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2021-10-11 12:54:32 ​​Texas should use Bitcoin mining to capture wasted natural gas: Sen. Ted Cruz

Senator Cruz predicts that Bitcoin mining will be used to capture wasted renewables and Texas’ power grid within five years.

U.S. Senator Ted Cruz believes The United States should be using natural gas to mine Bitcoin instead of flaring it.

Speaking during the Oct. 8 Texas Blockchain Summit, Senator Cruz asserted that Bitcoin mining can be used to monetize energy created through oil and gas extraction rather than burning it, arguing that there is “enormous opportunity for Bitcoin ... to capture that gas instead of wasting it.”

According to a transcription of the talk shared to social media by Coin Metrics founder Nic Carter, Cruz noted that half of the natural gas flared in the country is currently being burned in West Texas. “It’s being wasted because there is no transmission equipment to get that natural gas where it could be used the way natural gas would ordinarily be employed,” he added.

“Use that power to mine Bitcoin. Part of the beauty of that is the instant you’re doing it you’re helping the environment enormously because rather than flaring the natural gas you’re putting it to productive use.”

Cruz emphasized the capacity for Bitcoin mining to be mobilized reflexively in response to fluctuating energy supply, stating that energy could be immediately returned to the grid in the event of a sudden power outage or shortage.

“In five years I expect to see a dramatically different terrain with Bitcoin mining playing a significant role in strengthening and hardening the resilience of the grid,” he added.

Cruz noted that Bitcoin can be used to capture unutilized energy across the globe, arguing: “There are a lot of places on Earth where the sun shines a lot and the wind blows a lot but there aren’t any power lines and it's not economically feasible to use that energy.” Open / Comment

2021-10-08 13:08:42 ​​Magic Internet Money races past $1B, sets sights on MakerDao

Abracadabra Money enables users to provide collateral via interest-bearing bearing tokens and borrow the Magic Internet Money stablecoin against their holdings.

Abracadabra Money’s stablecoin Magic Internet Money (MIM) has surged past a $1 billion total supply this month as the project works to provide competition to MakerDAO.

Abracadabra is a cross-chain stablecoin lending protocol that operates on Ethereum, Binance Smart Chain (BSC), Fantom, Avalanche, and Arbitrum. Along with MIM, the project also has a SPELL governance token which can be staked on the protocol.

The project describes itself as a “spell book” that enables users to provide collateral via interest-bearing bearing tokens such as yvUSDC, xSUSHI and to borrow the MIM stablecoin against their tokens.

“To reverse the spell, the caster simply returns the conjured MIMs to the spell book. Then the magically locked interest-bearing tokens are released,” the website reads.

Interest-bearing tokens such as xSUSHI provide the hodler with a cut of the fees from the decentralized exchange (DEX) SushiSwap.

Abracadabra launched in May, and according to Coingecko, MIM has surged to seventh on the stablecoin rankings with a market cap of $1.14 billion at the time of writing.

While MakerDAO’s DAI stablecoin currently sits at fourth with a market cap of $6.4 billion, MIM’s meteoric rise suggests that it could provide strong competition to the popular platform soon.

By contrast, DAI was launched back in December 2017 and surpassed a market cap of $1 billion in late 2020. A caveat to that however, is that there was significantly less activity in the crypto market when DAI was initially launched.

Abracadabra takes fees from the interest paid on the loans. It surpassed MakerDAO last week in terms of fees, generating $1.27 million versus $969,000 respectively. MakerDAO still looms over Abracadabra in terms of total value locked (TVL), with $13.7 billion to $1.7 billion. Open / Comment

2021-10-05 13:12:22 Circle reveals cooperation in ongoing SEC investigation

Circle has published filings revealing it is cooperating with a subpoena from the SEC that it received in July.

Circle, the company behind the world’s second-largest stablecoin USD Coin, has been subpoenaed by the U.S. Securities and Exchange Commission (SEC).

According to an Oct. 4 regulatory filing from Circle, the SEC issued an “investigative subpoena” from its Enforcement Division in July.

Circle, which is behind the USDC stablecoin, stated that it would be fully cooperating with the regulator after receiving the request:

“In addition, in July 2021, we received an investigative subpoena from the SEC Enforcement Division requesting documents and information regarding certain of our holdings, customer programs, and operations. We are cooperating fully with their investigation.”

The Circle filing is part of its plan to go public via a special-purpose acquisition vehicle through a merger with Concord Acquisition Corp, with the firm valued at $4.5 billion.

CIrcle issued an identical statement in an August filing amid the SEC’s investigations into its operation of former subsidiary Poloniex. That same month, Circle agreed to pay the SEC more than $10 million in fines for charges against Poloniex for operating as an unregistered cryptocurrency exchange.

In late July, Circle released a disclosure report revealing that 61% of USDC’s reserves were held in cash and cash equivalents, the remainder in commercial paper accounts, treasuries, and bonds.

In early September, the SEC threatened to sue USDC-issuing Centre Consortium member Coinbase over a proposed lending product that would yield interest rates for select holders of USDC. Open / Comment

2021-10-01 13:26:52 Global CBDC bridge needs public and private cooperation, says BIS

Cooperation between public and private sectors would be vital for a global CBDC system, says a new joint report.

The Bank for International Settlements (BIS) continues investigating the development of the global central bank digital currency (CBDC), publishing a new joint report with seven central banks.

Released Sept. 30, BIS’ latest CBDC report refers to joint efforts to explore a retail CBDC alongside the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the United States Federal Reserve, Sveriges Riksbank and the Swiss National Bank.

The report provides an executive summary of investigation progress made since publishing a report in October 2020, which pointed out common foundational principles and core features of a CBDC. The BIS also published three detailed CBDC reports related to CBDC system design and interoperability, user needs, adoption and financial stability implications.

According to the new report, an effective CBDC system would “need to involve both public and private actors to ensure interoperability and coexistence with the broader payment system.”

The central banks participating in the report agreed that any CBDC ecosystem would involve the public and private sectors in a balance to provide “desired policy outcome and enable innovation that meets users’ evolving payment needs.” The ability to bridge between CBDCs and traditional payment systems would be crucial for the financial system, the report stated:

“Yet a theme that cuts through almost every consideration is interoperability. Domestic interoperability would be key to ensuring a CBDC system coexists with other national payment systems and contributes to broader accessibility, resilience and diversity.”

The central bank group will continue further exploring CBDC issues, planning to increase global and domestic outreach to maintain an open and informed dialogue on CBDC. “Collectively, we are sharing insights from our work with other central banks, including in developing economies,” the banks noted.

The new joint central bank report comes amid payment giant Visa officially introducing its own blockchain interoperability project on Sept. 30, aiming to bring a “universal adapter” connecting multiple cryptocurrencies, stablecoins and CBDCs. Previously, tech giant Microsoft won a blockchain patent describing a cross-chain system allowing individuals and organizations to create and manage tokens across multiple distributed ledger networks and platforms. Open / Comment

2021-09-29 12:09:35 ​​First cryptocurrency fund approved in Switzerland

The fund tracks the performance of the 10 largest cryptocurrencies from SIX Swiss Exchange’s Crypto Market Index 10.

Cryptocurrency adoption continues gaining momentum in Switzerland as local financial authorities grant more regulatory approvals for crypto investment instruments.

The Swiss Financial Market Supervisory Authority (FINMA) has approved the Crypto Market Index Fund as the “first crypto fund according to Swiss law,” the authority officially announced Sept. 29.

The fund is launched by Swiss asset manager Crypto Finance and is administered by investment management firm PvB Pernet von Ballmoos AG with custody by regulated custodian SEBA Bank AG.

FINMA noted that the newly approved fund is restricted to qualified investors, investing primarily in cryptocurrencies or digital assets “based on the blockchain or distributed ledger technology.”

The regulator said that the Crypto Market Index Fund may only invest in leading cryptocurrencies with a “sufficiently large trading volume.” According to Crypto Finance, the fund will track the performance of the Crypto Market Index 10, a product administered by the SIX Swiss Exchange.

“The objective of the Crypto Market Index 10 is to reliably measure the performance of the largest, liquid crypto assets and tokens and to provide an investable benchmark for this asset class,” Crypto Finance noted.

FINMA added that it would require investors to invest only through established counterparties that are based in a member country of the Financial Action Task Force and are subject to corresponding anti-money laundering regulations.

In conjunction with the fund approval, FINMA has also approved SEBA Bank AG as an institutional-grade custodian service by granting the firm a CISA license. Previously, the authority officially allowed SIX Swiss Exchange to launch a digital marketplace and central securities depository built on distributed ledger technology in early September. Open / Comment

2021-09-27 12:35:25 ​​Huobi outlines plan for Chinese investors after halting crypto trading

Huobi Group co-founder Du Jun intends to safeguard all crypto assets on Chinese accounts before permanently closing them down by Dec. 31, 2021.

The uncertainties sparked by China’s blanket ban on crypto trading have taken a downturn as homegrown crypto exchanges such as Houbi take proactive measures to protect and return existing investments residing on the mainland.

Speaking to Cointelegraph in this regard, Du Jun, co-founder of Huobi Group, said that the crypto exchange wants to ensure the safety of the users' assets as part of its social responsibility:

“Customers will be able to transfer their assets to other exchanges or wallets over the next few months. Specific measures and operating rules will be outlined in future announcements.”

Citing a possibility of a communication gap with Chinese investors amidst the ban, the crypto exchange is also working on other ways to protect customer assets until the users can move them to offshore exchanges or wallets.

Chinese investors amounted to more than 30% in terms of trading volumes prior to the crypto ban, but as Jun suggests, Huobi has seen increased adoption in the Southeast Asian and European markets. However, the exchange expects that “any short-term impact on Huobi revenues will be mitigated as our global business continues to grow.”

While observing the ban on crypto trades and mining as imposed by the People's Bank of China and other Chinese regulatory authorities, Jun plans to double down on Huobi’s compliance efforts and continue to build compliant operations on a global scale.

Crypto exchanges in mainland China, including Huobi, began stopping new customer registrations soon after a new crypto ban became effective on Sept. 24. Huobi later announced that all Chinese accounts from the mainland will be closed down by 24:00 UTC+8 on Dec. 31, 2021.

Historically, China has been responsible for the lion’s share of Bitcoin (BTC) mining. Given the lack of support from the ruling government, Chinese miners have continued to move off-shore into crypto-friendly jurisdictions.

According to a recent Cointelegraph report, the latest ban marks the Chinese regulators’ 19th attempt to curb Bitcoin and cryptocurrencies in the past 12 years. While the decision to ban crypto trades in China caused a few unwary investors to momentarily panic sell, Bitcoin price continues to show bullish signals given the proactive support from crypto exchanges and users across the globe. Open / Comment

2021-09-24 12:35:16 ​​Big investors pivoting from Bitcoin to Ether futures: JPMorgan

Ether futures are currently trading at a premium as investors make the switch from Bitcoin-based products.

American multinational investment bank JPMorgan has revealed that institutional investors are starting to shy away from Bitcoin futures in favor of Ether derivatives.

In a note to investors on Sept. 22, analysts at the Wall Street bank said that Bitcoin futures on the Chicago Mercantile Exchange (CME) have traded at a discount compared to spot BTC prices during September.

As a consequence, Ethereum-based products have grown in popularity as investors made the switch to the world’s second-largest crypto asset. The analysts commented that there has been a “strong divergence in demand,” before adding:

“This is a setback for Bitcoin and a reflection of weak demand by institutional investors that tend to use regulated CME futures contracts to gain exposure to Bitcoin,”

When demand is high, BTC futures usually trade at a premium over the spot markets due to high BTC storage costs and enticing yields for passive crypto investing, the analysts added.

According to CME data, the 21-day average ETH futures premium rose to 1% over Ether prices on the spot markets. “This points to much healthier demand for Ethereum vs. Bitcoin by institutional investors,” commented the JPM analysts.

According to Skew Analytics, Binance is the industry leader for BTC futures volumes with $20 billion traded over the past 24 hours. OKEx is second with $5.36 billion and CME has just $2.34 billion traded over the past 24 hours by comparison. Binance also dominates for ETH futures with a daily volume of $9.7 billion.

Somewhat ironically JPM’s take on crypto futures emerged on the same day a motion was filed in a Manhattan federal court ordering JPMorgan to pay $16 million to Treasury futures investors for creating false demand, or “spoofing”. According to Law360, the move follows the bank’s $920 million criminal settlement with the U.S. Department of Justice in September 2020 for manipulating commodities futures markets. Open / Comment

2021-09-22 13:00:57 ​​Bitcoin miner Genesis Digital Assets raises $431M

Genesis Digital previously raised $125 million in an equity funding round led by Kingsway Capital in July 2021.

Major Bitcoin (BTC) mining company Genesis Digital Assets has secured $431 million in funding to expand its industrial-scale mining operations in the United States and Nordics.

The new funding round was led by Paradigm, one of the biggest cryptocurrency investment companies backing major industry players like Coinbase and FTX. Paradigm co-founder Matt Huang has also joined Genesis Digital’s board of directors, the firm announced on Sept. 21.

Other investors include the $11 billion asset manager Stone Ridge and its Bitcoin subsidiary NYDIG and several venture capital firms and investment management firms like Ribbit, Electric Capital, Skybridge and Kingsway Capital, and FTX crypto exchange. Kingsway previously led a $125 million equity funding round for Genesis in July 2021.

Genesis Digital CEO and co-founder Marco Streng noted that the new funds will help the company to continue expanding operations with a goal to reach 1.4 gigawatts in mining capacity by 2023. “The capital raised from this round will be used to expand our Bitcoin mining operations in locations where clean energy is easily accessible,” he added.

One of the largest Bitcoin miners in the United States, Genesis Digital has been actively increasing its mining power recently, accumulating more hardware for mining the cryptocurrency. In late August, the firm purchased 20,000 new BTC mining devices from Chinese mining giant Canaan, signing an agreement to buy up to 180,000 additional miners in the future.

Genesis Digital’s mining capacity has been steadily increasing recently, surging from around 140 megawatts as of July 2021, or a total hash rate of 2.6 exahashes (EH/s), to over 170 megawatts, or 3.3 EH/s as of September. The company expects to add another 8.6 EH/s in the next 12 months. Open / Comment

2021-09-20 12:45:23 ​​El Salvador acts on Bitcoin price dip and buys 150 BTC

El Salvador didn’t miss the chance to buy the dip as the Bitcoin price fell back to $45,000 after a bullish week.

Despite warnings from global agencies regarding its adoption of Bitcoin (BTC), El Salvador's government continues to seize market opportunities.

As the Bitcoin price fell below $46,000 on Monday morning, Salvadoran President Nayib Bukele announced on Twitter that the country has “bought the dip.” With 150 new coins, the Central American government now holds 700 BTC, worth close to $32 million at the time of writing.

In an obvious nod to the “not financial advice” disclaimers shown around the crypto ecosystem, Bukele shared his “presidential advice” by reminding that “They can never beat you if you buy the dips.”

As reported by Cointelegraph, El Salvador bought another dip on the day BTC became legal tender in the country, when Bitcoin experienced a flash crash to below $43,000.

El Salvador’s move toward adoption got the crypto universe excited, especially with the possible tax exemption for Bitcoin investors. However, the government’s decision to adopt Bitcoin as legal tender is not totally free of problems.

Aside from protests and marches against the government’s Bitcoin move, credit rating agency Standard and Poor's Global said that the adoption “has immediate negative implications” for the country’s credit rating. S&P also claimed the move would hurt El Salvador’s chances of securing a $1 billion loan agreement from the International Monetary Fund.

El Salvador made history by becoming the first country to recognize Bitcoin as legal tender on Sept. 7. The government held 400 BTC then. By taking advantage of two price dips in two weeks, purchasing 150 coins each time, El Salvador raised its Bitcoin holdings to 700 BTC. Open / Comment

2021-09-17 12:45:22 ​​Satoshi Nakamoto statue goes up in Budapest

“Whoever he or she was, Bitcoin creates value, and especially the technology behind Bitcoin, blockchain, creates value,” said András Győrfi.

A bronze depiction of legendary Bitcoin creator Satoshi Nakamoto is now on display for visitors of Graphisoft Park in Budapest.

In an unveiling ceremony on Thursday, András Győrfi, the co-founder of the statue project and editor of crypto news site Kripto Akademia, spoke to a crowd of journalists and Hungarian residents before revealing the shining face of Satoshi. The sculpture shows the upper half of a figure with a featureless face wearing a hoodie with the Bitcoin (BTC) logo.

“Whoever he or she was, Bitcoin creates value, and especially the technology behind Bitcoin, blockchain, creates value,” said Győrfi.

Debreczeni Barnabás, CEO of Hungarian crypto exchange Shinrai, also spoke at the ceremony, adding:

“Satoshi Nakamoto has created an independent money free of any middlemen that empowered people with financial sovereignty [...] We have erected this statue to remind ourselves courage is virtue. We need to keep on dreaming big.” Open / Comment