Nuvei to acquire crypto payments processor Simplex for $250 million

Canadian publicly listed payment technology company Nuvei has announced its plans to buy crypto payments processor Simplex, which recently became a member of the Visa network, for $250 million.  “We expect Simplex to enhance and expand Nuvei‘s steadily growing portfolio of alternative payment methods, adding turnkey simplicity to the process of buying and selling cryptocurrency and converting it back to fiat within a user account—ultimately reducing complexity for merchants and consumers,” said Nuvei’s chairman and CEO Philip Fayer.  According to the announcement published yesterday, the deal is expected to be finalized “in the second half of 2021.” The acquisition will be “subject to customary closing conditions,” including approval from regulators, the companies noted.  Additionally, since Simplex is officially licensed in the EU, the acquisition will grant Nuvei a similar “electronic money institution” license. This would allow the company to offer banking IBAN accounts and card issuing services to its clients.  Bridging crypto to traditional finance  Founded in 2004, Israeli-based Simplex is a so-called crypto on-/off-ramp payments processor that allows users to turn their fiat currencies into crypto and vice versa.  Last December, Simplex became a principal member of the Visa network, which allowed it to issue the corresponding debit and credit cards. Thanks to this, SImplex

2021-05-08Deep Dive

Poland Should Introduce CBDC To Protect Its Economy - Stock Exchange CEO

Polands central bank will need to issue its central bank digital currency (CBDC), the digital zloty, to prevent other countries from imposing their own digital currencies on the Polish economy, Marek Dietl, CEO of the state-controlled Warsaw Stock Exchange (WSE), said during a recent panel discussion.  “If we dont introduce the digital zloty, then, whether we want it or not, we will find ourselves using the digital yuan, dollar or euro because it will be more comfortable to use and liquid,” Dietl said during a debate at the annual 590 Congress.  The chief executive added that the digital zloty would introduce a wide range of benefits to Polish consumers, democratizing their access to various segments of the financial market, as reported by local news site Money.pl.  “In my opinion, such a digital currency is inevitable, all the more because there will be increasingly efficient safety measures, although there also will be those who will want to override them,” according to Dietl.  The debate, entitled Blockchain in the practice of financial institutions, also featured a representative of the National Bank of Poland (NBP), the countrys central bank. Marta Gajęcka, Member of the Management Board of the NBP, said that currently, the central bank is not

2021-05-08Deep Dive

S&P Launches First-Ever Crypto Indices for Bitcoin and Ethereum: Why It Matters

S&P Dow Jones Indices, one of the worlds largest index providers, launched a new series of digital asset benchmarks.  Dubbed the S&P Digital Market Indices, the series includes the S&P Bitcoin Index, Ethereum Index, and Cryptocurrency MegaCap Index. Each of these indices will track the performance of Bitcoin and Ethereum, with the latter tracking a combination of both. The pricing data is sourced from crypto data provider Lukka.  Despite choosing to only include the two largest cryptocurrencies by market capitalization, S&P stated that it will include other cryptocurrencies through large-cap and broad market indices. According to CoinMarketCap, Bitcoin and Ethereum lead the space with market cap of $1.04 billion and $395 million, respectively. Binance Coin (BNB) is a distant third at $95 million.  As the market for cryptocurrencies continues and institutional demand continues to rapidly grow, benchmarking crypto and the blockchain space is more essential than ever before. “Traditional financial markets and digital assets are no longer mutually exclusive markets,” said Peter Roffman, Global Head of Innovation and Strategy at S&P Dow Jones Indices.  “As cryptocurrency becomes more mainstream, investors now have access to reliable and transparent benchmarks backed by institutional quality pricing data. We look forward to further expanding our new family of

2021-05-08Deep Dive

SEC Chairman Says Crypto Markets Need Regulations to Prevent Fraud

SEC chairman Gary Gensler said on Friday that greater protection for investors is required in cryptocurrency markets.  Gensler is no stranger to the cryptocurrency world. The former Goldman Sachs investment banker has long been viewed as a strong candidate to take the SEC chairman role.  Gensler was sworn in a few weeks ago as Joe Biden‘s choice for the next head of the SEC. During Obama’s presidency, Gensler was in charge of the Commodity Futures Trading Commission (CFTC) and was in charge of regulating derivatives.  What makes this particularly interesting is that he will become the first crypto and blockchain expert to hold the highly regarded position. A former MIT professor, he taught a course entitled “Blockchain and Money” and believes the two are a “catalyst for change.” Gensler stated at his SEC nomination hearing:  “Bitcoin and other cryptocurrencies have brought new thinking to payments and financial inclusion. But theyve also raised new issues of investor protection that we still need to attend to.”  Despite his support and optimism, the new SEC chairman also expressed concern about the protections investors are not getting in the crypto asset market. Gensler understands the attraction of bitcoin and other coins, but worries investors are taking on more risk

2021-05-08Deep Dive

VanEck Files for an Ethereum Exchange-Traded Fund

Asset manager VanEck is seeking US regulatory approval to launch an Ethereum exchange-traded fund, with the move taking place as the company waits for word on whether it will be able to introduce trading of the first bitcoin ETF in the US.  The VanEck Ethereum Trust would list shares on the Cboe BZX Exchange, according to an S-1 filing with the Securities and Exchange Commission on Friday.  The firm said the trust, in aiming to reach its investment objective, will hold ether, the currency native to the Ethereum blockchain network, and value its shares daily based on the reported MVIS CryptoCompare Ethereum Benchmark Rate. Ether is the worlds second-largest cryptocurrency by market capitalization, behind bitcoin.  VanEck and the Cboe are waiting for the SEC to render a decision on whether it can list a bitcoin ETF, which the asset manager applied for in March. The regulator last week delayed a decision until at least July 17, leaving investors waiting on the US to greenlight the countrys first bitcoin ETF.  Wall Street institutions are increasingly embracing or signaling openness to including cryptocurrency into their operations. This week, S&P Dow Jones index announced the launch of three indices tracking the performance of the bitcoin and ethereum

2021-05-08Deep Dive

Bitcoin’s upcoming Taproot upgrade and why it matters for the network

While a vast majority of crypto enthusiasts around the globe seem to be gushing about Ether (ETH) at the moment and how its upcoming London hard fork stands to push the premier altcoin‘s value even higher, reports have recently surfaced that suggest Bitcoin’s much-awaited Taproot upgrade will go live also sometime by the end of this year.  In this regard, many Bitcoin (BTC) mining pools seem to already be signaling their support for the activation and as per data available on Taproot.watch, a website designed by core Bitcoin developer Hampus Sjöberg, Taproot signaling currently accounts for about 56% of BTCs total hashing power.  It should be mentioned that two of the largest Bitcoin mining pools by hash rate — AntPool and F2Pool — have been major proponents for this upgrade from the very beginning. Even other relatively large mining operators, such as Foundry USA and Slush Pool, have also expressed their support for the activation.   What exactly is Taproot?  In its most basic sense, Taproot can be thought of as the latest step in Bitcoins evolutionary path because the upgrade seeks not only to enhance the overall usability of the network by making transactions cheaper, faster and easier to deploy but also eventually

2021-05-08Deep Dive

Will Amazon's Digital Currency Help Or Hinder Global Crypto Adoption?

A number of mainstream news outlets have reported that Amazon has hired ex-FCA officials- suggesting the launch of their digital currency is in sight. While the Amazon digital currency would not be a blockchain-based cryptocurrency,  The British newspaper The Telegraph recently revealed that Amazon recruited several specialists from the Financial Conduct Authority (FCA), a sign that the multinational is preparing for the launch of its digital currency.  While Amazon has remained tight-lipped about the launch of its digital currency, the decision to go ahead with a digital currency would signify a big leap for digital currencies, with a potential to make digital currencies ‘mainstream’.  If the recruitment of ex-FCA officials is anything to go by, Amazon‘s launch of a digital currency would be equipped to navigate the currently murky waters of digital currency regulation. A new division was recently created by Amazon, Digital and Emerging Payments (DEP), which will allow users to “convert cash into digital currency” for spending on services like Amazon’s retail service and Amazon Prime Video.  The company‘s current CEO Jeff Bezos has been rumoured a number of times to own cryptocurrency, however has never publicly confirmed this. As Bezos will be standing down as CEO of June this year, his

2021-05-08Deep Dive

Tajik government taps blockchain firm for e-government infrastructure

President of Tajikistan Emomali Rahmon is pursuing an ambitious integration of blockchain technology into his governments ongoing modernization drive.  According to an announcement from smart contract platform Fantom, a new public-private partnership between the Fantom Foundation and the Tajik Ministry of Industry of New Technologies will see the two roll out a range of blockchain-based solutions across nationwide IT infrastructure.  The scope of the partnership is to research, develop and implement various blockchain-enabled data-sharing, transparency and automation solutions. As a first step, the partners will establish a research and development hub to train local developers in building blockchain-based systems. In parallel, Fantom will thoroughly review existing data flows and documentation at the ministry and propose solutions that can streamline legacy processes and potentially boost productivity. Fantom will also look into the potential value of central bank digital currency issuance for the countrys payments system.  The Republic of Tajikistans modernization program, which has been in motion since President Rahmon assumed power in 1994, has most recently resulted in the 2019 legislative agenda to widen broadband access, expand technology training programs and create dedicated agencies to oversee the digitalization of national IT infrastructure.  Regarding the new initiative to innovate e-government strategies through blockchain, Fantom director of

2021-05-08Deep Dive

Chips Shortage May Be Exacerbated by Mining Giant Bitmain Order

Crypto mining company Bitmain has put more pressure on the market after placing a 5nm chip order with Taiwan Semiconductor Manufacturing Company TSMC.  Bitmain is looking to increase its efficiency and speed when it comes to crypto mining, which is likely due to the recent bullish narrative of bitcoin (BTC) and ethereum (ETH).  TMSC will start the manufacturing of the chips later this year and expecting to finish early in 2022. It is unknown how much of TSMCs supply has been bought by Bitmain, but TSMC was predicted to up their production of chips from 55,000 to 60,000 wafer starts per month to 110,000 to 120,000.  Chips shortage  The chips shortage began in January 2021, when the global demand of semiconductors massively outweighed the supply. The chip shortage affects a host of industries from childrens toys, technologies, to the motor industry.  McKinsey lead on semiconductors Ondrej Burkacky said that the chip shortage is a universal issue and might lead to some products being unable to be created. “At some point, consumers will be affected by the chip crisis,” he said and added:  “The high noon season for consumer electronics are Q3 and Q4, and there might be shortages of several products during this time.”  At the moment

2021-05-08Deep Dive

3 Reasons Ethereum Will ‘Dwarf’ Bitcoin, According to Mark Cuban

Ethereums price has been performing incredibly well for the past couple of weeks. Over the past 14 days, ETH is up more than 42% and more than 60% over the past month.  This is not only true for its dollar value – ether is doing remarkably well trading against bitcoin. In fact, at the time of this writing, ETH‘s dominance sits at 16.9%, whereas BTC’s dominance stands at 44.3% – the lowest it has been in almost three years.  In other words, Bitcoin‘s total market cap is currently only 27.4% larger than this of Ethereum, and we’re already seeing plenty of people jumping on the flippening bandwagon – the event where ether tops BTC in terms of market cap.  Mark Cuban has been particularly vocal about his involvement in the cryptocurrency markets as of late. Hes also not hiding his excitement for ethereum and all of its capabilities.  In a recent interview with CNBC Make It, the billionaire owner of the Dallas Mavericks gives three reasons for which he believes ether will outperform bitcoin.  The Number of Transactions Per Second  Cuban believes that the fact that ETHs network is capable of processing more transactions per second is a good enough reason for it to outperform BTC.  “Right

2021-05-08Deep Dive
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