Keep your filthy money: digitization debate ignites as 'dirty' bills circulate

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March 30, 2020 DOLLAR DIARY Reports indicate that people are rushing to ATMs to get cash out, though at this point “bank runs” are still a theoretical threat. CoinDesk’s Danny Nelson dives into the debate on whether a cash-based society is even possible in the age of coronavirus. Cash hoarders say yes, health experts say maybe and tech visionaries say no: COVID-19 is the catalyst for systemic payments change. In crypto we trust? Still, there are more physical dollars in circulation than at any point in the previous 20 years, according to the Federal Reserve Bank of St. Louis. This new report is the first strong signal, beyond scattered anecdotes, that U.S. citizens are withdrawing more cash than usual from banks and ATMs amid concerns over the effects of the coronavirus pandemic. Tender intensifies BLOCKCHAIN BOOSTS Investors in Polychain Capital would have netted 1,332.3 percent gains if they invested at the hedge fund's genesis. The fund’s performance flies in the face of common wisdom and regular markets, and raises the possibility that a longer outlook may offset incremental risks. Chain gains Lending platform Celsius Network has teamed up with Chainlink, on its way to decentralization. Chainlink, an oracle provider, will inform the price feeds Celsius uses to calculate crypto asset interest rates for its products. Decentralized link Riot Blockchain is worried that COVID-19 may “seriously disrupt” its bitcoin mining operations. The Nasdaq-listed rig builder revealed its concerns in an SEC filing, citing "shelter-in-place" orders and supply chain disruptions as “catastrophic” business ramifications. Caving in Microsoft filed a patent for a system that can mine cryptocurrencies using data collected from humans as they exercise or read an advertisement. Human powered CRYPTO CLIMATE Can bitcoin survive the climate change revolution? Bitcoin's energy intensive architecture may preclude it from financiers looking for environmentally conscious investments. “[B]itcoin is an interesting investment. But from an energy usage standpoint, my understanding is that it will only become more and more energy-intensive to mine some of these currencies,” said Brett Wayman, VP of impact investing at Envestnet.  Others, such as Steve Barbour, founder of Upstream Data, which operates bitcoin mines on oil fields in Canada, described bitcoin mining as a “conservation machine.” More value blockchain as an essential tool in tracking carbon emissions and supply chains. Energetic debate AROUND THE WEB CB Insights says enterprise blockchain funding less than 20% of cryptocurrencies. But is it? (Ledger Insights) Bitcoin Core is accessible through to dark web, adding a new level of censorship resistance. (Decrypt) Blockstream and Lightning Labs fund the most bitcoin developers, according to data compiled by BitMEX. (The Block) The Tron Foundation has launched its own MakerDAO-like stablecoin system called “Djed.” (The Block) LabCFTC and the CFTC are hiring student interns under the Pathways Program. (USA Jobs)   Bitcoin rose 7 percent early on Monday, even as the “risk-off” mood returned to traditional markets. The top cryptocurrency by market value picked up bids near $5,850 and rose around $500, indicating bitcoin may finally be decoupling from the larger financial ecosystem. "Barring any further cataclysmic shocks to the economy, I expect BTC will rally faster and harder than public markets," Jehan Chu, co-founder and managing partner at Kenetic Capital, said. Decoupling shuffle Other readings are less optimistic. After news broke of the U.S. Federal Reserve's $2 trillion stimulus package, the Dow Jones Industrial Average is up 23 percent and the S&P500 index has gained around 20 percent, ending “the shortest bear market in history.” Bitcoin, however, has shown resistance near $6,900, presenting a significant bullish hurdle for the world's bellwether cryptocurrency. Bellwether blues?   Author and historian Niall Ferguson joins CoinDesk’s Michael Casey for a discussion about our disrupted world, inevitable crisis and what it could mean for money. "The right lesson to draw from all of this is that a global order needs to be based on a distributed operating system, not on a centralized architecture,” he said. Disruption discussion WHO WON #CRYPTOTWITTER   Copyright © 2020 CoinDesk, All rights reserved.  Our mailing address is:  250 Park Avenue South New York, NY, 10003, US  Want to change how you receive these emails? You can update your preferences or  unsubscribe from this list