STABLECOIN DIGEST [21.06.2019]
Regulation and monetary policy
France creates G7 cryptocurrency task force as Facebook's Libra unsettles governments
France is creating a G7 task force to study how central banks ensure cryptocurrencies like Facebook’s Libra are governed by regulations ranging from money-laundering laws to consumer-protection rules, France’s central bank governor said.
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Facebook Token Runs Into Instant Political Opposition in Europe
French finance chief says it can’t be a ‘sovereign currency’. Germany’s Ferber sees Facebook becoming a shadow bank.
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Senate banking committee sets July date to hold hearing on Facebook Libra coin
The Senate Banking committee on Wednesday set July 16 as the date to hold a hearing centered on Facebook Inc.'s Libra coin.
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US Fed Chair: Facebook's Libra Carries Both Benefits and Risks
Jerome Powell, the head of the United States Federal Reserve, has said that he recognizes both potential benefits and risks to Facebook’s recently-unveiled Libra cryptocurrency project. He said that he believed that society remains a long way from digital currencies replacing central bank currencies, and that the central bank was not too concerned about no longer being able to implement monetary policy because of them given the infancy of the digital asset class.
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Australia’s Central Bank: Cryptocurrency: Ten Years On
https://www.rba.gov.au/publications/bulletin/2019/jun/cryptocurrency-ten-years-on.html#fn3
This article examines why Bitcoin is unlikely to become a ubiquitous payment method in Australia, and summarises how subsequent cryptocurrencies have sought to address some of the shortcomings of Bitcoin – such as its volatility and scalability problems. It also examines the proliferation of new ‘coins’ and concludes that, despite the developments in cryptocurrencies, none are currently functioning as money in the economy.
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Facebook Has Not Applied for RBI Approval to Operate Libra in India: Report
Citing people familiar with the matter, the report says that the social media giant has not applied for approval with the Reserve Bank of India (RBI) to operate its digital currency in the country.
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Russian Central Bank Head: CBDC Under Consideration, But Not For Near Future
The head of Russia’s central bank, the Bank of Russia, has said that while the launch of a central bank digital currency (CBDC) is being explored, it is not a matter for the near future.
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Bank of England Governor Says Facebook’s Libra Crypto Will Be Scrutinized
https://www.coindesk.com/facebooks-libra-could-meet-highest-standards-in-regulation-boe-governor
Facebook’s Libra cryptocurrency payments initiative could be subject to the “highest standards” in global regulation, said Mark Carney, the governor of the Bank of England.
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Top Democrat calls for Facebook to halt cryptocurrency plans until Congress investigates
‘Facebook is continuing its unchecked expansion and extending its reach into the lives of its users,’ Rep. Maxine Water said.
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Global Banking Giant HSBC Launches Tokenization-Based Receivables System for India
Major global banking group HSBC has implemented tokenization technology into its receivables infrastructure for corporate clients in India.
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Italy’s Banks to Use Blockchain to Boost Settlements and Improve Transparency
The Italian Banking Association (ABI) has announced that Italy’s banks will integrate distributed ledger technology (DLT) into internal processes to boost settlements.
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BNP Paribas and Octopus Ventures Lead $16.5 Million Funding Round for Token Stablecoin Banking Startup
Token will use the funds raised to increase the penetration of its open banking network. The startup says it already has more than 4,000 banks connected to its stablecoin payment platform.
Analytics and opinions
Binance Research Discusses Libra, Facebook’s New Crypto Project.
First Look: Libra. An in-depth review of Facebook's long-anticipated entry into cryptocurrency
https://info.binance.com/en/research/marketresearch/libra.html
The Libra project has a chance at becoming the first “everyday” implementation of the ideology and theory behind the Special Drawing Rights (SDR) and other IMF / World Bank initiatives, manifested as a cryptocurrency targeting mass adoption by both institutions and individuals.
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FACEBOOK’S CALIBRA IS A SECRET WEAPON FOR MONETIZING ITS NEW CRYPTOCURRENCY
“You suddenly have billions of new consumers for any online service. Businesses today that operate in cash only, if they have access to a digital currency they have access to advertising platforms, including Facebook”.
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The impact of Libra on the rest of crypto
https://medium.com/reserve-currency/the-impact-of-libra-on-the-rest-of-crypto-1659f2ca4a97
“Facebook has a pretty huge user-base, so it seems almost irrelevant what Libra will be or how it will work, people might just have to use it. Like Telegram’s Gram token, who cares about the tech when you have the users?”
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Circle CEO: Zuckerberg Is ‘Betting on Decentralization’ With Facebook’s Libra
http://fortune.com/2019/06/20/facebook-libra-decentralization-blockchain/
“Everybody’s been focused on how do you build a third-generation blockchain. Libra is a take on that,” said Jeremy Allaire, CEO of Circle.
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Facebook’s cryptocurrency may be ‘one of the most important initiatives’ in its history, RBC says
“We believe this may prove to be one of the most important initiatives in the history of the company to unlock new engagement and revenue streams,” RBC analysts Mark Mahaney and Zachary Schwartzman say in a note to investors.
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Facebook’s Libra Coin: Initial Reactions Mixed
The opinions are many and varied, as you would expect for a proposal of this magnitude. Some cryptocurrency proponents think it will help adoption, if nothing more. Others believe that it is the antithesis of the original Bitcoin manifest and are concerned about the concentration of power this will afford Facebook while being allowed to exist in murky regulatory conditions.
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Calibra wallet won’t launch in Facebook’s biggest market
https://techcrunch.com/2019/06/19/calibra-india-launch-whatsapp-pay/
TechCrunch understands that India, Facebook’s biggest market, is among the list of countries where Calibra does not intend to launch. Additionally, Calibra isn’t going to be available in China, North Korea and Iran, where Facebook does not currently have a presence.
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CBDCs of the World: The Benefits and Drawbacks of National Cryptos, According to Different Jurisdictions
The actual economic implications of issuing a state-backed cryptocurrency remain largely unknown, as even the jurisdictions that have adopted CBDCs have yet to launch them in a fully fledged form.
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Binance Research: Facebook’s Libra Could Spark Additional Cryptocurrency Volume
“Libra could spark additional cryptocurrency volume due to increased accessibility from both institutional players and everyday retail users.”
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Jack Dorsey says now is our chance to build a global currency for the internet
https://qz.com/1642172/jack-dorsey-on-bitcoin-facebooks-crypto-and-the-end-of-cash/
The interview with Jack Dorsey.
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Crypto Chiefs Novogratz, Allaire Say Facebook’s Coin Is a Bullish Sign
The digital coin introduced by Facebook Inc. is not competition for Bitcoin; it’s proof that cryptocurrencies will play a valid role in today’s economy.
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Why politicians and regulators are already going after Facebook's Libra
Libra’s unveiling faced immediate blowback from politicians and regulators around the world.
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Explainer: 'Stablecoins' in the spotlight as Facebook unveils Libra cryptocurrency
In contrast to Facebook’s cryptocurrency, these stablecoins are all issued by “crypto-native” firms whose roots are in the nascent sector. They have therefore faced an uphill struggle for wider acceptance in the real economy.
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Why Facebook Chose Stablecoins as Its Path to Crypto
In the longer run, if a national government decides to issue its fiat in digital form that would be a big leap for the stablecoin market, assuming the country has a trusted record of maintaining its national currency like the U.S. dollar. While the U.S. doesn’t seem likely to do that soon, the Federal Reserve has been urged to consider the option. The central bank in Sweden, one of the world’s most cashless societies, plans a pilot project with an “e-krona” this year.
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PayThink Banks must build their own stablecoin to counter big tech
https://www.paymentssource.com/opinion/banks-must-build-their-own-stablecoin-to-counter-big-tech
Banks must stop worrying about the competition from peer banks. The real threat is from the large tech companies.
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4 Trends That Will Rewire the Inner Workings of the Fintech Industry
https://www.entrepreneur.com/article/335208
Decentralized finance (DeFi) is one of the prevailing narratives in the cryptocurrency and blockchain niche.
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Tradeshift CEO: Libra Will Erode Whatever Trust Users Had Left in the Facebook Platform
“Libra is a distraction from the challenges that Facebook faces with its users, and monetizing accounts and attention is going to lead to ample fraud and lower user trust,” says Lanng. “[Libra] will erode whatever trust users had left in the Facebook platform.
It’s the opposite of what any real users of the Facebook platform wanted Facebook to focus on. It’s the wrong solution to the wrong problem. The fact that it’s being compared to WeChat shows that they are misunderstanding a fundamental gap between WeChat and Facebook, which is users trust WeChat, unlike Facebook.”
Existing Projects
What Is Libra? Breaking Down Facebook’s New Digital Currency
The new coin, dubbed Libra, is a stablecoin of sorts, though it functions much differently than currencies like tether. Additionally, Facebook has built a blockchain to support Libra.
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Facebook’s cryptocurrency partners revealed—we obtained the entire list of inaugural backers
Here’s a full list of the Libra Association founding members, which Facebook is set to officially announce on Tuesday:
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Facebook's Libra White Paper Is Now Live
Website: https://libra.org/en-US/
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Coming in 2020: Calibra
https://newsroom.fb.com/news/2019/06/coming-in-2020-calibra/
The first product Calibra will introduce is a digital wallet for Libra, a new global currency powered by blockchain technology. The wallet will be available in Messenger, WhatsApp and as a standalone app — and we expect to launch in 2020.
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Visa, Mastercard, PayPal Join Facebook to Form Crypto Effort
Payment companies seeking to help shape industry’s future. Emerging payment forms seen as way to help open new markets
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How could a GBP-pegged stablecoin threaten UK banks?
https://coinrivet.com/gbp-stablecoin-threaten-uk-banks/
GBP stablecoins are gaining popularity in the cryptocurrency world, with several exchanges launching them - from the London Block Exchange to Binance.
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Facebook Plans Global Financial System Based on Cryptocurrency
https://www.nytimes.com/2019/06/18/technology/facebook-cryptocurrency-libra.html
Facebook unveiled an ambitious plan on Tuesday to create an alternative financial system that relies on a cryptocurrency that the company has been secretly working on for more than a year.
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Ripple CEO: Facebook Libra Cryptocurrency Push Makes Me Happy
http://fortune.com/2019/06/20/ripple-facebook-libra-brad-garlinghouse/
Ripple CEO Brad Garlinghouse is adamant that Facebook’s unveiling of its Libra cryptocurrency will lead to big business for his banking software and cryptocurrency startup. Garlinghouse said it was a “fact” that Facebook’s Libra announcement has caused more banks to seriously consider using the company’s xCurrent banking payment software and associated XRP cryptocurrency to assist with transferring money across borders.
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David Marcus: Facebook Will Share Information of its Crypto Users With Authorities
He has stated that the Libra project will transfer data about its users to the authorities in order to prevent crime and comply with regulatory requirements.
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TrueUSD (TUSD) holders can now earn 12% or more through secured lending with Constant
Constant, a decentralized and fully-secured P2P lending platform, announced that customers can invest TrueUSD (TUSD) to earn returns of 12% or more.
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The new Synthetix Dashboard is now live!
https://blog.synthetix.io/the-new-synthetix-dashboard-is-now-live/
The new analytics dashboard has now been launched.
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SNX can now be traded on Liquid again!
https://blog.synthetix.io/snx-can-now-be-traded-on-liquid-again/
Synthetix Network Token (SNX) can now be traded on Liquid, a Japanese exchange formerly known as Quoine. It can be traded against BTC or ETH.
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Constant offers 12% returns for Gemini Dollar (GUSD) holders on its P2P lending platform
By lending your GUSD to collateralized borrowers, you’re looking at 12% APR minimum for very little risk.
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TokenPocket Now Supports The EOSDT Decentralized EOS-Based Stablecoin
TokenPocket has partnered with the stablecoin project Equilibrium, which provides a decentralized framework for generating EOSDT stablecoins that are backed by cryptocurrency and pegged to the US dollar.
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You can now pay worldwide with GLX through CoinPayments
https://medium.com/globcoin-io/you-can-now-pay-worldwide-with-glx-through-coinpayments-69f32c8c56f6
We’re announced a new partnership with coinpayments.net, allowing 2.3 million businesses and merchants in 182 countries to accept payments in GLX stablecoin.
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Collaboration Between MakerDAO and Nestree
https://medium.com/nestree/collaboration-between-makerdao-and-nestree-7bd2c5e56cc7
Integration of DAI Stablecoin as one of the default assets on Nestree.
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New Listing on CODEX: TrueUSD [TUSD], A Fully Backed Stablecoin
Available trading pairs: TUSD/USDT
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New Listing on CODEX: StableUSD [USDS], One-to-one Backed Stablecoin
Available Trading Pairs: USDS/USDT
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4 EOS Stablecoins To Look Out For in 2019
https://coincodex.com/article/3807/4-eos-stablecoins-to-look-out-for-in-2019/
A comparison of the four most prominent EOS stablecoin projects and compared them by the most important characteristics, such as their price stability mechanism, governance model, price feed source, and current status.
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Tether Just Printed Another 100M USDT, Making 250M USDT in 1 Week
Tether's marketcap has grown from $2.8 billion to nearly $3.5 billion over the course of the last month.
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USDC is now the largest stablecoin by market cap after Tether, claims Skew Markets analysis
USDC emerged as the winner, with respect to circulating market cap. Tether [USDT] was discounted from the census. USDC was followed by TrueUSD, PAX, DAI and GUSD. According to the research, it was found that USDC had a circulating supply of $342 million, after which came TUSD with a supply of $232 million.
New projects, partnerships, and investments
Introducing: Bitcoin-Pegged Token on Binance Chain
https://www.binance.com/en/blog/347360878904684544/Introducing-BitcoinPegged-Token-on-Binance-Chain
Binance will issue a number of crypto-pegged tokens on Binance Chain (BEP2 token format) in the coming days, starting with BTCB, a BEP2 token pegged to Bitcoin. Pegged tokens such as BTCB, are 100% backed by the native coin in reserve, which is Bitcoin (BTC) in BTCB’s case. The reserve addresses are published for anyone to audit.
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PwC launches solution supporting audit of cryptocurrency
“With the launch of our new software tool we are well positioned to provide audit and other assurance services to clients holding or transacting in cryptocurrency”
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Source: South American Online Marketplace Working With Facebook on Crypto Project
A MercadoLibre executive told Cointelegraph Brazil that the purported cryptocurrency will be integrated into the e-commerce platform as a form of payment. While the anonymous executive confirmed the partnership, further details were not forthcoming.
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KuCoin Lists Binance Coin, Supports Binance Chain Projects
KuCoin has announced that it is now listing the cryptocurrency Binance Coin (BNB). KuCoin will reportedly offer BNB trading pairs with Bitcoin (BTC) and Tether (USDT). The announcement also notes that KuCoin will support projects based on Binance’s native blockchain, Binance Chain, in addition to its native coin BNB.
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Introducing BitCash Dollar
https://medium.com/@BitCash/introducing-bitcash-dollar-90c76e022e56
The BitCash Stable feature, like other stable coins, was created to address the problem of price volatility when sending cryptocurrency to a third party, paying retailers, or storing value.
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New Cryptocurrencies on 1xBit: Stablecoins are Coming!
Tether, USD Coin, True USD, and PAXOS Standard Token will be available for platform users, broadening already vast coin portfolio — more than 20 different digital assets are now available to use on 1xBit.
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Paysend launches new stablecoin
https://www.finextra.com/pressarticle/78813/paysend-launches-new-stablecoin/transaction
The new stablecoin was built directly on the Stellar network and will provide a consistent store of value that users can hold, or seamlessly trade and transact with in real time.
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Coinbase Announces Launch of Crypto Debit Card in Six European Countries
https://w7news.com/coinbase-announces-launch-of-crypto-debit-card-in-six-european-countries/
Coinbase, a digital currency exchange, recently announced it is launching its Visa debit card in six more European countries.
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WaykiChain Stablecoin WUSD: Dark Horse Being Visible to Tether, Maker or the Others
WaykiChain WUSD is pledged by WICC which lower the barrier for smart contracts development, optimize the project operation and business operation.
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‘GAME CHANGER’: Oxfam is trialing a stablecoin for disaster response
https://micky.com.au/game-changer-oxfam-is-now-giving-crypto-to-disaster-victims/
In a world first, the Oxfam International charity is trialing the stablecoin Dai for disaster response aid in Vanuatu.
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Crypto Lender Sees High Demand for Stablecoin Loans in Chinese Market
Stablecoin loans might be one of the most sought-after products at BabelFinance.
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Hybridverse Building Its Euro-Backed Stablecoin on Zilliqa Blockchain
https://www.coinspeaker.com/hybridverse-euro-backed-stablecoin-zilliqa/
Hybridverse’s Euro backed stablecoin is called Hybrid Euro (HEUR), and is being built on Zilliqa Blockchain that is first and only blockchain to implement sharding.
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G8C COO reveals plans to launch a stablecoin for the iGaming industry
https://coinrivet.com/g8c-coo-reveals-plans-to-launch-a-stablecoin-for-the-igaming-industry/
In conjunction with its blockchain platform, Juliet revealed that G8C has plans to launch its own stablecoin, which will be, to borrow Juliet’s words, “the first brand-new stablecoin for the iGaming industry”.
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USDK Clears $23 Million in Market Cap Barely 14 Days After Launching
A new Ethereum based Stablecoin in USDK is fully backed and rolled out in exchanges keen on bettering the crypto ecosystem. Launched by a global settlement firm, OKLink, Prime Trust will enforce KYC and AML rules-which USDT lacks—while OKLink will supervise smart contract development as a technology provider.
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Eric Zhang: MakerDAO (DAI) and Paxos will create stable coin on Truechain
In an event hosted in Vietnam by Tron, Okex, Truechain, and Ontology on June 1st, Mr. Eric Zhang, the founder, and CEO of Truechain stole the show.