STABLECOIN DIGEST 20.12.2019
Regulation and monetary policy
PayPal Sues Consumer Protection Agency for ‘Confusing’ Digital Wallet Rules
The digital payments giant filed a lawsuit against the CFPB on Dec. 11, arguing that the agency has ignored critical differences between digital wallets and prepaid products like prepaid debit cards (GPR).
After BottlePay, Two More Crypto Firms Shut Down Due to Upcoming EU Rules
After BottlePay’s shutdown announcement last week, two more European cryptocurrency firms have shut down because of the upcoming Anti-Money Laundering (AML) rules in the European Union.
Online crypto gaming platform ChopCoin and mining pool Simplecoin both announced that they are shutting down in under a month in a notice on their website. Both firms cite the EU’s upcoming Anti-Money Laundering Directive that would require the firms to adopt Know Your Client (KYC) measures as the reason for shutting down.
Crypto Regulation: Is It Good or Bad for the Industry?
Some crypto advocates insist it is good for the industry, paving the way for mainstream adoption among consumers and businesses alike. Others warn a legal framework will only end in tears — stifling innovation and putting digital currencies at a disadvantage to fiat, which central banks remain determined to protect.
Int'l Regulator Basel Committee Calls for Prudent Rules for Crypto
Global banking regulator Basel Committee on Banking Supervision (BCBS) calls for a conservative prudential treatment framework for crypto assets.
The Basel Committee — which includes banking regulators from the United States, Europe and Japan — published its report on the prudential treatment of crypto assets. The study was first announced in November, as Cointelegraph reported at the time.
Crypto Regulation Is Coming To Europe: Are Exchanges Ready for New Rules?
5AMLD — the Fifth Anti-Money Laundering Directive — is a piece of legislation that brings fiat-to-crypto exchanges and custodial wallets across the European Union under a new first-of-its-kind regulatory framework. Exchanges must achieve compliance with the rules by January 10, 2020. Time is ticking away, causing some exchanges to scramble, while others stand ready to roll out compliance procedures.
Chinese Crypto Fitness App Reportedly Under Investigation for Fraud
A Chinese cryptocurrency fitness app has reportedly been placed under investigation for allegedly illegal fundraising practices and financial fraud.
France’s Financial Regulator Grants Country’s First Approval for an Initial Coin Offering
The hype around initial coin offerings may have quieted down in the States, but France seems to be taking a newfound interest. On Dec. 17th, France’s financial regulator, the Autorité des Marchés Financiers (AMF), granted the country’s first approval for an ICO application.
Competitors
Tether Sponsors New Version of Bitcoin Tokenization Layer Omni
In a press release shared with Cointelegraph on Dec. 15, the companies announce the release of Omni Core 0.7.0, the development of which was sponsored by Tether. The new version reportedly enhances network performance and fixes locking issues and Remote Procedure Calls. The Omni protocol is a system running on the Bitcoin network that allows the creation of tokens on what is widely believed to be a secure network. Omni is also the platform that hosted the first USDT tokens.
OKEx Debuts Dai Stablecoin Staking Bonus as Tether Dwarfs Volumes
Malta-based cryptocurrency exchange OKEx has added support for a new feature that allows users of stablecoin Dai (DAI) to earn interest by staking their holdings.
Nonetheless, in terms of overall volumes, Dai, along with all the other stablecoins on the market, pales in comparison to stalwart Tether (USDT).
Circle Organizes for Stablecoin Platform Focus in 2020
https://blog.circle.com/2019/12/17/circle-organizes-for-stablecoin-platform/
Circle is approaching 2020 with a deep focus on stablecoin globally, dollars on public blockchains (USDC) specifically, and the powerful possibilities they unlock for people, businesses and governments all around the world.
USDS Smart Contract Migration Announcement for Q1 2020
Beginning in February 2020, Stably will officially migrate USDS users from our current ERC20 smart contract to an improved smart contract
New Enhancements to the Gemini Mobile App
https://medium.com/gemini/new-enhancements-to-the-gemini-mobile-app-12a49b7b7e7d
Gemini introduces Gemini for Apple Watch and Android Wear, pricing widget, and dark mode support.
Analytics and opinions
Stablecoins: What They Are and Why They Are Inevitable
https://www.bitcoinmarketjournal.com/what-are-stablecoins/
In a recent interview, Patrick Harker, the president of the Federal Reserve Bank of Philadelphia, said that stablecoins are “inevitable.”
The Modern Great Game — Facebook’s Libra Project
Since Facebook’s digital currency project, Libra, was announced in June, there has been a growing chorus of central bankers and policy makers pushing back against its ambitions. Germany’s Vice Chancellor Olaf Scholz and France’s Finance Minister Bruno Le Maire have both, separately, made it clear that they are not impressed with Libra and that the issuance of currency is the exclusive duty of the state and intrinsic to the sovereignty of a nation. The irony of this stance is apparently lost on both men, as neither France nor Germany have issued their own currency since 1999.
Private Payment System for Central Bank Digital Currency Possible, Says ECB
Recent research by the European Central Bank (ECB) claims that it is possible to develop a central bank digital currency (CBDC) payment system that protects user privacy.
Per the report dubbed “Exploring anonymity in central bank digital currencies,” the European System of Central Banks (ESCB) established a proof-of-concept (PoC) for anonymity in CBDCs, which came as part of its ongoing research of CBDCs and their potential benefits to the public. The dedicated PoC was developed in collaboration with tech companies R3 and Accenture.
Latest Analytics Shows 64% Of Controversial Stablecoin USDt Supply Controlled by 119 Addresses
Some analysts have gone ahead to term the USDT coin as the ‘most controversial’ cryptocurrency in the current market. It is also notable that Tether, the USDT parent company, is not a newbie to lawsuits with its latest being a $1.4 million for alleged market manipulation which led to the December, 2017 bull run. Tether’s recent linking to the paradise papers which basically shows the firm is the same with Bitfinex added to the list of controversies.
How Crypto Exchanges Are Tackling Poverty
Ongoing technological advancement in digital currencies is a phenomenon that can help developing countries both politically and economically. Cryptocurrencies can solve problems that are unique to these countries by providing access to a bank account, easy transfer of money across borders, and fractionalized payments.
Coordinated Stablecoin EU Approach / Switzerland Rejects Cryptofranc Proposal
The European Council and Commission have issued a joint statement in which the two bodies call for a “coordinated approach” in regulating crypto-assets.
The statement puts a focus on so-called stablecoins which, given their global nature, pose multifaceted challenges and risks related to consumer protection, privacy, taxation, cybersecurity, operational resilience, and more, the institutions said.
MakerDAO continues to lead DeFi space with over 49% dominance
https://eng.ambcrypto.com/makerdao-continues-to-lead-defi-space-with-over-49-dominance/
DeFi or decentralized finance has seen a new wave of adoption in 2019 and platforms have started to realize its potential and its ability to transform the financial ecosystem. The first and most dominant player has been MakerDAO in the still-nascent DeFi space. According to analytics and rankings website, DeFi Pulse, MakerDAO ruled the leaderboard with a dominance of 49.64%. Other platforms like Compound, Uniswap, and dYdX followed suit.
Switzerland Skeptical Of Central Bank Digital Currency
https://www.pymnts.com/cryptocurrency/2019/switzerland-skeptical-of-central-bank-digital-currency/
With the belief that it could cause instability within the country’s financial system, the government of Switzerland spoke against making a central bank digital currency available to the public. According to Reuters, Parliament had asked the government to explore the potential for establishing an electronic Swiss franc.
Critical review of crypto lending platforms
https://medium.com/100-towers/critical-review-of-crypto-lending-platforms-3faea809a618
On the side of centralized platforms, one has to trust a conglomerate of shady entities that mostly began as money grabbing ICOs (there are quite a few more available on the market that we did not deem worth of a proper review). On the side of decentralized platforms, one has to trust these relatively young projects that their auditors are comprehensive enough and that the developers will not introduce further holes in the code. There is also the struggle with nullifying the single points of failure for these platforms.
New projects, partnerships, and investments
Payments Platform ‘Adds Utility’ to EOS by Integrating Coin Into Services
Crypto.com says it has a determination to make buying, selling, sending, paying, tracking and even earning cryptocurrencies far easier than it is now.
Fidelity Digital Assets to Consider Rolling Out Ether Support in 2020
Tom Jessop, the president of Fidelity Digital Assets, the cryptocurrency trading arm of United States financial services giant Fidelity, announced that the firm may add support for Ether (ETH) in 2020 is there is sufficient demand for it.
New Zealand’s ASB Bank Owns 21% in TradeWindow Following $1.7M Round
New Zealand’s ASB Bank, owned by Commonwealth Bank of Australia, has participated in a new $1.7 million funding round by blockchain startup TradeWindow.
The startup provides a software-as-a-service supply chain solution to create a “single trading window” accessible by all parties involved in the transaction from the importer to the exporter.
Alchemy Publicly Launches Its Blockchain API After Raising $15 Million
San Francisco-based blockchain firm Alchemy announced the launch of its public application programming interface (API) after having raised $15 million in its Series A funding round.
Crypto-Focused Software Firm Lukka Releases Tax Preparation Product
Just in time for the 2019 tax season, cryptocurrency accounting firm Lukka announced a “do-it-yourself” crypto tax preparation product tailored for retail investors. Known as LukkaTax, the product evolved from LibraTax, a commercial crypto tax calculator Lukka released in 2014 when the company was first formed.
Maker Foundation Announces $27.5 Million MKR Sale, Expands DeFi to Asian Market
The Maker Foundation, the group behind the decentralized crypto platform MakerDAO, announced today that venture capital funds Dragonfly Capital Partners and Paradigm have acquired $27.5 million worth of MKR. This is approximately 5.5% of the total MKR supply.
Ripple Raises $200 Million to Push Adoption of XRP Cryptocurrency
https://fortune.com/2019/12/20/ripple-raises-200-million-xrp-cryptocurrency/
Ripple, a San Francisco-based company that uses cryptocurrency to move money across borders, announced a massive funding round on Thursday that values the company at $10 billion.
The $200 million Series C funding round, which was led by global investment firm Tetragon, could help validate Ripple's claim that more banks and money transmitters will embrace the cryptocurrency XRP for international transactions.