The Ethereum network is set to undergo one of its most extensive upgrades named Pectra, which will integrate the EVM Object Format (EOF) and introduce Vitalik Buterin’s proposed EIP-7702, allowing Ethereum account addresses to act as smart contract wallets temporarily during transactions. The Pectra upgrade, expected to be rolled out in the first quarter of […]
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Solana Developers Test Congestion Fixes in Testnet, Introduce Measures to Prioritize Traffic
Anza, a collective of developers focused on the Solana blockchain, has produced a fix that aims to reduce the congestion that the network has been experiencing. The new version of Solana, now being tried in testnet, includes a feature called stake-weighted quality of service (SWQOS), that prioritizes transactions from higher quality validators. Solana Gears up […]
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South Korea’s Democratic Party to Introduce ETF and Digital Finance Reforms
South Korea’s Democratic Party of Korea (DPK) is eager to relax regulations on exchange-traded funds (ETFs), including those tied to spot bitcoin, despite resistance from the People Power Party (PPP). Although election concerns have temporarily halted the initiative, a crucial poll is set for April 10, and the parliament is predominantly controlled by the DPK-led […]
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Paraguayan Lawmakers Introduce Bill to Temporarily Pull the Plug on Bitcoin Mining Operations
A group of Paraguayan lawmakers is spearheading a bill that seeks to enact a temporary ban on cryptocurrency mining operations in Paraguay for 180 days or until the industry’s activities are properly regulated. The bill alleges that 28% of the energy losses of the National Power Administration (ANDE) correspond, in part, to illegal bitcoin mining […]
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Licenced Stablecoin on/off Ramp Yellow Card to Introduce USDC on Stellar Network
The African stablecoin on/off ramp, Yellow Card, is set to introduce the stablecoin USDC on the Stellar network. This partnership has the potential to transform global payments and accelerate the adoption of digital assets. Lightning Fast Transfer Speed Yellow Card, a major licensed stablecoin on/off ramp in the African continent, recently announced plans to introduce […]
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US Senators Introduce Bill ‘to Combat Illicit Use of Crypto Assets’ Through Public-Private Partnership
U.S. lawmakers have introduced a bill “to combat the illicit use of crypto assets.” The Preventing Illicit Finance Through Partnership Act “will allow federal regulators to work with the private sector to gain insight into the often-misunderstood world of crypto to weed out bad actors without crushing an entire emerging industry,” Senator Cynthia Lummis described.
Preventing Illicit Finance Through Partnership Act 2024
U.S. Senators Bill Hagerty (R-TN) and Cynthia Lummis (R-WY) introduced the Preventing Illicit Finance Through Partnership Act of 2024 on Wednesday. Hagerty and Lummis are members of the Senate Banking Committee.
The bill seeks to “establish an information-sharing pilot program to combat the illicit use of crypto assets,” according to the bill’s text. The legislation targets illicit finance through enhanced communication between federal law enforcement agencies and private companies. Senator Lummis opined:
There are bad actors in every industry and crypto assets are no exception but make no mistake — crypto itself is not the problem.
“The Preventing Illicit Finance Through Partnership Act will allow federal regulators to work with the private sector to gain insight into the often-misunderstood world of crypto to weed out bad actors without crushing an entire emerging industry,” the lawmaker from Wyoming described. “This public-private partnership will help inform regulators about the use cases for crypto assets and clear the way to establishing federal rules of the road that will keep the industry in America and solidify crypto’s role as the next frontier of financial innovation.”
The announcement provides some details of the pilot program to be established by the Preventing Illicit Finance Through Partnership of 2024, stating:
The program would be chaired by the Attorney General and composed of 20 voluntarily participating money services businesses and cryptocurrency companies.
Ten of the 20 participants will be money services businesses and the other 10 will be private sector entities from the crypto industry. The pilot program shall terminate after five years of the date of enactment of the bill.
There are other efforts aimed at addressing crypto’s illicit use, including Senator Elizabeth Warren’s Digital Asset Anti-Money Laundering Act. However, critics have dubbed Warren’s bill a “crypto ban” bill. This perception has fueled counter efforts like the “Stop the Crypto Ban” petition on Change.org. In addition, Warren, alongside 100 other lawmakers, sent a letter in October last year urging the Biden administration to tackle the role of crypto in illegal activities and terrorism. “Congress and this administration must take strong action to thoroughly address crypto illicit finance risks before it can be used to finance another tragedy,” the letter reads.
However, the volume of illicit activities in crypto transactions pales in comparison to those in traditional finance. Blockchain data analytics firm Chainalysis said Thursday that “2023 saw a significant drop in value received by illicit cryptocurrency addresses.” The firm noted: “Our estimate for the share of all crypto transaction volume associated with illicit activity also fell, to 0.34% from 0.42% in 2022.”
What do you think about the Preventing Illicit Finance Through Partnership Act 2024? Let us know in the comments section below.
Peter Schiff Predicts Bitcoin Bloodbath — Expects SEC Chair Gary Gensler to Introduce ‘New Onerous Crypto Regulations’
Economist and gold bug Peter Schiff has predicted that U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler “will soon introduce new onerous crypto regulations” that will result in “a sharp decline” in the price of bitcoin. Schiff expects the new regulations to focus on anti-money laundering (AML) rather than securities law.
Peter Schiff’s Crypto Predictions: Onerous Regulations, Sharp Bitcoin Price Decline
Economist and gold bug Peter Schiff, a vocal bitcoin skeptic, has shared his predictions on crypto regulations and BTC’s price outlook following the U.S. Securities and Exchange Commission (SEC)’s approval of spot bitcoin exchange-traded funds (ETFs). He wrote on social media platform X Tuesday:
Since Gary Gensler was backed into a corner on spot bitcoin ETF approval, I think he will soon introduce new onerous crypto regulations that will substantially increase the cost of Bitcoin transactions, further undermining its ‘use’ case, resulting in a sharp decline in price.
Gensler previously stated that most crypto tokens, other than bitcoin, are securities. Noting that the SEC chairman “may even change his mind on bitcoin,” Schiff stressed in a follow-up post: “My thought is that new regulations will relate to AML, not securities law.”
Many users on X replied to Schiff’s posts to express their opinions. One emphasized, “I wouldn’t call Gensler being required to stay lawful ‘being backed into a corner.’” Others questioned how Gensler could possibly raise Bitcoin transaction costs. “Gary Gensler controls the Bitcoin mempool?” one wrote. Another user opined: “How can Gary and the SEC increase the cost of Bitcoin transactions? Are they gonna spend a lot of money on bidding for block space?”
Several users highlighted Gensler’s past statements on bitcoin as a commodity. One mentioned:
Gary Gensler has repeatedly stated that bitcoin is a commodity. It will be hard for him at the SEC to regulate, even the on ramps and off ramps (unless those on ramps and off ramps deal in unregistered securities).
“SEC enforces securities laws and protects investors in securities,” the same user noted, adding that anti-money laundering (AML) regulations are covered more broadly by other agencies, such as the Financial Crimes Enforcement Network (FinCEN).
What do you think about Peter Schiff’s predictions regarding Gary Gensler introducing onerous crypto regulations that will sink the price of bitcoin? Let us know in the comments section below.
‘Blockchain Basics Act’ Lands in Nebraska, 13 States to Introduce Crypto Legislation in 2024
The Blockchain Basics Act, a bill that seeks to protect several blockchain-based activities from being outlawed by the U.S. government, has been introduced in Nebraska. Sponsored by Sen. Eliot Bolstar, the bill is similar to the one introduced in Missouri recently, and 11 more states are expected to introduce similar regulations this year, according to the Satoshi Action Fund.
Blockchain Basics Act Lands in Nebraska
Lawmakers are now taking cryptocurrency and blockchain regulations to their states. On January 5, the Blockchain Basics Act, a bill that aims to protect several blockchain and cryptocurrency rights, was introduced in the Nebraska Unicameral Legislature by Sen. Eliot Bolstar, putting the cornhusker state at the forefront of these initiatives.
The act seeks to guarantee the rights of Nebraskans to mine cryptocurrency without restrictions, exert the custody of their cryptocurrency assets, and transact with crypto. It also establishes the exemption of capital gains state taxes for cryptocurrency transactions under 0.
The legislation is very similar to another bill of the same name introduced in Missouri by Rep. Phil Christofanelli in December, both sponsored by the Satoshi Action Fund, a nonprofit that policies lawmakers to introduce cryptocurrency-related initiatives. Dennis Porter, CEO and co-founder of the Satoshi Action Fund, stated that this bill builds on the work of Mike Flood before he “graduated” to Washington DC.
Flood was the co-author and sponsor of the Nebraska Financial Innovation Act passed in 2021, which allows banks to become “Digital Asset Depositories” to trade and custody cryptocurrency after receiving state permission.
Porter remarked that Nebraska was the second state to introduce this act and that more states would follow. In a post on X, Porter stated:
We plan to introduce 13 bills in 13 different states (at least) in 2024. Each time a bill is introduced, lawmakers in the state often hold a hearing to receive input from the public.
These moves are part of a nationwide strategy of taking the battle for cryptocurrency adoption to a state level proposed by Porter, who believes crypto regulation might follow the same road that cannabis regulation took.
What do you think about the “Blockchain Basics Act” being introduced in Nebraska? Tell us in the comments section below.
Latam Insights: El Salvador Launches Pilot to Introduce Bitcoin Content in Schools, Bitso Teams up With Despegar in Argentina
Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue: El Salvador launches a pilot to add Bitcoin content to school curriculums, Bitso announces a partnership with Despegar in a cashout program, and Uruguay and Argentina revamp a bilateral local currency-based payment system.
El Salvador Launches Pilot to Take Bitcoin Content to School Curriculums
The Ministry of Education of El Salvador has partnered with Mi Primer Bitcoin (MPB), a nonprofit dedicated to educating Salvadorans about Bitcoin, to organize a pilot program to introduce Bitcoin courses into school curriculums.
The pilot was announced this week when Mi Primer Bitcoin stated that the organization would teach 150 teachers of 75 public schools about Bitcoin. Then, these teachers will return to their schools to impart courses about the virtues and usage of the first cryptocurrency.
John Dennehy, the founder of MPB, confirmed that if the pilot is successful, it could be extended to all the schools in the country in 2024. Furthermore, Dennehy stated that the organization was looking to expand to other nations, having conversations with the governments of two countries in Latam on this subject.
Bitso Partners With Despegar in Argentina
Bitso, a Mexico-based, Latam-focused cryptocurrency exchange, has recently revealed it has partnered with online travel agency Despegar to implement a point-to-crypto cashout program in Argentina. Despegar Passport will allow travel agency customers to exchange their loyalty points for cryptocurrency assets.
In this first phase, the program will let users exchange between 100 and 5000 of their reward points for Bitcoin or Ethereum daily. Despegar reinforced the intention of introducing these innovations to broaden the reach of these technologies in Latam.
Paula Cristi, Despegar Country Manager Despegar for Argentina and Uruguay, declared:
Now the more than 1.4 million members of the Despegar Passport program in Argentina, who have more than 100 active points, will be able to redeem them for a digital asset.
Argentina and Uruguay Revamp Local Currency Cross-Border Payment System
The central banks of Argentina and Uruguay agreed to extend the uses of the SML, a cross-border, local currency-focused bilateral payment system. While the system was already launched some time ago, it was seldom used. Diego Labat, president of the Central Bank of Uruguay, detailed the changes made to the system’s rules. He stated:
The main change in the system is that we are now including payments for services -except for financial ones.
Labat stressed the system allowed companies to issue invoices in the two local currencies. Miguel Pesce, president of the Central Bank of Argentina, detailed that this system would benefit companies, reducing their transaction costs by avoiding the fees and losses associated with using a third-party currency.
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Glassnode and Ark Invest Introduce ‘Cointime Economics’ — A New Model to Measure Bitcoin’s Value
Researchers from Glassnode and Ark Invest have collaborated to develop a new economic model for analyzing Bitcoin’s onchain metrics called “Cointime Economics.” The framework offers an alternative way to measure the economic activity and value of bitcoin based on “coinblocks” rather than the standard accounting method of unspent transaction outputs, or UTXOs.
Cointime Economics: A Unique Framework for Analyzing Bitcoin
The Cointime Economics white paper explains that coinblocks are the product of the number of bitcoin, or BTC, multiplied by the number of blocks they are held without moving. For instance, ten bitcoins held for ten blocks would equal 100 coinblocks. This method aims to capture the real economic weight and importance of each bitcoin based on the time it remains dormant. The longer a bitcoin is unmoved, the higher its cointime and implied economic significance.
Cointime Economics introduces metrics such as coinblocks created, destroyed, and stored to describe Bitcoin’s economic state over time. It also proposes ratios such as “liveliness,” which measures network activity, and “vaultedness,” which gauges inactiveness. When applied to bitcoin supply, this framework distinguishes between active supply and vaulted supply to assess true inflation and other factors.
According to the researchers, Cointime Economics can enhance existing valuation models like the Market Value to Realized Value, or MVRV ratio by substituting active value and investor value for the traditional market cap and realized cap. They present a modified Active Value to Investor Value, or AVIV, ratio using cointime concepts that might more accurately indicate when BTC is overvalued or undervalued.
The framework also enables new onchain analytics to measure Bitcoin’s volume- and time-weighted cost basis. As an example, the white paper introduces “Cointime Price” as a metric weighing both transaction volume and length of ownership. On May 7, 2023, the Cointime Price was ,568, considerably below BTC’s market price.
Overall, the researchers believe Cointime Economics offers a consistent way to quantify Bitcoin’s economic activity and importance that takes into account the time coins are stored. They argue metrics based on coinblocks and cointime might provide significant advantages over models relying only on traditional UTXOs and blockchain data.
Authors James Check, the lead analyst at Glassnode, and co-author David Puell, a research associate at Ark Invest, noted that the introduction of this new conceptual framework aims to give analysts more robust tools for evaluating Bitcoin’s onchain fundamentals.
What do you think about Cointime Economics? Share your thoughts and opinions about this subject in the comments section below.