Fiat-Backed Stablecoins — Attempt to Take the Best of Both Worlds
This is a nice capsule summary of the existing stablecoin landscape, although bizarrely it doesn’t include USDC which is #2 by market cap.
Regulating LIBRA: The Transformative Potential of Facebook’s Cryptocurrency and Possible Regulatory Responses
This short paper introduces the Libra project and analyses the potential responses open to regulators worldwide.
Tether Expecting Lawsuit Based on New Market Manipulation Research
A study done by the University of Texas published in June of last year was making the claim that Bitcoin’s price was majorly affected by the issuance of new USDT tokens. Just recently, research performed by TokenAnalyst.io shows that when Tethers are issued, the Bitcoin price rises as much as 70% of the time.
Should central banks issue digital currency? Suddenly, it’s an urgent question
In a recent blog post, IMF economists Tobias Adrian and Tommaso Mancini-Griffoli called on policymakers to take “prompt regulatory action” to address the “notable risks” posed by privately issued digital currencies, called stablecoins, that are designed to maintain a consistent value. More to the point: central banks may need to get into the stablecoin business themselves.
How RTGS inadvertently killed system liquidity
"To really determine whether concepts like central bank digital currencies (CBDCs) are a logical evolution, it’s thus essential to step back in time as far back as the 80s when the big fintech discussions of the day were centred not around distributed ledgers or cryptocurrencies but RTGS systems."
What Would Facebook Regulation Look Like? Start With the FCC
"Even if antitrust enforcement moves forward, social welfare regulations are also required. This is why there have also been calls for the creation of a new regulatory agency focused on digital platforms. Such an agency would need to be able to address not only concerns about competition but also these broader social welfare concerns. Essentially, then, we need a robust public interest framework for platform regulation."
PayPal on the verge of quitting Facebook’s Libra project
PayPal is on the verge of quitting Facebook’s Libra project as three people familiar with the situation said it had pulled out of a key meeting in Washington on Thursday.
SEC Issues First 'No-Action' Letter Clearing ICO to Sell Tokens in US
The U.S. Securities and Exchange Commission (SEC) has issued a “no-action” letter to TurnKey Jet, Inc., agreeing that tokens used by the business-travel startup are not securities. The regulatory stamp of approval is contingent upon the company using its tokens under certain conditions.
In First, SEC Clears Blockchain Gaming Startup to Sell Ethereum Tokens
Pocketful of Quarters (PoQ), a gaming startup looking to issue tokens on the ethereum blockchain. PoQ may legally sell its Quarters tokens to consumers without registering them as securities, the SEC Division of Corporation Finance wrote in its second no-action letter to a company seeking to launch a token sale. (The first was granted in April to TurnKey Jet, a business-travel startup.)
Coinbase to Pay Users 1.25% Interest on USDC Stablecoin Holdings
Coinbase customers can now earn interest on their USDC stablecoin holdings at a 1.25% annual rate, paid out on a monthly basis.
Librexits look likely
Like the European Union, Facebook's Libra Association has 28 members, and both organisations face defections in the coming weeks. Brexit could be accompanied by Vexit and Mexit, according to reports.
Visa, Mastercard, Others Reconsider Involvement in Facebook's Libra Network
Policy executives from the Libra Association have been summoned to an October 3 meeting in Washington DC, and on the 14th representatives from the companies are slated to meet in Geneva to review a charter for the Libra Association and appoint a board of directors.
The Bank of Mexico Launches the CoDi Faster Payments System
Mexican central bank's real-time payment system CoDi (Cobro Digital, Digital Charge) went live on September 30. Use of the payment system, which uses QR codes or NFC, requires a smartphone and an account at a financial institution.
Does Africa need Facebook's Libra?
One of the key selling points of Facebook’s Libra project was that it would prove a boon the world’s 1.7 billion-strong unbanked community. Over in Africa, however, the humble mobile phone has been fulfilling such a role for the past 20 years.
Facebook Libra Payments Partners Waver on Cryptocurrency
Visa Inc., Mastercard Inc., PayPal Holdings Inc. and Stripe Inc. are undecided about formally signing onto Libra’s organizing charter because they’re concerned about maintaining positive relationships with regulators who have reservations about the project, the people said.
Switzerland's FINMA boss fears crypto's 'dark corners,' not Libra
Switzerland is more worried about cryptocurrency projects developing outside official scrutiny than about the Facebook-conceived Libra project, which is being handled with openness, the head of Swiss financial supervisor FINMA said on Tuesday.
Venezuelan Central Bank to Open Crypto Payments
The Venezuelan government is activating cryptocurrency payments methods to circumvent the international restrictions imposed on it.
Will Libra Catalyze a Token Revolution in Finance?
TABB Group director of fintech research Monica Summerville looks at the developing regulatory framework for cryptoassets and the future of tokenization.
Tether, Not Bitcoin, Likely the World’s Most Used Cryptocurrency
The token with the highest daily and monthly trading volume is Tether, whose market capitalization is more than 30 times smaller. Tether’s volume surpassed that of Bitcoin’s for the first time in April and has consistently exceeded it since early August at about $21 billion per day.
Does Libra Threaten Monetary Sovereignty?
"It's important to separate the genuine worries about Libra from the hyperbole. Facebook is a controversial company these days. But French monetary sovereignty is unlikely to fall at the hands of Libra. Let’s not forget that the existing payments networks — the MasterCard and Visa networks as well as the international correspondent banking system — don’t always provide consumers with low prices. Any new competition will help consumers get cheaper and better payments options."
Celo: A platform for fast, secure, stable digital payments
"Celo is an open blockchain-based platform for fast, stable, secure digital payments, Celo’s mission is to enable a monetary system that creates the conditions for prosperity for all."
Diving into the Celo Stablecoin Protocol
The Celo price stability protocol can be thought of as a hybrid crypto-collateralization/seigniorage-style model, designed in a way that we believe offers the best of all three approaches. The protocol supports an ecosystem of stable currencies, the first of which, the Celo Dollar, will be pegged to the US Dollar.
At House hearing, Facebook’s Libra stablecoin faces existential threat
“[I]t seems that we have integrated the [Libra investment] token into the Libra coin in some way such as to produce a return, which would then deem it [the Libra coin] to be a security." (U.S. Rep. Al Green at a September 24 SEC oversight hearing)
From Stablecoins to Central Bank Digital Currencies – IMF Blog
Ether Price Drop Shakes DAI Stablecoin Peg, Two Collateral Contracts Closed
The recent Ether (ETH) price drop showed the reliability and weaknesses of the decentralized stablecoin built by MakerDAO, Dai (DAI), and the decentralized finance (DeFi) ecosystem built on top of it.
Why building a new protocol for money is the only way to truly change the game for people
"David Marcus: I'm often asked why we didn’t take a more traditional route of building a payment system on top of existing rails, instead of the more ambitious route we’ve chosen. I tried to find a good concise write-up about the advantages of a new core network to move money around, and couldn’t find one, so I thought it would be a good idea to take a stab at it.
Central banks urged to adopt DLT-based CBDC
A key question for adherents of DLT is why it offers benefits beyond traditional settlement mechanisms. Whelan suggested “smart contracts” could be one answer – contracts written in computer code that can be fulfilled automatically when certain conditions are met. He said such contracts had proven “extremely powerful” in trials.
Introductory remarks to the Committee on the Digital Agenda of the Deutscher Bundestag
"All things considered, Libra has undoubtedly been a wakeup call for central banks and policymakers. Global "stablecoin" initiatives are the natural result of rapid technological progress, globalisation and shifting consumer preferences. The demand for fast, reliable and cheap cross-border payments is bound to grow further in coming years. Policymakers and central banks should respond to these challenges."
The End of a Stablecoin — The Case of NuBits - Reserve Currency
NuBits, a stablecoin first introduced in 2014, provides an illuminating case study for how stablecoins work in practice. It has been functional for over 3 years, ever since the beginning of the stablecoin concept, and is currently the only live example of a stablecoin in the Seigniorage Shares category. Well, mostly functional. NuBits has suffered two big crashes, with extended peg breaking. Fortunately for us, there are valuable takeaways to be garnered from those crashes.
Bitfinex And Tether Win Appeal From New York Supreme Court In $900 Million Case
Bitfinex has won an appeal in the New York Supreme Court, which means it won’t have to turn over documents pertaining to its use of the the cryptocurrency Tether.