Crypto For Trade Settlements 🪙
Russia to allow crypto payments in international trade to counter sanctions. PayPal PYUSD hits $1B market cap. SEC’s unconstitutional collection of trading data. Argentina to teach Ethereum in school.
Hello, y'all. The music quiz game that’s got over million plays. How about throwing the challenge to your friends? Do it 👇
Russia's plans to use cryptocurrency for international trade settlements.
Will start testing cryptocurrency exchanges on September 1, 2024, to facilitate cross-border transactions amid international sanctions.
The initiative is designed to assist Russian exporters in conducting international transactions amid ongoing Western sanctions.
Addressing payment difficulties: The trials aim to help Russian businesses overcome challenges in paying foreign suppliers and receiving payments for exports.
Use of National Payment Card system: To convert rubles to cryptocurrencies during the testing phase.
Impact of recent sanctions: The move follows the US expanding sanctions against foreign banks working with Russia in June 2024, leading many Chinese banks to halt yuan payments.
Russia has been cut off from the Swift international banking system since 2022, isolating it from the US dollar-based Western financial system.
Future plans for crypto platforms: If the trials are successful, the Moscow Exchange and St. Petersburg Currency Exchange may establish their own crypto platforms in 2025.
Government's stance on crypto exchanges: Russian Finance Minister Anton Siluanov stated that the government is exploring ways to allow international crypto exchanges to operate in the country.
Legalisation of crypto activities
In July 2024, Russia's parliament legalised crypto mining and created a framework for testing digital tokens for cross-border payments.
President Vladimir Putin signed these bills into law on August 8, 2024.
Significant shift from Russia's previous proposal for a blanket ban on cryptocurrencies in 2022.
The Quiz Game For The Music Lovers
Musicnerd.io - is more than just a platform; it's a journey into the world of music.
It provides an interactive experience through quizzes and exploration tools. For artists it’s a powerful tool for artists to connect with their fans.
Through custom quizzes artists can engage their audience, receive direct feedback, and build a loyal following eagerly anticipating their next release.
The platform offers a direct line to the fans, fostering a sense of connection that goes beyond mere listening.
Block That Quote 🎙️
Meta CEO Mark Zuckerberg
“I believe the government pressure was wrong, and I regret that we were not more outspoken about it.”
Zuckerberg sent a letter to Rep. Jim Jordan, chairman of the House Judiciary Committee, on August 26, 2024.
Key allegations
Senior Biden administration officials "repeatedly pressured" Meta to censor certain COVID-19 content in 2021.
This included requests to remove "humour and satire" related to the pandemic.
Zuckerberg believes this government pressure "was wrong."
Zuckerberg's response: Meta should not compromise content standards due to pressure from any administration.
Acknowledged some content moderation choices made then wouldn't be made today with "hindsight and new information."
Meta has since changed policies to prevent similar occurrences.
This letter is part of an ongoing investigation into content moderation on social media platforms. The tension between government efforts to combat misinformation and concerns over free speech.
Read: Telegram CEO Pavel Durov Arrested ⛓️
PayPal USD Hits $1 Billion Market Cap
Launched in 2023, PayPal's US dollar-pegged stablecoin, PayPal USD (PYUSD) is backed 1:1 by US dollars and issued by Paxos Trust Company, a US-regulated crypto custodian.
As an Ethereum-compatible ERC-20 token, it's designed to be easily integrated with various Web3 applications and cryptocurrency exchanges.
Designed for easy integration with Web3 applications and cryptocurrency exchanges.
Competitive landscape
Competes with other regulated, dollar-backed stablecoins like Circle's USD Coin (USDC).
Still lags behind Tether (USDT) and USDC, which have market capitalisations of nearly $118 billion and $35 billion, respectively.
Expansion initiatives.
Partnered with Anchorage Digital to launch a rewards program for PYUSD custody clients.
Launched PYUSD on the Solana blockchain in collaboration with Crypto.com, Phantom, and Paxos.
Teamed up with MoonPay to enable cryptocurrency purchases using PayPal accounts.
Solana Network Expansion
PYUSD expanded to the Solana network in late May, leading to significant growth.
Supply on Solana reached $650 million within three months, surpassing its Ethereum supply, DefiLlama data shows.
PYUSD supply on Solana grew by 171% over the past month, nearing Tether's USDT levels on the network.
Incentives driving growth: Solana-based decentralised finance (DeFi) protocols like Kamino, Drift, and Marginfi are offering boosted rewards for PYUSD deposits.
Sustainability Concerns: David Shuttleworth from Anagram raises concerns about the long-term sustainability of growth driven by incentives.
"My sense is that these incentives are not sustainable, but they are not designed to be permanent. Part of the idea here is to get more PYUSD into circulation and get users, especially new ones, on-chain and active on the Solana ecosystem."
Read: PayPal's Stablecoin Play 🎲
In The Numbers 🔢
$533 million
The weekly inflows from August 18 to August 24, for crypto investment products. The largest inflows in five weeks, according to CoinShares.
Inflows surge: Bitcoin experienced $543 million in inflows last week after favourable comments from Federal Reserve Chair Jerome Powell. Ethereum saw outflows of $36 million.
Impact on price: Powell's remarks about US inflation potentially returning to 2% and hints at interest rate cuts boosted Bitcoin's price from below $61,000 to approximately $63,500.
August performance: Inflows for Bitcoin in August now total $225 million, reflecting increased investor confidence.
ETF highlights: BlackRock's crypto-based ETFs led with $346 million in inflows, showcasing strong institutional interest.
Ethereum ETF developments: Newly launched Ethereum-based ETFs have attracted $3.1 billion in cumulative
Regional Inflows: The US accounted for $498 million of the inflows into digital asset investment products, followed by Hong Kong ($16 million) and Switzerland ($14 million).
SEC's Consolidated Audit Trail Faces Opposition
The SEC's Consolidated Audit Trail (CAT) database was created under Rule 613 to improve market visibility post-financial crisis.
The 351-pages doesn’t actually mention digital assets. But, the SEC believes many crypto exchanges and brokers fall under its jurisdiction.
Crypto lobbyists' role: The Blockchain Association (BA) and DeFi Education Fund (DEF) support a class action lawsuit against the SEC, arguing that crypto firms could be unfairly subjected to reporting requirements.
Privacy concerns: Critics claim the CAT database constitutes an unconstitutional mass collection of personal financial data, potentially de-anonymising blockchain transactions.
Traditional finance joins forces: Citadel Securities and the American Securities Association are also suing the SEC, backed by major financial institutions, reflecting widespread concern.
SEC's defense: The SEC maintains that the CAT system is within its regulatory authority and dismisses claims of it being a surveillance tool.
The Surfer 🏄
Coinbase's layer-2 network Base has surpassed 1 million daily active addresses, peaking at 1.05 million on August 24, driven by the launch of "basenames," which saw over 200,000 registrations in its first week.
Argentina's Ministry of Education and ETH Kipu are introducing Ethereum and blockchain into Buenos Aires high schools, starting August 27. Internships and a Solidity course for 500 students to prepare them for careers in blockchain tech.
The SEC has charged brothers Jonathan and Tanner Adam with a $60 million crypto Ponzi scheme, claiming they misled over 80 investors with a fake trading bot and misused $53.9 million for personal expenses. The agency is seeking asset freezes and civil penalties against the duo.
This is The Token Dispatch 🙌 and you can find all about us here 🤟
If you like us, if you don't like us .. either ways do tell us✌️
So long. OKAY? ✋