ALSO: California sues 11 crypto "Ponzis," Amazon tapped for "digital euro" test and more |
The biggest crypto news and ideas of the day |
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Digital Euro Could be More Popular Beyond EU's Borders: European Central Bank (ECB) President Christine Lagarde said a digital euro "could well be" more popular beyond the European Union's borders. Also, authorities in the EU, U.S. and other jurisdictions need to compare notes on central bank digital currencies (CBDC) to regulate them better, the ECB chief said at Wednesday's Atlantic Council's Frankfurt Forum. - Amazon, picked as one of the five payments providers to work on prototypes for digital euro apps, is the only non-EU company included in the selection. The CBDC project is meant to increase the EU's monetary autonomy, but that doesn't mean regulators should be "protectionist," an official said.
- Separately, a project involving multiple Asian CBDCs has already facilitated over $22 million in foreign-exchange transactions, the Bank for International Settlements (BIS) said.
California Regulator Targets 11 Crypto Trading Desks Operating Like 'Ponzis': California's financial regulator brought enforcement actions against 11 little-known crypto companies Tuesday, alleging they were misappropriating customer funds or violating state securities laws. The enforcement actions come a day after California joined a group of states in suing crypto lender Nexo over its yield-bearing Earn product. Crypto Exchange FTX Is Moving Its US Headquarters From Chicago to Miami: Bahamas-based crypto exchange FTX is moving its U.S. headquarters to Miami, four months after cutting the ribbon on its headquarters in Chicago. Meanwhile FTX.US president Brett Harrison is stepping down, the latest resignation in a recent spate of high-profile departures in crypto industry. - Separately, Celsius Network's native token CEL rocketed upward late Tuesday amid reports that FTX's Sam Bankman-Fried could bid on the bankrupt crypto bank's assets, hours after FTX agreed to buy $1.4 billion in assets from insolvent brokerage Voyager Digital. The token, CEL, nosedived earlier Tuesday after the surprise departure of Celsius CEO Alex Mashinsky.
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Get started on Nexo Pro today, and profit more by getting the best possible prices on all your trades.Oh Where, Oh Where Is Ooki DAO? Last week, the Commodity Futures Trading Commission entered into a settlement with the founders of bZeroX. Tom Bean and Kyle Kistner were fined $250,000 for offering illegal trading services to retail investors through the bZx protocol, and failing to meet certain KYC thresholds. That's standard fare in the world of crypto, where U.S. financial regulators routinely sue protocol founders for disregarding the rules. What was unique in the bXz case, however, is that the CFTC also sued a related decentralized autonomous organization (DAO) for the same crimes. Dubbed Ooki DAO, the entity was purportedly founded as a way to decentralize control of the bZx protocol and give it community ownership. Crypto insiders balked at this, arguing this example of "regulation by enforcement" could set a dangerous precedent for all DAOs. Is a decentralized entity responsible for the crimes of its founders? However, it's recently come to light that CFTC agents have been unable to find an un-doxxed member of Ooki – making enforcement difficult. So, not knowing who to "serve," the commodities regulator posted its complaint on the DAO's online forum and a chat box on Ooki's website. The agency has now asked a California judge to approve the unorthodox method. "This notion that a founding team can hide behind a veil of decentralization, it falls flat on its face," crypto lawyer Max Dilendorf told CoinDesk last week. Well, for now, it seems to be working. – D.K. |
This study examines why no existing decentralized storage is suitable for storing personal data, from a legal and ethical point of view, and what negative consequences the development of blockchain technologies may have for society without taking this crucial factor into account. We take a closer look at various aspects of this problem: - social
- legislative
- technical and technological.
Followed by an in-depth comparison of existing decentralized storage projects. We list technical requirements for new solutions that will replace the current ones. |
Putting the news into perspective |
Why Is the Dollar Crushing Global Currencies if Inflation Is So Bad? While the declining domestic buying power of a dollar dominates headlines in the United States, American inflation is having a surprising impact around the globe: Nearly every major currency has fallen dramatically against the dollar over the past six months. That seems like a challenge to the relentless focus on monetary supply that is widespread among cryptocurrency adherents. China's yuan has lost 12% against the dollar since April, and traditionally stronger currencies including the euro and yen have seen similar drops. Controversial financial decisions by new U.K. Prime Minister Liz Truss have driven the British pound down even more sharply in recent days, for a cumulative 18% drop since April. These moves may be particularly surprising for those whose financial thinking has been shaped by discussions in cryptocurrency circles. You might argue the tail has wagged the dog on crypto's understanding of inflation: Bitcoin's fixed supply has been aggressively marketed as a long-term inflation hedge, leading to an emphasis on so-called monetary inflation. Monetary inflation occurs when more monetary units compete for the same amount of real-world goods, driving prices up. Or, as a coronavirus pandemic-era meme elegantly simplified it, "money printer go brrrrr." |
(Adam Nir/Unsplash, modified by CoinDesk) But if the money supply were the beginning and end of the American inflation story, the dollar should be losing value against world currencies. The U.S., after all, had the second-largest fiscal response to the COVID-19 crisis of any industrialized nation, much of it debt financed. But if America has been borrowing and printing more money than Japan or China, shouldn't the yen and yuan be gaining relative value on global markets? Answering this seeming conundrum points to a more nuanced view of inflation than bitcoiners' Austrian Economics-driven monetarism on several levels. Data from the Economic Policy institute shows that inflation has been similar worldwide over the past year-plus, with little correlation to either pandemic spending or post-pandemic recovery as measured by unemployment levels. Based on that data, EPI argues that supply chain disruptions, rising commodity costs and shifting consumption patterns are more to blame for inflation than the money printer. That is, the problem isn't too much money but too few goods, in the wrong place. Read the full story here. – David Z. Morris |
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Overheard on CoinDesk TV... |
"If you empower those individuals [and] creators, no matter how big or small, to create something on the internet, then with the right mechanisms and incentives, you can bring that value back to them." – Nas Company Chief Operating Officer Alex Dwek, discussing the future of Web3 as part of "Education Week," on CoinDesk TV's "First Mover" | |
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What You Can Do With Your Old Ethereum Mining Rigs (Decrypt) On Portugal's 'Bitcoin Beach,' Crypto Optimism Still Reigns (NYT – paywalled) Powell Strikes Conciliatory Tone on DeFi (The Defiant) The Crypto World Is on Edge After a String of Hacks (NYT – paywalled) - Build-A-Bear enters web3 with Swarovski crystal-encrusted toy (The Block)
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