A report from the European Central Bank indicated that the euro’s share of foreign exchange reserves declined by one percentage point to 20% in 2023. According to the report, the continued diversification of global reserve portfolios into nontraditional currencies threatens to further erode the euro’s share of foreign exchange reserves. Euro’s Decline Coincides with US […]
Bitcoin News
Digital Yuan App Drops ‘Pilot’ Description, Hints at Change to Production Ready Status
The digital yuan app, which services users of the Chinese CBDC, has dropped the ‘pilot’ label from its name without any announcement, prompting speculation about an upcoming move to production stages. While local Chinese news outlets explained that this change had to do with app requirements, some expect this might be a step before its […]
Bitcoin News
SEC Launched Formal Investigation Into Ethereum’s Security Status Over a Year Ago, New Court Filing Shows
A new court filing claims that the U.S. Securities and Exchange Commission (SEC), led by Chair Gary Gensler, initiated a formal investigation into ethereum’s potential classification as a security more than a year ago. SEC Enforcement Division Director Gurbir Grewal approved a formal investigative order in March last year to scrutinize potential securities transactions involving […]
Bitcoin News
Morgan Stanley: US Dollar Has No Credible Challengers; Reserve Currency Status to Endure
The U.S. dollar is likely to remain the world’s dominant reserve currency due to the absence of credible challengers. Morgan Stanley suggests that the Chinese yuan, often considered a potential rival to the U.S. dollar, currently falls short and is unlikely to dethrone the greenback. Reserve Managers to Grapple With U.S. Dollar According to the […]
Bitcoin News
New York Community Bancorp Counters Moody’s Junk Status, Asserts Strong Deposits
Just one week following a dramatic plunge in New York Community Bancorp’s shares, which tumbled 40% in a single day at January’s close, Moody’s Investors Service downgraded the bank’s credit rating to junk status. The bank’s troubles have ignited concerns over a potential banking contagion that continues to unsettle regional banks. On Wednesday, the recently […]
Bitcoin News
Hashkey Group Achieves Unicorn Status With $100 Million Series A Funding
After obtaining a comprehensive capital markets license in Singapore, Hashkey Group announced it has successfully garnered 0 million through a Series A funding round. The fresh injection of capital is earmarked for expediting the growth of their licensed operations in Hong Kong, while simultaneously strengthening the company’s Web3 initiatives.
0 Million Funding Aims to Fuel Expansion and Strengthen Web3 Initiatives
On Tuesday, Hashkey Group, based in Hong Kong, disclosed its successful fundraising of 0 million from a mix of strategic partners, institutional backers, and Web3 entities. This infusion of funds elevates the company to unicorn status, with an estimated valuation of approximately .2 billion.
In their Tuesday announcement sent to Bitcoin.com News, the company elaborated, “The newly raised capital will be used to solidify Hashkey’s Web3 ecosystem, accelerate the product diversification of its licensed business in Hong Kong, and drive the Group’s compliant and innovative development globally.”
The latest development comes on the heels of Hashkey securing a comprehensive Capital Markets Services (CMS) license from the Monetary Authority of Singapore (MAS). Hashkey Exchange, the firm’s trading platform, boasts over 155,000 registered users and a trading volume of 0 million in the past month. On Tuesday, the group further highlighted its establishment of partnerships with six publicly traded companies and ten brokerage houses.
According to Crunchbase, Hashkey has executed 85 distinct investments, channeling funds into startups like Fetcch and Range Protocol. Notably, Hashkey recently spearheaded a million pre-Series A funding round for 0xscope, with contributions also coming from GSR Markets, Redpoint China, Amber Group, and Okx Ventures.
What do you think about Hashkey Group raising 0 million? Share your thoughts and opinions about this subject in the comments section below.
Reports Suggest That Binance is Reviewing the Status of Privacy Coins on Its Platform
Recent reports from members of the Zcash community indicate that Binance, the largest cryptocurrency exchange, would be preparing to review all privacy coins listed on its platform and possibly delist some. The exchange has been in talks with project representatives since November 2023, when it expressed its worries about not having the possibility of determining the origin of funds in some Zcash transactions.
Binance to Make a Comprehensive Review of Privacy Coins
Reports indicate that Binance, one of the largest cryptocurrency exchanges, is reviewing the status of privacy coins listed on its trading platform, even considering delisting some. The exchange had been in talks with representatives of these projects about making changes to improve their compliance efforts with the upcoming MiCA implementation.
Jason McGee, a Zcash community grants member, has been having regular meetings with Binance since November 2023, when the exchange expressed its worries about not having the possibility of determining a source address for some Zcash transactions, making it difficult to prove that these funds do not come from an Office of Foreign Assets Control (OFAC) flagged address.
On January 11, after having a meeting with Binance where they rejected implementing a solution to avoid being delisted, McGee declared:
Binance plans to evaluate the discussions they’ve had with various privacy coin projects, whether they plan to adhere to Binance’s requests, and then potentially delist some coins based on this review.
Furthermore, he clarified that the Zcash team had done “everything possible to cooperate with Binance to prevent delisting” and that if this finally came to happen, it would be due to Binance taking a “hard stance” against privacy coins and not from a lack of a viable proposal to address its concerns.
McGee and the Zcash team expect a decision to be reached by January 19.
Binance recently assigned the monitoring tag to various cryptocurrency assets, including Zcash and Monero.
What do you think about Binance’s stance on privacy coins? Tell us in the comments section below.
Dollar’s Reserve Currency Status Is the United States’ Reward for Controlling the Seas – Billionaire Mike Novogratz
According to Mike Novogratz, the United States’ control of the seas enables it to maintain the dollar’s reserve currency status. Novogratz suggested that the U.S. and United Kingdom’s joint strikes on Yemen were necessary because they give residents the “benefit of borrowing endlessly at low rates.”
Impact of Attacks on Commercial Ships Passing Through the Red Sea
Mike Novogratz, the billionaire and CEO of Galaxy Digital, has stated that the U.S. dollar’s reserve currency status is the reward that the United States receives in exchange for controlling the seas. According to the billionaire, maintaining this status costs the U.S. approximately trillion, which is equivalent to around 4% of its GDP.
The country that controls the seas has always been rewarded reserve currency status. It costs the USA approx 4% of GPD to keep that rank. It gives us the benefit of borrowing endlessly at low rates. The actions in the Red Sea are very appropriate in this context.…
— Mike Novogratz (@novogratz) January 12, 2024
Novogratz, a supporter of United States President Joe Biden’s Democratic Party, made these remarks just after the U.S. and the U.K. launched missile strikes targeting regions of Yemen reportedly controlled by the Houthis. The strikes on the Houthi rebels followed a surge in the number of attacks on commercial ships passing through the Red Sea.
The growing attacks have forced some shipping companies to suspend or avoid using the Red Sea altogether. This, in turn, has not only led to an increase in the cost of moving goods by sea but has caused shortages of both raw materials and finished products. For example, Tesla’s mega factory in Germany was recently forced to pause production due to delays in the delivery of parts.
After initially refraining from launching a large-scale response to the attacks on ships, the U.S. and UK responded to the Houthi rebels’ latest provocation by striking 30 targets inside Yemen on Jan. 12. The strikes have, however, reignited fears of a wider regional war.
Cost of Borrowing
Meanwhile, in his Jan. 12 post on X, Novogratz implied that the strikes are necessary if U.S. residents are to continue borrowing at very low rates.
“The country that controls the seas has always been rewarded reserve currency status. It costs the USA approx 4% of GPD to keep that rank. It gives us the benefit of borrowing endlessly at low rates. The actions in the Red Sea are very appropriate in this context,” Novogratz said.
In response to the post, some of Novogratz’s followers on X expressed shock at the billionaire’s endorsement of the bombing. However, one user warned Novogratz of the U.S. dollar’s declining dominance.
“The time for American hegemony will soon be at an end. We have enjoyed three decades of unrivaled premier status in the world and now find ourselves in a multipolar world. I am thankful for Bitcoin,” said the user.
However, another user dismissed Novogratz’s theory and went on to point out that Germany and Japan have lower interest rates yet they are not part of the Yemen bombing campaign.
What are your thoughts on this story? Let us know what you think in the comments section below.
US Defense Department Urged to Integrate Bitcoin to Maintain Superpower Status
A U.S. Space Force major has urged the Department of Defense to integrate Bitcoin as an “offset” strategy. Emphasizing that “Integration of this technology could revolutionize national defense strategies in cyberspace,” he stressed: “Addressing this could be vital for the U.S. to maintain its position as a global superpower and leader among nations.”
‘Bitcoin Represents Not Just a Financial Innovation but a Paradigm Change in Cybersecurity’
Major Jason Lowery wrote an open letter to the Defense Innovation Board on Dec. 2 regarding “the national strategic importance of Bitcoin,” he described on Linkedin. Lowery is an astronautical engineer serving in the U.S. Space Force, the newest branch of the U.S. Armed Forces. The Defense Innovation Board provides independent recommendations to Department of Defense (DOD) leaders on emerging technologies and innovative approaches that the DOD should adopt to ensure U.S. technological and military dominance.
“During my studies at the Department of the Air Force’s Air Command and Staff College, we were introduced to the concept of an ‘offset’ as a strategy that leverages technological advancements to counterbalance or negate an adversary’s traditional military strengths or numerical superiority,” Lowery explained in his letter. “I contend that reusable proof-of-work [PoW] networks like Bitcoin represent an offset strategy for the 21st century.”
He claimed that it’s a misconception that Bitcoin’s use is “limited to protecting financial information rather than practically all forms of data, messages, or command signals,” noting: “As a result, this misconception underplays the technology’s broad strategic significance for cybersecurity, and consequently, national security.” He wrote:
Bitcoin represents not just a financial innovation but a paradigm change in cybersecurity, aligning perfectly with the concept of a strategic offset.
After explaining his thesis, Lowery stated: “Proof-of-work technologies, as exemplified by Bitcoin, have the potential to significantly reshape our understanding of warfare in the cyber domain.”
He continued, “Considering their proven impact, it’s advisable for the Department of Defense to begin formally investigating the cyber security applications of these technologies,” emphasizing: “Integration of this technology could revolutionize national defense strategies in cyberspace and lead to a major shift in how to handle cyber conflicts.”
In conclusion, Lowery stated: “I strongly recommend that the Defense Innovation Board advise the Office of the Secretary of Defense to prioritize the investigation of the national strategic importance of proof-of-work protocols like Bitcoin.” He described:
Addressing this could be vital for the U.S. to maintain its position as a global superpower and leader among nations, especially in an increasingly digital and interconnected world plagued by cybersecurity vulnerabilities.
While many in the crypto community commend Lowery for taking the initiative, some pointed out that this thesis is inaccurate. “Lowery spins a nice narrative, unfortunately it’s nonsense,” said Bitcoin proponent Jameson Lopp, citing his own analysis that highlighted key points of disagreement. Peter McCormack also noted, “His thesis is wrong,” referencing Matthew Pines, director at cybersecurity firm Sentinelone, who explained in a series of posts on X: “Cybersecurity is about ensuring the Confidentiality, Integrity & Availability of networks and data. There is no magic bullet that comes from PoW, which is a consensus mechanism.”
Do you think the Department of Defense will heed Lowery’s advice and integrate Bitcoin? Let us know in the comments section below.
Billionaire ‘Bond King’ Jeffrey Gundlach Warns US Dollar’s Reserve Currency Status at Risk Due to Rising National Debt
Renowned billionaire Jeffrey Gundlach, also known as the “Bond King,” has raised concerns over the potential risk to the U.S. dollar’s reserve currency status due to rising national debt. “The future of the U.S. dollar, and possibly out-of-control inflation, depends on getting the budget and spending under control,” Gundlach warned.
Jeffrey Gundlach on Future of U.S. Dollar
Jeffrey Gundlach, the CEO and chief investment officer of investment management firm Doubleline, has warned that the U.S. dollar’s reserve currency status may be at risk if the United States does not get its spending under control. Gundlach is nicknamed “the Bond King” after he appeared on the cover of Barron’s as “The New Bond King” in 2011. His net worth is currently .2 billion, according to Forbes. His firm oversees around 0 billion of assets under management (AUM).
Gundlach said in an opinion piece: “Should the Federal Reserve continue to raise rates, which may happen, or should the national debt grow, which is certain to happen, this problem will get much worse.” He emphasized:
The future of the U.S. dollar, and possibly out-of-control inflation, depends on getting the budget and spending under control.
The weighted average interest rate on U.S. Treasury debt was 2.92% in August, up from 1.97% in the same time period last year. The billionaire stated that the interest rate on U.S. debt could increase to 5.5% given the current level of Federal Reserve borrowing costs. He elaborated that in such a scenario, the nation’s annual interest bill would surpass .8 trillion, which is over twice the existing defense budget. Within just over two years, interest expense has surged from 0 billion to almost 0 billion, already surpassing defense spending.
Gundlach opined:
The massive budget deficit and increasing interest rates on the national debt should scare every American.
The Doubleline executive isn’t alone in issuing warnings about the U.S. debt level and the USD. JPMorgan CEO Jamie Dimon recently expressed concerns that the fiscal money being spent in the U.S. “is so big,” noting that it is “the largest in peacetime ever … with very high deficits and QT we’ve never had.” Dimon also raised concerns about the potential for stagflation. Meanwhile, renowned investor Jim Rogers has warned that the era of U.S. dollar dominance is ending, with the Chinese yuan as the sole contender to replace the USD. Additionally, global financial services firm Jefferies cautioned earlier this month about the potential collapse of the U.S. dollar.
Do you agree with Bond King Jeffrey Gundlach? Let us know in the comments section below.