Crypto Guides, Knowledge & Insights

DOJ Ransomware Panel to Propose 'Aggressive' Bitcoin Regulations

A panel of experts established by the US Department of Justice last week to combat ransomware is expected to recommend “aggressive tracking of Bitcoin and other cryptocurrencies,” according to a report from Reuters today that cited anonymous sources.　　The potential recommendations would expand the regulatory requirements on cryptocurrency exchanges and hold them to similar standards as traditional financial institutions.　　Ransomware involves hacking computers and computer networks and locking users out until they pay a ransom. An estimated 99% of ransomware payments were made in Bitcoin as of the first quarter of 2020, thanks to its status as electronic cash. Afterward, the BTC can be exchanged into a privacy coin such as Monero, which is difficult to trace, and ultimately exchanged for cash. Research firm Cybersecurity Ventures estimated in 2019 that annual ransomware costs would reach $20 billion globally this year.　　The Ransomware and Digital Extortion Task Force is composed of staff from several Department of Justice wings, including the Federal Bureau of Investigation, the Civil Division, the Criminal Division, the National Security Division, and the Executive Office for US Attorneys. The Departments of the Treasury and Homeland Security are also participating, as are private tech firms.　　The groups recommendations, due tomorrow, will reportedly target

2021-04-29Deep Dive

'From dial-up to broadband': Banco Santander exec talks up DLT utilization in finance

Regulated decentralized finance that combines permissioned layer-two protocols and a public blockchain network could be the future of fintech.　　John Whelan, the head of Banco Santanders blockchain lab in Madrid, recently touted the potential for increased decentralized ledger technology adoption in mainstream finance.　　Speaking during a webinar organized by Fintech Surge and the Future Blockchain Summit on Wednesday, Whelan remarked:　　“I could imagine a future where there is a global settlement network for an asset class of securities that operates in a fully controlled, private, permissioned layer-two on top of a public blockchain network.”　　While acknowledging that current public blockchain networks might not be optimized for high-frequency transactions, Whelan highlighted their suitability for settlements in the financial services arena.　　“Settlement is not something that has to happen instantaneously,” Whelan stated, adding: “Usually in the financial market, settlement is T+5 — we agree on a trade and we wait five days for settlement.”　　For Whelan, stakeholders in the financial services industry see significant potential in reducing the settlement throughput via blockchain networks.　　The Banco Santander digital asset chief also stated that DLT utilization in mainstream finance needs to reach a point where ERC-20, or any other blockchain-based token standard, becomes suitable for use in what Whelan termed “regulated

2021-04-29Deep Dive

University of Wyoming to Generate Revenue From Crypto Staking

In brief　　Wyoming appropriated $4 million for cryptocurrency staking.　　The profits will go toward funding capital expenditures.　　Wyoming has already welcomed crypto banks and blockchain investment. Now, its putting some skin in the game itself.　　In an appropriations bill signed by the governor this month, Wyoming earmarked $4 million for a cryptocurrency staking program to be run by the University of Wyoming, the states lone public four-year university.　　“Staking,” which amounts to locking up cryptocurrency so it can be used to validate blockchain transactions and mint new tokens, is a popular way for cryptocurrency holders to put their assets to work and earn some profit. The University of Wyoming Cryptocurrency Staking Program provides a glimpse at possible alternative revenue streams for public universities, which—even before the coronavirus pandemic—were facing budget crunches.　　After the state approves the universitys spending plan, UW will have $4 million to spend on operating nodes (computers that are connected to and sustaining the blockchain network) and accumulating cryptocurrency to develop “staking pools”—which let crypto users chip in tokens and begin staking without themselves needing any technical knowhow—in at least three cryptocurrencies.　　The revenue generated from the scheme will first go toward paying operating expenses, with up to $4 million in profit going

2021-04-29Deep Dive

“Fractional ownership”; the next frontier of NFT disruption

The $69 million sale of Beeple‘s digital artwork Everdays at Christie’s in March propelled non-fungible tokens, or “NFTs”, into the mainstream of the financial and cultural spheres, despite their almost total obscurity prior to this event. The bang of the auction house gavel signalled a fundamental shift in peoples preconceptions of both cryptocurrencies and of art.　　At their most basic level, NFTs are a one-of-a-kind entry on a blockchain ledger which cannot be duplicated, and which have a wholly unique value and virtual entity. This is to be compared to fungible tokens, like bitcoin, for which two coins are indistinguishable from one another and have the same value (omitting considerations of transaction history, for now) .　　There are several notable benefits and use cases for NFTs which are particularly pertinent to the art world. Beyond the fact that, due to their decentralisation, they make the need for agents and intermediaries redundant, arguably the most significant benefit of NFTs is that they provide an immutable and completely trackable record of ownership; as they are one-of-a-kind and non-interchangeable, whoever is in possession of an NFT can be safe in the knowledge that they are the sole owner, and provenance can be directly traced through

2021-04-29Deep Dive

Battling the data monopoly and fighting censorship with ArGo’s Permaweb

As the world spends more time than ever before online, many of us are becoming increasingly aware of just how little control we actually have over our data and the content we release on the internet. A heavily monopolized oligarchy of industry giants now control the majority of the worlds data and Amazon AWS, Google and Facebook process near innumerable amounts of user data each day; this presents worrisome issues when it comes to privacy and safety, with various incidents highlighting the dangers of centralized data storage on such a massive scale.　　As blockchain technology disrupts almost every corner of industry, the opportunity to create a fairer and truly free internet is now becoming a reality. With the introduction of the Permaweb, a decentralized, uncensored and permanent platform built on the popular storage protocol Arweave, ArGo looks to combat the data monopoly with the power of blockchain technology.　　Fighting back against censorship in the age of Web 3.0　　Not only is security a worry for internet users today, but censorship is also becoming increasingly prevalent on popular platforms that we use regularly. The advent of Web 2.0 saw us begin to communicate through centralized services such as Facebook and, as social media in

2021-04-29Deep Dive

5 Ways Visa Wants to Work with Crypto and CBDCs

The Visa CEO Al Kelly has outlined five different opportunities his company sees for payments firms in the “crypto and bitcoin (BTC)” space – as well as the world of stablecoins and central bank-issued tokens.　　In a Q2 2021 results earnings call, Kelly once again reaffirmed his and Visas position that tokens such as BTC are “digital gold,” while “digital currencies,” namely central bank digital currencies (CBDCs) and stablecoins that are “directly backed by existing fiat currencies,” are “definitely emerging as a payment option.”　　He claimed that “theyre running on public blockchain [networks],” which he added were “really, in essence, an additional network much like a real-time payments [system] or an Automated Clearing House might be.”　　Here are the “five opportunities” Visa claims it has identified.　　 Allowing users to buy crypto　　Visa wants to make it easier for end-users to buy BTC and altcoins with its cards. Kelly said Visa was also “working hard with wallets and exchanges” to “make sure were facilitating acceptance of peoples ability to use their Visa cards to buy” crypto. This could involve incentivizing the use of Visa cards for crypto purchases on certain platforms.　　 Creating new fiat off-ramps　　Visa wants to help people to spend their crypto – using

2021-04-29Deep Dive

AMD Claims ‘Negligible’ Crypto Impact on Revenue Increase

Computer processor producer AMD claims cryptocurrencies impact on its bottom line has been “negligible.”　　The company reported that it had earned a revenue of $3.45 billion in the first quarter of 2021. This is a 93% increase of its first quarter revenue last year. The astronomical rise should come as no surprise in light of the increasing demand for hardware.　　Inevitably, someone asked how much of that revenue came from cryptocurrency mining operations. Despite the confidence in her companys results up to this point, CEO Lisa Su seemed to struggle answering the question. Su hesitated with her response, saying, “we do not — we have negligible crypto in here.”　　 Bad timing for gamers　　As it turns out, AMD is apparently unaware how much cryptocurrency mining has affected its earnings. The company does not seem to discriminate whom it sells its GPUs to, whether actually to gamers or cryptocurrency miners. This lack of a distinction likely gives them little idea of the proportionality of their sales.　　The surge in cryptocurrencies, and the accompanying profits from mining, have come at an inopportune time for the gaming industry. Computer processor producers had already been struggling with supply shortages to meet the increasing demand for GPUs. The supply-chain

2021-04-29Deep Dive

Young Koreans hooked on Bitcoin trading sparks “crypto addiction” fears

An article today from the leading South Korean newspaper Chosun Ilbo detailed the phenomenon of obsessive Bitcoin tracking and mentioned the impact of price fixation on the lives of young Koreans, even to the point of interfering with their work commitments.　　Psychological experts warn that compulsive price tracking may be part of a wider problem with cryptocurrency addiction, which shares similarities with gambling addiction. Is now the time for crypto holders to check themselves？　　Bitcoin mania is impacting the jobs market　　Since the start of Q4 2020 to its all-time high, the price of Bitcoin has increased by over 500%. When it comes to top-performing alts such as Dogecoin, Polygon, and VeChain, the percentage gains are magnitudes greater.　　The lure of easy and fast money is a distraction for most. So much so, that even employers in South Korea are beginning to notice the effects. Not only do they complain about distractions over price obsession during work hours, but some even report that workers are quitting jobs to become full-time traders.　　Han Jung-soo is one such former worker. He quit his credit card company job last month off the back of making ₩3 billion ($2.7 million) from cryptocurrency investing. He said crypto provides a better

2021-04-29Deep Dive

Retail CBDC Projects More Advanced in Emerging Economies

Retail central bank digital currencies (CBDCs) are more advanced in emerging economies, according to the Global CBDC Index 2021 from global consultancy firm PricewaterhouseCoopers (PwC).　　With its inaugural report, PwC sought to assess the level of maturity central banks have achieved in deploying digital currencies. It provides a synthetic index, based on central banks progress, perspectives on CBDC development, as well as public interest.　　The report distinguishes between two types of CBDCs. First, there are retail CBDCs, which citizens and businesses can hold and use as a form of digital cash. Then, there are wholesale CBDCs which would generally be restricted to financial institutions. These institutions would primarily use them for interbank payments and financial settlement processes.　　Appraising the two approaches, the report highlighted that retail CBDCs already have two live projects in the Bahamas and Cambodia. The report says the digital yuan project in Mainland China is merely at an advanced level of trialing.　　On the other hand, no wholesale CBDC projects have reached maturity so far. However, nearly 70% of declared wholesale projects have started running pilots. Meanwhile, only 23% of retail projects have reached this implementation stage.　　 Retail CBDC projects are at a more advanced stage　　Despite the smaller proportion, retail CBDC

2021-04-29Deep Dive

JPMorgan Joins Hands With Singapore’s DBS and Temasek for Blockchain-based Payments Platform

Wall Street banking giant JPMorgan is looking to overhaul the blockchain-based foreign exchange and trade settlement for cross-border payments. In collaboration with Singapores Temasek Holdings and DBS Group, JPMorgan has announced the launch of a new company Partior while leveraging blockchain technology and digitizing the M1 commercial bank money.　　In a statement on Wednesday, April 28, JPMorgan said that the new company aims at reducing friction and latency “for cross-border payments, trade and currency settlements,” reported Bloomberg. Partior will develop wholesale payment rails using digitized commercial bank money. Besides, it will also enable “atomic” or instantaneous payment settlements for different kinds of financial transactions.　　This will drastically improve the transaction bandwidth and will help overcome the challenges with the existing standard sequential method of processing global payments. Partiors multi-currency clearing and settlement solution will facilitate 24/7 instant settlement. Sopnendu Mohanty, chief fintech officer at the Monetary Authority of Singapore, said:　　“The launch of Partior is a global watershed moment for digital currencies, marking a move from pilots and experimentations toward commercialization and live adoption”.　　Starting the Pilot Tests From Singapore　　The Partior blockchain platform from JPMorgan will initially focus on testing payments among Singapore-based banks. The bank will initially facilitate only two currencies – USD

2021-04-29Deep Dive

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