STABLECOIN DIGEST 6.12.2019
Regulation and monetary policy
US Lawmakers Want to Brand Libra a Security, Association Disagrees
A couple of United States lawmakers are looking to classify stablecoins as securities. With Libra considering adopting fiat-pegged stablecoins rather than a single token supported by a basket of national currencies, the proposed crypto project might be facing yet another regulatory hurdle.
Former CFTC Chair to Remain Focused on Crypto and Blockchain at New Law Firm
The current chairman of the CFTC, Heath Tarbert, has called for “principles-based regulation” for cryptocurrencies. According to the chairman, regulators should first fully understand the outcomes and potential risks of digital assets before enforcing their rules.
Danish Court Upholds Nordea Bank Ban on Employees Owning Bitcoin
A Danish court has ruled that Scandinavian financial services giant Nordea can bar its employees from owning Bitcoin (BTC) and other digital currencies.
France to Test Its Central Bank Digital Currency in Q1 2020: Official
The central bank of France plans to pilot a central bank digital currency (CBDC) for financial institutions in 2020. François Villeroy de Galhau, the governor of the Bank of France, announced that the bank will start testing the digital euro project by the end of the first quarter 2020.
Stablecoin Adoption Can Impact Economy, Warn Senior US Regulators
In its annual report for 2019, the regulators stated, “If a stablecoin became widely adopted as a means of payment or store of value, disruptions to the stablecoin system could affect the wider economy. Financial regulators should review existing and planned digital asset arrangements and their risks, as appropriate.”
EU Won’t Let Stablecoins Enter Market Until Risks Are Addressed
No global stablecoin project will begin operation in the European Union (EU) until the associated risks to monetary sovereignty are addressed, according to EU authorities.
US financial experts call for tighter regulation of digital assets
https://finance.yahoo.com/news/us-financial-experts-call-tighter-170006586.html
As part of its latest annual report, the council has now identified digital assets and stablecoins as major areas for concern, urging closer scrutiny of existing laws and a review of new products in the blockchain space.
Competitors
Crypto Exchange Gemini Burnt One-Fifth of Its GUSD Stablecoin Supply
Cryptocurrency exchange Gemini burnt about one-fifth of its Gemini Dollar (GUSD) stablecoin total supply on Dec. 3.
Gemini Hires Former Starling Bank Exec for Push Into Europe
Gemini, the top global cryptocurrency exchange per CryptoCompare’s latest Exchange Benchmark, hired a former senior executive from United Kingdom-based Starling Bank.
Circle Co-Founder Sean Neville Quits as CEO After Reshuffle: Report
According to cryptocurrency media outlet CoinDesk on Dec. 5, co-founder and co-CEO Sean Neville will transition to a post on the company’s board of directors in January.
Analytics and opinions
ECB Board Member: Global Stablecoins Pose Risks to a ‘Fragmented’ Europe
European Central Bank (ECB) board member Benoit Coeure has warned that global stablecoins remain untested and raise potential risks across multiple policy domains.
No Demand for a State Digital Currency in Japan: Central Bank Governor
Bank of Japan (BOJ) Governor Haruhiko Kuroda said that there is no public demand for a central bank digital currency (CBDC) in the country.
Deutsche Bank Research: Crypto to Replace Fiat Currencies by 2030
By 2030, the demand for alternative currencies will rise, with digital currencies eventually replacing cash, according to recent research from Deutsche Bank.
Saxo Bank’s Outrageous Prediction 2020: Asia Launches DLT-Based Asset
Major Danish bank Saxo Bank has predicted that Asia will launch its own blockchain-based digital asset in its new report of smashing predictions for 2020.
New projects, partnerships, and investments
Coinbase Card Rolls out DAI as First Supported Stablecoin: Official
Coinbase Card, a crypto-powered Visa debit card from major crypto exchange Coinbase, now supports Dai (DAI), a stablecoin pegged to the United States dollar.
Coinbase fuels explosion of interest in DeFi
https://decrypt.co/12776/coinbase-fuels-explosion-of-interest-in-defi
Coinbase now gives its 30 million users the opportunity to earn DAI by opening a Collateralized Debt Position (CDP) on Maker. As it explains in its Earn program, this is a way of creating the stablecoin DAI, by putting up some cryptocurrency as collateral.
Binance Crypto Exchange Adds Four Trading Pairs for Russian Ruble
Major cryptocurrency exchange Binance listed four Russian ruble trading pairs, according to an announcement on Dec. 2.
Blockchain Firm Figure Technologies Secures $58M, Aims for $103M
San Francisco-based fintech firm Figure Technologies has secured $58 million in a recent funding round which aims to raise a total of $103 million.
Deutsche Boerse’s DLT Security Lending Platform Sees First Transactions
Commerzbank, Credit Suisse and UBS carried out the first transactions on Deutsche Boerse and HQLAX’s distributed ledger technology-enabled (DLT) security lending platform.
British Virgin Islands Announce US Dollar-Backed Digital Currency
The coin will be a stablecoin pegged 1:1 to the U.S. dollar — which the BVI have used since 1959 — and its use is expected to reduce transactional fees, increase transaction speed and be accessible to outsiders such as tourists.
South Korean Startup Claims to Have Solved Blockchain’s Speed Problem
The company reportedly conducted a public test with 635 participating nodes to reveal the transaction speed of the Locus Chain technology. The results showed that a single blockchain transaction took between 0.13-0.23 seconds.
Canadian Venture Capital Firm Secured $320 Million to Invest in Fintech Startups
Portag3 Ventures, a Canadian venture capital (VC) firm, has closed a second fund with around $320 million to invest in fintech startup companies globally.
This Cryptocurrency Seems Designed For A Post-State Society
Saga’s SGA digital currency relies on an international reserve asset called Special Drawing Rights (SDR), which was introduced by the International Monetary Fund in 1969. This is a conventional basket of major world currencies — the US dollar, the euro, the British pound sterling, the Japanese yen, and the Chinese renminbi — that central banks around the world use to hedge against fluctuations in their own local currency. SGA borrows this model for a financial instrument and puts it on the blockchain.
Turkish Lira backed stablecoin platform BiLira soon to launch
BiLira, a stable cryptocurrency that is backed by the Turkish Lira (TRY), where users can always buy and redeem 1 BiLira (TRYB) for ₺1.00 Turkish Lira, is soon to launch.