It’s getting heated with Wells Fargo’s new stablecoin.
What actually matters this week, and why.
In my humble opinion…
UMA (Universal Market Access) is a decentralized financial contracts platform, which allows two counterparties to design their own financial contracts. The different kinds of contracts developed on this platform are completely customizable – anyone can gain exposure on any financial asset, which allows participants from countries with weaker markets/financial infrastructures to garner more expansive investment opportunities. While they’re not launched quite yet, we’re excited to see what financial products are built with UMA. Read their whitepaper here.
The cryptoverse is extra salty this week, as Wells Fargo officially dives into crypto and JPMorgan doubles down on blockchain.
Perhaps you could hear the screams of crypto lovers everywhere as Wells Fargo announced a 2020 launch of Wells Fargo Digital Cash: a U.S. dollar-backed stablecoin for internal cross-border payments. Wells Fargo will be using their own proprietary digital tech platform (yes, they have their own patent), built on the enterprise version of R3’s blockchain known as Corda Enterprise.
You may have heard of other banks following the stablecoin trend, with JPMorgan Chase having created their own namesake token, JPM Coin. This week, JPM will announce the addition of Deutsche Bank to their Interbank Information Network (IIN) where a grand total of 320 banks have agreed to share information on global payments over blockchain. Now for some bad news: three traders at JPM this week were charged with alleged market manipulation by the U.S. Department of Justice. The crypto community’s response? Not kind, especially since many say they’ve been calling it for years.
Here’s where things get extra juicy – yesterday, the European Central Bank (ECB) hosted an event with 26 central banks along with the Libra team. The ECB said that stablecoins (see: Libra) potentially pose a risk to public policy and currency stabilization. Libra’s response was, naturally, that they’re not actually creating new currencies, only building on top to existing currencies, even though their nodes are questionably run by third party companies.
Ethereum’s on, what we in the industry like to call, a hot streak.
Let’s begin with the obvious – Ethereum’s (ETH) price has been especially strong this week, surging in conjunction with other alts (although we’re still debating as to whether or not alt season is really here). BitPay, one of the world’s largest cryptocurrency payment providers that conducts over $1 billion in BTC transactions every year, now supports ETH. And while Vitalik’s pretty happy about it, there’s been some controversy around BitPay suspending payments and arbitrarily freezing transactions, most recently to the Hong Kong Free Press; as for whether or not this is related to the Hong Kong protests is unclear. As far we know, BitPay has been working on it.
Another interesting development is Ethereum’s increase in block size through a community vote, which expects to help transaction speed amid fears of clogging the network. ICYMI, Ethereum has a pretty big scalability issue. The network is bowing with the “unprecedented demand” that smart contracts, not ETH trading, has created. Unfortunately, it seems that the largest smart contract belongs to none other than some bizarre Ethereum-based Ponzi scheme, burning a jaw-dropping 27% of all gas as of Monday. That’s what we like to call a “gas guzzlers.”
Our dreams are dying: Burger King is struggling to accept BTC as payment.
Last week, Binance’s BTC futures saw a 24 hour $150MM USDT volume. Damn. Yesterday, their platform had a 3% flash crash thanks to a bug, not a malicious market maker.
The DOJ is suing to freeze the revenue of Edward Snowden’s new book. Crypto is looking like the next best option.
Coin to Watch
(CRYPTO: NCT) When it’s Almost Alt Season, it’s hard to pick poorly. We’re happy to monitor PolySwarm, which has battled out the crypto winter fairly well.
You Laugh You Win
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