectiveness of the Binance Smart Chain, ensuring rapid transactions and minimal fees, establishing it as a go-to platform for crypto enthusiasts.

Another standout characteristic when it comes to Payu Coin is the absence of tax deductions and transaction fees for buying and selling. This user-centric approach enhances the overall experience, making Payu Coin an advantageous choice for traders. Moreover, the platform’s extensive community presence on X, Telegram, Instagram, and TikTok not only fosters a sense of belonging but also showcases the project’s reliability and potential for future success.

Forging A Path To Success

Also, drawing inspiration from successful ventures such as $DOGE in 2020, $SHIB in 2021, $PEPE in 2022, and the ‘Bonk’ meme coins craze last year, Payu Coin aims to forge its own path to success in the financial realm throughout 2024. With a well-defined vision, Payu Coin has set specific targets going forward. The primary goal is to boost its market value to an ambitious level of $0.00000006048 by removing at least two zeros. Following this, the second milestone involves a targeted increase in the average price to $0.0000009072.

In its initial phases, Payu Coin also aims to achieve a market value ranging between $30 million and $50 million. This initial success is seen as a crucial stepping stone towards the coin’s overarching objective of reaching a market value of $500 million. This milestone signifies substantial growth and widespread recognition within the cryptocurrency sphere. As Payu Coin navigates its path, these strategic goals underscore its dedication to making a lasting impact in the evolving landscape of digital currencies.

Is It Safe?

One of the most crucial aspects of any crypto-oriented platform is that of security. Hacks and digital exploits of various kinds are unfortunately commonplace in this burgeoning industry, which is precisely why Payu Coin has taken the bold step of relinquishing ownership, a move designed to secure the future by preventing the creation of new Payu Coins. This commitment to stability and predictability aims to instill confidence among investors.

In addition, with 80% of its total supply permanently locked on PancakeSwap, Payu Coin actively mitigates risks associated with rugpulls, ensuring a secure environment for investors. The platform’s unwavering commitment to security is further highlighted by its 100% trust rating from independent auditing organizations such as Tokensniffer, Quick Intel, Safu, Goplus, and Certik. The completion of KYC verification further solidifies its credibility. Apart from being available on PancakeSwap, $PAYU can also be bought via the MEXC and Bitget exchanges.

What Else Does Payu Coin Offer?

Payu Coin aims to break new ground in the crypto landscape through its innovative applications and ambitious objectives. Serving as a trailblazer in the industry, Payu Coin introduces a Web3-based transfer platform that facilitates seamless cross-border transactions globally. This platform supports a range of wallets, including PayPal, Zelle, Venmo, Skrill, EnPara, and Beem. Notably, PayPayu extends its versatility by accommodating 350 different cryptocurrency wallets, providing users with the flexibility to engage in transactions with a diverse array of cryptocurrencies.

Also, PayPayu collaborates with major meme coins, enabling users to effortlessly make transfers if they hold these coins in their wallets. The innovation continues with the beta testing of the PayPayu App for mobile payment systems, aiming to become the first meme coin facilitating mobile payments and integrating cryptocurrencies into daily transactions.

Looking ahead, Payu Coin has set ambitious goals for itself, aiming to achieve over 300,000 holders and a $50 million market cap by 2024. Plans include listings on major exchanges such as KuCoin, Bybit, Binance, and Coinbase, as well as expanding its social media community to 1 million followers and forging global collaborations with social media companies. The project has allocated a $500,000 budget for advertising and promotion in 2024.

About Payu Coin

Payu Coin emerges as a distinguished player amidst today’s ever-changing crypto landscape dominated by derivative tokens such as $PEPE, $DOGE, $FLOKI, $PITBULL, $QUACK, $HAMSTER, and $SHIBA. Having observed the transient prominence of Inu-themed tokens, Payu Coin now seeks to ascend as the definitive sovereign of the memetic coin realm.

In a deliberate departure from prevailing trends, Payu Coin has been strategically introduced without a presale, ensuring transparency and equitable distribution. With the elimination of taxes alongside the burning of the liquidity pool, $PAYU stands as a coin designed to serve the collective interests of its community, perpetually.

Headquartered in Palo Alto, California, Payu Coin holds a cryptocurrency payment and transfer license in California, with intentions to secure licenses in several other states. Beyond its financial scope, the project also ventures into game development, seeking collaborations with major gaming companies to broaden the utility and reach of Payu Coin.

Ultimately,this distinctive memecoin encapsulates an inclusive opportunity for all participants, making it a compelling choice in the vibrant landscape of memecoins. Fueled by the sheer force of memetic influence, $PAYU beckons as a guiding beacon for enthusiasts.

For more detailed information and to explore Payu Coin, please visit the official website as well as its various social media channels for regular updates.

Social Links

Certik Audit;

https://skynet.certik.com/projects/payu

Payu Twitter;

https://twitter.com/payu_coin

Payu Instagram;

https://www.instagram.com/payu.coin/

Payu TikTok;

https://www.tiktok.com/@payu.coin

Payu Telegram;

https://t.me/payu_coin

This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

Brad Mills discusses the Bitcoin “Season 2” narrative, a phase that signifies a coexistence and rivalry between the traditional monetary maximalists and the newly emerging platform maximalists.

Brad Mills Discusses the Rise of Platform Maximalism in ‘Season 2’

In a thought-provoking post on X, Brad Mills, a notable figure in the Bitcoin community, delves into the evolving dynamics of Bitcoin’s ecosystem, specifically something referred to as “Season 2.” Brad Mills is known for his early involvement, expertise, and advocacy for bitcoin as well as a founder of multiple crypto startups.

Season 2 refers to, in Mills’s own words, “the split of the monetary maximalist activist Bitcoiners from the platform maximalist entrepreneur Bitcoiners.” Mills, initially skeptical of the Season 2 concept, acknowledged the growing influence of entrepreneurs who are innovating on Bitcoin’s platform.

In what Mills terms as “Season 1,” the Bitcoin community witnessed intense debates and conflicts between these two camps. This period was characterized by significant developments such as the Bitcoin Cash fork, the Liquid Network, and the Lightning Network, which focused primarily on bitcoin’s monetary use.

However, Mills points out a shift in this dynamic as the community gets ready to transition toward an era he calls “the 5th epoch” of Bitcoin. “Season 2 means the era of Bitcoin where the platform maximalist cypherpunk capitalists have just as much influence over Bitcoin as the monetary maximalists activists,” he stated.

Mills, who seems partial to the monetary use case but is actively involved in both camps, emphasized the importance of understanding both perspectives. He recounted his experiences with projects like Counterparty and Omnilayer, which were once sidelined but are now gaining recognition.

This new era has also seen a surge in economic activities, with miners and investors reaping substantial profits from these innovative applications. “Not only are miners earning hundreds of millions of dollars extra by mining these transactions, but Bitcoin Platform Maximalists are coming out of the woodwork to come back to bitcoin to use it,” Mills observed.

The rise of platform maximalism is also bringing to light various issues and potential improvements in Bitcoin’s design, particularly in scaling and user experience. This shift, according to Mills, is contributing to a decline in the cultural relevance of the so-called “toxic maxi” and an increase in the influence of more innovative thinkers, dubbed “toxic wizards.”

Mills concluded with a forward-looking perspective:

This doesn’t mean that they are going to ruin bitcoin for the monetary use case – it just means that we will have to work harder to compete with them.

They are very hard workers.

Do you favor the monetary or platform use case for Bitcoin? Share your thoughts and opinions about this subject in the comments section below.

Crossborder Capital’s Michael Howell, a veteran in global finance, offered a liquidity-based view on the current state of the economy. He challenged the prevailing narrative of monetary tightening with evidence of a rise in liquidity, which in turn should uplift stocks, gold, and cryptocurrencies.

Michael Howell of Crossborder Capital Focused on Rising Global Liquidity and Its Market Impact

Michael Howell is the founder and CEO of Crossborder Capital, a London-based FCA registered, independent research and investment company with over $1 billion assets under management. Previously he was Head of Research for Baring Securities and Research Director of Solomon Brothers. With a deep understanding of international finance and economics, Howell has become a prominent figure in analyzing global liquidity trends and their impact on markets. Recently, he appeared on Forward Guidance to shed light on the current macroeconomic landscape, emphasizing the continued rise in global liquidity and its positive effects on liquidity-sensitive assets such as stocks, gold, and cryptocurrencies. The whole episode is well worth a listen.

At the heart of Howell’s analysis is the observation that, contrary to popular belief, the Federal Reserve has been subtly injecting liquidity into markets. This covert approach stands in stark contrast to the narrative of monetary tightening that has dominated headlines. Despite a reduction in the Fed’s balance sheet last year, Howell noted that Fed liquidity actually increased by 12 to 15%. This trend is not just a fleeting phase but part of a longer-term pattern of monetary inflation, as central banks globally engage in what Howell described as shadow quantitative easing and shadow yield curve control.

He observed that the draining of the Reverse Repo (RRP) facility and the Bank Term Funding Program (BTFP) contributed significantly to the rise in Fed liquidity last year. He anticipates that central bank liquidity will continue to unlock, especially once the RRP is fully drained, and suggested that the BTFP could even be renewed.

Adding to the complexity of the situation is the U.S. Treasury’s strategic decision to shorten the maturity of its debt issuance. This move, Howell explained, mechanically reduced the private sector’s liquidity needs to absorb government paper, particularly aiding the banking sector in managing its systemic overexposure to duration.

All of this may point to a transition from a rebound phase to a calm phase. Howell noted that the financial sector and high-beta securities such as crypto tend to do their best in such calm phases.

Regarding cryptocurrency, Howell mentioned that there could be particular positive influences. He stated that cryptocurrency might be the younger generation’s preferred hedge against monetary inflation, a sentiment that aligns with the increasing interest in digital assets among younger investors. If true, crypto could move more than gold as the preferred vehicle for younger investors.

What do you think about Howell’s basic argument that a rise in global liquidity will generally benefit liquidity sensitive assets like stocks, gold, and crypto? Share your thoughts and opinions about this subject in the comments section below.

The government of China has announced the creation of a metaverse standardization working group to establish different rules to govern the Chinese Yuanverse platform. The standardization group will be integrated by Chinese universities, government institutions, and companies like Tencent, Huawei, Baidu, Netease, and Sense Time.

China Announces Metaverse Standardization Group

The Chinese government aims to create standards for metaverse platforms. In a circular released on January 19, the Ministry of Industry and Information Technology of China (MIIT) communicated the formation of the Metaverse Standardization Working Group, which will aim to establish rules for the organization of metaverse platforms and the development of the Yuanverse, a national metaverse platform.

The standardization group will be integrated by several entities including Chinese universities, and companies like Huawei, Tencent, Baidu, Netease, and Sense Time. The proposal, which is based “on the needs of industrial development and industry management,” will receive feedback for the publicity plan of the group by February 18.

MIIT’s standardization proposal comes on the heels of the announcement of a new Web3 strategy for the country, that gives faith in the continued development of the blockchain and metaverse field as topics of exploration, studying the possible use cases of these techs.

While according to experts, the metaverse hype has subsided in favor of artificial intelligence (AI), another nascent technology, China seems focused on becoming a leader in this area. In September, four ministries and the MIIT issued a three-year plan to boost the development and growth of metaverse initiatives in the country.

The plan expects breakthroughs to be reached by 2025 in different applications, including metaverse technology, industry, and use cases.

Experts expect this investment to boost the development of the metaverse industry in China, as reports predict that these movements will position the nation as a global metaverse hub, outpacing the developments in the West.

What do you think about China’s metaverse standardization group? Tell us in the comments section below.

Sega Singapore, a subsidiary of the worldwide recognized entertainment company, has announced that it will seek to produce new Web3 games as part of a partnership established with Finschia, a blockchain project. As part of this partnership, Sega will also participate in the governance of Finschia, operating a node to help secure the network.

Sega to Produce New Web3 Games Based on Existing IPs

Sega, the Japanese entertainment company, might lend its intellectual properties (IPs) to be part of Web3 games again. Sega Singapore, a subsidiary of Sega that is responsible for the development of the global Web3 strategy of the company, has recently revealed a partnership with Finschia, a blockchain project, that would lead to the arrival of some of Sega’s existing franchises into the Web3 world.

As part of the partnership, Sega Singapore is already collaborating to secure the Finschia network, running a node, and participating in the protocol governance. Sega’s move is the last in a chain of announcements regarding the company’s position on Web3 and blockchain games.

This partnership seems to contest the opinion that co-Chief Operating Officer Shuji Utsumi gave back in July when he stated that Sega was pulling the plug on Web3 games because they were “boring.” At the time, he stressed that Sega would protect its most significant IPs, and would only license lesser franchises for this kind of games.

However, Utsumi flip-flopped on its position later in October, when he acknowledged that Web3 and blockchain elements might bring new ideas to the gaming ecosystem, sustaining that “owning assets and, in some cases, earning money, could become player wants that haven’t existed before.”

The company announced its first blockchain game in September 2022, licensing its Sangokushi Taisen franchise to Double Jump Tokyo, a blockchain company. The game would rely on Oasys, a game-oriented blockchain, to provide the Web3 elements of the project.

What do you think about Sega’s determination to produce new Web3 games? Tell us in the comments section below.

Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue: Argentine President Javier Milei warns about the dangers of collectivism at Davos, the Venezuelan petro is still alive, and Colombia works to regulate crypto.

Javier Milei Defends Capitalism and Entrepreneurship at Davos

Javier Milei, president of Argentina, warned against Western society’s new path, criticizing the ideas of collectivism that, according to his thoughts, are advancing in several nations. In a speech at this year’s World Economic Forum (WEF) meetings at Davos, Milei stressed the dangers these ideas presented to today’s developed world.

Milei stated:

The West is in danger, it is in danger because those, who are supposed to defend the values of the West, find themselves co-opted by a vision of the world that – inexorably – leads to socialism, consequently to poverty.

As an opposite to these new conceptions, Milei defended capitalism and libertarian ideas that have boosted the world economy since the Industrial Revolution. He also criticized the issue of social justice, stressing that the means to defend it and sustain it are born out of state-managed violence and coercion.

Furthermore, he reflected on the value of entrepreneurs in today’s society, stating they were “heroes,” “social benefactors,” and “creators of the most extraordinary period of prosperity we have ever experienced.”

Venezuelan Petro Still Alive

The Venezuelan petro, one of the first state-backed cryptocurrencies, is still active and was not liquidated as many reports sustained last week. While several sources pointed to the imminent liquidation of the petro, the crypto asset is still available in the government’s wallet system – the Homeland platform – and users can transact and consult their savings, according to petro advocate Petro Divisa.

Nonetheless, other cryptocurrency assets in the platform, including BTC, LTC, and DASH, were removed and reimbursed in fiat currency. This will allow the petro team to focus on developments directly linked to the petro.

Colombia Confirmed Advancements in Creating a Cryptocurrency Framework

The government of Colombia confirmed it has advanced in making a cryptocurrency-specific law. Economy Minister Ricardo Bonilla revealed the steps taken regarding this goal during a panel at the World Economic Forum (WEF) meeting in Davos.

Bonilla stated:

Construction has already begun in Colombia and, based on a work table, a bill is being built to regulate cryptocurrencies.

In November, Colombian President Gustavo Petro met with blockchain experts from JAN3 and other projects to discuss the implementation of this tech in several fields for the country, like health system billing processes and land registries.

To follow all the latest developments in crypto and the economy in Latin America, sign up for our Latam newsletter below.

What do you think about this week’s Latam Insights report? Tell us in the comment section below.

Morgan Stanley has warned about the risk of the U.S. dollar losing its dominance, fueled by growing interest in digital assets, including bitcoin. Emphasizing that the U.S. dollar’s dominance “is being increasingly scrutinized,” the investment bank stated: “A clear shift towards reducing dollar-dependency is evident, simultaneously fueling interest in digital currencies such as bitcoin, stablecoins, and CBDCs.”

Morgan Stanley on Dedollarization Risk

Morgan Stanley published a report last week titled “Digital (De)Dollarization?” written by Andrew Peel, the investment bank’s executive director and head of Digital Asset Markets.

“The U.S. dollar’s dominance as the cornerstone of the international financial system is now being reconsidered in the face of evolving geopolitical shifts and the growing U.S. twin
deficits,” the executive said, adding:

Notably, the recent growth in interest of digital assets such as bitcoin, growth of stablecoin volumes, and the promise of central bank digital currencies (CBDCs), have potential to significantly alter the currency landscape.

He noted that the U.S. dollar’s dominance “is being increasingly scrutinized” as “Recent U.S. monetary policies, combined with the strategic use of economic sanctions, have prompted some nations to consider alternatives to the greenback.”

Meanwhile, “the European Union is actively working to bolster the euro’s role in international trade, aiming to provide a viable alternative to the dollar” and “China is advancing the yuan in international trade,” the director detailed.

The Morgan Stanley executive director further explained that inter-governmental organizations such as the BRICS economic bloc (Brazil, Russia, India, China, and South Africa), the Association of Southeast Asian Nations (ASEAN), the Shanghai Cooperation Organization (SCO), and the Eurasian Economic Union “are also expressing interest in using local currencies for trade invoicing and settlements.”

Noting that these organizations “collectively represent a significant portion of global GDP,” Peel stated that “some members have shown a willingness to trade in yuan, further indicating a shift in global currency dynamics.” He emphasized:

A clear shift towards reducing dollar-dependency is evident, simultaneously fueling interest in digital currencies such as bitcoin, stablecoins, and CBDCs.

Do you agree with Morgan Stanley about the risk of the U.S. dollar losing its dominance? Let us know in the comments section below.