Crypto Pirates

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Here’s what to expect following Biden’s executive order on cryptocurrency regulation Mar 11, 2022

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President Joe Biden pleasantly surprised the cryptocurrency market by issuing a comprehensive (yet vague) executive order outlining how the government will oversee the burgeoning industry.

So, what happens next?

The United States Treasury is leading or participating in the majority of the studies, which range in length from 60 to 180 days on average. Now that the lines have been drawn, it remains to be seen how officials in Washington think and how that translates into crypto policy.

One report that the agency is tasked with leading concerns the future of payments and money. The issue of a central banking digital currency is one that the administration is expected to investigate thoroughly (CBDC).

The most pressing questions concern how a digital dollar will interact with stablecoins and other privately issued digital assets, how these relate to the strategic position of the US dollar in general, and the relationship between digital and fiat assets.

According to senior administration officials, CBDCs will be investigated for use as real-time payments – or whether another option may exist. FedNow, the Fed's upcoming real-time payment system, will allow consumers and businesses to send payments instantly beginning in 2023 and could be a potential test case.

Officials are considering what needs a CBDC will fill once FedNow is available and real-time payments through that system are more feasible.

"You could see stablecoins develop more quickly and broadly if there is adequate disclosure, certification of claims, and an audit function," said Chris Giancarlo, former Commodities Futures Exchange Commission Chair.

"One possible future is that retail payments are made through commercially operated stablecoins and wholesale payments are made through the FedNow payment system," said Giancarlo, who is also the co-founder of the Digital Dollar Project, which has investigated the relationship between societal values and CBDCs.

As other countries, such as China, promote their own digital currencies, Giancarlo has been advocating for the United States to lead the way in CBDCs.

"I don't think the United States is a first mover in terms of deploying a CBDC, but we don't want the United States to be a last mover in exploring the technology," Giancarlo told Yahoo Finance. "It's like 5G. China is developing a digital yuan not only for domestic use but also for export."

He claimed that China will export the basic core CBDC technology to any country that wants to get off the dollar. "It will be CBDC in a box provided by the People's Bank of China," he says. "If you're Cuba, Ecuador, or Venezuela, it'll be something you import from China."

CBDCs are a controversial topic

Another major issue that needs to be addressed, according to officials, is the interoperability of a US CBDC with international counterparts, and how that would be structured. Officials say there are also some private projects or multi-central bank projects looking into CBDC clearing and interoperability.

Biden's executive order encourages the executive branch to take the lead on this potential outcome. If the United States pursues a CBDC, officials consider that a U.S. token would interact seamlessly with the global system, given that the US dollar is the premier reserve currency and central to the global financial system.

"Adoption of US CBDC could fundamentally alter the role of both central and commercial banking," said Lisa Ledbetter, partner in Reed Smith's Financial Industry Group.

"Weighing all of the factors in the EO is a policy and practical balancing act. Because a US CBDC would have international ramifications, it is critical that the private sector, foreign central banks, and other stakeholders have a seat at the table "said Ledbetter, who has worked for Freddie Mac, the Federal Deposit Insurance Corporation (FDIC), and the Treasury.

However, there is no telling what a digital dollar might look like at the end of the process. The Federal Reserve is also being asked to expand on its research paper on the benefits and drawbacks of a CBDC, reflecting how the president's order placed "the highest priority" on such an instrument.

If the administration determines that a digital dollar is in the best interests of the country, officials will decide whether legislation should be enacted. The Justice Department has been tasked with investigating whether legislation is required to move forwards with a CBDC.

"Since the Fed is already conducting experiments involving digital currencies and a hypothetical CBDC, I would expect to see the results of that testing make their way into the EO research and next steps," Ledbetter told Yahoo Finance.

Risks and solutions

As the crypto industry has grown rapidly, the administration is taking a close look at the risks that cryptocurrencies pose to investors, consumers, and financial stability.

The EO charges the Financial Stability Oversight Council (FSOC), which was formed following the 2008 financial crisis to monitor risks to the financial system, with researching what systemic risks digital assets pose to the financial system.

The President's Working Group on Financial Markets (PWG) has already charged FSOC with investigating the systemic risks of stablecoins. Administration officials have stated that they will examine crypto as a whole through a lens similar to the PWG's report on stablecoins. This report highlighted the risks of stablecoin runs, the operational stability of the stablecoin issuance model, and the risks associated with power and commercial business consolidation.

According to officials, the FSOC could go through a similar exercise to identify risks and solutions. However, an official familiar with the matter told Yahoo Finance that it was unclear whether the FSOC would get too granular about systemic risk – which may be best left to a regulator or legislation.

Once the reports are completed, the government will have collaborated across agencies to reach a consensus on whether, in certain cases, it needs to hand off a set of recommendations for Congress to write legislation around – or if agencies will write new rules under their authority.

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Crypto Has Gone Mainstream, But What Impact Will It Have On The Environment? Mar 10, 2022

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Colorado is the first state to announce that it will accept bitcoin and other cryptocurrencies as payment for taxes.

COLORADO SPRINGS, CO — According to Digiconomist, the carbon footprint of a single bitcoin transaction, which can take several minutes to complete, is equivalent to the power consumption of an average US household for 77 days. That same transaction is worth more than 2.7 million visa card transactions or 200,000 hours of YouTube viewing.

Bitcoin has a carbon footprint of 114 megatons per year, equivalent to the Czech Republic, and consumes the same 200 terawatt-hours of power as Thailand, a country of nearly 70 million people.

Regardless, bitcoin and other cryptocurrencies are on the verge of becoming mainstream in Colorado. Gov. Jared Polis announced on Feb. 25 that Colorado will be the first state in the country to accept cryptocurrency for tax payments, raising the question of what further cryptocurrency expansion might mean for the environment.

An executive order signed by President Joe Biden on Wednesday calling for a more thorough examination of cryptocurrencies also seeks to reduce cryptocurrency's environmental impact, indicating that the technology has a bright future.

Cryptocurrency, for those who have successfully avoided that side of the internet, is a type of digital money that is represented by computer code and uses encryption technology to ensure its security. The blockchain, an unavoidable term when discussing cryptocurrency, is a digital ledger that records cryptocurrency transactions.

When it comes to bitcoin, the most popular cryptocurrency, "miners" compete every 10 minutes to solve a complex mathematical puzzle for the right to add blocks of transactions to the ledger. The fastest puzzle solvers are currently rewarded with 6.25 newly created bitcoins, which is equivalent to $245,000.

According to Mandy DeRoche, an attorney with EarthJustice, the rise in popularity of cryptocurrency has resulted in a noticeable increase in energy use and fossil fuel consumption, resulting in higher carbon emissions across the country.

"What we've seen in New York over the last few years is that fossil-fueled power plants that were not operating or were only operating on a limited basis are coming back online," DeRoche said. "They're now on duty 24 hours a day, seven days a week."

According to DeRoche, coal waste plants in Pennsylvania are ramping up operations, and coal waste plants in Montana have reopened.

"Those are emissions that are destroying the planet," DeRoche said. "There are crypto miners who use renewable energy in part; I'm not aware of any who use it entirely because solar doesn't run 24 hours a day. The economic incentive here is to always be mining."

As with homes, cars, and other infrastructure, "there aren't enough renewables in the United States yet" to power cryptocurrency mining operations sustainably, according to DeRoche. "Adding another massive load, such as proof-of-work cryptocurrency mining, will completely destabilise everything."

Bitcoin and ether, the two most important cryptocurrencies, which account for roughly 60% of the sector's market cap, use Proof of Work algorithms. These models are largely responsible for cryptocurrency's substantial carbon footprint and energy consumption.

Cryptocurrency transactions and businesses use one of two models: Proof of Work or Proof of Stake. Miners compete to solve a mathematical puzzle in Proof of Work. Thieves are discouraged from attempting to sabotage or hijack the blockchain because doing so would necessitate them spending more time, energy, and money than at least 51% of other miners.

Proof of Stake is a newer, more energy-efficient algorithm in which miners stake digital coins in exchange for the opportunity to validate blockchain transactions. They lose the coins they've invested if they don't verify transactions accurately.

While some critics believe Proof of Work is obsolete, bitcoin supporters believe Proof of Stake is more centralised and less secure.

One of those critics is Jeremy Epstein. He works as an investor relations officer for Open Forest Protocol, a startup that hopes to use cryptocurrency and blockchain technology to create carbon offset markets by registering land plots and forestation projects on the blockchain for verification and trading.

"In the last five years, no cryptocurrency project has used a proof of work model. It is a model that is no longer in use "Patch spoke with Epstein. "Being bitcoin, it will almost certainly remain a proof-of-work protocol in perpetuity, and bitcoin mining is almost certainly the single largest contributor to crypto-based emissions."

Bitcoin emissions, according to Epstein, will eventually decrease. Ninety percent of bitcoin has already been mined, but because mining becomes more difficult over time, the last bitcoin will not be mined until around 2140, according to Reuters, though determining when the last bitcoin might be mined is not exactly a straightforward equation. According to Epstein, future increases in processing power for mining and the number of miners may work against the increasing complexity of mining over time.

"Bitcoin has a limited number of tokens — we know there are 21 million bitcoins in existence at any given time; no more can be created," Epstein explained. "And then transactions are still verified using Proof of Work, but I believe that overall, bitcoin emissions should fall."

The Proof of Work model was also used by Ethereum, the second-largest cryptocurrency. However, the company is currently planning to transition its ether token to Proof of Stake. According to Epstein, the switch will reduce Ethereum's energy consumption and carbon footprint significantly.

"I believe it will reduce its energy consumption by roughly 99 percent when it does that," Epstein said. "The date for which Ethereum 2.0 is supposed to occur — I believe that has been pushed back a few times, as switching a network to a completely new system is not a small task — but that should occur within the next two years.

"And when that happens, Ethereum will go from a total energy consumption [equivalent to] 800,000 US households to around 427 US households — it reduces its emissions per transaction by 99 percent."

According to Epstein, the biggest environmental impact of cryptocurrency is in Proof of Work protocols. He claims that competitors to bitcoin and Ethereum, dubbed 'alt-coins,' are now on the rise "Proof of Stake is becoming more popular, and all of these are based on it.

"The industry changed in a blink of an eye. Simply put, proof of stake is more effective. Again, it's been five years since anyone has built anything significant on a proof of work platform."

Apart from the prospect of a growing market for less-impactful cryptocurrencies, Epstein believes that "there's a very good chance the crypto industry supports climate solutions that end up achieving massively beneficial results for the climate, and those beneficial results far outweigh any negative effects that crypto has on the environment over time."

According to Epstein, cryptocurrency has recently transferred approximately 80% of the world's carbon credits to blockchain technology. A carbon credit is essentially a permit that entitles its holder to a certain amount of glasshouse gas emissions.

"What this does is it removes poor quality offsets from the market so that corporate emitters can't claim net-zero by buying the most poor quality carbon offsets available; it raises the floor so that they have to buy carbon offsets at a higher price, which drives corporate entities to reduce their emissions more deeply before going and purchasing offsets," Epstein explained. "They delve deeper into their manufacturing processes and the carbon market. So this is having real-world consequences, but I believe we are only scratching the surface right now."

Colorado's decision to accept cryptocurrency payments for taxes is yet another step towards further normalising the technology, which could eventually lead to more environmental and fiscal regulation for cryptocurrencies.

"Crypto acceptance in Colorado is just another small domino in an unstoppable wave of crypto eating the world," Epstein said. "When it comes to who is using cryptocurrency now, the adoption curves are essentially analogous to internet adoption in 1998. And it almost exactly follows the internet's adoption curve. Consider what the internet has done for us; this is the new internet, and it should continue to march forwards to the point where everyone is accessing goods and services using blockchain technology, and they may or may not even realise it, and that is the most important thing."

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Here’s what you need to do to safeguard your digital wallet against cyber attacks Mar 10, 2022

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Every day, cyber-threats grow in scope. However, there is something you can do to safeguard your interests.

Hacking as a weapon of war (hot or cold) isn't exactly a novel concept. This is already taking place and will continue to take place. Meanwhile, the United States government is struggling to digitally secure its infrastructure because simply being connected to a network is no longer safe. Do you really believe your digital wallet is more secure than the nation's power grid, especially if it's linked to a site run by a tech company, no matter how secure the blockchain appears to be?

This may sound alarmist, but as a former U.S. Army Signals Intelligence Analyst and Intelligence Advisor currently pursuing a master's degree in intelligence analysis, I am well aware of the dangers. And the dangers are becoming more prevalent.

The good news is that you can safeguard your cryptocurrency investment right now. It's a technique known as "air gapping." Air gapping is the practise of storing data in a location without a hardline or wireless connection (including a power source).

By disconnecting your cryptocurrency and storing it in your pocket rather than in the cloud or on a network, hackers are unable to remotely steal or corrupt your data because they must first physically gain access to your wallet. This necessitates the use of a cold storage device, such as a hardware wallet, in the case of cryptocurrency. Consider it a portable hard drive that protects your intangible digital currencies with physical security. You take a risk if you do anything less.

Do you want to be inspired?

With each large hack that makes headlines, it becomes clear that, while cryptocurrency strives for decentralisation, the blockchain does have centralisation risks. According to the blockchain security firm Certik, at least $500 million was stolen in 2020. In 2021, hackers targeted DeFi and stole another $1.3 billion. And the year ahead isn't looking promising. An $80 million hack occurred in January. A $320 million DeFi-based hack occurred in early February (though investors were not forced to bear the losses). Billions of dollars are being lost, and if you haven't felt it yet, it's in your best interest to avoid having to.

Of course, everyone is aware that hacking is a possibility, so why should you be concerned about cyber warfare in particular? The truth is that geopolitical facts are aligning to potentially strike you right in the digital wallet. Globalization has resulted in a more interconnected global economy than at any time in history, but nothing ever goes as smoothly as we would like. Great powers are establishing spheres of influence, while low-intensity conflicts sprout like weeds across Africa, South America, the Middle East, the Pacific, and even Europe.

Individual investors face a real economic threat from economic decoupling between spheres of influence. Nations like China, North Korea, and Russia will at the very least put it to the test.

Russian President Vladimir Putin's invasion of Ukraine, as well as the sanctions imposed in response, may be propelling Russia into levels of economic isolation previously only seen in failing or rogue states. While this may not appear to be directly related to your digital wallet, we've already seen cryptocurrency play a role on both sides of the conflict. And Putin is well aware of the significant role that cryptocurrency may play as Russia's economy evolves. He claimed in the run-up to the invasion of Ukraine that Russia had "certain competitive advantages" in crypto-mining.

Despite a recent official ban on cryptocurrency, China is one of the few powerful nations that has not abandoned Russia in the face of its actions in Ukraine. If the two countries form a crypto-based economic alliance – which doesn't seem likely right now, but isn't out of the question – they may eventually take actions that make keeping your wallet secure pointless. That's because, rather than stealing your cryptocurrency, they could simply devalue it. Beijing appears unconcerned about allegations of market manipulation. If Chinese traders can artificially boost stocks on the NYSE, they can certainly do so with digital coins. The worth of any coin is determined by its majority holder in microtransactions or high-frequency trading manipulations, and given crypto's penchant for pseudonyms, you're unlikely to know who that is.

For the time being, however, entire nations are ready to steal your cryptocurrency investments. Without cold storage, you're putting your money in the hands of a random tech company, hoping that a coder didn't overlook something. Fortunately, there is an alternative.

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Dubai’s new crypto framework has the potential to position the city-state as a regional leader Mar 10, 2022

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In the Middle East, Dubai is becoming a burgeoning crypto hub.

The UAE Prime Minister wishes to position the UAE and Dubai as key players in shaping the global future of virtual assets.

The Dubai Virtual Assets Regulatory Authority will authorise and monitor the operation and management of cryptocurrency platforms, virtual asset custody, and transfers.

Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai and Prime Minister of the UAE, made two major crypto-related announcements on Twitter. Aside from approving the first virtual assets law, the Dubai Virtual Assets Regulatory Authority has been designated as the sector's supervisor.

Dubai has recently emerged as a vital cryptocurrency hub for both investors and creators. It is worth noting that the hotspot has hosted several crypto conferences in the past year, with the upcoming Crypto Expo scheduled to take place this month.

Furthermore, as the Middle East's financial capital, the UAE is the region's third-largest crypto market, trailing only Turkey and Lebanon, according to Chainalysis data from July 2020 to June 2021.

The goal, according to Mohammed bin Rashid, is to "establish the UAE and Dubai's position as a key player in designing the global future of virtual assets."

Meanwhile, Binance, the world's largest cryptocurrency exchange by volume, is rumoured to be interested in obtaining a licence in Dubai. Binance recently received in-principle approval from Bahrain's central bank to become a crypto service provider as part of its Middle Eastern expansion.

The Dubai Virtual Assets Regulatory Authority will use the new rules to authorise and supervise the operation and management of crypto platforms, virtual asset custody and transfer, and price manipulation in space. The regulator's responsibilities will include, among other things, the protection of investor data.

The announcement comes just one day after the UAE's Securities and Commodities Authority (SCA) stated that a new framework will ensure AML/CFT compliance across the region. It includes reducing the risks of money laundering and terrorist financing, as well as adhering to the Financial Action Task Force's (FATF) recommendations and requirements, according to the watchdog. It is worth noting that, until recently, the SCA was the sole authority in charge of supervising and overseeing virtual asset activities and services in the UAE.

According to Reuters, VARA will oversee the virtual asset space in Dubai in the future, but it excludes regions within the state-owned financial free zone DIFC. According to reports, the FSA will oversee the DIFC.

The DWTCA's director-general, Helal Saeed Almarri, stated that the new law and the appointment of a sector regulator will strengthen the UAE's and Dubai's position by attracting global leaders. He went on to say: "In collaboration with the Central Bank of the UAE and the Securities and Commodities Authority, the Dubai Virtual Asset Regulatory Authority will offer a full range of VA [virtual asset] services."

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Experts say Biden’s new executive order on cryptocurrency is a positive step Mar 09, 2022

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The White House took a significant step towards regulating cryptocurrency on Wednesday, describing the move as "extremely positive," "long overdue," and a "acknowledgement that cryptocurrency is here to stay."

According to a White House fact sheet, President Joe Biden signed a new executive order on cryptocurrency, directing federal agencies to implement a strategy for policies and regulations on digital assets such as cryptocurrency.

"In the long run, this is extremely positive for the crypto market and is absolutely necessary to allow it to grow further, mature, and be more accessible to institutional investors," says Tal Elyashiv, founder of SPiCE VC, a blockchain and tokenization-focused venture capital fund.

According to experts, the order will help to pave the way for the regulatory clarity required for widespread institutional adoption of Bitcoin and other digital assets. As a result, long-term investors will benefit from greater stability in the notoriously volatile crypto market.

Biden's order also directs US agencies to ensure that the country's cryptocurrency laws are consistent with those of US allies, and the Financial Stability Oversight Council is tasked with investigating any illicit financial concerns. Furthermore, the order raises the prospect of a new government-issued central bank digital currency.

Six cryptocurrency experts were asked what they thought about Biden's executive order and what investors should make of it. They stated as follows:

Experts React to Vice President Biden's Crypto Executive Order

'A Positive Step'

Cleve Mesidor, public policy advisor at the Blockchain Association, provides his perspective.

"It's a step in the right direction that the White House is evaluating digital assets from the standpoint of innovation and competitiveness," said one commentator. According to data, working and middle-class Americans who have been locked out of the traditional financial system are leading the mainstream adoption of blockchain and cryptocurrency. As a result, we need this government strategy to prioritise greater federal investments in skill training and capital access to ensure that new female investors, Black and Latino entrepreneurs, startup founders, and small businesses in urban and rural communities are empowered to lead and thrive."

'Devises a Strategy'

Aaron Klein, senior fellow in economic studies at the Brookings Institution, provides his perspective.

"The executive order lays out a game plan for the administration to consider what to do with digital assets in a more holistic manner." While many parts of the government were already working on regulating aspects of cryptocurrency, the executive order brings it all together and sheds light on how the White House is approaching the issue. The Treasury Department's comments before the Financial Literacy and Education Commission the day before demonstrate the administration's commitment to increasing consumer understanding and, I suspect, eventually increasing regulation for consumer protection in cryptocurrency. "However, that takes time."

'An Acceptance That Cryptocurrency Is Here to Stay'

Charlene Fadirepo, crypto expert and founder of Guidefi, offers her perspective.

"I believe President Biden's executive order on digital assets represents a thoughtful and comprehensive national approach to cryptocurrency regulation," says one commentator. This order recognises that cryptocurrencies are here to stay. The emphasis on financial inclusion and increasing access to safe and affordable financial services encouraged me. "I hope that by addressing the millions of unbanked and underbanked families in this country, we can continue to support the high levels of cryptocurrency adoption among communities of colour."

'Long Overdue' is a phrase that describes a situation that has been long overdu

Tal Elyashiv, the founder of SPiCE VC, has expressed his opinion.

"It's long overdue, in my opinion." The United States is lagging behind the rest of the Western world in terms of developing a regulatory and legislative framework for blockchain in general, and cryptocurrency in particular. There has been significant interest in regulating the space from regulators such as the SEC, Treasury, and the Commodity Futures Trading Commission, but there has also been a lack of clarity and understanding about who has jurisdiction to regulate and how cryptocurrency should be treated. This action may put additional pressure on regulators to reach an agreement on a common approach and, at the very least, implement some regulatory framework."

'It's a Huge Relieve,' says the author.

Pat White, CEO of Bitwave, offers his thoughts.

"It's a huge relief that they're taking a more measured approach and are generally open to digital assets as the cornerstone of the future financial system, as opposed to the naive view that it's only something criminals use," says one. The executive order sparked a massive rally in cryptocurrency markets for a reason: regulatory clarity on digital assets would be extremely beneficial to the industry."

What Does the Executive Order Mean for Crypto Traders?

Biden's executive order serves as a timely reminder that U.S. policymakers are paying close attention to cryptocurrency and how it may affect financial markets in the future. However, it should not sway crypto investors' long-term investment strategies.

According to Elyashiv, the administration's move may cause some disruption and volatility in the cryptocurrency market in the short term. After the White House announced that Biden would sign an executive order on cryptocurrency, Bitcoin jumped 9 percent to above $40,000 per coin. The value of Ethereum increased immediately as well.

"Markets typically respond in this manner in the face of uncertainty about moves that may be fundamental to the market," Elyashiv explains.

The fundamentals of cryptocurrency investing, however, remain unchanged. Experts advise only investing what you're willing to lose, or no more than 5% of your total portfolio, and sticking to the most established cryptocurrencies, Bitcoin and Ethereum.

Prioritize important aspects of your finances, such as emergency savings, debt repayment, and retirement savings, over cryptocurrency investments. And, when it comes to purchasing and trading cryptocurrency, stick with a mainstream, high-volume cryptocurrency exchange, such as Coinbase or Gemini, that proactively complies with federal and state regulators.

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In a proposed bill, a US Senator wants to sanction foreign cryptocurrency exchanges Mar 09, 2022

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In a new bill aimed at tightening sanctions on Russia, anti-crypto senators in the United States are targeting digital currencies once more.

Anti-banking and staunchly anti-crypto Senator Elizabeth Warren is resuming her campaign to demolish the digital asset industry. The staunch crypto critic's latest move is to draught legislation. She hopes that it will make it more difficult to use cryptocurrency to avoid sanctions.

The proposed legislation, which is still in draught form, aims to impose secondary sanctions on foreign cryptocurrency exchanges that have not followed US regulations. According to NBC News, the bill seeks to force companies to choose between doing business in the United States and doing business with sanctioned individuals and organisations.

In the worst-case scenario, US citizens could be barred from using international cryptocurrency exchanges. However, due to America's harsh regulatory environment, many of them already impose restrictions and limits on US customers.

Cryptocurrency's Curse

Last week, Warren and several other Senators wrote to Treasury Secretary Janet Yellen, urging her to take stronger action against cryptocurrency use.

"Strong sanctions compliance enforcement in the cryptocurrency industry is critical, given that digital assets, which allow entities to bypass the traditional financial system, may be increasingly used as a tool for sanctions evasion."

Last week, Senator Lindsey Graham joined the call to crack down on cryptocurrency, saying, "cryptocurrency is rearing its ugly head here," before adding, "as you sanction the Russian central bank, which is a good thing, I worry about how the Russians might use the cryptocurrency to stay afloat."

Warren's proposal also aims to make it easier to verify the identity of those who make transfers using private crypto wallets. Financial institutions would be required to keep detailed records for submission to the Treasury Department.

Such harsh tactics, however, may not be required, according to the Treasury Department's Financial Crimes Enforcement Network (FinCEN), which stated this week:

"Although we have not seen widespread evasion of our sanctions using methods such as cryptocurrency, prompt reporting of suspicious activity contributes to our national security and our efforts to support Ukraine and its people," the statement said.

The European Union is also looking to expand its sanctions to include cryptocurrencies.

No, Russia will not turn to cryptocurrency.

Russia will not switch to cryptocurrencies to avoid sanctions on its financial network, as has been widely reported and now widely accepted. Crypto markets lack liquidity to serve Russia's massive forex markets, and digital assets are too volatile to be used as currency.

Furthermore, Russia has vast reserves of gold and Chinese currency to fall back on. It has already strengthened ties with China in order to avoid Western financial sanctions, so perhaps US Senators should look elsewhere.

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A banker’s guide to innovative blockchain technology Mar 09, 2022

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If there is one thing we can anticipate from 2022, it is that banks will continue to size up the blockchain space, an area they were previously attempting to avoid. Another apparent certainty is that the blockchain ecosystem will continue to grow, with additional tokens, initiatives, and businesses taking off. Put two and two together, and you get dozens of Blockchain Innovation Officers and Chief Information Officers about to discover what a circus the scene is in general. Here's how to ensure they're not wasting their time.

While the blockchain ecosystem was once viewed as the digital equivalent of the Wild West, a vast frontier where virtually anything is permissible, the reality is quite different. Circumstances are changing, and the industry has become more benign and receptive to regulation.

It is, however, massive, with over 7,000 cryptocurrencies available. That is not to say that each venture launches its own coin.

Additionally, not all cash is created equal. While some of them are armed with a vision and utility, if not an objective, others have little to offer aside from a tokenomics model presumably imagined for them on the Moon. The business embraces open-source design, which enables it to advance through contributions from hundreds of talents, but there is a flip side as well. It's simple for developers to fork, or replicate, a popular venture, slap an underhanded new feature on top of it, along with new branding, and launch it live to earn a quick profit.

This adds a completely new dimension to the considerations of decision-makers in the crypto space—a number of its segments are driven primarily by virality. For instance, in early 2021, Dogecoin, a meme coin featuring a Web-famous canine as its image, skyrocketed in popularity, eventually becoming one of the primary standard cryptocurrencies. Different development teams saw an opportunity and launched additional Shiba Inu-themed coins, and now there are probably more dogs on CoinMarketCap than in your neighbourhood shelter—and some of these dogs bite hard. Squid Coin, another scam that cost its backers $3.38 million by exploiting a well-liked South Korean present on Netflix, is another illustration of how virality can overwhelm traders.

Additionally, these examples highlight one of many numerous questions that banks face when attempting to enter the crypto space—what assets do they need to open for their customers? Regardless of its eventual demise, Dogecoin did make a few of its investors wealthy. Or perhaps it is best to stick to the largest and most established currencies? That is just the tip of the iceberg.

Constructing the inspiration

The first and most important question that a financial institution's decision-makers should address when developing their blockchain strategy is deceptively straightforward—how far do they need to go? Shouldn't they simply provide clients with access to the top five hottest currencies to purchase and sell? Or is it a full-throttle assault, complete with native staking, DeFi, and everything else that blockchain has to offer? This choice is critical to everything that follows, and a well-defined objective can be extremely beneficial.

Another query, which is related to the preceding in some ways, is how much threat the financial institution has an appetite for. This is also a critical piece of the puzzle, as the crypto area is teeming with assets and businesses offering a diverse range of risk-to-reward profiles. Banks have a greater stake in any unlucky incident than a younger crypto-native firm, and thus should act with a full understanding of the potential for harm if something goes wrong.

The ultimate early query is the financial institution's custodial model. Custody, or the ability to store and transfer crypto assets on behalf of customers, is the impetus for banks to offer any type of crypto service. Finally, the choice is between sub-custody, which involves outsourcing custody to a third-party specialist contractor, and self-custody, which involves the financial institution taking on the responsibility directly. Each option is viable, and the optimal choice is highly dependent on the financial institution's objective and risk profile.

While a detailed discussion of each choice would require a separate article, the general rule is that sub-custody is quicker to implement, but comes with a number of limitations, as any services the financial institution wishes to provide will be contingent upon the accomplice's capabilities. Additionally, it introduces third-party risks. Self-custody requires a greater understanding of the operational theatre and may take additional time to implement, but it provides banks with significantly more flexibility and control over their own business portfolios.

The Moon's Staircase

Once the fundamentals are established, banks should delve into the specifics of any specific service they are required to provide. However, the crypto community has long established a set of parameters to examine—and red flags to avoid.

When it comes to itemising cash for shoppers to purchase and sell, banks should first assess their risk profile. Bitcoin may pose a very different threat than Whatevercoin, which launched yesterday, but the latter could theoretically replicate Dogecoin's meteoric rise by offering shoppers the prospect of appreciable features, unless it turns out to be a rip-off, which is a possibility. To avoid these when selecting new cash to add, banks should follow the following guidelines:

* The greater the market capitalisation, the higher the price. A large market capitalisation indicates a large and active investor and user base behind a product. This indicates not only that many believe it is secure and legitimate, but also that it has been thoroughly tested by those who use it prior to its integration with the financial institution.

* Safety by seniority. Generally, older projects, particularly those with a large market capitalisation, are safer and more battle-tested. Their value makes them a lucrative target for hackers, and the more time malicious actors spend attempting (and, ideally, failing) to compromise them, the more robust the initial design was. This statement holds true for both layer-1 and layer-2 protocols.

* Examine specifics. Different types of money are equipped with varying degrees of utility and flexibility. Several of them support DeFi, while others feature robust native staking. Still others are much more versatile. Banks must ensure that they seek out cash with the capabilities that complement their overall strategy.

Banks should also conduct due diligence on the developer groups behind the projects they wish to finance. For example, trustworthy developers prefer to work in the open, whereas scammers prefer anonymity and shadows. A whitepaper is frequently indicative of the venture's seriousness. One should make certain to demonstrate the feasibility of the underlying expertise, not just through declarative statements, but also through precise analysis and examination. Another thing to consider is how comparable it is to hundreds of other initiatives: If it is truly unique, it may be a better choice than its competitors. Finally, a whitepaper demonstrates the contributors' diligence. Grammar errors are a red flag—severely so. They demonstrate the degree of polish that the developers are willing to put into a cornerstone strategic document, and if that is lacking, it is fairly telling.

If a whitepaper enables banks to assess the concepts and theoretical underpinnings of a particular venture, the next step, at the very least with open-source initiatives, is to assess its practical implementation. A code audit is another critical piece of the puzzle, and this is where the crypto world's open-source spirit comes in handy. The majority of initiatives prefer to maintain their supply code on GitHub, which is accessible to researchers. Banks would be wise to have the venture audited by a seasoned third-party team to ascertain whether or not to proceed with the combination.

After the audit is complete, another critical pre-launch step is testing. Banks should become accustomed to utilising testnets, which are replicas of popular blockchains created specifically for testing purposes. All stable DeFi protocols go through a testnet phase of development, and their testnet variants typically receive all new updates first. As such, testnets make for an incredible surroundings for banks to get a way of what they stand to achieve from an integration earlier than transferring on with it.

While the blockchain ecosystem provides banks with a plethora of new opportunities and revenue streams, it does require some scouting prior to a profitable takeoff. Banks, on the other hand, can discover it on their own terms and at their own pace by prioritising their priorities and capitalising on available opportunities.

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To live up to their name, stablecoins will have to think and evolve Mar 06, 2022

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Unfortunately, the term "stablecoin" is a misnomer in this case. The fact that stablecoins are tied to a "real" asset does not imply that they are stable. Traditional underlying assets are not immune to market fluctuations, and the majority of stablecoins are pegged to fiat, making them just as volatile.

What the name could be, however, is lofty – something that stablecoins could still live up to if they can establish a solid foundation.

What happened to all of the stability?

Stability is the currency of the day, at the risk of conflating metaphors. Following the COVID-19 pandemic and ongoing supply chain problems, markets are volatile, debt levels are high, and inflation is skyrocketing. As investors sought alternative wealth storage, cryptocurrency markets benefited. Prices, on the other hand, continue to fluctuate erratically.

In search of a solution to volatility, the crypto community has turned to stablecoins for the perceived stability provided by their fixed relative valuation. According to a recent report from the Hong Kong Monetary Authority (HKMA), the stablecoin market has grown explosively in terms of market capitalisation since 2020. Payments companies are also jumping on board, with PayPal recently announcing plans to launch its own PayPal Coin, backed by the US dollar.

That is the crux of the issue. Stablecoins are typically backed by fiat currencies that are becoming increasingly unstable. Governments have printed $17 trillion in new money into the global economy as part of widespread quantitative easing, increasing global debt levels while devaluing currencies that back stablecoins.

As a result, while the growing trend towards stablecoins is a step in the right direction, it needs to be reconsidered if it is to live up to its name.

A gold-plated solution

We can't afford to ignore the potential of stablecoins backed by truly stable assets as governments print more and more fiat. To deliver on the promise of "stability," stablecoins must be accompanied by a broader, more mainstream shift away from supporting inflation-prone fiat currencies and towards more reliable physical assets.

The most obvious choice is gold. Despite the turmoil that 2021 has brought, the price of gold has remained consistent between $1,700 and $1,950 per ounce, demonstrating both its stability and value.

However, tying a coin to a fictitious gold reserve is not sufficient. The underlying asset must be fully allocated and redeemable – one gramme of gold for one token, for example. This keeps the coin from deviating from the reality of the asset it represents, as well as from contributing to debt growth.

If the owner of a stablecoin can directly redeem the asset, it can serve as an effective store of value and medium of exchange, far exceeding the capabilities of modern monetary systems.

Calls for increased regulatory oversight have been re-issued.

Such a currency would be possible only in a fully audited system, emphasising the significance of regulation. Ironically, a massive migration to stablecoins based on a somewhat erroneous assumption of stability could be the straw that breaks Jenga's economic tower.

The recent controversy surrounding Tether (USDT), the most widely used and US dollar-backed stablecoin, allegedly not having the dollars to back their coin, has been dismissed by the company and remains unverifiable because it is essentially unregulated and unaudited.

The disclosure adds to the growing list of concerns about stablecoin "stability" and what is being done to protect investors.

Global regulators must continue to provide greater oversight and increase transparency. Indeed, Bank of England Governor Andrew Bailey made his own statement at Davos a year ago, warning that crypto lacked "design governance and arrangements for a sustainable digital currency" and that "people need the assurance that their payments are being made into something with stable value."

A way out of the inflationary quagmire

Regardless of their flaws, stablecoins have the potential to help us get out of a post-COVID-19 inflation crisis. They have the ability to preserve wealth and provide a stable store of value while offering traditional investors greater certainty than other digital assets.

As a result, eradicating the stablecoin myth may be critical to our economic survival.

To fully benefit from them, they must be tied to a solid foundation in the form of a fully redeemable physical asset, such as gold or silver. This would result in a virtuous circle of stability, with increased institutional support for digital assets and further stabilisation of the market and economy.

Because of the volatility of cryptocurrency, many businesses, both large and small, are hesitant to use it as a payment method. Stablecoins may hold part of the answer, but their "stability" is far from inherent. Gold and silver, on the other hand, will continue to provide solid foundations for years to come.

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Why are oil prices continuing to rise? Mar 05, 2022

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A sharp rise in energy prices could be problematic for economies already reeling from the effects of high inflation.

The oil price shock couldn't have come at a worse time for the global economy, which was already reeling from high inflation. Brent crude, a global benchmark, was trading at around $114 per barrel on March 3, after reaching a 10-year high the day earlier.

As Russian forces continue to bomb Ukrainian cities, concerns about the disruption of power supplies to global markets are growing.

According to a JP Morgan analysis of the situation, crude oil could reach $185 per barrel by the end of the year if Russia, the world's third-largest oil producer, continues to face transportation issues.

Financial sanctions have been imposed on Russian banks and corporations by the United States, Canada, and European Union member nations.

Despite the fact that the sanctions do not immediately target Russian oil and gasoline infrastructure, they have frightened customers.

Around 66 percent of Russian oil is struggling to find takers because transport companies and merchants are afraid of being caught in the sanctions trap.

Consumers are so concerned that they are unwilling to trade in Russian oil, even if it is offered at a steep discount, according to Bloomberg.

This does not bode well for central bankers who have attempted to tame excessive inflation in a number of developing and developed economies. According to the World Financial institution, excessive inflation has already become a worldwide issue.

A rise in oil prices will put pressure on the currencies of countries that rely on imports of energy.

With 5 million barrels per day, Russia is the world's second-largest crude oil exporter, trailing only Saudi Arabia. It also supplies approximately 2.8 million barrels per day of petroleum products, including gasoline, to global markets.

Russia accounts for 5% of global oil supply. This may appear insignificant, but in a healthy market, each barrel of oil counts, and any disruption can have a significant impact on the price of oil.

Russian oil has the potential to find buyers in China and India, two massive markets. However, power sale proceeds fund 36% of Moscow's national budget, and a prolonged disruption could cause problems for President Vladimir Putin.

Some politicians in the United States and elsewhere are calling for direct action to halt the flow of Russian oil and gasoline.

However, such a transfer does not benefit either the US or the EU because it can drive the value even higher while harming their own populations. In the United States, inflation is already at a 40-year high.

The sanctions are also intended to harm Russia's oil industry in the long run. The United States and the European Union have prohibited the export of specific refining expertise to Russia, which may face difficulties in producing refined goods such as gasoline if it is unable to improve its refineries.

A cascading effect

The EU imports roughly 40% of its pure gasoline requirements from Russia. Until now, Gazprom, Russia's state-owned oil and gas company, has not reduced the availability of gasoline, which is delivered via pipelines to countries such as Poland and Germany.

This hasn't stopped the price of pure gasoline from skyrocketing. On Thursday, spot costs on the Dutch Title Switch Facility (TTF) hub, a European gasoline value benchmark, hit a record $221 per megawatt-hour.

Despite the fact that US liquid natural gas (LNG) firms have increased supply to the EU market in recent months, it is nowhere near replacing Russian gasoline.

Any reduction in Russian supplies will benefit LNG exporters in the United States, which has emerged as the leading producer of pure gasoline as a result of newer drilling methods that extract hydrocarbons from difficult-to-crack shale formations.

After a long hunch, energy costs began to rise final year as demand from factories and businesses increased after pandemic-induced restrictions were lifted.

Fears that the conflict will lead to shortages have caused prices for a variety of commodities, ranging from coal to wheat, to skyrocket.

In terms of oil, there is optimism that a breakthrough in the Iran nuclear deal will pave the way for a major oil producer to ship additional supplies to the market.

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The Top 5 Metaverse Cryptocurrencies With a Unit Price of Less Than $0.09 (March 2022) Mar 05, 2022

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The Metaverse Cryptocurrency market continues to be dominated by traders and investors looking for the next big thing. While there are already a number of successful multi-billion dollar Metaverse cryptocurrency initiatives on the market, such as Decentraland and The Sandbox, there are also a number of underappreciated and undervalued projects worth monitoring. This article examines our selection of the best five Metaverse crypto coins with a unit price less than $0.09 to watch in March 2022, ranked from lowest to highest by current price.

#5 Star Atlas (ATLAS): $0.02941

Star Atlas (ATLAS) is a major Solana-based Metaverse cryptocurrency that was launched in September 2021. Although its Metaverse is still under development, it already has one of the most robust communities behind it.

Star Atlas is developing a space-themed strategy game that will enable players to earn a living in the Metaverse. It currently has a very active NFT marketplace that users can explore.

To access the Star Atlas Metaverse, users must connect using a Solana-compatible wallet such as Phantom. Diverse ships, constructions, resources, and treasures are accessible.

The NFT Marketplace at Star Atlas features an innovative order book-style bidding system that enables traders to bid on NFTs in a manner similar to how standard cryptocurrency exchanges operate.

Star Atlas's economy is based on a dual token ecosystem comprised of the POLIS and ATLAS digital currencies. The native utility asset is ATLAS, whereas the governance token is POLIS.

Star Atlas is one of the most anticipated projects on the market and is one to keep an eye on in March 2022.

ATLAS is available for purchase via Solana-based exchanges such as Raydium and FTX.

#4 RFOX: $0.0507

RFOX, alias RedFox Labs, will launch in November 2020 with the goal of being the global leader in next-generation immersive Metaverse experiences focused on media, gaming, and incentives.

RedFox Labs' ecosystem is powered by its own coin, RFOX. RFOX's primary utilities are the acquisition of NFTs, trading commissions, and liquidity pools.

Additionally, RFOX has the RFOXVALT, a virtual shopping mall including 25 retailers. RFOXVALT will offer a next-generation virtual shopping experience with the goal of transforming the way we purchase online.

RFOX may be purchased on Uniswap, Gate.io, and KuCoin, among others.

#3 Metahero (HERO): $0.05728

Metahero (HERO), launched in July 2021, is one of the most undervalued projects on this list, with one of the most robust communities. Metahero is building an ultra-realistic Metaverse that will allow users to scan themselves and other physical objects and import them into the digital world.

Metahero collaborated with Wolf Digital World (WDW), the market leader in 3D scanning technology, which is used by AAA gaming studios such as CD Project RED, creators of Cyberpunk 2077 and The Witcher series.

Metahero's Metaverse is called Everdome, and it is populated by its DOME token. Everdome just raised over $9.5 million in its presale, and the company recently announced ambitions to conduct a Mars mission from the UAE.

The native utility asset of Metahero is HERO, which will be used to pay for scanning and other services.

You can purchase HERO on a variety of exchanges, including Gate.io, PancakeSwap, KuCoin, LBank, Biswap, and CoinEx.

#2 Genesis Worlds (GENESIS): $0.06177

Genesis Worlds (GENESIS), which will launch its token in November 2021, is another extremely underappreciated Metaverse crypto coin that has an RPG-style game that incorporates the current crypto trends like as gaming, NFTs, and DeFi. Genesis Worlds will be home to a variety of Metaverses, each of which will feature its own blockchain-based play-to-earn game.

The platform's native utility asset is named GENESIS, and it is based on Polygon. Several GENESIS utilities include the ability for holders to engage in the project's governance, the ability to receive rewards through staking, and much more.

Additionally, Genesis Worlds will include a marketplace for NFT. At the moment, users can acquire Mining Claims by connecting to GENESIS via a Web3 wallet such as MetaMask.

Users can mine GENESIS coins using Genesis Mining Claim NFTs. Each Mining Claim NFT is accompanied by a three-dimensional concept model of the World. Amass Mining Claims in all of your favourite Worlds and create a one-of-a-kind portfolio. The longer people retain their Mining Claims, and the more Mining Claims you possess, the more GENESIS will be mined.

In general, Genesis Worlds is a must-watch in March 2022 due to the unique prizes that their mining NFTs enable customers to obtain. If you're interested in generating passive income using NFTs, you must visit Genesis Worlds.

At the moment, GENESIS is only available via QuickSwap.

#1 ZooKeeper (ZOO): $0.08521

ZooKeeper, which will launch in April 2021, is a Gamified Yield Farming software that transforms DeFi into a fun and engaging game. The platform integrates cutting-edge cryptocurrency technologies such as NFTs, DeFi, GameFi, and Metaverse.

ZooKeeper has a sophisticated ecosystem, which includes a decentralised exchange and an automated market maker built on the Wanchain blockchain. Users can earn both ZOO and WASP tokens through ZooKeeper's mining system. Users can earn incentives by supplying the network with liquidity in the form of stablecoins such as USDC and USDT. Other forms of payment are also accepted.

ZOO is the platform's original utility asset, allowing users to earn rewards for supplying liquidity.

ZOO is available for purchase on Wanswap and Bitrue.

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