Macro guru Lyn Alden says that stablecoins are currently serving two main use cases in this decade. In a new interview with Anthony Pompliano, Alden says that as a digital representation of currencies, stablecoins are crucial to the operation of crypto exchanges. “Stablecoins are serving two significant roles right now. One is as a unit […]
The post Here Are the Two Biggest Use Cases of Stablecoins This Decade, According to Macro Guru Lyn Alden appeared first on The Daily Hodl.
The central bank of Ukraine has adjusted the fixed exchange rate of the national currency in U.S. dollars and introduced stricter limits on hryvnia transactions for citizens. The measures are likely to turn more Ukrainians to cryptocurrencies, according to a representative of the local crypto sector. War-Time Hryvnia Limits Expected to Increase Interest in Cryptocurrency […]
Thousands of Sri Lankans took to the streets of Colombo in protest of the government’s response to the economic situation in the country.
Amid economic and political turmoil, the Central Bank of Sri Lanka, or CBSL, has warned the public against crypto purchases due to the lack of regulatory oversight.
In a Tuesday notice, the CBSL said it has not authorized or licensed any company in Sri Lanka to offer crypto-related services, including exchanges, initial coin offerings, and mining. The central bank said the warning was in response to “recent developments in relation to virtual currency usage,” likely referring to the market downturn and significant volatility in the prices of cryptocurrencies like Bitcoin (BTC).
“[Virtual currencies] are considered as unregulated financial instruments and have no regulatory oversight or safeguards relating to their usage in Sri Lanka,” said the CBSL. “The public is therefore warned of the possible exposure to significant financial, operational, legal and security related risks as well as customer protection concerns posed to the users by investments in VCs.”
The announcement came amid inflation in Sri Lanka reaching more than 54% in June as the SBSL bank raised interest rates to 15.5%. According to data from the central bank, inflation is roughly 45% at the time of publication, affecting the cost of living for the 22 million people living in Sri Lanka.
On Saturday, hundreds of protestors stormed Sri Lankan President Gotabaya Rajapaksa's residence in Colombo, later reportedly seizing 17.8 million rupees — roughly $50,000 at the time of publication — taking control of the building, using the facilities, and eating food in storage. Thousands of Sri Lankans have also taken to the streets of the capital city in protest of the government’s response to the economic situation. Parliament Speaker Mahinda Yapa Abeywardena said that Rajapaksa will be resigning on Wednesday.
Demonstrators entered the residence of President Gotabaya Rajapaksa of Sri Lanka on Saturday, amid large protests over the country’s economic crisis. The country's political leaders have asked him to step down. https://t.co/R2N2OQLhZ9 pic.twitter.com/3tgR68dfDU
— The New York Times (@nytimes) July 9, 2022
Related: Sri Lanka appoints committee to implement crypto mining and blockchain
Though publicly expressing warnings on crypto, Sri Lanka’s central bank previously helped develop a Know-Your-Customer proof-of-concept project as part of a government initiative aimed at exploring using blockchain and crypto mining. Some social media users claiming to be in Sri Lanka have also said they will hold stablecoins like USD Coin (USDC) as a hedge against the country’s high inflation and bankruptcy.
As sanctioned Russia’s fiat currency soars in value against the U.S. dollar, and crypto markets remain unpredictable, economists and crypto enthusiasts continue to puzzle and debate over what the next market move will be. In spite of this, several influential voices remain unperturbed when it comes to the future of decentralized digital assets, with Salvadoran […]
The state of New York is revealing an expansion of its stablecoin regulations, now requiring the dollar-pegged crypto assets to be backed fully by cash. According to a new press release by the New York State Department of Financial Services (DFS), the state’s regulations are being updated to require stablecoin issuers to adopt clear redemption […]
The post New York Unveils Expansion of Stablecoin Regulations, Requires Cash Backing appeared first on The Daily Hodl.
Money-transferring services giant MoneyGram is prepping to launch a new crypto-focused service. According to a new Bloomberg report, MoneyGram is partnering with XRP challenger and payments blockchain Stellar (XLM) to allow customers to send and cash out stablecoins on the XLM blockchain. Says MoneyGram Chief Executive Officer Alex Holmes, “The world of crypto and the world […]
The post Remittance Giant MoneyGram Prepares Imminent Launch of New Crypto Service With XRP Rival Stellar Lunes: Report appeared first on The Daily Hodl.
The firm behind Tether (USDT) is adding another fiat currency-pegged token to its stable of international stablecoins. According to a new press release, Tether Limited, the Hong Kong-based company behind the largest stablecoin by market cap, has started issuing MXNT, a new token pegged 1:1 to the Mexican Peso. Citing data from crypto payments company […]
The post Company Behind Tether (USDT) Launches New Stablecoin Pegged to Mexican Peso appeared first on The Daily Hodl.
With the approaching tsunami of central bank digital currencies (CBDCs) looming ever closer, it shouldn’t come as a surprise when central banks shill their coins at the expense of sounder assets. Recently, European Central Bank president Christine Lagarde went so far as to say that cryptocurrency is “worth nothing.” According to Lagarde, crypto has “no […]
Former Federal Reserve Chair Ben Bernanke is issuing a warning to Bitcoin (BTC) investors. In a new CNBC interview, Bernanke says Bitcoin faces two existential risks from lawmakers and governments. “One of the other risks that Bitcoin has is that it could, at some point, be subject to a lot more regulation. And the anonymity […]
The post Ex-Fed Chair Ben Bernanke Warns Bitcoin (BTC) Faces Two Massive Risks That ‘Investors Should Be Aware Of’ appeared first on The Daily Hodl.
“This latest attestation further highlights that Tether is fully backed and that the composition of its reserves is strong, conservative and liquid," said Paolo Ardoino.
USDT Stablecoin issuer Tether (USDT) has reported it cut its reserves allocation to commercial paper investments and increased that of United States Treasury bills over the first quarter of 2022.
In a Thursday blog post, Tether reported its reserves were “fully backed,” seemingly in an effort to assuage many users’ fears around USDT briefly depegging from the dollar on May 12. According to the stablecoin issuer, its commercial paper holdings over Q1 2022 decreased 17% from roughly $24 billion to $20 billion, with an additional 20% reduction to be reflected in the firm’s next quarterly report. Tether also increased investments in money market funds and U.S. Treasury bills by 13% over the same quarter, from roughly $34.5 billion to $39 billion.
“Tether has maintained its stability through multiple black swan events and highly volatile market conditions and, even in its darkest days, Tether has never once failed to honor a redemption request from any of its verified customers,” said Tether chief technical officer Paolo Ardoino. “This latest attestation further highlights that Tether is fully backed and that the composition of its reserves is strong, conservative and liquid.“
Assurance Opinion Once Again Re-affirms Tether’s Reserves Fully Backed; Reveals Significant Reductions in Commercial Paper and Increase in U.S. Treasury Bills https://t.co/8qVSQFQBeY
— Tether (@Tether_to) May 19, 2022
As part of an $18.5 million settlement with the Office of the New York Attorney General in February 2021 — in which authorities alleged the firm misrepresented the degree to which its USDT stablecoins were backed by fiat collateral — Tether is required to disclose its reserves every quarter. In February, the company reported it had cut its reserves allocation to commercial paper in Q4 2021 from roughly $30 billion to $24 billion, a 20% decrease.
Related: The United States turns its attention to stablecoin regulation
With a market capitalization of more than $74 billion at the time of publication, USDT exceeds Tether’s reported reserve assets at more than $82 billion. During the extreme volatility in the crypto market over the last two weeks, Tether reiterated that it would “honour all redemptions from verified customers” for USDT, seemingly in an effort to prove the asset was as stable as its namesake.
