Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue: The Salvadoran government pushes a bitcoin banking bill, president Milei states bitcoin will compete with other currencies in Argentina, and the Wasabi Wallet lead dev declares that bitcoin developers “have failed” El Salvador. […]
Bitcoin News
Blockchain Association to Elizabeth Warren: Crypto Can Potentially Disrupt or Compete With ‘Too Big to Fail’ Banks
The Blockchain Association has rejected U.S. Massachusetts Senator Elizabeth Warren’s claims that former security officials collaborating with it seek to weaken the country’s “ability to catch and prosecute America’s enemies.” According to the nonprofit organization, ex-U.S. security officials chose to join the Blockchain Association because they “value freedom and creativity, sovereignty of the individual, and permissionless innovation.”
Blockchain Association Does Not Employ Former U.S. Security Officials
The Blockchain Association has responded to U.S. Senator Elizabeth Warren’s allegations that former U.S. security officials collaborating with the lobby group seek to weaken the country’s “ability to catch and prosecute America’s enemies.” In its response to Warren’s Dec. 18 letter, the nonprofit membership organization clarified that it does not “currently employ anyone with the credentials listed” by the Massachusetts Senator.
2/ First, here’s our full response to Sen. Warren. I encourage you to read it. I think it’s a good summary of what our members are working on, what they care about, and why they’re so engaged in D.C.https://t.co/yFasbRO0ic pic.twitter.com/L4AxhqtEnd
— Kristin Smith (@KMSmithDC) January 9, 2024
Instead, the nonprofit organization counts many former U.S. military, national security, intelligence officers, and law enforcement professionals as its members. As reported by Bitcoin.com News in late December 2023, Warren’s letter expressed concern over the Blockchain Association’s employment of a “small army” of former security officials.
She also lamented what she sees as gaps in the country’s ethics laws which make it possible for former officials to easily secure employment in the private sector immediately after leaving government. The U.S. politician has since asked the Blockchain Association to share details of the former officials’ work on its behalf.
However, in a letter authored by the Blockchain Association’s CEO Kristin Smith, the nonprofit organization explains why former officials have chosen to work in the crypto space instead of more lucrative ventures.
“After leaving government, these public servants could have chosen from myriad, well-deserved professional opportunities. But they were drawn to work in the emerging digital asset industry because they value freedom and creativity, sovereignty of the individual, and permissionless innovation,” the nonprofit organization said.
Crypto Best Positioned to Challenge ‘Too Big to Fail’ Bank
The Blockchain Association also defended its ongoing efforts to prevent Senator Elizabeth Warren’s attempts to pass anti-crypto laws, stating that “crypto values are American values” hence they must be protected. The organization also believes that crypto has a realistic chance of disrupting or competing with the “Too Big to Fail” banks.
On the terrorism-fighting front, the nonprofit organization said that the transparency and traceability of blockchain technology can help enhance the capabilities of tools used by serving national security professionals. The Blockchain Association’s letter added:
“For this reason, it is far better to build the next generation of financial technology on public blockchains than it is to continue patching opaque legacy systems that have already proven wholly insufficient at combating money laundering and terrorist financing.”
What are your thoughts on the Blockchain Association’s letter? Let us know what you think in the comments section below.
Meta AI Assistant Launches to Compete With Chatbots Like Chatgpt
Meta Platforms, the parent company of Facebook and Instagram, launched its own chatbot based on artificial intelligence (AI) technology. Meta AI provides an alternative to products like Openai’s Chatgpt and is setting out to offer interaction tailored to attend to different interests and solve specific tasks.
Zuckerberg Unveils Meta AI Chatbot, AI Personas at Meta Connect Event
Meta CEO Mark Zuckerberg announced the launch of the U.S. tech giant’s new AI-powered assistant in a keynote speech at the Meta Connect developers conference on Wednesday. The chatbot will compete against the already established player in the space, Chatgpt, and other offerings like Google’s upcoming Gemini.
It became clear from Zuckerberg’s presentation that Meta’s approach to the development of AI differs from the rest of the industry in that the company does not believe in a “singular superintelligence” for everyone. In its view, most people would rather have a number of AIs for different purposes or even make their own. He elaborated:
We are building a platform for creating AIs that can help you get things done or just have fun. People will be able to interact with these AIs across the whole Meta universe of products.
Meta aims to enable users to chat in its messaging services like Whatsapp and Messenger with the AIs that will also have profiles on Instagram and Facebook to offer even richer interaction. While the platform will be opened up for developers to create more AIs in the future, Zuckerberg revealed that Meta has already built a bunch and it’s starting to roll them out in beta.
A media report in early August unveiled that the firm was preparing to launch multiple AI-powered chatbots dubbed “personas.” Zuckerberg now demonstrated some of them, starting with Meta AI which he described as the “basic assistant.” Built on the in-house large language model Llama 2, it can also tap into real-time, broader information thanks to a partnership with Microsoft and Bing Search.
Users will be able to invoke the Meta AI assistant in any chat, including group chats. Besides answering questions and responding to various requests in text, Meta AI will also be able to generate images using Meta’s new image generation model called Emu that has been built in the chatbot.
The other “a bit more fun” AIs that Meta has been training are focused on more specific areas such as cooking, traveling, or editing, for example. The chatbot personas are played by real-life celebrities like rapper and producer Snoop Dogg (Dungeon Master), legendary NFL quarterback Tom Brady (Bru), MMA champion Israel Adesanya (Luiz), and Paris Hilton (Amber).
Meta AI has been made available to a limited group of Facebook Messenger, Instagram Direct, and Whatsapp users in the United States, starting from Sept. 27, and will be integrated into Meta’s smart glasses and Quest 3 visual reality headset next month.
Meanwhile, also on Wednesday, the Microsoft-funded AI research lab Openai announced that its Chatgpt has been enabled to browse the internet and provide users with current information. Previously the chatbot was limited in its answers to data available before September 2021. Among other recent developments in the increasingly competitive sector, Amazon revealed this week it will invest up to billion in Anthropic, the AI firm behind the generative AI assistant Claude.
Which AI chatbot do you think will be the most popular a year from now? Tell us in the comments section below.
Currency.com vs BitMEX – Can Regulated Tokenized Securities Compete with the King of Crypto Derivatives?
Having launched in 2014, BitMEX enjoyed many years as the only fish swimming in the cryptocurrency derivatives pond. However, in recent times, it has found itself surrounded by an increasing number of competitors, both large and small.
OKEx, Huobi, and Binance have all expanded from the spot markets into the crypto derivatives space. Other platforms such as Deribit, Bybit, and FTX have entered the sector with their own offerings targeting BitMEX’s market share. Based on recent trading volumes shown on Skew, some of these newcomers are starting to catch up to their predecessor, which is already losing out on volume to its bigger competitors.
Now, there’s a new player in the game – Currency.com. The company has launched its regulated trading platform offering users the opportunity to trade tokenized securities, including commodities, indices, and even stocks. So how does the newcomer measure up to BitMEX?
Markets
Currency.com has entered the market with the unique selling point of offering a range of tokenized securities. Tokenized securities refer to real-life securities, like shares, indices, commodities, or bonds, that are represented as digital tokens. The owner of the digital token holds all the same rights as the owner of the underlying asset, such as to shareholder voting rights, etc.
Currency.com partners with a sister firm called Capital.com for brokerage services. Each time a user buys or sells a tokenized security, Capital.com conducts a transaction on the open market to buy or sell the underlying physical asset. Currency.com then credits or debits the user’s digital wallet with the tokenized version.
Users can buy tokenized indices such as the S&P 500 (^GSPC) or FTSE 100 (^FTSE) or individual company shares such as those in Tesla (TSLA), Netflix (NFLX), Apple (AAPL), or Google (GOOGL). The range of tokenized commodities includes precious metals, oil and gas, and crops such as coffee and cocoa. Various forex pairs and cryptocurrency/fiat pairs are also available for trading.
In contrast, BitMEX is a pure cryptocurrency derivatives exchange. It sells a variety of futures and perpetual swap contracts. BTC and ETH-backed contracts are available paired with USD. Contracts backed with Cardano, EOS, Litecoin, Bitcoin Cash, Tron, and XRP are available paired with BTC. Futures contracts are settled with one fixed expiration date.
Both platforms offer leveraged trading up to a maximum of 100x. However, the leverage available depends on the product itself.
Trading Fees
Trading fees are comparable on both Currency.com and BitMEX. Both platforms charge a 0.075% taker fee and offer a 0.025% rebate on maker orders as a means of incentivizing traders to contribute liquidity to the order book.
Funding
BitMEX only accepts funding in Bitcoin and settles all account balances in the same. There are no fees for deposits or withdrawals.
Currency.com allows users to fund their accounts using a variety of fiat and cryptocurrencies. Fiat deposits can be made in USD, EUR, GBP, BYN, or RUB via credit card, Apple Pay, or wire transfer. It also supports cryptocurrency deposits in BTC, ETH, LTC, and others. Funding fees are generally lower for cryptocurrencies than fiat.
Regulation and Reputation
BitMEX is an unregulated exchange operating out of Seychelles. As such, it has encountered severe reputational issues. These include allegations that it runs a trading desk that profits from trading against users, and that the exchange profits from liquidated positions. For its part, BitMEX has denied the allegations.
Nevertheless, the company continues to battle against regulatory and legal woes on several fronts. Last year, the US CTFC initiated an investigation against BitMEX for allegations that it was allowing US citizens to trade on its platform, which it also denies. More recently, the company has been hit with a slew of lawsuits alleging various illegal activities.
On the other end of the spectrum, Currency.com trumpets its regulatory status as a differentiator from its competitors. The company chose to set up its headquarters in Belarus, mainly because the government there has set up a comprehensive legislative framework around blockchain and cryptocurrencies. Currency.com has undergone the necessary checks and filings to become fully regulated by the government of Belarus.
Partner company Capital.com is regulated by the UK Financial Conduct Authority and the Cyprus Securities and Exchange Commission.
Currency.com also undergoes regular audits by the Big 4 accounting firms. As a regulated exchange, users of Currency.com must undergo a full KYC check to comply with anti-money laundering legislation.
Some parts of the crypto community are very anti-KYC, citing privacy concerns. However, there’s a clear trade-off to be had between the security and reputation of regulated versus unregulated platforms.
Security
BitMEX is one of the few cryptocurrency exchanges that has never been hacked. The company states that it runs a multi-signature scheme for all deposits and withdrawals to its platform. Due to its offline storage systems, hackers wouldn’t be able to find enough keys to enable any theft of funds.
Currency.com uses servers protected in a professional data center, overseen by video surveillance and armed guards. The company also utilizes cold storage wallets for most of its fund storage. It uses encrypted hot wallets only for the minimum funds necessary to maintain exchange liquidity.
Furthermore, Currency.com keeps all funds in reserve, meaning a “run” on the exchange could always fulfill all withdrawal requests.
Generally, both platforms score very highly for security.
Platform Stability
Currency.com states that it can handle up to 50 million trades per second with no downtime.
On the other hand, BitMEX has a poor reputation for platform stability, with frequent server outages. During the “Black Thursday” market crash in March 2020, there was speculation that BitMEX had taken down its platform deliberately, as a form of circuit breaker to stop trading amid the market bloodbath.
Teams
Arthur Hayes is the co-founder and CEO of BitMEX and generally serves as the face of the brand. Before founding BitMEX, Hayes was an experienced equity derivatives trader, having worked for Deutsche Bank and Citibank. Hayes is flanked by Ben Delo, an Oxford graduate in Mathematics and Computer Science, and Samuel Reed, an experienced computer scientist.
Currency.com is founded by Viktor Prokopenya and Said Gutsierev. Prokopenya is an IT entrepreneur and investor who founded the investment firm VP Capital. Gutsierev is an Oxford graduate and founder of Larnabel Ventures. Both co-founders have used their respective investment firms to provide backing to Currency.com.
Conclusion
Given the stark differences between these two platforms in terms of products and approach to regulation, they’re some way from being direct competitors. However, the sharp rise of FTX Exchange with its novel offerings, such as leveraged tokens, does indicate that those in the crypto trading space have an appetite for innovative new products.
BitMEX has been steadily losing market share over recent years, even despite the burgeoning market for cryptocurrency derivatives. Therefore, there’s every chance that Currency.com could lure away traders with its broad product range and keenness to appease regulators.
NewsBTC
ternity Releases Final Hard Fork Software to Compete with Ethereum
n Lima, the final ternity hard fork, has been released by the platforms core development teamn
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Expert US Should Cut Crypto Firms Some Slack to Compete With China
n The United States must catch up with China when it comes to central bank digital currency, say analystsn
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Bank of Canada Warms To National Cryptocurrency, Will it Compete Against Bitcoin?
Leaks within the Bank of Canada show officials are considering the development of a national cryptocurrency. As such, with interest in central bank digital currencies (CBDCs) on the rise, could it threaten bitcoin?
National Cryptocurrency
Mike Eppel, Senior Business Editor at 680 News, has revealed that Canada’s central bank is considering the development of a national cryptocurrency.
During his interview, Eppel drew attention to concerns surrounding cryptocurrencies, such as inadequate regulatory frameworks, as well as volatility. But all the same, he posed the question, is this the next phase in how we transact?
And that question is something Bank of Canada officials are in the process of considering. He said:
“The Bank of Canada wants to get ahead of the curve. They have this internal memo saying, yeah, eventually, they’re likely going to launch some sort of crypto.”
Having said that, as the conversation continued, it became apparent that the underlying reasons for this come down to centralization. Eppel continued:
“Because it’s about regulation. All these new cryptocurrencies are not overseen by any type of government regulator and they would like to have a little bit more say…the flip side of course is, they can use this to track our spending.”
Nonetheless, motivations aside, it’s apparent that central banks around the world are making moves in this space. While individual countries, on the whole, have kept tight-lipped, those in the know believe CBDCs are just a matter of time. For example, Philadelphia Federal Reserve bank president Patrick Harker claims that a US CBDC is inevitable.
If so, could a coordinated rise in CBDCs spell the end for private cryptocurrencies?
Is This The End For Bitcoin?
According to Economist, Nouriel Roubini, who once called Bitcoin the “mother of all scams,” the answer is a resounding yes.
In an article released late last year, Roubini proposes that central banks worldwide should issue their own digital currencies in order to shut cryptocurrencies out. He said:
“If a CBDC were to be issued, it would immediately displace cryptocurrencies, which are not scalable, cheap, secure, or actually decentralised.”
Moreover, in such a scenario, he rubbished the idea of a niche market, through privacy, by saying:
“Cryptocurrencies such as bitcoin are not actually anonymous, given that individuals and organisations using crypto-wallets still leave a digital footprint. And authorities that legitimately want to track criminals and terrorists will soon crack down on attempts to create cryptocurrencies with complete privacy.”
And almost a year on, Roubini’s predictions have come to pass with unnerving accuracy, as evidenced by the recent crackdown on illegal porn, as well as the delisting of privacy coins.
Moreover, there’s no denying that Bitcoin is the underdog here. And central banks will not give up their monopoly control easily, or without a fight.
Yes, Bitcoin and other cryptocurrencies have made a significant splash during their short time. But the reality is adoption rates are tiny, and the market cap is minuscule when compared to legacy markets.
That being so, arguments on Bitcoin being decentralized and borderless won’t stick. Not unless the bankers want it to stick. And that is what we’re up against.
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German Finance Minister Facebook Shouldnt Be Allowed to Compete With the Euro
The issuance of a currency does not belong in the hands of a private company, according to Germany’s finance minister.
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Twitch CEO Funds Ethereum Digital Asset Marketplace That Wants to Compete With eBay
During an interview with CNBC, Ethereum-based digital asset marketplace Rare Bits co-founder Ammit Mahajan, who also co-created the popular social network game FarmVille, has disclosed that the company raised million in a Series A funding round led by Spark Capital, Twitch CEO Emmett Shear and founder Justin Kan.
Why is Twitch Interested in an Ethereum Marketplace?
Digital collectibles like CryptoKitties are embedded onto the immutable blockchain protocol of Ethereum as smart contracts, and these contracts can be transferred out of the native CryptoKitties app to platforms like Rare Bits to trade them with other Ethereum users and investors.
Rare Bits first gained popularity within the cryptocurrency community after users of CryptoKitties, the most popular decentralized application (dapp) game according to DappRadar, started to sell digital kittens on the marketplace.
Essentially, as a digital collectibles platform on which users can breed and create characters, CryptoKitties is similar to the old Japanese classic game Tamagotchi; the main difference between the two games is that on CryptoKitties, users can actually buy and trade in-game collectibles or items.
For many years, the rapidly growing gaming industry has tried to find efficient methods of facilitating the trading of in-game items. Platforms like GameFlip, G2A, and PlayerAuctions have operated as intermediaries and moderators to help players purchase and sell in-game currency, gold, items, skins, and rare finds.
After a digital content distribution platform, Twitch is a gaming industry-focused business; it primarily supports gamers and streamers unlike other platforms like YouTube that target a wider range of content creators.
It is likely that the possibility of trading in-game collectibles on the Ethereum blockchain ;ed Twitch CEO and founder Emmett Shear and Justin Kan to invest in the platform, seeing the potential of Rare Bits of evolving into the first successful blockchain-based auction platform.
Speaking to CNBC, Rare Bits founder Mahajan said that in the long-term, the platform hopes to see non-cryptocurrency products on the platform alongside digital collectibles, such as backstage passes to concerts and second hand products.
In the short to mid-term, Mahajan said that the team will need to focus on bringing people from outside the cryptocurrency sector to its Ethereum-based platform. At the moment, Rare Bits would appeal to cryptocurrency enthusiasts but to bring regular consumers in the bigger market, Mahajan said that a special incentive structure will be necessary.
Emphasizing his realistic stance on the lack of adoption of the blockchain as of current, Mahajan said:
“The issue with this today is, if I have nothing to do with Ethereum, I don’t know anything about it and I’ve never thought about it, why would I ever go out of my way to buy Ethereum and get involved in this ecosystem? Imagine if a celebrity like Beyonce or someone really well known were to release ten backstage passes on the blockchain, how many millions of people do you think would go out of their way to acquire one of those things?”
How to Compete With eBay
Ultimately, Mahajans stated that the goal of Rare Bits is to remove the “blockchain” and “Ethereum” tags from its platform to remove the barrier between the cryptocurrency sector and normal consumers.
“In the final version of our product, we may not even mention the fact that we’re using Ethereum or using the blockchain. In an ideal world, you come to the site, you buy something you want, you exchange it, trade it [or] use it, but you don’t care or even need to know that the underlying technology is crypto-based.”
But, there certainly is risk in dropping its niche market in the cryptocurrency sector to take on a bigger market, and to successfully carry out that strategy, the team will need to ensure its platform operates as fast and efficiently as centralized platforms.
Image From Shutterstock
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IMF Official: Central Banks Need to Compete With Crypto
An IMF official believes central banks need to offer “better” fiat currencies in order to fend off potential competition from cryptocurrencies.