Approximately 50 users of Beribit, a Russian cryptocurrency exchange, recently tried to storm the company’s Moscow offices to demand their digital assets. Beribit’s management has attributed the delay in processing withdrawal requests to an audit initiated following the discovery of discrepancies in the exchange’s balance sheet. Balance Sheet Discrepancies About 50 users of the Russian […]
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JPMorgan Anticipates SEC Approving Spot Ethereum ETFs After Litigation Process
Global investment bank JPMorgan anticipates that the U.S. Securities and Exchange Commission (SEC) will eventually approve spot ether exchange-traded funds (ETFs). However, the firm pegs the chance of approval in May at 50%, foreseeing a potential litigation process if an ether ETF application is rejected at that time. JPMorgan on Potential SEC Approval of Spot […]
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Sam Bankman-Fried Breaks Silence: ‘Haunted’ by FTX Collapse, Vows to Appeal and Criticizes Legal Process
The fallen founder of FTX, Sam Bankman-Fried (SBF), broke his silence for the first time since being sentenced to 24.25 years in prison, engaging in an email conversation with ABC News. SBF expressed that he is “haunted” daily by the events that transpired, emphasizing his stance that he “never intended to hurt anyone.” Former FTX […]
Bitcoin News
Chamber of Digital Commerce: SEC Actions ‘Pose Separation of Powers and Due Process Concerns’
The Chamber of Digital Commerce, a Washington-based blockchain advocacy group, has filed an amicus curiae document on the SEC v Payward, Inc. (Kraken) case. The chamber argues that the actions of the SEC pose “separation of powers and due process” concerns and that digital assets are not inherently investment contracts. Chamber of Digital Commerce Slams […]
Bitcoin News
Argentine President Javier Milei Rules out Dollarization Process in 2024
Javier Milei, the libertarian president of Argentina, has ruled out the possibility of applying his dollarization plan during 2024. In an interview with local media, Milei stated that while dollarization and the free convertibility of coins was the final goal of his administration, there was no time to clean up the country’s economy and implement […]
Bitcoin News
Bye Bye Birdie: Binance Begins Process Of Axing BUSD Stablecoin
Binance crypto exchange announced in late August that it is moving to end support for its beloved BUSD stablecoin. This move comes amid the stablecoin’s run-in with regulators, leading to a halt in its production. And now, the exchange has started moving to begin the end of support for the stablecoin.
Binance Starts Burning Tokens
Binance took to its official X (formerly Twitter) account on Thursday, September 14, to announce that it would begin burning a number of Binance-pegged tokens. Among the five tokens listed to be burned, four were BUSD tokens across different blockchains.
According to the announcement, the Binance-pegged tokens would be burned on the listed blockchains, and then the exchange would release the equivalent amount of tokens that were initially used as collateral on their native networks.
Later today, #Binance will burn a number of idle Binance-pegged tokens.
The equivalent amount of tokens on their native networks, which were used as collateral, will then be released.
Tokens:
TUSDOLD (BSC)
BUSD (MATIC)
BUSD (BSC)
BUSD (BNB)
BUSD (TRX)— Binance (@binance) September 14, 2023
The BUSD tokens listed across four networks include BUSD on the Polygon (MATIC) network, BUSD on the Tron (TRX) network, BUSD on BSC, and BUSD (BNB). In addition to these, the exchange also revealed that the TUSDOLD on BSC would be burned as well, making it the only token on this list that is not BUSD.
The collateral in this case will be the equivalent of the Binance-pegged tokens that are burned. So if 1,000 BUSD on the MATIC network is burned, then the equivalent on the native blockchain will be released by the exchange.
Fire In The BUSD Camp
The BUSD stablecoin first came under fire in early 2023 when the United States Securities and Exchange Commission (SEC) issued a Wells Notice to issuer Paxos alleging that the stablecoin was an unregistered security. The regulator, through this, made its intention to pursue legal action known.
Following the move by the SEC, the New York State Department of Financial Services (NYDFS) asked the issuer to stop printing new tokens. The NYDFS’s concern mainly bordered on Paxos’ relationship with Binance, and eventually, the BUSD issuer decided to cut ties with the crypto exchange.
Since the initial move by regulators, the stablecoin has suffered in terms of usage and market cap. The stablecoin which was once a top 10 crypto by market cap has since seen its market cap decline to .5 billion, making it the 26-largest cryptocurrency as of the time of this writing.
Binance has also announced plans to stop offering support for the stablecoin completely by 2024. Paxos also revealed that it will cease all BUSD redemptions in February 2024, and Binance’s complete withdrawal is expected to come shortly after this.
Nevertheless, the stablecoin continues to maintain its dollar peg quite well. It is still trading at a 1:1 parity with the United States dollar and has rarely dipped below amid the regulatory storm.
Palau’s Stablecoin Audit Process Advances
Palau’s Ripple-backed stablecoin pilot audit process is advancing, with the Ministry of Finance collaborating with auditors and turning in more than 200 documents for review. Jay Hunter Anson, a Palau Ministry of Finance member, explained he was ready to show auditors that every transaction can be traced thanks to the public ledger tech.
Palau’s Ministry Of Finance Advances Stablecoin Audit Process
The audit process on Palau’s stablecoin (PSC) pilot, a project that uses Ripple’s xrpl ledger to issue a dollar-backed stablecoin as a central bank digital currency (CBDC), is advancing, as the Ministry of Finance collaborates with the government auditors.
Jay Hunter Anson, a member of the Ministry of Finance, offered an update about how blockchain technology would help in the process due to the traceability of each transaction.
In a post on social media, Hunter Ansen stated:
In-brief with auditor complete. 202 documents printed and will be submitted for review. Ready to walk the auditor through the public xrpl ledger where all PSC transactions are visible to everyone and can be traced from minting to destruction.
Furthermore, Hunter Anson reinforced the total transparency and disclosure of the team behind the pilot, explaining that they had “nothing to hide.”
Palau’s Stablecoin Pilot Audit Background
The audit on the test phase of Palau’s Stablecoin, qualified by Hunter Anson as “very small, secure, and controlled,” was requested by Senator Mark Rudimch. Earlier this month, he directed a letter to Public Auditor Satrunino Tewid, where Rudimch explained his concerns about the test process.
Rudimch criticized the legality of the program and the funds used for its implementation, stating that the Ministry of Finance might not have the faculties needed to organize the pilot.
Hunter Anson has personally answered some of Rudimch’s inquiries, explaining that PSC was not another cryptocurrency like Bitcoin, being more akin to Alipay, a Chinese payment system used widely in Palau without requiring special laws to be passed.
Also, Hunter Anson rejected Rudimch’s statements that implied the pilot hid monetary transactions, creating money laundering risks. Hunter Anson declared:
The public ledger is fully transparent and KYC/AML/CFT compliance strictly enforced. All money and spending is 100% visible, traceable, and attributable. It is impossible to launder money using PSC.
The fate of Palau’s stablecoin is still uncertain, as the government announced that the program would be evaluated for two months, with its upcoming expansion depending on the review of its impact, among other aspects.
What do you think about the audit of Palau’s stablecoin pilot? Tell us in the comments section below.
Russian President Putin to BRICS Leaders: Irreversible Process of De-Dollarization Gaining Steam
Russian President Vladimir Putin said at the BRICS summit that “A balanced, irreversible process of de-dollarization of our economic ties is gaining steam.” The Russian leader stressed: “We oppose hegemonies of any kind and the exceptional status that some countries aspire to, as well as the new policy it entails, a policy of continued neo-colonialism.”
Putin Participating at BRICS Summit
The leaders of over 40 countries are currently attending the 15th BRICS Summit in Johannesburg. All leaders of the BRICS nations (Brazil, Russia, India, China, and South Africa) are attending in person, except Russian President Vladimir Putin who took part via videoconference. South Africa is the host of the BRICS summit this year.
Addressing other BRICS leaders, the Russian president said in his remarks at the summit on Tuesday: “From year to year, the BRICS countries are increasing their potential … the five partner states, with a total population exceeding 3 billion, account for a greater share in global GDP than the so-called Group of Seven [G7] in terms of purchasing power parity. Over the past decade, BRICS countries have doubled their investment in the global economy, and their total exports have reached 20 percent of the global total.”
Noting that “The partner countries are successfully implementing their Strategy for BRICS Economic Partnership 2025 [BRICS Strategy],” Putin stressed:
In particular, they are strengthening five-sided cooperation in such areas as diversification of supply chains, de-dollarization and the transition to national currencies in mutual transactions, digital economy, support for small and medium-sized businesses, and fair technology transfer.
The BRICS Strategy “defines a development path of BRICS and sets the framework for cooperation of its members in accordance with current economic trends and conditions,” the economic bloc previously explained.
Putin also emphasized the importance of shaping a multipolar world order. “Importantly, we are all united in our commitment to shaping a multipolar world order with genuine justice, based on the international law and in keeping with the key principles set forth in the UN Charter, including sovereignty and respecting the right of every nation to follow its own development model,” he said, adding:
We oppose hegemonies of any kind and the exceptional status that some countries aspire to, as well as the new policy it entails, a policy of continued neo-colonialism.
On Tuesday, Putin also told the BRICS Business Forum, one of the key events at the BRICS summit:
A balanced, irreversible process of de-dollarization of our economic ties is gaining steam, with efforts undertaken to develop efficient mechanisms of mutual settlements, as well as monetary and financing control.
“As a result, the share of the dollar in export and import transactions within BRICS is declining as it only equaled 28.7% last year,” the Russian president noted.
What do you think about the statements by Russian President Vladimir Putin at the BRICS summit? Let us know in the comments section below.
Economist Expects US Rating Downgrade to Accelerate De-Dollarization Process
Economists have warned about the adverse impact of Fitch’s U.S. rating downgrade on the dollar. One expects the downgrade to “accelerate” the process of de-dollarization globally. Another stated that it may be “a part of the gradual decline of the U.S. dollar system.”
Impact of Fitch’s Rating Downgrade on US Dollar
Several economists have offered their perspectives on the adverse effects stemming from Fitch Ratings’ decision to downgrade the long-term foreign-currency issuer default rating of the United States from AAA to AA+. Fitch Ratings is one of the top three credit rating agencies in the U.S.
Citic Securities’ chief economist, Ming Ming, told the Global Times on Wednesday:
Amid the increasingly complex geopolitical situation today, more and more countries have started the de-dollarization process and Fitch’s downgrade of the U.S. rating may accelerate that process.
In response to Fitch Ratings’ downgrade, both the White House and Treasury Secretary Janet Yellen released statements expressing strong disagreement with the decision. Yellen asserted that the change was “arbitrary and based on outdated data” while officials from the Biden administration called Fitch’s downgrade decision “bizarre and baseless.”
A growing number of nations globally are actively working to decrease their dependence on the U.S. dollar, particularly after the U.S. weaponized its currency. Leading the efforts towards de-dollarization are the BRICS countries (Brazil, Russia, India, China, and South Africa). The economic bloc has been pushing for the use of national currencies in trade settlements. De-dollarization is expected to be among the major topics discussed at the BRICS leaders’ summit that will take place on Aug. 22-24.
“The negative effect of U.S. monetary policy on the world economy is very significant … some countries have been badly hurt by the U.S. monetary tightening,” Lian Ping, chief economist of Zhixin Investment, told the news outlet.
The chief economist added:
Fitch’s downgrade of its credit rating may also be a part of the gradual decline of the U.S. dollar system.
Do you think Fitch’s U.S. rating downgrade will hurt the U.S. dollar’s dominance? Let us know in the comments section below.
Certik Uncovers Security Vulnerability in Worldcoin’s Verification Process
On May 29, 2023, Certik, a blockchain and smart contract auditing firm, reported a critical security vulnerability within Worldcoin’s verification process. This flaw could have allowed attackers to bypass strict identification measures and operate an Orb, a device used to collect users’ iris information. The revelation comes amidst existing complaints regarding Worldcoin’s data collection practices in Bavaria, France, and Kenya, and from a prominent German political figure.
A Breach in Worldcoin’s Iris Verification Orb Amid Global Concerns Over Data Privacy
Certik disclosed on August 3, 2023, that it discovered a security vulnerability in Worldcoin’s verification process. The vulnerability would have enabled a malicious attacker to become an Orb operator without the need for proper identification or a vetting interview. In a typical scenario, only legitimate businesses that pass Worldcoin’s stringent identification process can run an Orb operation.
The Worldcoin security team promptly acknowledged the vulnerability and issued a fix, the blockchain and smart contract auditor detailed. Certik has since verified that the fix successfully mitigated the threat, preventing any potential exploitation of the system. Details of the finding and the methods used to rectify the issue will be disclosed in the future, the team noted.
Certik emphasized that its investigation and disclosure of the vulnerability were part of a standard whitehat procedure. It emphasized that the firm is not associated with Worldcoin, and the discovery was made as part of its regular auditing and analysis of blockchain and smart contract technologies.
The Certik vulnerability news has added fuel to the ongoing debate over Worldcoin’s data collection practices. Complaints have emerged from several regions, including Bavaria, France, and Kenya. These concerns focus on the potential misuse of personal data collected through the Worldcoin platform.
Christina Baum, a member of the German political party Alternative for Germany (AFD), has been vocal in her criticism of Worldcoin’s practices. She stated, “These devices are used solely for the global monitoring of people.” Baum’s quote encapsulates the growing mistrust and dissatisfaction surrounding Worldcoin’s data collection methods.
Baum believes that Worldcoin’s practices “make it possible to permanently track all activities of a single person – purchasing behavior, movement behavior, health, and much more.” The AFD member also argued that as far as the biometric data collected, “no one knows” where the data is stored and who it’s stored by.
What do you think about the Worldcoin vulnerability Certik discovered? Share your thoughts and opinions about this subject in the comments section below.