Connect with us
https://paxful.com/?utm_source=CGNT&utm_medium=Banner&utm_term=Crypto%20Global%20News%20Team

Blockchain News

Central Bank Digital Currencies Are Good for Bitcoin So Says Barry Silbert

Published

on

Central Bank Digital Currencies Are Good for Bitcoin, Barry Silbert Says
Central Bank Digital Currencies Are Good for Bitcoin So Says Barry Silbert

Bitcoin (BTC) would benefit from global central banks issuing their own cryptocurrencies, the founder at the world’s largest digital asset manager believes. Barry Silbert, founder and CEO of digital currency asset manager Grayscale Investments and blockchain venture capital firm Digital Currency Group (DCG), has again expressed his bullish stance on Bitcoin in the latest Grayscale investor call on Feb. 12. During the call titled “The State of Digital Currencies,” Silbert spoke of a number of important digital asset-related issues including Bitcoin’s role in the generational shift in wealth, stablecoins, decentralized finance and central bank digital currencies (CBDC).

CBDCs are virtual currencies that are issued and controlled by a federal regulator. In contrast to cryptocurrencies like Bitcoin, CBDCs apparently represent fiat money in the digital form. While no global jurisdiction has launched a CBDC to date, a number of governments have been increasingly exploring and building such projects, with China reportedly preparing to issue the first real-world test of its CBDC soon. According to a new survey by the Bank of International Settlements, at least 10% of central banks are likely to issue a CBDC for the general public in the short term.

Image result for central banks

Silbert, who claims to have bought his first Bitcoin back in 2012, or about three years after the creation of the very first block on the Bitcoin blockchain, argued that central banks that develop their own fiat currency-pegged digital currencies might be providing more power to Bitcoin by paving the way for institutional interest. According to the Grayscale CEO, Bitcoin and other non-central bank cryptocurrencies could eventually benefit from the same infrastructure that is used by the widespread adoption of CBDC:

“So at one point of the future we might have 80 different CBDCs. And if that happens, it would trigger a tremendous amount of investment in operators of financial systems where essentially every financial institution would then have to be able to safely store and transact CBDCs and, guess what, if they actually build that infrastructure, that same infrastructure could be used for non-central bank digital currencies like Bitcoin.”

Additionally, Silbert expressed confidence that central banks will likely eventually require users to use and engage with the existing financial systems and will not be capping the supply of the digital currency. “Central banks love to print money,” Silbert noted in order to point out Bitcoin’s limited supply feature. Predicting that CBDCs are “not a 2020 thing” but would rather be adopted in many years or decades, Silbert outlined that CBDCs are important because they contribute to the future value proposition of digital money. Founded in 2013, Grayscale Investments is recognized as the world’s largest digital currency asset manager by major crypto exchange and wallet service Coinbase. In January 2020, Grayscale reported that 2019 had become a record-breaking year for the company in terms of accumulated investment. The firm’s total investment surpassed the $1 billion threshold in 2019, while assets under management (AUM) surpassed $2 billion. According to the latest investor call, Grayscale has $3.1 billion AUM to date. The news comes amid Bitcoin breaking $10,000 threshold for the second time in 2020 to trade at over $10,200 at press time.

Altcoin News

3 Big Blockchain Firms Working Together On A DeFi Product That Pays Passive Income

Published

on

3 Big Blockchain Firms Working Together On A DeFi Product That Pays Passive Income
3 Big Blockchain Firms Working Together On A DeFi Product That Pays Passive Income

In a special announcement made at the Unitize conference on July 6,  Cosmos, Polkadot, and Terra revealed a new DeFi savings product called Anchor that aims to offer dependable interest rates on stablecoins deposits. The companies involved in the creation of Anchor plan to launch it across their respective blockchains at the end of Q3 this year and scale across to other PoS blockchains in the future. Do Kwon, founder and CEO of Terra, explained in a prepared statement:

“While DeFi staples such as Maker and Compound have been revolutionary in creating fully decentralized crypto money markets, the volatility of their interest rates makes them unsuitable to be used as a household savings product. DeFi mass adoption needs the creation of a fully decentralized savings account that offers dependable APR.”

Anchor’s smart contracts receive stablecoin deposits and use a portion of them to acquire staking positions on compatible Proof of Stake blockchains. Users will receive their passive income from these staking rewards. The initial governance for this platform will come from the Interchain Asset Association (IAA), a newly formed organization that sees Zaki Manian of Cosmos, Jack Platts of the Web3 Foundation, and Do Kwon of Terraform Labs collectively steering the ship.

Continue Reading

Altcoin News

Telegram Is Set To Shut Down The TON Testnet By August 2020

Published

on

Telegram Is Set To Shut Down The TON Testnet By August 2020
Telegram Is Set To Shut Down The TON Testnet By August 2020

Although Telegram has terminated its blockchain project, Telegram Open Network (TON), in May 2020, the TON test net has been apparently running for almost one year. In a July 6 update, the official TON development group on Telegram announced that it would be discontinuing its support of the test network for TON. Remaining TON validators will be turned off by August 1. In the post, the TON official recommended network participants save all their relevant data and stop their testing processes. Despite the testnet being set to shut down less than a month from now, network participants will still be able to continue their experimentation after the testnet is terminated. In order to do that, users can install their own testnet validators, described in greater detail in three different how-to documents containing guidelines for the Full Node, the Validator, and Test Grams.

Telegram launched the TON testnet for explorer and node software on Sept. 6, 2019. In anticipation of its scheduled Oct. 31 launch last year, the company released an alpha version of an iOS wallet to work with its native token, the Gram. But Telegram’s TON plans were never fully realized, as the United States Securities and Exchange Commission suddenly deemed Telegram’s $1.7 billion ICO illegal in mid-October. After a long-running legal battle with U.S. regulators, Telegram agreed to shut down its TON project, as well as return $1.2 billion to investors in line with a court-approved final settlement. As officially announced by Telegram CEO Pavel Durov, the firm had already reimbursed more than $1.2 billion by June 25.

Continue Reading

Altcoin News

Brock Pierce Enters The 2020 US Presidential Race

Published

on

Brock Pierce Enters The 2020 US Presidential Race
Brock Pierce Enters The 2020 US Presidential Race

Brock Pierce, entrepreneur, crypto venture capitalist, and child star, has announced his USA Presidential run on Twitter July 5. His tweet stated: “

“I, Brock Pierce, am running for President of the United States of America.”

Pierce’s campaign site states that he is a pioneer digital currency and has raised more than $5 billion for the companies he has founded. Pierce is the Chairman of the Bitcoin Foundation and co-founder of EOS Alliance, Block.one, Blockchain Capital, Tether, and Mastercoin (first ICO). His website, sparse on details, does not say if he is seeking a nomination in a political party or if he is running as an Independent.

Continue Reading

TRENDING

Copyright © 2015 Crypto Global News Team.