Crypto Guides, Knowledge & Insights

The Central Bank of Sweden Released First Study of Digital Currency

Sweden‘s plans to create a central bank digital currency might be more complicated than initially thought according to a new study published by the nation’s central bank. It estimated that the Scandinavian country could delay the release of the e-krona until 2026.　　How Does a Cashless Future Look Like？　　The Riksbank published the results of the first phase of a pilot project exploring an eventual post-cash era and its consequences. The simulation showed that the rapid speed at which cash is disappearing presents “potential problems.” However, a digital currency under the control of a central bank has the ability to address them.　　The project is colossal, and Swedens central bank, which is the oldest one in the world, keeps delaying the timeframe for completing it. Initially, the institution announced it will be ready with the task and move ahead with the e-krona by 2018.　　The Riksbank now indicated the current pilot project wont see the light of day before next year. Some more pessimistic projections, though, stretched the timeframe until the end of 2026.　　Mithra Sundberg, who leads the Riksbank project in Stockholm, said that it‘s vital to avoid settling on the technology before realizing precisely what the digital currency needs to do. The bank

2021-04-08Deep Dive

Crypto at risk after Facebook leak: Here’s how hackers can exploit data

Attacks on digital asset exchanges and trading platforms have decreased drastically in recent years, but data leaks still leave users vulnerable.　　Facebook is no stranger to data hacks and leaks, with the company having been on the receiving end of many high-profile security breaches in recent years. For example, back in 2018, the social media giant revealed that it had inadvertently exposed the personal information of more than 50 million users due to a small error in its platform coding, thus allowing miscreants to gain access to its users accounts.　　Similarly, in 2020, the Mark Zuckerberg-led firm was embroiled in another major controversy when it came to light that thousands of developers had been able to access data from inactive platform users, again drawing the ire of many folks across the globe.　　Now in 2021, the tech juggernaut has once again been hit with a fresh wave of data leaks, however, this time around, the number of users whose records were exposed was not 50 million but a staggering 500 million. On April 3, Alon Gal, chief technical officer of security firm Hudson Rock, revealed that sensitive personal information for over half a billion Facebook users was shared on a well-trafficked hacking forum.　　To

2021-04-08Deep Dive

Developer-focused DeFi aggregator Instadapp launches governance token

How does a DeFi aggregator capture value, and what does it mean for the INST token？　　In a blog post yesterday, decentralized finance (DeFi) management and protocol aggregator platform Instadapp announced the launch of their governance token, INST. While not currently transferable by the average user, the token is set to go fully live later in the year to coincide with a transfer of control over the protocol to a DAO governance process in Q2.　　The project, which currently counts over $2.3 billion in its 18,000 “Smart Accounts” wallets, connects to a variety of DeFi protocols from a single interface and offers a development toolkit in an effort to position itself as “middleware” for devs building DeFi products.　　According to Instadapp community manager Steven Zapata (who may be more familiar as ‘seb eth monk’ to community members), the pivot to becoming a development platform is a key part of Instadapps growth strategy.　　“Instadapp is known as being an aggregator, but we are much more than that,” he said. “Instadapp is a complete toolkit for building DeFi applications. As we transition our platform into a defi middleware, we are not only aggregating different protocols but our platform will create unique use-cases by leveraging different components

2021-04-08Deep Dive

How banks can identify money laundering involving crypto

1. Why is crypto anti-money laundering compliance so important for financial institutions？　　To cut a long story short: Its the law.　　Banks and financial institutions are legally required to adhere to laws and regulatory guidance to combat money laundering, terrorism financing and tax evasion — as well as manage their risk against these illicit financial activities.　　Every legitimate bank and FI incorporates regulatory compliance and risk management into their short and long-term business plan and strategy as a matter of necessity, so when dealing with cryptocurrencies they would also need to incorporate crypto compliance.　　2. How can financial institutions understand the nature of their customers crypto activities？　　Information is power to help organizations mitigate risks for indirect exposure to crypto.　　When it comes to preventing money laundering in traditional fiat, banks need a certain amount of information to ensure they can manage any potential risks involved in facilitating these transactions. The same applies with cryptocurrencies.　　A bank can face challenges if it faces direct exposure to crypto — but they can also be exposed indirectly if one of their customers is transacting using digital assets.　　There are a series of checks that can help manage AML risk: Know Your Customer, Know Your Payments, Know Customer Behavior, and Know

2021-04-08Deep Dive

Blockchain in Entertainment Industry to Help Develop New Business Models

IN BRIEF　　Blockchain will break up entertainment monopolies.　　This technology will put the power back in the hands of the creators.　　Many industry problems can be solved through the blockchain.　　The innovations in blockchain technology are evolving at the speed of light. Industries are planning to deal with current challenges with the help of these technological advancements.　　By the year 2024, the global blockchain market for the media and entertainment industry is set to pass $1.54 billion. With a compound annual growth rate of 32% expected from 2018 to 2024.　　The main reason why industries are keen to use blockchain technology is because of its traceability, accuracy, efficiency, and transparency.　　Obstacles for blockchain　　Blockchain has the potential to create more ways for artists to make money from new and existing.　　It will also play an important role in the protection of intellectual property for content owners. But, this technology is still under development. Initial players in this area must consider the potential costs and challenges.　　At the moment, blockchain is unregulated. There is a need for the creation of common use standards. This includes common standards among participants for blockchain use case that require numerous constraints.　　In some cases, the current technology may need to be replaced entirely to make

2021-04-08Deep Dive

Bitcoin Could Still Revisit $20,000, According to Guggenheim's Scott Minerd

In his latest interview with CNNs Julia Chatterley, Guggenheim Partners CIO Scott Minerd says that Bitcoin has been caught up in a “speculative bubble,” comparing it Gamestop and other yolo stocks.　　He believes that the largest cryptocurrency could revisit the $20,000 level if it gets hit by risk-off sentiment:　　When we get a risk-off moment, we could be seeing Bitcoin pull back to somewhere between $20,000 and $30,000 dollars. Minerd adds that these levels would be good entry points for long-term investors.　　Bitcoin is trading at $56,610 on the Bitstamp exchange after dipping to $55,600, its lowest level since March 29, earlier today.　　A long-term look　　The $400,000 Bitcoin prediction that was voiced by Minerd in mid-December led to plenty of jubilation within the cryptocurrency community.　　Soon after that, Minerd turned bearish, warning of market froth. Some were suggesting that he was attempting to talk down Bitcoin on purpose so that Guggenheim could buy it cheaper.　　When asked about the uber-bullish prediction in the most recent interview with Chatterley, Minerd said that the bellwether crypto could reach such a target over a period that stretches from “10 to 20 years.”

2021-04-08Deep Dive

WEF Summit 2021: In the Future, the Economy Will Be Tokenized

The World Economic Forum (WEF) held its Global Technology Governance Summit this week. On April 7, Michael Casey, Chief Content Officer at CoinDesk, moderated the session, Arrival of the Token Economy: From Art to Real Estate.　　The WEF panelists discussed several different ways in which tokenization is impacting society. Abdulla Bin Touq Al Marri, the Minister of Economy of the United Arab Emirates, discussed how his country intends to utilize tokenization. New Media Artist and Director of Reeps100 Studios Harry Yeff spoke about how NFTs are popularizing the use of blockchain technology.　　Finally, Sheila Warren, Head of Blockchain and Data Policy at the WEF, mentioned how tokenization might alter the concept of ownership.　　The UAEs Tokenization Plan　　Minister Al Marri spoke first about how the UAE intends to utilize tokenization to finance its ambitious growth plans. He said the country hopes to double its GDP in the next ten years. To do this, the country would need to grow by 6-7% annually. The minister said the country would do this by integrating the digital economy. He stated:　　“In our digital age, tokenization compliments the information-based technology as a decentralized way of capital allocation.”　　Accordingly, the country is looking into the tokenization of digital assets and digital

2021-04-08Deep Dive

Forbes Billionaires List 2021 Features Handful of Crypto Founders

Forbes has released their annual list of the richest people in the world. With several cryptocurrency founders featuring on the list which saw an additional 493 new billionaires created in the last year.　　2020 brought forward a turbulent year that saw the Covid-19 pandemic bring the world to a standstill. However, that hasn‘t stopped the rich from getting richer. This year’s Forbes list of billionaires saw their joint net worth grow by $5 trillion.　　The list features a handful of cryptocurrency billionaires who have made their money from the industry. While none of them feature in the top 100, the growth of cryptocurrencies and blockchain technology has certainly assisted with their net worth exploding over the past year.　　The Cryptocurrency Billionaires List　　The Forbes list breaks down billionaires based on their industries and the source of their net worth. Topping the list related to the industry sees Elon Musk, the once proclaimed “CEO of DOGE,” taking second place with a net worth of $151 billion. He falls $26 billion behind Amazon founder Jeff Bezos.　　Number 274: Sam Bankman-Fried　　Founder and CEO of quantitative crypto trading firm Alameda Research and newcomer to the Forbes billionaire list. Sam becomes the highest-ranked cryptocurrency billionaire. The FTX cryptocurrency exchange CEO

2021-04-08Deep Dive

Why JP Morgan’s CEO calls Bitcoin regulation a “serious issue”

In his annual letter to his shareholders, J.P. Morgan Chairman and CEO Jamie Dimon addressed the status of regulations towards Bitcoin and cryptocurrencies in the United States. At the beginning of the letter, Dimon calls 2020 a “strong” year for the banking institution in spite of the pandemic Covid-19.　　Dimon seems to have changed his stance, as have other executives in the banking sector, after giving statements against Bitcoin and cryptocurrencies. In a section dedicated to the inability of the United States to “deal” with its past, he states that the country has been “distracted” about its future.　　In that sense, Dimon points out 3 “serious emerging issues”: shadow banking, financial information management, and the legal framework on cryptocurrencies. J.P. Morgan executive calls on regulators and financial system actors to take a more active stance, Dimon said:　　“Regulators need to decide what they want included in the regulatory system – and what they dont want included (…). We need to recognize that if a regulated system has higher capital requirements than the market demands, then the product will move outside of the regulated system.”　　U.S. losing edge on Bitcoin？　　The U.S. banking system holds close to $4 trillion in cash o Treasury securities. JP Morgan‘s

2021-04-08Deep Dive

PayPal Co-Founder, Bitcoin Investor Thiel Says Bitcoin Could Be Chinese ‘Weapon’

With bitcoin back in the spotlight, so too are old fears that China may be at the reins.　　PayPal co-founder and billionaire investor Peter Thiel warned that bitcoin (BTC, -1.54%) could be a “Chinese financial weapon” used to dethrone the USDs monetary status.　　Speaking alongside former Secretary of State Mike Pompeo at a virtual roundtable hosted by the Richard Nixon Foundation Wednesday, Thiel opined that, assuming China is long bitcoin, the cryptocurrency could pose a threat to the U.S. dollar‘s reserve currency status. The comments come at a time when fears over China’s assumed control over bitcoin are resurfacing.　　“Even though Im a pro-crypto, pro-Bitcoin maximalist person, I do wonder whether if at this point Bitcoin should also be thought of in part as a Chinese financial weapon against the U.S…. it threatens fiat money, but it especially threatens the dollar,” Thiel said during the stream.　　More than being “pro-bitcoin” and owning the asset himself, Peter Thiels foundation was key to the creation of Ethereum when Vitalik Buterin drew a $100,000 grant to begin working on the blockchain.　　Thiel, best known now for his investment firm Thiel Ventures, has been an outspoken critic against Silicon Valley since he left the tech industry in 2018, claiming

2021-04-08Deep Dive

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