Blockchain Bites: Iran and Russia Revisit Crypto Regulations, Bitcoin Pizza Day 10 Years Later
Ten years later, those bitcoin would be worth $91 million. He apparently has no regrets. âIt was a really interesting system but nobodyâs using it,â Hanyecz said. âIf nobodyâs using it, it doesnât matter if I have it all.âÂ
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This one transaction, conducted about a year after bitcoinâs inception, was the proof-of-concept necessary for a whole emergent economy to blossom. Ten years â to the day â later, bitcoin is looked at as a legitimate hedge against the Fed, a means of payment and a veritable worldview.Â
While Hanyecz has said if it wasnât him it would have been someone else, today we recognize his sacrifice and experiment.Â
Happy Bitcoin Pizza Day!
Iranian Crypto Mining
Iranian President Hassan RouhaniÂ has ordered the the Central Bank of Iran (CBI), energy department and information and communication technology ministries to draft a renewed national strategy for the crypto miningÂ industry. The news comes days after the Iranian parliament published a bill proposing to apply the countryâs strict foreign exchange and currency smuggling regulation to cryptocurrencies. Itâs unclear why the nationâs crypto policies are being revisited, though some speculate its to prevent value from escaping the nationâs borders. Â
Harsh new rules making many uses of digital assets punishable with fines or prison might soon become law in Russia.Â Two draft bills setting out how Russia should regulate cryptocurrencies were sent to the countryâs parliament, the State Duma, earlier this week. The first of which would prohibit the issuance and transaction of digital currencies in the nation, while the second would impose new sanctions for the illegal use of digital assets. The draft bills have not been finalized, according a high ranking official at the Duma.
Canaan has reportedÂ a net loss of $5.6 millionÂ and shrinking cash reserves for the first quarter of 2020. Revenues are up 44% quarter over quarter after the firm slashed prices, but it also incurred $9.3 million and $5.9 million expenses in cost of goods sold and R&D, respectively. Canaanâs next generation miners will hit shelves next quarter, though the firm has not provided a business outlook citing the uncertainties of the COVID-19 pandemic and the post-Bitcoin halving.
Top Chinese political advisers have proposedÂ a regional digital currency to facilitate regional tradeÂ that would be backed by four major Asian currencies including the Japanese yen, Korean won, Hong Kong dollar and the yuan, with the Peopleâs Bank of China leading the proposed effort. The basket of underlying collateral would be weighted based on its nationâs economy, resembling the original vision for Facebookâs libra.
Next of Kin
- The kin cryptocurrency may leave its own fork of Stellar for the Solana blockchain. âThe fork of Stellar enabled Kin to reach millions of consumers, but we knew it would not be a long-term solution,â a draft Kin Improvement Proposal reads. âStellar has five-second block times, so irrespective of network load, a consumer could be seeing five-second latency on their transactions â not what we would deem a great consumer experience.â The draft proposal claims switching to Solana would lead to an 84% reduction in kinâs latency.
- The Kin Foundation published a transparency report Thursday, laying out its structure and operations, in a partnership with Messari and its disclosure database. Notably, 28 million users have acquired kin in the last three years across more than 50 different apps, and are spending 300 million kin per day, the report claims. The foundationâs tokens are vested at a rate of 20% per year.
Blockchain Bill of Rights
The World Economic Forum revealed a âblockchain bill of rightsâ to protect a crypto userâs right to âmanage consent of data stored in third-party systems, port data between interoperable systemsâ and ârevoke consent for future data collection.â Called the Presidio Principles, the document includes signatories from the Government of Colombia, Deloitte, ConsenSys, Electric Coin Company, CoinShares and the United Nationsâ World Food Program, just to name a few.Â
Anchorage now has six executives in its C-suite, hiring a head of finance and head of sales with experience in both tech and Wall Street. With the new hires, this will be the first time the custodian has employees with âthis deep of a benchâ running the sales and finance sides of the business, President Diogo MÃ³nica said. âItâs pretty obvious that Anchorage has larger ambitions than its current set of services,â he said. âI think you can start following the breadcrumbs.â
ADAM Hires Blockinger
ADAM, a 15-member crypto trade group, hired Jeffrey Blockinger, a former hedge fund legal chief, as its first chief executive. The agency write codes of conduct for the industry. âI look forward to expanding our leadership role in shaping the future of the digital assets markets by building consensus for the entire industry,â Blockinger said in a statement. (The Block)
Whale Alert has tracked 28.3 bitcoin ($260,000) stolen in a Bitfinex hack four years ago moving to an unknown wallet. (Decrypt)
Travala, a crypto travel booking platform, has been merged with Binanceâs TravelbyBit, which also provides travel services. The merged company aims to provide offerings for 2 million hotels and 600 airlines. (The Block)
Crypto âGrayâ Markets Could Be Unintended Consequence of FATF Travel Rule
The Financial Action Task Forceâs (FATF) âTravel Rule,â an attempt to extend prescriptive banking regulations to the crypto market, may lead to a bifurcation of the market. âWe are going to see white crypto; we are going to see gray crypto. And those different forms of crypto will most likely trade at different prices,â said Bakkt President Adam White at Consensus: Distributed. Other commenters noted that the rule could lead to increased use of privacy coins and regulatory arbitrage between nations that choose to turn a blind eye on exchanges ignoring this global standard.
Finance and the Real Economy Canât Stay Out of Sync Forever
Jill Carlson, co-founder of the Open Money Initiative, argues the imbalance between stock prices, spurred by Federal stimuli, and record-levels of unemployment will rectify sooner than later.Â â[W]hen I look at the impacts of COVID-19, I see as much slowing down or creaking to a halt as I see speeding up. Our way of life has slowed. Economic time has stopped. For now, financial time has carried on. But there is good reason to think that may slow soon, too, as we realize our spendthrift habits donât always serve us well,â she said.Â
âDismantle the Euro to Save Europeâ Feat. Tuomas Malinen
Tuomas Malinen, CEO of GnS Economics, a macroeconomic advisory firm, joins NLW to discuss how the COVID-19 pandemic is putting pressure on the legitimacy of the European Union and the euro.Â
Who Won #CryptoTwitter?
- Crypto Long & Short: Innovation Cycles, Crypto Venture Funds and Institutional Investors
- 10 Years After Laszlo Hanyecz Bought Pizza With 10K Bitcoin, He Has No Regrets
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