Ending US Dollar Dominance for Crypto Makes No Sense

Ex-United States Federal Reserve official Simon Potter stated that the plan to end the U.S. dollar’s dominance by replacing it with a digital currency makes no sense. Central banks unlikely to coordinate around virtual currency Last month, Governor of the Bank of England Mark Carney suggested ending the U.S. dollar’s dominance by replacing it with a digital currency, such as Facebook’s planned stablecoin, Libra. The Bank of England chief said that he considers this to be a better option than allowing it to be replaced by another national currency such…

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. A decentralized stablecoin Ethereum-collateralized decentralized stablecoin DAI managed to maintain its peg to the United States dollar as Ether lost over 18% of its value in under two hours, falling from $190 to $155 yesterday. As of press time, Ethereum holds a price of about $171. Ethereum seven-day price chart. Source: Coin360 The impact of higher transaction fees DeFi…

EOS Parent Firm Block.one Opens Up Headquarters in Washington DC

EOS parent company Block.one is opening its fourth global site located in the Washington, D.C. metropolitan region. Creating 170 jobs over the next three years On Sept. 23, Block.one LLC announced that it is opening new headquarters for its United States operations arm in the region of Arlington, Virginia, located in the Washington, D.C. metro area. The office will purportedly create 170 high-skilled jobs over a period of three years. Block.one CEO Brendan Blumer said: “Its proximity to the nation’s capital positions us close to the policy innovation around digital…

US House Financial Services Committee and SEC: Whose Move on Crypto?

Yesterday, Sept. 24, Cointelegraph reported from the United States House Financial Services hearing with the chairman and four commissioners of the Securities and Exchange Commission (SEC). The hearing was informational and touched on a number of issues that have been plaguing the conversation in the U.S. about regulating cryptocurrencies — a conversation that the release of Facebook’s white paper for Libra in June amplified significantly. Congressional attitudes: A study in contrasts The range of attitudes on display yesterday among members of the Financial Services Committee was broad. Brad Sherman —…

Chinese Homecoming — Crypto Companies Make Their Way Back to Asia

In what is being considered a major step forward for Binance, CEO Changpeng Zhao (aka CZ) recently announced that his firm was all set to make its first strategic investment in China since leaving the Asian powerhouse back in 2017.  At the time, the government had enforced a local crypto trading ban that resulted in a number of firms either shutting down completely or relocating to other, more hospitable destinations. In regard to this latest development, Binance — one of the world’s leading cryptocurrency exchanges — recently participated in a…

Facebook’s David Marcus Advocates for Blockchain-Based Payment Networks

David Marcus, the head of Calibra at Facebook, has set forth arguments in favor of blockchain-based payment networks. In a Sept. 25 blog post, Marcus pointed out shortcomings of existing payment systems such as regional and international networks, including SWIFT and RT1, central banks and others. Marcus began by noting the weakness of the underlying infrastructure of the current system that limits its efficiency and reach. In one case, Marcus wrote, an individual can send and receive funds from within one wallet, while not being able to do the same…

ECB Exec Says Libra Could Address Failings of Global Payments System

Facebook’s Libra has pushed central banks to consider two major issues in global payment systems, an exec at the European Central Bank (ECB) said. Benoit Coeure made his remarks at a hearing of the Committee on the Digital Agenda in the German parliament on Sept. 25. According to Coeure, an ECB board member and chair of the Committee on Payments and Market Infrastructure, global payment systems still lack access and efficiency of cross-border retail payments. As such, 1.7 billion adults globally have no access to basic payment services despite 1.1 billion…

Daimler Conducts Transaction on Marco Polo Trade Finance Network

Mercedes-Benz parent company Daimler AG and mechanical engineering firm Dürr AG have conducted a pilot transaction on blockchain software firm R3’s Marco Polo trade finance network. Per a press release published on Sept. 25, the transaction between Daimler and Dürr included the order and delivery agreement from Dürr’s subsidiary Schneck, wherein the payment was secured by a conditional payment commitment by the buyer’s bank. Marco Polo founding member LBBW provided the financing and payment commitment. Once the equipment was delivered, the system automatically uploaded the order fulfillment information and adjusted…