Monday, October 14, 2019

G20 on Libra

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October 14, 2019

WRAPPED ZCASH: At the Devcon event last week, the halls were filled with buzz about smaller projects seeking access to ethereum’s decentralized finance smorgasbord, especially loans and financial products, via interoperability. For example, Josh Swihart, VP of marketing and business development at the Electric Coin Company, told CoinDesk that over the next six months the zcash community will develop a wrapped ZEC token that can be used on the ethereum blockchain, which could enable private, automated loans and financial products. Full story

LATE TELEGRAM: Telegram could delay the plan to issue its own cryptocurrency on the Telegram Open Network by Oct. 31 after the Securities and Exchange Commission (SEC) ordered it to halt its allegedly “unlawful” token sale in the U.S. According to Bloomberg, Telegram sent a note to investors saying it is considering ways to resolve the temporary restraining order from the SEC , including the possibility of postponing the issuance to after the Oct. 31 deadline. Full story

LIBRA BLOCK? The world’s biggest economies are assessing stablecoins like Facebook’s Libra as a potential risk to the global financial system. In a letter to the G20 nations, Financial Stability Board chair Randal Quarles said the G7 working group is delivering an assessment report on global stablecoins, stating they pose “a host of challenges” to the regulatory community. The draft report warns that, even if Libra’s backers can address such concerns, the project may not get approval from regulators. Full story

TRADING THRILLS: Investors who trade cryptocurrency also tend to take bigger risks in the stock market, suggesting they are seeking dopamine more than diversification. That’s according to a recent study published in the Sept. issue of Economic Letters, which says that cryptocurrency traders’ behavior is driven by thrill seeking. “We find that when engaging in cryptocurrency trading investors simultaneously increase their risk-seeking behavior in stock trading as they increase their trading intensity and use of leverage,” the paper says. Full story

FIRST GEAR: A group of major automakers are about to hit the road with the first field testing of a blockchain-based vehicle identification network next month in the U.S. BMW, General Motors, Honda, Ford and Renault are all working with the Mobility Open Blockchain Initiative (MOBI) on integrating the system, which assigns vehicles unique IDs to enable automatic payments, such as for tolls and parking, without the need for cash or credit and debit cards. Full story

DOWNCAST: Bitcoin remains tapped below the 200-day moving average hurdle and looks set to test $8,000 in the short term, as suggested by Friday's bearish candlestick pattern. A break above the long-term MA, currently around $8,718, is needed to bring cheer to the bulls. Right now, though, that looks unlikely. Full story
BLOCKCHAIN’S FIGHT: The blockchain startup Fight To Fame offers a solution to the payments problem in professional wrestling , reports Forbes. The company is using blockchain and smart contracts to disrupt the $7 billion industry, by tracking and ensuring payments to wrestlers. The company will also host a global fighting championship event, where audience members can cast their votes (on a blockchain) for their favorite wrestlers. 

WHO WON #CRYPTOTWITTER
 

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G7 and Libra / Telegram may postpone Gram / Bitcoin Revolution scam

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Market Watch: The market hasn't recovered much during Monday trading. The SEC's Telegram decision has kept prices down.

  • Bitcoin: $8,316 (⬇️ 1.43%) // $149.6 billion market cap.
  • Ethereum: $183 (⬇️ 0.64%) // $19.8 billion market cap.
  • XRP: $0.290 (⬆️ 3.41%) // $12.5 billion market cap.
  • Tether: $1.01 (⬇️ 0.02%) // $4.13 billion market cap.
  • Bitcoin Cash: $225 (⬇️ 0.63%) // $4.08 billion market cap.
  • Top 100 Winner: ZRX: $0.316 (⬆️ 14.18%) // $190 million market cap.
  • Top 100 Loser: Crypterium: $0.554 (⬇️ 16.30%) // $47 million market cap. 

Prices are as of 15:40 p.m. EDT.

     

1. Facebook's Libra shouldn't continue until it has proven itself to be safe and secure, according to the G7 group. G7, which consists of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, have stated that cryptocurrencies such as Libra pose a risk to financial stability. According to the group, even if Libra's backers address concerns, the project may still not receive approval from regulators. The warning from G7 follows the decision from PayPal, Mastercard, Visa, and Stripe to step away from the project, citing regulatory uncertainty. –BBC

Why It Matters: With four companies having stepped away from Libra and increasing pressure from global regulators, the future of the stablecoin could be in trouble if more companies decide to leave it.

G7 group say crypto such as Libra pose a risk to financial stability
     

​​​​​​2. Telegram may postpone the launch of its token after the U.S. Securities and Exchange Commission (SEC) ordered it to halt the sale of the token in the United States. Telegram was due to issue the Gram tokens October 31, but has said that it may look beyond this date as it works at addressing the agency's concerns. Telegram has raised more than $425 million from U.S. investors, but the SEC has said the fundraise was illegal due to the fact that it never registered its offering with the regulator. –BLOOMBERG

     
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3. A study has found that those who trade in cryptocurrency are more likely to take the biggest risks in the stock market. According to the findings, this suggests that they are seeking dopamine - a chemical released by nerve cells that sends signals to other cells that are typically involved in the reward-motivated behavior. The period covered was from January 1, 2014, to December 31, 2017, and surveyed 668,067 individual investors. It found that traders undertook 16.8 extra stock trades and increased their leverage by 13.4 percent within the first 10 days of trading in crypto. –COIN DESK

Study: Crypto traders are likely to take bigger risks in the stock market
     

4. An online Bitcoin platform claiming to be endorsed by well-known names is a scam. Jeremy Clarkson, Alan Sugar, and Simon Cowell are those that have supposedly backed Bitcoin Revolution. According to Clarkson, he's never heard of the company and that lawyers were looking into it for him. He even suggested he wasn't aware of what Bitcoin was, stating he was going to research what it was. Designed to attract unwitting investors, it invites them to make an initial deposit of $250 to become the "next millionaire." –DAILY MAIL

     

5. Bitso, one of Mexico's largest crypto platforms, has received investment from Ripple and Coinbase. Ripple was an early partner of Bitso and led the funding round for the country's first crypto exchange. Since founding in 2014, Bitso has attracted 750,000 users in the country. As a result of its success, it is now turning its attention to Argentina and Brazil, among other Latin American nations. –THE BLOCK

     

6. Dutch bank ING has said that central bank digital currencies (CBDCs) are coming. Chief economist Mark Cliffe and its lead economist for digital finance Teunis Brosens have said that CBDCs may be around in the "next five years." Cliffs added that with the introduction of CBDCs, banks may be able to get rid of hard cash and banknotes. –THE NEXT WEB

     

7. BMW, General Motors, Ford, Renault, and Honda are to start testing a blockchain car identification and payment system next month in the U.S. The system will be developed under the Mobility Open Blockchain Initiative. Cars will be assigned digital IDs linking them to ownership, service history, and a wallet permitting them to make payments without any necessary hardware. –NIKKEI ASIAN REVIEW

     

8. Bitfury Group is to set up a blockchain innovation and research center in Hyderabad, a city in India. It is aiming to be one of the top 10 locations worldwide for blockchain development. Bitfury, reportedly, has said that they will offer mentoring support, and courses to associated members. –CRYPTONEWSZ

     

9. Europol has said that Bitcoin still remains the dark web's favorite cryptocurrency. The agency noted that it was prevalent within the underground economy because of its familiarity with the customer base, particularly in the dark web markets. Europol had previously noted a small shift toward privacy coins such as Monero. –THE NEXT WEB

     

10. Alipay has said that it can't be used for Bitcoin transactions. This is despite Binance CEO Changpeng Zhao confirming that it now could. However, Alipay has disproved that by saying "no, you cannot." It added a tweet prior to this to reiterate what it was saying. – INTERNATIONAL BUSINESS TIMES

     

This newsletter was written and curated by Rebecca Campbell. She has been writing and reporting on various industries for the past 10 years, more specifically tech in the last three. Connect with her on Twitter.

Editor: David Stegon (senior editor at Inside, whose reporting experience includes cryptocurrency and technology).

     
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