Cathie Wood, CEO of asset management firm Ark Invest, recently met with El Salvador’s President Nayib Bukele and discussed bitcoin. She praised his progressive approach to economic and educational reforms. “President Bukele’s determination to transform El Salvador into a hub for the bitcoin and AI communities — two of the most significant economic and technological […]
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Xapo CEO Seamus Rocca Describes Xapos’ Proposition, Talks US Regulation, Emerging Markets, and Stablecoins
Seamus Rocca, CEO of Xapo, had a candid conversation with Bitcoin.com’s COO Jason Sheman, where he shared his accumulated experience and knowledge describing what makes Xapo different from a traditional neobank, talked about U.S. markets and regulations, how emerging markets see crypto, and the necessity of implementing stablecoins in Xapo after Silvergate Banks’ downfall. Xapo […]
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Ethereum Challenger Monad Labs in Talks to Raise $200 Million
The smart contract platform, Monad Labs is in talks to raise over 0 million via a funding round that is likely to be led by venture capital firm Paradigm. A successful funding round will see Monad Labs’ valuation rocket to billion. Monad Labs Building Platform to Challenge Ethereum Monad Labs, a smart contract platform, […]
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DOGE Bull Mark Cuban Talks Crypto, NFTs, And More In Community AMA
On January 29, Mark Cuban, the businessman and television personality, took to the X platform (formerly known as Twitter) to have a conversation with his audience and the crypto community online.
What Projects Does Mark Cuban Invest in?
The Ask Me Anything (AMA) session asked about Cuban’s thoughts on various crypto-related topics. Notably, his replies to the community suggested the importance of a project’s utility for the Shark Tank investor.
When asked about his thoughts on crypto, Cuban stated “I hate the speculation but love when there is utility,” similarly replying to a different question about on-chain finance “needs new ideas with more utility.” Additionally, he explained that Bitcoin’s Layer 2 solution aimed at scaling “doesn’t matter at all,” and emphasized his belief that “It’s applications with unique utility that matter.”
Cuban believes blockchain technology is here to stay but identifies two issues. The first concerns the existence of “too many blockchains,” and the second is the lack of an application that makes the technology “indispensable” for all generations.
For these reasons, the businessman thinks blockchain technology’s future is in the air but reaffirms that “it will always have a place.” However, he doesn’t consider blockchain security one of the biggest problems.
During the AMA session, the Shark Tank investor listed Polygon (MATIC), and Injective (INJ) as two projects he’s interested in outside the flagship cryptocurrency and the largest altcoin. When asked about his concerns on the project and growth of injective, Cuban said he didn’t have any, but he hopes “they do well” as he is an investor.
The Doge community took part in the questions, and Cuban admitted that he enjoys being part of the community. He also confirmed that The Dallas Mavericks continue to accept DOGE as a payment method.
I don’t think about it
— Mark Cuban (@mcuban) January 29, 2024
What Emerging Technology Will Thrive in The Next Decade?
Regarding non-fungible tokens (NFTs), the investor explained “They are a collectible in most cases but can be used for other things,” and suggested that people should buy them to collect and not to speculate. Similarly, he expresses the challenges of selling these assets as he hasn’t found “a compelling aspect yet.”
Similarly, Cuban indicated that he is “not a fan” of tokenizing assets, such as sports teams and real estate, as he doesn’t think it “adds enough value.”
Entrepreneurs
— Mark Cuban (@mcuban) January 29, 2024
Cuban shared his views on the future of emerging technologies, affirming that he only sees Artificial Intelligence (AI) significantly impacting entrepreneurship in the next decade. Saying, “There will be two types of companies in the USA. Those who are great at AI and everyone else.”
Lastly, he was constantly asked about his thoughts on X owner and Tesla founder Elon Musk. He addressed their relationship by simply replying: “I don’t not get along with him. I don’t know him. He likes to talk shit on here and so do I.”
Amid Rising ‘National Divorce’ Talks, Exploring the Potential Impact on US Dollar in Hypothetical Second Civil War
In the wake of Texas Governor Greg Abbott’s latest declaration, emphasizing Texas’ inherent constitutional right to defend itself and pointing to the Biden administration’s lack of enforcement of federal immigration statutes, the rhetoric around a potential “national divorce” or “civil war” has gained momentum on social platforms. This leads us to explore a theoretical situation in which the United States faces a second Civil War, focusing on the ramifications for the U.S. dollar.
How a Second U.S. Civil War Could Reshape the Dollar’s Value
The discussion of a potential second Civil War has intensified following a statement from Texas Governor Greg Abbott, asserting that the federal government is neglecting its responsibilities to secure the border. “The federal government has broken the compact between the United States and the States,” Abbott explained in the letter published on Jan. 24. “The Executive Branch of the United States has a constitutional duty to enforce federal laws protecting States, including immigration laws on the books right now. President Biden has refused to enforce those laws and has even violated them. The result is that he has smashed records for illegal immigration.”
Incredible how 4 years of Biden’s governance has resulted in two new wars and the groundwork for a civil war. https://t.co/qSXl22AhE9
— Carl Benjamin (@Sargon_of_Akkad) January 25, 2024
This statement came on the heels of persistent disagreements between the Texas state authorities and the Biden administration over immigration enforcement. Following the statement, a coalition of 25 U.S. governors rallied behind Texas, in opposition to the federal government. This development has sparked extensive discussions across social media platforms, with terms like “civil war” and “national divorce” becoming trending topics on X. A civil war, in reality, would profoundly affect the U.S. dollar. Initially, it might trigger a decline in trust in the fiat currency.
Civil War shouldn’t be trending. Revolution should be.
— DR. ETIQUETTE (@DrEtiquette) January 26, 2024
The value of a currency is heavily dependent on the political stability of its issuing country, and a civil war could severely weaken the global standing of the dollar. Although the exact consequences of a second civil war in the U.S. are uncertain, historical insights from the nation’s first civil war and conflicts in other countries provide some context to this hypothetical situation. For example, Lawrence W. Reed, a member of the Foundation for Economic Education (FEE), has detailed the economic consequences of the Civil War spanning 1861 to 1865 in a thorough account. Reed notes in his editorial that a free-for-all of federal spending continued well after the Civil War.
Reed writes:
For half a century from 1865 until World War I, the federal government ran an almost unbroken string of budget surpluses. Today, it produces trillion-dollar deficits without batting an eye, and the President demands trillions more in spending and debt.
Reed highlights that the Civil War basically led to “disastrous hyperinflation in the Confederacy and considerable currency depreciation of paper greenbacks in the North as well.” In another scholarly study, Roger L. Ransom of the University of California explains that with the onset of the war, the North effectively turned into a currency-producing powerhouse, issuing double the amount of currency compared to the South. Concurrently, the federal government accumulated billions in debt for the first time in history.
Should a civil war recur, leading to an expansion in currency issuance, the influx of dollars in the economy, not matched by an increase in goods and services, would devalue the dollar. Beyond the inflationary challenges confronting the greenback, variations in regional currencies could emerge. In such a civil war context, various U.S. regions might adopt their own currencies or monetary systems, adding complexity to the economic environment and reducing the prominence of the current U.S. dollar as the standard national currency.
Refuge in Borderless Assets
A potential second civil war in the U.S. might significantly benefit borderless assets and herald a global shift towards alternative assets. Approximately 65 countries anchor their currencies to the U.S. dollar, and it serves as the official currency of exchange in five U.S. territories and 11 foreign countries. Consequently, any disturbances to the U.S. dollar could create a global ripple effect, prompting individuals worldwide to seek refuge in alternative forms of economic value. In the event of instability in the U.S. dollar, alternative assets like gold, various foreign currencies, and cryptocurrencies might find increased favor as people look for stability beyond the American currency.
It is important to understand that these potential consequences are speculative, drawing from historical patterns and economic principles. The real effects of a second U.S. civil war would hinge on the particularities of the conflict, how the international community responds, and the actions of global financial institutions and governments. Yet, despite the conjectural nature of this scenario, the existing political divide in the U.S. is remarkably deep. Presently, Americans find themselves more ideologically polarized than they have been in over twenty years.
What do you think about the civil war discussions happening in America right now? Share your thoughts and opinions about this subject in the comments section below.
Bitcoin Price Stalls Below $38,000 Amid BlackRock-SEC Talks
The Bitcoin price rose to .475 yesterday, marking a marginally higher high for the year. Nevertheless, the price did not manage to close the day above the important ,000 mark. Shortly before the end of the day, the bears managed to push the price down again.
As crypto analyst Daan Crypto Trades remarked, “Market does its best to shake out everyone trying to pre-position for a possible Bitcoin ETF approval. It’s just free liquidity for the MMs/Whales. Sweep highs, trap longs, squeeze out longs, bait shorts, front run lows and repeat the whole process.”
BlackRock Argues With SEC Over Details Of Spot Bitcoin ETF
In a notable development, BlackRock, the world’s largest asset manager, has been again actively engaged in discussions with the US Securities and Exchange Commission (SEC) concerning the structure of its spot ETF yesterday.
Eric Balchunas, senior ETF analyst at Bloomberg, revealed, “BlackRock met with the SEC’s Trading & Markets division again yesterday and presented them with a ‘revised’ in-kind model design based on Staff’s comments at their 11/20 meeting.” This revised model includes a notable change in the process, specifically at ‘Step 4’, which is the offshore entity market maker acquiring Bitcoin from Coinbase and then pre-paying in cash to the US registered broker dealer who is not allowed to touch BTC.
James Seyffart, another Bloomberg analyst, highlighted the ongoing negotiations, adding, “More confirmation that Issuers are still meeting with the SEC. BlackRock/Nasdaq still pushing for In-Kind creation & redemption. Seems like SEC hasn’t budged on cash creates demands if this was the primary focus of the meeting. At least not before yesterday, Interesting days ahead!”
The original “In-Kind Redemption” flow had Market Maker’s Broker/Dealer entity (MM-BD) placing an order for redemption through the Authorized Participant (AP), who approves the order, allowing MM-crypto to borrow Bitcoin (or cash) to sell short. This redemption flow had potential balance sheet impacts and risks that the SEC was concerned about.
BlackRock has now proposed a “Revised In-Kind (‘Prepay Model’)” Redemption flow. This new model involves MM-crypto delivering cash to MM-BD instead of Bitcoin, and MM-BD then delivers ETF shares to the Transfer Agent via API. The Bitcoin custodian is instructed by the issuer to transfer Bitcoin to MM-crypto, who then closes the short position in BTC.
The benefits of this revised model are manifold. It aims to lower transaction costs and shifts the execution risks from investors to crypto market makers. It also claims to provide superior resistance to market manipulation and remove the need for issuers to finance or pre-fund sell trades. The reduction in risks of operating events and the simplification across the ecosystem could mean lower variance on how In-kind models can be executed versus cash models.
90% Odds Of Approval Remain
Should the SEC approve this revised model, it could herald the introduction of the first US-based spot Bitcoin ETF, a significant milestone that would allow investors to gain direct exposure to Bitcoin rather than through derivative instruments like futures. Despite these developments, there remains a level of uncertainty surrounding the SEC’s stance on the matter, particularly regarding the implications of spot Bitcoin exposure for retail investors through an ETF.
Recent leaks suggested the SEC might prefer cash creation processes over in-kind Bitcoin transfers, a move that could significantly alter the landscape for ETF issuers and broker-dealers dealing with Bitcoin. Nonetheless, Bloomberg’s ETF analysts have reiterated their 90% odds for a spot ETF approval by January 10 yesterday.
At press time, BTC traded at ,728.
Report: FTX Co-CEO Ryan Salame in Plea Deal Talks; Private Jet May Be Forfeited
A Bloomberg article, citing “people familiar with the case,” reveals that FTX’s co-CEO Ryan Salame is allegedly in talks with prosecutors, and a plea agreement could be forthcoming. Insiders also emphasize that Salame’s privately owned aircraft may be surrendered as part of the suspected plea deal.
Private Jet on the Bargaining Table as FTX’s Salame Discusses Plea Deal
Bloomberg’s Ava Benny-Morrison quotes sources who say Ryan Salame, the former co-CEO of FTX, could be negotiating a settlement with federal prosecutors concerning the collapse of the now-defunct cryptocurrency exchange.
Individuals in the know stated that Salame might enter a plea agreement as early as the upcoming month. Former FTX leader Sam Bankman-Fried is scheduled for trial in October after pleading not guilty to the charges against him.
Several colleagues have already reached plea agreements with federal prosecutors, including FTX co-founder Gary Wang, former FTX director of engineering Nishad Singh, and ex-Alameda Research CEO Caroline Ellison.
In late April, Federal Bureau of Investigation (FBI) agents searched Salame’s Maryland residence and confiscated his cell phone. Reports also indicate that Salame snitched on Bankman-Fried days before FTX declared bankruptcy.
The report by Benny-Morrison further specifies that prosecutors aim to confiscate some luxury assets acquired by FTX senior staff during the company’s peak. Sources mentioned by Benny-Morrison reveal that law enforcement is keen on having Salame forfeit his private jet.
These individuals indicated that the aircraft may play a role in the plea bargain negotiations. The report noted that messages seeking comment from Salame’s lawyers were not immediately returned.
How do you perceive the potential forfeiture of luxury assets, including Salame’s private jet, in the ongoing legal saga surrounding FTX’s collapse? Share your thoughts and opinions about this subject in the comments section below.
India’s External Affairs Minister Shuns BRICS Currency Talks, Prioritizes Rupee’s Strength Instead
Members of the BRICS alliance are meeting at a summit in Johannesburg, South Africa, in August, focusing attention on the potential for the BRICS bloc to create a gold-backed reserve currency. However, Subrahmanyam Jaishankar, India’s external affairs minister, said India isn’t interested in issuing a common BRICS currency. Instead, he said India is more concerned with strengthening the rupee.
India Snubs Common Currency Idea, Reduces Russian Oil Imports While Increasing U.S. Crude Purchases
In recent times, a great deal of interest is aimed at the BRICS nations — Brazil, Russia, India, China, and South Africa. In August, BRICS ministers plan to discuss adding new members to the alliance and creating a gold-backed common currency. Last week, Rasoul Mousavi, a representative from Iran’s Ministry of Foreign Affairs, told the press that a BRICS currency could benefit Iran and diminish the influence of the U.S. dollar.
Brazil, Russia, China, and South Africa are supporting the creation of a common BRICS currency, but India is not interested, according to Subrahmanyam Jaishankar, India’s external affairs minister. Jaishankar, in a press conference on July 3, 2023, said India is solely focused on bolstering the rupee, the country’s native currency. “On what we will discuss at the BRICS meeting, we’ll have to see because there are many other issues – but there is no idea of a BRICS currency,” Jaishankar stated.
India’s external affairs minister added:
Currencies will remain a national issue for a long time to come.
India’s GDP has proven resilient amid global economic uncertainty, outpacing other members of the BRICS bloc. Moreover, a recent report from Goldman Sachs Research predicts India could become the world’s second-largest economy by 2075. The Times of India reported that India, which has strong ties with the U.S. and Europe, does not want to jeopardize its trade relationships with Western nations by endorsing a “yet-to-be-released BRICS currency.”
Moreover, India has started buying more oil from the United States and reducing its purchases of Russian crude, according to data from energy intelligence company Vortexa. In May, Russian crude made up half of India’s imports. However, in June, daily oil imports from Russia to India fell from 1.96 million barrels to 1.798 million barrels. The Times of India suggests India may be hesitant to invite new members to the BRICS alliance. The newspaper’s contributor, Dr. Prashant Prabhakar Deshpande, says India will want to establish “well-established criteria for qualification.”
In a noteworthy development, preceding Jaishankar’s remarks on July 3, president Joe Biden of the United States and prime minister Narendra Modi of India emphasized the exceptional partnership between their nations, referring to them as two of the “closest partners in the world.”
Is India’s decision to prioritize the rupee over a BRICS common currency a strategic move or a missed opportunity for economic integration? Share your thoughts and opinions about this subject in the comments section below.
Russian Finance Minister Talks Dollar Attack on Russia, Importance of Developing Alternatives for Settlements
Russian Finance Minister Anton Siluanov has given his opinion on the perceived attack the Russian economy has been receiving from the U.S. dollar, and how the country has moved to keep trade going. Siluanov also remarked on the importance of developing settlements in national currencies.
Russian Finance Minister Anton Siluanov: ‘The Dollar Has Challenged Russia’
Anton Siluanov, the Russian finance minister, has referred to Russia’s situation after having most of its means for dollar-based exchange blocked. Siluanov noted that Russia was forced to find alternatives to the dollar due to the economic sanctions enacted by the U.S. government, due to the country’s involvement in the Russia-Ukraine conflict.
In an interview with CGTV, Siluanov stated:
We are not challenging the dollar, the dollar has challenged Russia, so we are looking for reliable alternative settlement mechanisms between our exporters and importers so that it is convenient, reliable and beneficial for participants in the foreign economic activity of our countries.
Russia has turned to using national currencies in bilateral settlements with some countries like China and Iran. In May, Russian Prime Minister Mikhail Mishustin stated that 70% of Russia-China settlements were conducted using national currencies.
Hadi Tizhoush Taban, the head of the Iran-Russia Joint Chamber of Commerce, reported more than 60% of bilateral trade was settled using the Russian ruble and the Iranian rial.
Debt Situation and Importance of De-Dollarizing
Siluanov analyzed the recent bipartisan deal signed into law by U.S. President Joe Biden to suspend the country’s debt ceiling, and how the U.S. national debt situation derived from “poor economic policies.” He explained:
The situation with the default is not new. The U.S. is unlikely to allow a default, because it prints money and would print as much as it needs. The issue is political regulation and whether the deficit and debt can go beyond certain thresholds.
The U.S. national debt is currently calculated at around .4 trillion, with Japan and China holding a significant amount. According to Siluanov, the instability of the internal economic situation of the U.S. is one of the reasons for supporting the development of settlements in national currencies and the de-dollarization of trade markets.
On this, Siluanov argued:
We don’t know how these countries will behave in the future, what inflation will be like, how much money they will print, and whether they will reach debt-ceiling agreements or not.
What do you think about Russian Finance Minister Siluanov’s statements? Tell us in the comment section below.
BRICS Bank in Membership Talks With Saudi Arabia, Report Reveals
The development bank set up by the BRICS bloc is negotiating with Saudi Arabia on accepting the country as a member, according to a press report. The talks come as the bank, created as an alternative to similar institutions led by the West, seeks to expand its funding options amid sanctions on one of its founding shareholders, Russia.
BRICS Development Bank Engaged in ‘Qualified Dialogue’ With Saudi Kingdom
The Shanghai-based New Development Bank (NDB), established by the BRICS nations (Brazil, Russia, India, China, and South Africa), is in talks with Saudi Arabia on admitting the country as a member, the Financial Times reported.
The negotiations come as the NDB prepares to evaluate its options to attract funding during its annual meeting starting on Tuesday, affected by the penalties imposed on Russia following its invasion of Ukraine, the British daily noted.
“In the Middle East, we attach great importance to the Kingdom of Saudi Arabia and are currently engaged in a qualified dialogue with them,” the New Development Bank told the newspaper in a statement while Riyadh officials were not available for comment.
Saudi Arabia’s accession would strengthen its ties with the world’s largest developing economies, on the one hand. And on the other, it would provide the ‘BRICS bank’ with access to funds from the world’s second-largest oil producer.
Dependence on Russia, which holds a 19% stake in the NDB, has been the cause of serious concerns. Last July, the rating agency Fitch downgraded the bank’s credit rating to double-A from double-A plus, warning that “reputational risk” could limit its access to the U.S. dollar bond market.
As a result, the NDB was forced to put on hold its Russia exposure of .7 billion, or 6.7% of its total assets, and halt funding new Russian projects. The move was intended to reassure investors about its compliance with Western sanctions on Moscow. In May of this year, the agency revised its outlook from “negative” to “stable,” noting the steps taken by the bank.
According to Ashwani Muthoo, director-general of the NDB’s independent evaluation office, fundraising options are “the most important thing” right now. “We are struggling to mobilize resources,” he said. Muthoo added that the board wants to examine alternative instruments and currencies.
The five BRICS countries founded the NDB in 2015 to challenge Western-dominated financial institutions of this kind. Since its establishment, the bank has lent around billion to almost 100 development projects and admitted the United Arab Emirates, Egypt, and Bangladesh as members.
Do you think the BRICS development bank will accept Saudi Arabia and more nations as members in the future? Tell us in the comments section below.