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Ripple USD stablecoin set for trading debut tomorrow

Ripple’s RLUSD stablecoin is set for its trading debut on Dec. 17 on platforms including Uphold, MoonPay, Archax and CoinMENA, the company said.

Ripple, the blockchain company behind XRP, confirmed that its Ripple USD (RLUSD) stablecoin will begin trading globally tomorrow, Dec. 17.

RLUSD, a new United States dollar-backed stablecoin developed by Ripple, is set for a global exchange debut, the firm announced to Cointelegraph on Monday, Dec. 16.

The announcement came after the New York Department of Financial Services (NYDFS) approved the RLUSD launch, on Dec. 10, greenlighting the stablecoin’s entrance into global financial and cryptocurrency markets.

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Kraken Secures EMI Authorization, Paving the Way for Enhanced Crypto Services in the UK

Dark money group tied to crypto tries to quash SEC nomination vote

The Cedar Innovation Foundation launched an attack ad ahead of a congressional committee vote on Caroline Crenshaw's renomination as an SEC commissioner.

An organization that has been lobbying the United States government for policies favoring the crypto industry is pushing for lawmakers in a congressional committee to oppose the renomination of Caroline Crenshaw at the Securities and Exchange Commission (SEC).

In a Dec. 9 notice, the Cedar Innovation Foundation said it had launched a “five-figure, multi-channel” digital campaign urging US lawmakers to reject Crenshaw’s nomination for a second term at the SEC. The group claimed that the SEC commissioner was “more anti-crypto” than Chair Gary Gensler on policies like spot Bitcoin (BTC) exchange-traded funds. 

“Last month, Americans voted for pro-innovation leadership, and this Sherrod Brown bait-and-switch directly defies the will of the voters,” said Cedar. “We urge lawmakers to vote ‘no.’”

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Kraken Secures EMI Authorization, Paving the Way for Enhanced Crypto Services in the UK

Rich Dad Poor Dad Author Says Bitcoin, Gold and Silver About To Explode, Sees Capital Fleeing to ‘Real Assets’

Rich Dad Poor Dad Author Says Bitcoin, Gold and Silver About To Explode, Sees Capital Fleeing to ‘Real Assets’

Rich Dad Poor Dad author Robert Kiyosaki says that Bitcoin (BTC), gold and silver are on the cusp of skyrocketing. In a new thread on the social media platform X, the best-selling author says that if the Federal Reserve cuts interest rates during the next Federal Open Market Committee (FOMC) meeting, the trio of assets […]

The post Rich Dad Poor Dad Author Says Bitcoin, Gold and Silver About To Explode, Sees Capital Fleeing to ‘Real Assets’ appeared first on The Daily Hodl.

Kraken Secures EMI Authorization, Paving the Way for Enhanced Crypto Services in the UK

Bitcoin is no ‘silver bullet’ for money’s ethical problems

Both Bitcoin and fiat currency are often in the firing line over ethical concerns, with a dedicated group of defenders and critics.

Fiat money and cryptocurrencies share similar use cases but both come with drawbacks that critics claim make them unethical to use. 

Common arguments for Bitcoin (BTC) being unethical include its impact on the environment through high electricity costs from mining, along with potential use by criminal elements, and the lack of regulation and user protections.

Conversely, critics of fiat money argue that it is unethical, as it is not backed by a physical commodity like gold. This means there is no limit on how much central banks can print, leading to severe social harm.

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Kraken Secures EMI Authorization, Paving the Way for Enhanced Crypto Services in the UK

M2 money supply ‘holds the key’ for Bitcoin’s next move — Market analyst

The growth of the money supply is historically correlated with previous Bitcoin price bull runs.

The growing money supply in the United States could be the key to unlocking more upward momentum for Bitcoin (BTC), according to market analysts and historical chart patterns.

The M2 money supply estimates all cash and short-term bank deposits across the United States, and its growth has historically been correlated with previous Bitcoin bull runs.

The growth of the money supply could hold the key for the next leg up for the Bitcoin cycle, according to Jamie Coutts, chief crypto analyst at Realvision, who wrote in a May 16 X post:

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Kraken Secures EMI Authorization, Paving the Way for Enhanced Crypto Services in the UK

Turkey tops the world in stablecoin buying share vs. GDP

Stablecoin purchases in Turkey amount to 4.3% of GDP, the highest among global economies, according to Chainalysis.

The United States may lead the world in stablecoin transaction volumes, but its share of stablecoin purchases relative to its gross domestic product (GDP) has been eclipsed by Turkey.

According to “The 2024 Crypto Spring Report,” released on April 25 by the blockchain intelligence firm Chainalysis, Turkey has the highest share of stablecoin purchases relative to its GDP.

Based on Chainalysis’ data, stablecoin buying in Turkey accounted for 4.3% of its GDP between April 2023 and March 2024, making it the world’s biggest spender of stablecoins relative to its GDP.

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Kraken Secures EMI Authorization, Paving the Way for Enhanced Crypto Services in the UK

ECB assesses environmental footprint of cash, sees room for improvement

In Europe, the environmental footprint of banknotes is minuscule compared to crypto’s, but crypto has advantages of its own.

The European Central Bank (ECB) has taken a look at the environmental impact of using banknotes. It discovered 16 environmental impact categories. As with cryptocurrency, energy efficiency was a major issue.

Banknotes continue to be the most common form of payment at points of sale in the eurozone. The use of cash requires an elaborate physical infrastructure for its production, distribution and eventual retirement.

Energy use by ATMs was the biggest contributor to banknotes’ environmental footprint at 37%, followed by transportation (35%). The remainder was down to processing, paper manufacturing, authentication and many other steps. The ECB began efforts to reduce the environmental impact of banknotes in 2004. According to the ECB report:

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Kraken Secures EMI Authorization, Paving the Way for Enhanced Crypto Services in the UK

Alchemy Pay bags money services license in Iowa, expands US services

The crypto-fiat payment services provider Alchemy Pay is expanding its presence in the U.S. as it acquired its money services license in the state of Iowa.

The Singaporean crypto-fiat payment gateway, Alchemy Pay, announced a further expansion into the United States market on Nov. 23 with the acquisition of its money services license in the state of Iowa. 

According to local state regulations, any entity or individual engaged in currency exchange or money transmission business in Iowa must hold such a license.

In September, the company received its money transmitter license (MTL) in Arkansas. The company says it has already completed the application for MTL licenses in additional U.S. states and anticipates answers in the coming months.

Alchemy Pay Ecosystem Lead Robert McCracken spoke to Cointelegraph about the development, saying that in the U.S. crypto landscape, they are focused on compliance with the currency regulatory framework.

“We believe that a well-structured regulatory environment is essential for the sustainable growth and development of any industry, and that includes the fiat-crypto payment industry.”

McCracken said he believes the crypto payment industry has “immense potential” and could be a “leading sector in the future.” Alchemy Pay is already working in 173 countries via payment methods including Visa, Mastercard, regional mobile wallets, and domestic transfers.

Related: Alchemy Pay gains 77% after exchange listings and cross-chain integrations

The Alchemy Pay head said that they will be actively seeking licenses and adhering to compliance requirements as operations continue to expand. McCracken called this path “more challenging but ultimately correct.”

“... building core competitiveness and upholding the highest standards of compliance are essential for the long-term success of the crypto payment industry.”

According to its announcement, Alchemy Pay is also working on license applications in the United Kingdom and Hong Kong.

Currently, regulators in the U.S. are still mulling over a set of comprehensive regulations that would apply to the whole industry. 

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Kraken Secures EMI Authorization, Paving the Way for Enhanced Crypto Services in the UK

‘Primitive’ stablecoin lacks mechanisms that maintain fiat stability: BIS

The answer again is regulation, although this time the suggested regulation looks a lot like central bank co-option.

Stablecoins lack crucial mechanisms that guarantee money market stability in fiat, and an operational model that gave regulatory control to a central bank would be superior to private stablecoin, a study released by the Bank for International Settlements (BIS) found.

The authors used a “money view” of stablecoin and an analogy with onshore and offshore USD settlement to probe the weaknesses of stablecoin settlement mechanisms. 

Per the study:

“In both Eurodollar and FX markets, when private bank credit reaches the limits of its elasticity [that is, loses the ability to maintain par], central bank credit steps in, with the ultimate goal of protecting par in global dollar settlement.”

When eurodollar holders sought to bring their funds onshore during the financial crisis of the late 2000s, the Federal Reserve provided a $600 billion liquidity swap to other central banks to shore up par using what the authors described as “non-trivial institutional apparatus.”

Related: BOE governor trashes crypto, stablecoins in favor of ‘enhanced digital money’

Stablecoins bridge on-chain and off-chain funds and maintain par with the fiat USD with up to three “superficial” mechanisms: through reserves, overcollateralization and/or an algorithmic trading protocol.

Reserves, crucially, are “an equivalent value of short-term safe dollar assets.” Stablecoins mistakenly assume their solvency — the ability to meet long-term demand — based on their liquidity — the ability to meet short-term demand, whether they depend on reserves or an algorithm, according to the authors.

In addition, reserves are unavoidably tied to the fiat money market. This ties stablecoin stability to fiat money market conditions, but during economic stress, there are mechanisms in place to attempt to maintain bank liquidity both onshore and offshore. Stablecoin lacks such mechanisms. One example the authors gave was the banking crisis of this year:

“Central banks were probably surprised to find that lender of last resort support for Silicon Valley Bank in March 2023 was also in effect lender of last resort for USDC, a stablecoin that held substantial deposits at SVB as its purportedly liquid reserve.”

Furthermore, stablecoins have to maintain par among themselves. Bridges are another sore point. The authors compare blockchain bridges to foreign exchange dealers, which are highly dependent on credit to absorb imbalances in order flow. Stablecoins are unable to do that. The higher interest rates common on-chain only make their task more difficult.

The study suggested that the Regulated Liability Network provides a model solution to the difficulties faced by stablecoin. In that model, all claims are settled on a single ledger and are inside a regulatory perimeter. “The commitment of a fully-fledged banking system that would include the central bank and thus have a credibility that today’s private crypto stablecoins lack,” the authors said.

The BIS has been paying increased attention to stablecoins. It released a study earlier in November that examined examples of stablecoins failing to maintain their pegged value. That, as well as the legislative attention stablecoin has been receiving in the European Union, United Kingdom and United States, is testimony to its increasing role in finance.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

Kraken Secures EMI Authorization, Paving the Way for Enhanced Crypto Services in the UK

Rising M2 money supply will see crypto become ‘Super Massive Black Hole’: Raoul Pal

Historically, the cryptocurrency market has benefited from the rise in global money supply, as the majority of bull runs in the past coincided with the rise in fiat supply.

The rising total money supply (M2) could propel crypto into another bull rally and help it outperform the traditional markets, according to Raoul Pal, co-founder and CEO of financial media platform Real Vision. Pal’s X post highlighted the correlation between the rising fiat market supply and the start of the crypto bull run.

Pal, in an X (formerly Twitter) post, shared a graph comparing Bitcoin’s (BTC) yearly performance against the global M2 money supply, indicating the simultaneous rise of Bitcoin and global M2 supply. Historically, the Bitcoin and cryptocurrency markets have started outperforming the traditional financial markets with a rise in global M2 supply.

Bitcoin vs. global M2 supply. Source: Global Macro Investor

The chart above shows that Bitcoin’s price is on the verge of decoupling from the traditional market with a rising M2 supply, which has been the case historically, as evident from the spike in BTC’s performance in 2021, 2017 and 2014.

Bitcoin/NDX vs. global M2 supply. Source: Global Macro Investor

Pal said he “loves Global M2... this is when BTC outperforms the NDX and crypto becomes the Super Massive Black Hole.”

The M2 is the amount the United States Federal Reserve estimates to be in circulation; it comprises all cash that people own and all money placed in savings accounts, checking accounts and other short-term savings instruments like certificates of deposit.

Related: First Bitcoin ETF trades $1.5B as GBTC ‘discount’ echoes $69K BTC price

A Bitcoin bull run is often linked to the block reward halving every four years, with the next one scheduled for April 2024, as it reduces the market supply of BTC against growing demand. However, the halving is not the sole factor behind the surge, as several macroeconomic factors also play a key role.

Over the past decade, Bitcoin’s price has made significant gains during the fast growth of M2, owing to a reduction in interest rates, quantitative easing and fiscal stimulus. On the contrary, during times of monetary tightening by central banks, the cryptocurrency market has struggled to gain bullish momentum. The 2021 bull market coincided with 6% or higher aggregate M2 growth at the Fed, European Central Bank, Bank of Japan and People’s Bank of China.

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Kraken Secures EMI Authorization, Paving the Way for Enhanced Crypto Services in the UK