The president of Germany’s central bank has highlighted the ongoing debate about the holding limit for the digital euro, Europe’s central bank digital currency (CBDC). He noted that recent Bundesbank research indicates that the optimal amount could be in the range of 1,500 to 2,500 digital euros per person. ‘The Jury Is Still Out Here’ […]
Bitcoin News
Adaptive Blocksize Limit Algorithm Goes Live on Bitcoin Cash Network
The Bitcoin Cash network has completed its latest upgrade which essentially implemented the highly anticipated adaptive blocksize limit (ABL) algorithm. The new feature will make it much easier to change the block size limit in order to meet the demand of the network’s throughput. As of 9:24 a.m. Eastern Time on Wednesday, five blocks have […]
Bitcoin News
Bitcoin Cash Prepares Adaptive Blocksize Limit Upgrade, Commits to Network Scaling
Bitcoin Cash, the usability-focused Bitcoin hard fork, is preparing to perform a blockchain-wide upgrade slated to happen on May 15th. The upgrade implements the adaptive blocksize limit algorithm, allowing the network to adapt to future increases in demand without having direct input from actors, avoiding the opportunity for social attacks. Bitcoin Cash to Include Adaptative […]
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Uniswap Introduces Wallet Extension and Limit Orders, UNI Jumps 83% in 30 Days
Uniswap Labs has unveiled a collection of new features designed to refine the trading journey for users of its decentralized exchange (dex). This collection encompasses the Uniswap browser extension, limit orders for precise trading strategies, and advanced data and insights for making well-informed choices. Uniswap Labs explained on Tuesday that the expansion aims to make […]
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Ethereum’s Vitalik Buterin Proposes Gas Limit Increase
Amidst escalating transaction fees, Ethereum’s Vitalik Buterin has suggested a substantial gas limit increase, potentially boosting network capacity and reducing user expenses.
Ethereum’s Vitalik Buterin Advocates for Higher Gas Limit to Improve Network Capacity
Ethereum ecosystem co-founder Vitalik Buterin has proposed an increase in the network’s gas limit. This adjustment, aimed at augmenting network capacity, could potentially lower costs for users and enhance transaction efficiency.
Ethereum’s gas limit is the ceiling for the total amount of gas allowed in a single block. Gas, a fee necessary for conducting transactions or executing contracts on the Ethereum blockchain, ensures the network’s operational fluidity. Presently, the gas limit stands at 30 million.
During an Ask Me Anything (AMA) session with the Ethereum Foundation’s research team on Reddit, Buterin suggested a “modest” gas limit increase, proposing a raise to approximately 40 million. This adjustment represents a 33% hike from the current limit. The rationale behind this proposal is to enhance transaction inclusion in each block, thereby boosting overall throughput and network capacity.
While increasing the gas limit could improve network performance, it’s not without risks. Larger blocks require more energy for processing, potentially increasing the likelihood of chain splits and abandoned blocks.
Reflecting on Ethereum’s history, the network has seen a gradual increase in the gas limit, from around 3 million post-launch in 2015 to 15 million following the Berlin hard fork in April 2021.
According to data from Dune, 2023 witnessed a significant spike in network gas fees, with the median price reaching higher than 150 gwei in May, primarily due to the inscriptions frenzy. One gwei equals 0.000000001 ETH. Currently, the average gas price hovers in the low 30s, with an increase since the onset of 2024, particularly for complex smart contract operations. Rising gas fees on the network have led to dissatisfaction among many users, as even basic transactions can become too costly at times.
$ETH / #Ethereum gas fees are ridiculous right now … 😢 pic.twitter.com/4oqQq0jeWZ
— PennybagsCX (@PennybagsCX) December 30, 2023
The proposal has stirred diverse reactions within the Ethereum community. Some, like Gnosis Chain co-founder Martin Köppelmann and Coinbase’s Jesse Pollak, support the increase, with Pollak suggesting a further raise to 45 million. However, Ethereum core developer Dankrad Feist urges caution, pointing out the need to target calldata and blobs per block in conjunction with the overall gas limit in order to get more capacity for L1 applications and rollups.
Buterin’s proposition, if implemented, wouldn’t necessitate a major network update or hard fork. Validators could effectuate this change by modifying certain parameters in their node software. This move could either reduce transaction costs or, more likely, increase network capacity at similar costs, leading to more burn, as per Köppelmann.
Are you in favor of a gas limit increase? Share your thoughts and opinions about this subject in the comments section below.
House Approves Amendment to Limit SEC’s Crypto Enforcement Authority
The U.S. House of Representatives has approved an amendment to the Financial Services and General Government Appropriations Act that limits the authority of the U.S. Securities and Exchange Commission (SEC) to carry out enforcement actions against the crypto industry. “Gary Gensler is as ineffective as he is incompetent,” said Congressman Tom Emmer. “Congress will hold unelected bureaucrats accountable.”
House Passes Amendment to Rein in ‘SEC Enforcement Abuses’ Against Crypto Industry
The U.S. House of Representatives approved an amendment by Congressman Tom Emmer (R-MN) to limit the authority of the U.S. Securities and Exchange Commission (SEC) on Wednesday. Emmer’s amendment to HR 4664, the Financial Services and General Government Appropriations Act of 2024, “Ensures none of the funds made available by this Act may be used by the Securities and Exchange Commission to carry out an enforcement action related to a crypto asset transaction.”
The congressman explained on social media platform X Wednesday: “My amendment prohibits the SEC from using taxpayer-funded resources to pursue enforcement actions against the digital asset industry until Congress passes legislation that authorizes regulatory enforcement jurisdiction.” Criticizing SEC Chairman Gary Gensler, the lawmaker wrote:
Gary Gensler is as ineffective as he is incompetent. Fortunately, my nonpartisan appropriations amendment to reign in SEC enforcement abuses against the digital asset industry passed the House today with no opposition. Congress will hold unelected bureaucrats accountable.
Two other crypto-related amendments to the Financial Services and General Government Appropriations Act of 2024 were also adopted on Wednesday.
One was an amendment by Congressman Warren Davidson (R-OH) that “Ensures no funds may be used by the Department of the Treasury to design or develop a central bank digital currency, or establish a United States central bank digital currency as legal tender.” The other amendment was by Congressman Alex Mooney (R-WV) which “Prohibits funding for the CBDC (Central Bank Digital Currency) Working Group led by the Department of Treasury.”
Several U.S. lawmakers have criticized Gensler for his enforcement-centric approach to regulating the crypto industry. Congressman Davidson has introduced legislation to remove Gensler as the chair of the SEC. Emmer slammed Gensler in September, stating: “It’s clear that you are working to consolidate your own power even though it means crushing opportunities for everyday Americans and frankly the financial future of this country.”
What do you think about the amendment to restrict the SEC’s authority in enforcing actions against the crypto industry? Let us know in the comments section below.
Biggest Bank in Australia to Limit Transfers to Crypto Exchanges
Commonwealth Bank of Australia plans to restrict payments to crypto trading platforms, citing the threat of scams. The measure would deal another blow to digital asset exchanges operating in the country where it has been getting harder to deposit funds for cryptocurrency operations.
Crypto Traders in Australia to Face Another Restriction on Fiat Deposits
Australia’s largest lender intends to impose a monthly limit of 10,000 Australian dollars (,663) on payments made to crypto exchanges. In a statement quoted by Bloomberg, Commonwealth Bank of Australia (CBA) detailed that some of the transfers will be held for 24 hours or declined.
Scams around the world are “masquerading as legitimate investment opportunities or diverting funds into cryptocurrency exchanges,” said General Manager of Group Fraud Management Services at CBA, James Roberts, providing reasons for the upcoming move.
Australians have lost at least 3 billion Aussie dollars to scams in 2022, the report notes, which represents an 80% increase from a year earlier. Crypto has played a significant role in this trend, according to the Australian Competition and Consumer Commission (ACCC).
CBA’s announcement is another threat for the crypto trading industry in Australia where the banking sector has been making it harder to transfer fiat funds to digital asset exchanges, citing scam-related risks in most cases.
On May 18, Australia’s Westpac Banking Corp. said it had started trialing new customer protections for some crypto payments to reduce “scam losses.” Right after, Australia admitted it could no longer accept deposits through the Australian payment gateway Cuscal. The latter highlighted its focus on “protecting Australians from financial crimes and scams.”
In late May, another Bloomberg report revealed that Binance Australia users were selling bitcoin and other cryptocurrencies at discount rates. The price difference with other exchanges in the country was attributed to the decision of the popular Australian payment provider Payid to quit processing withdrawals in Australian dollars for the exchange’s customers.
Do you expect to see more banking restrictions for crypto trading in Australia? Tell us in the comments section below.
Fitch Maintains Negative Watch on US Rating Despite Debt Limit Resolution
Although the U.S. has averted defaulting on its debt obligations, Fitch Ratings still has concerns about the country’s ability to repay its debt. As a result, the credit rating agency has placed the U.S. “AAA” rating on negative watch, emphasizing that recent events have lowered “confidence in governance on fiscal and debt matters.”
Fitch Ratings Still Has Concerns About the US
Fitch Ratings, one of the three largest credit rating agencies in the U.S., announced on Friday that the United States’ “AAA” credit rating remains on “negative watch” despite the recent debt limit agreement reached in Congress. The other two major rating agencies in the U.S. are Moody’s Investors Service and Standard & Poor’s.
The U.S. avoided having to default on its debt obligations after Congress passed a bill Friday to suspend the debt limit until Jan. 1, 2025. Without the agreement reached in this bill, the country could default on its debt obligations on June 5, according to Treasury Secretary Janet Yellen.
“The suspension of the debt limit was in line with Fitch’s expectations and the United States’ ‘AAA’ sovereign rating,” the rating agency noted. However, the company explained:
Repeated political standoffs around the debt-limit and last-minute suspensions before the x-date (when the Treasury’s cash position and extraordinary measures are exhausted) lowers confidence in governance on fiscal and debt matters.
“In fact, there has been a steady deterioration in governance over the last 15 years, with increased political polarization and partisanship as witnessed by the contested 2020 election, repeated brinkmanship over the debt limit and failure to tackle fiscal challenges from growing mandatory spending has led to rising fiscal deficits and debt burden,” Fitch continued.
While noting that its U.S. rating is supported by the country’s “exceptional strengths, including the size of the economy, high GDP per capita and dynamic business environment,” Fitch detailed:
The U.S. dollar is the world’s preeminent reserve currency, which gives the government unparalleled financing flexibility. Some of these strengths could be eroded over time by governance shortcomings.
Multiple people have warned that the debt crisis could erode the U.S. dollar’s dominance, including veteran investor Jim Rogers and economist Peter Schiff. However, some insist that the USD will remain the world’s reserve currency, including Moody’s. The rating agency said last month that the U.S. dollar will remain the dominant currency in international trade and finance for decades to come, despite new challenges.
What do you think about Fitch Ratings’ concerns? Let us know in the comments section below.
Putin Wants Limit on Currency Purchases for Russians Dealing With Foreigners
Russian citizens and firms doing business abroad may soon be restricted in the amount of foreign currency they are allowed to acquire, on order from Vladimir Putin. Russia’s head of state now wants his government to cap such purchases on the domestic forex market.
President Putin Orders Russian Authorities to Limit Foreign Currency Purchases
Russian President Vladimir Putin has tasked the federal government and the central bank in Moscow to introduce a billion monthly limit on the purchase of foreign currency meant to be used in transactions with entities and individuals in other countries.
According to an announcement by the Kremlin, the restrictions will apply to Russian residents buying other nations’ currencies in the domestic foreign exchange market for transfers abroad within government-approved settlements, the RIA Novosti news agency reported.
The order is part of instructions issued after a meeting on economic matters held on April 11 but published only last week. The measures will affect transactions crediting “accounts opened with banks located outside the territory of the Russian Federation.”
The deadline for imposing the limit has been set at June 1, 2023. Putin also asks the Bank of Russia and the Ministry of Finance to draft a list of cases in which the restriction would not apply.
Russia has been dealing with heavy Western sanctions imposed in response to its invasion of Ukraine in late February 2022, including freezing of its foreign currency reserves abroad and restricting its access to banking and financial services.
To prevent shortages of convertible currencies like the U.S. dollar and the euro as well as flight of capital, Russian authorities introduced foreign currency restrictions last spring and have been considering ways to circumvent the sanctions, including by de-dollarization of international trade and working on SWIFT alternatives.
Moscow has been also taking steps to legalize cross-border crypto payments. In November, Putin himself called for international settlements based on blockchain and digital currencies. In mid-May of this year, the head of the parliamentary Financial Market Committee, Anatoly Aksakov, unveiled that Russian lawmakers are preparing to adopt four bills related to cryptocurrencies by the end of July.
Do you think Russia will introduce more currency restrictions in the future? Tell us in the comments section below.
US Treasury Secretary Janet Yellen Urges Congress to Act Quickly on Debt Limit, States Defaulting Would Be ‘Unthinkable’
U.S. Treasury Secretary Janet Yellen has warned again about the consequences of the U.S. defaulting on its debt. During a press conference in Niigata, Japan, Yellen stated that this would be a self-inflicted crisis, and urged Congress to act quickly on the matter, stating that defaulting would be an unthinkable outcome on this issue.
US Treasury Secretary Janet Yellen Urges Congress to Act Quickly to Avoid Debt Default
U.S. Treasury Secretary Janet Yellen has urged Congress to act quickly on the issue of raising the debt ceiling to avoid a possible debt default that would bring negative consequences for the economy of the country. In a press conference in Niigata, Japan, ahead of the G7 meeting of finance ministers and central bank governors, Yellen warned again about the terrible effects that such an event would cause.
Yellen declared:
There is no good alternative that will save us from catastrophe. I don’t want to get into ranking which bad alternative is better than others, but the only reasonable thing is to raise the debt ceiling and to avoid the dreadful consequences that will come.
Furthermore, Yellen stated that, for her, this would be a self-inflicted crisis that has no reason to be happening. She explained:
There is no good reason to generate a good crisis of our own making. The U.S. Congress has raised or suspended the debt limit almost 80 times since 1960. I urge it to act quickly to do so once again.
Defaulting Would Be ‘Unthinkable’
Yellen had warned before about the catastrophe that the U.S. defaulting on its debt would mean for the economic system of the country and markets worldwide. Yellen also referred to this issue this time, stating that the consequences would be unthinkable.
She explained:
The notion of defaulting on our debt is something that would so badly undermine the U.S. and global economy that I think it should be regarded by everyone as unthinkable. America should never default.
Bipartisan negotiations on the debt limit issue have not been successful, as the Republican party demands a series of cost cuts that would affect spending in some key areas for the Democrat side, including healthcare and other social benefits. Negotiations are slated to restart this Friday, and Yellen is “very hopeful” that the two parties will be able to bridge their differences to raise the debt limit.
What do you think about U.S. Treasury Secretary Janet Yellen and her take on a possible debt default? Tell us in the comments section below.