STABLECOIN DIGEST [24.05.2019]
Regulation and monetary policy
European Central Bank: Crypto Does Not Have Tangible Impact on Real Economy
The European Central Bank (ECB) stated that cryptocurrencies do not have implications on monetary policy or factor into the real economy in a May report.
European Central Bank report
https://www.finextra.com/finextra-downloads/newsdocs/ecb.op223_3ce14e986c.en.pdf
Crypto-Assets: Implications for financial stability, monetary policy, and payments and
market infrastructures.
US Tax Authority Prioritizes Issuing Guidance on Cryptocurrencies
The letter from the IRS comes in response to a request from 21 representatives in Congress to provide clarity on reporting taxes on cryptocurrency holdings.
Japanese Parliament Moves New Crypto Regulations to the Upper House
The Japanese House of Representatives has passed new crypto regulation in the upper house of the National Diet.
Israeli Court Rules Bitcoin Is Not a Currency in Court Case Over Taxes on BTC Gains
An Israeli judge has ruled that bitcoin (BTC) is an asset and not a currency.
Four Banks Successfully Test New Blockchain Platform for Processing Promissory Note Loans
A group of four banks have successfully issued a promissory note — a type of legally binding loan agreement — through a new blockchain platform, a news release on May 21 announced.
Report: Dutch Bank Rabobank Cancels Development of ‘Rabobit’ Crypto Wallet
The bank had announced a cryptocurrency wallet service dubbed “Rabobit” as a part of the Rabobank Moonshot fintech innovation program in February last year.
Bank of France is on the Verge to Launch Its Own Stablecoin
https://blockpublisher.com/bank-of-france-is-on-the-verge-to-lunch-its-own-stablecoin/
Governor of Bank of France Mr. Fancois Villeroy de Gallhau, has hinted that the Bank might issue their own stablecoin in the future. Speaking in Paris, he said that the coin could be used to tokenize the financial markets.
Bank of Russia Could Turn To A Gold-Backed Cryptocurrency
https://zycrypto.com/bank-of-russia-could-turn-to-a-gold-backed-cryptocurrency/
The head of the Bank of Russia told a Russian governmental committee that they would consider creating a gold backed cryptocurrency.
Head of Central Bank of France and Leading ECB Contender Francois Villeroy de Galhau Likes Stablecoins, Tokenization
“The Bank of France is “observing with great interest initiatives in the private sector which aim at developing networks within which ‘stablecoins’ would be used in transactions involving ‘tokenized’ securities or goods and services,” Villeroy said in Paris. “These are quite different from speculative assets like Bitcoins, and more promising.”
Chinese Central Bank-Led Fintech Research Institute Seeks New Blockchain Talent
A fintech research institute established by China's central bank, the People’s Bank of China (PBoC), has posted several new job openings for blockchain talent. The three listings were published to Chinese recruitment website Lagou.com
Analytics and opinions
On The Path to Governance: Questions Unfold
https://blog.saga.org/on-the-path-to-governance-questions-unfold-5813244de1a7
This is part 2 of a part 5 series detailing Saga’s research into the best governance methods.
USD Stablecoins Hit Spot Trading Volume Record Highs, With USDT Still Dominating Market
Cryptocurrency research firm Diar indicates that the market capitalization for USD stablecoins has hit all-time highs and exceeded $4 billion, according to its latest weekly report published on May 21.
Crypto For Your Coffee? What’s Next?
https://medium.com/altcoin-magazine/crypto-for-your-coffee-what-will-they-think-of-next-b7defa93d33a
“Payment apps like Spedn or its competitors BitPay, Coinbase or Circle Pay are pushing forward the value proposition of cryptocurrencies. There is no guarantee that greater interest in stablecoins by retailers will whet their appetite to accept other cryptocurrencies as well”.
Our take: Interpreting recent signals from US regulatory agencies
https://blog.circle.com/2019/05/23/our-take-interpreting-recent-signals-from-us-regulatory-agencies/
Digital assets represent a fundamentally new class of financial instruments, which defy simple classification as security, commodity, or currency. Many digital assets occupy several classifications at the same time depending on their context and use.
Existing Projects
Facebook forms Swiss fintech firm with payments focus
Facebook has set up a new financial technology company in Switzerland focusing on blockchain and payments as well as data analytics and investing, Geneva’s commercial register shows.
Indian bitcoin players wary of Facebook’s stablecoin
Indian companies in the cryptocurrency space say Facebook’s reported plan to test its virtual currency codenamed Libra in the country will potentially bypass regulations that doesn’t allow using banking channels for digital currency transactions.
Facebook plans to launch 'GlobalCoin' currency in 2020
https://www.bbc.com/news/business-48383460?intlink_from_url=&link_location=live-reporting-story
It is planning to set up a digital payments system in about a dozen countries by the first quarter of 2020. Facebook wants to start testing its crypto-currency, which has been referred to internally as GlobalCoin, by the end of this year.
Bitfinex and Tether Move for Case Dismissal Over Lack of Jurisdiction
Bitfinex and Tether lawyers are moving to dismiss their ongoing case versus the New York Attorney General (NYAG).
Anchor Stablecoin Launches Simulator of Its Non-Flationary Financial Index During New York Blockchain Week
https://finance.yahoo.com/news/anchor-stablecoin-launches-simulator-non-233000777.html
Anchor, an algorithmic stablecoin pegged to a non-flationary index representing the long-term growth of the global economy, released its Monetary Measurement Unit (MMU) Simulator.
Tether admits in court to investing some of its reserves in bitcoin
New York Supreme Court judge Joel M. Cohen questioned the logic. He said: “Tether sounded to me like sort of the calm in the storm of cryptocurrency trading. And so if Tether is backed by bitcoin, how is that consistent? If some of your assets are in a volatile currency that Tether is supposed to somehow modulate, that seems like it’s playing into what they are saying.”
Bitfinex Obtains Stay of Document Demands in New York
https://www.bitfinex.com/posts/369
“The Hon. Joel M. Cohen of the New York Supreme Court (Commercial Division) entered an order granting our motion for an immediate stay of the document demands, requiring the companies to produce only documents and information relevant to the limited issue of whether there is personal jurisdiction over the companies in New York but staying the document order in all other respects. ”
New projects, partnerships, and investments
Major Swiss Stock Exchange SIX Developing Stablecoin Pegged to the Franc
Financial service provider SIX is developing a stablecoin pegged to the Swiss franc. The company is also planning to launch a blockchain-powered exchange for digital tokens in the second half of 2019, but the spokesman said he was currently not at liberty to discuss further details concerning whether the stablecoin will operate on that exchange.
AT&T Now Accepts BitPay
https://about.att.com/story/2019/att_bitpay.html
T&T becomes the first major U.S. mobile carrier to provide a cryptocurrency payment option to customers.
New York Digital USD Stablecoin DUSD Exclusively Named FINWISE Summit Hong Kong Station
Digital Dollar DUSD DUSD is a new generation of stablecoin, anchoring US dollars, rigid cash, transparent audit, efficient circulation.
Crypto Lender Dharma Adds Support for USDC
Crypto lender Dharma has begun supporting the peer-to-peer lending of USDC. Before now, the company only supported Dai.
Moneyfold’s Euro-backed tokens go live on Eidoo
https://medium.com/moneyfold/moneyfolds-euro-backed-tokens-go-live-on-eidoo-a4ff73493978
Moneyfold integrates with Eidoo to launch a beta version for eligible users to experience Euro stablecoins and atomic swaps directly from Eidoo’s wallet app.
The first Philippine stablecoin launched by Bitspark
The Philippine stablecoin called peg.PHP is now the second stablecoin launched by the company. In March, Bitspark also launched Hong Kong’s first stablecoin, Sparkdex.HKD.
European market greets new stablecoin
A new token on the Ethereum blockchain backed by Euro, xEURO stablecoin, has been created for the European and global markets to solve a crypto volatility issue.
Exchanges, listings, etc.
Coinbase lists MakerDAO stablecoin Dai on its retail platform
https://cryptoslate.com/coinbase-lists-makerdao-stablecoin-dai-on-its-retail-platform/
Coinbase has continued to aggressively list new crypto assets. Once considered the “conservative” crypto exchange stemming from the measured pace at which it added new coins, likely to adhere to more restrictive U.S. regulations, starting late last year the exchange changed its strategy to list a greater number of coins.
Coinbase Payment Processing Service Now Supports Circle’s USDC Stablecoin
Coinbase announced that its cryptocurrency payment processor Coinbase Commerce now supports Circle’s stablecoin USD Coin (USDC).
KuCoin to Support Neutral Dollar (NUSD)
http://maltawinds.com/2019/05/21/23875/
Neutral has announced the launch of its first product on KuCoin exchange, a stablecoin basket called Neutral Dollar (NUSD).