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$125 B Corporate Giant Will Use Blockchain Tech to Combat Global Warming

$125-billion corporation will use blockchain to achieve deforestation free supply chain by 2023.

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Coinbase CEO Claims Non-Custodial Wallet Regulation is Bad for DeFi

In a lengthy tweet, the Coinbase boss has responded to Steve Mnuchin’s plans to rush out new regulations regarding self-hosted crypto wallets before the end of his term. The proposed regulations would require financial institutions and crypto exchanges to verify the recipient and owner of self-hosted or non-custodial wallets. In doing so, they would collect … Continued

The post Coinbase CEO Claims Non-Custodial Wallet Regulation is Bad for DeFi appeared first on BeInCrypto.

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In response to rumors over potential new crypto regulations in the United States, Coinbase CEO Brian Armstrong has stated why this could be bad for the industry, especially decentralized finance (DeFi) which thrives on openness.

In a lengthy tweet, the Coinbase boss has responded to Steve Mnuchin’s plans to rush out new regulations regarding self-hosted crypto wallets before the end of his term.

The proposed regulations would require financial institutions and crypto exchanges to verify the recipient and owner of self-hosted or non-custodial wallets.

In doing so, they would collect identifying information on that party, before a withdrawal could be sent to it. It’s a form of KYC (know your customer) for decentralized wallets that would make them, well, not decentralized.

Detriment to DeFi

Non-custodial wallets are a key element of the DeFi ecosystem because they allow anyone, anywhere to use this new technology to access basic financial services. Armstrong added that the open nature of crypto and DeFi powers innovation and ‘levels the playing field globally:’

“It is what is fueling innovation, such as in Defi. It has the potential to bring down the cost of financial services, and improve accessibility.”

He stated that new identity tracking regulations would be impractical and a bad idea for a number of reasons.

In the case of DeFi, many crypto users and yield farmers send assets to smart contracts so they can use dApps in the ecosystem. A smart contract is not necessarily owned by any individual or business that could be identified to satisfy these new requirements.

In addition, many people now use crypto to make payments online to various merchants, so their identity would be revealed.

Some users in emerging markets that send or receive crypto may find it difficult to provide the required proof these new rules would demand. Armstrong concluded:

“Finally, many recipients (in the U.S. or abroad) who value their financial privacy, may simply not want to upload more identifying documents to various companies, which could be hacked or stolen.”

Coinbase: Walling Off the U.S. a Financial Risk

He stated that this would reduce the number of transactions between non-custodial wallets and crypto exchanges, such as Coinbase which recently halted margin trading, effectively eating into its profits.

It would also put a wall around the U.S., cutting off access to the innovation happening elsewhere. Armstrong added, “I believe this would put America’s status as a financial hub at risk.”

Some hope the new Biden administration would be more open to the crypto industry and its drive for financial innovation. There has been no further confirmation as to when these regulations would come into effect.

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Martin Young

Martin has been writing on cyber security and infotech for two decades. He has previous trading experience and has been actively covering the blockchain and crypto industry since 2017.

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Source: https://beincrypto.com/coinbase-ceo-claims-non-custodial-wallet-regulation-is-bad-for-defi/

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US Spy Chief Reportedly Worried About China’s Crypto Dominance

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With China making significant strides in crypto and blockchain development, the US Intelligence apparatus is reportedly worried about the US falling far behind its current economic rival.

From crypto mining to central bank digital currencies (CBDCs), there is a popular narrative that Beijing controls vast swaths of the emerging digital economic landscape. A dismissal of the value proposition of digital assets has seen the US seemingly far behind the curve in terms of crypto innovation.

Crypto Arms Race: The Next Theater in the Sino-American Trade Tussle

According to the Washington Examiner on November 24, China’s digital yuan seems to pose a national threat in the United States. In a letter by the U.S. Director of National Intelligence John Ratcliffe to Jay Clayton, Chairman of the U.S. Securities and Exchange Commission (SEC), the top intelligence official, expressed worry about China’s accelerated CBDC efforts and how it could be difficult for U.S.-based firms to keep up the pace.

Ratcliffe’s letter also noted China’s dominance in the crypto mining sector. Data from the Cambridge Bitcoin Electricity Consumption Index (CBECI) reveal that China controls 65.08% of the global bitcoin mining market.

China has continued to be progressive with its planned CBDC project. Different parts of the country, along with several institutions, have trialed the digital yuan. Shenzhen conducted a lottery which saw 10 million yuan (about $1.5 million) airdropped to 50,000 winners. Also, the city of Suzhou is planning to test the digital yuan on Black Friday.

The CBDC project could contribute to China’s efforts at internationalizing the yuan for cross-border payment. If China’s digital yuan is used internationally, it could pose a serious threat to the U.S. dollar hegemony.

Regulators Need to Balance Consumer Protection and Innovation Concerns

Commenting on the threat face by the U.S, Ratcliffe informed the Washington Examiner, stating:

“Competing with China is a serious enough challenge without U.S. regulators getting in the way. So our regulatory regime must support American innovation, otherwise American companies are going to be put at such a profound competitive disadvantage that we could permanently lose this race.”

Ratcliffe’s comments echo many of the criticisms levied by US crypto and blockchain stakeholders against regulators in the country. Indeed, several commentators have bemoaned the patchwork of State and Federal regulations that they say are contributing to stifling digital asset innovation in the US.

However, China is by no means a crypto utopia. Back in 2017, the Chinese government rocked the cryptocurrency space by announcing blanket bans on trading and token sales. Over the next three years, several agencies have taken to extend the scope of this prohibition, with authorities currently shining the spotlight on the virtual currency and telecoms industry as part of a clampdown on money laundering.

Featured image courtesy of NBC News.

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Source: https://cryptopotato.com/us-spy-chief-reportedly-worried-about-chinas-crypto-dominance/

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Michael Novogratz: Bitcoin Is for Everyone and You Should Have 2-3% of Your Net Worth in It

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Amidst the excitements of BTC hitting an all-time high, Bitcoin bull and ex-hedge fund manager Mike Novogratz said, in an interview with Yahoo Finance, that Bitcoin was designed for every investor. 

“Bitcoin is for everyone,” he said, adding that “Everyone should put 2% to 3% of their net worth in bitcoin and look at it in five years, and it’s going to be a whole lot more.”

Novogratz is also a former partner at Goldman Sachs and a former manager of Fortress Investment Group. In 2012, Novogratz’s net worth was about $500 million. In 2017, he revealed that 20% of his net worth is held in Bitcoin and Ethereum, from which he generated over $250 million in profit. 

Novogratz’s $20k Prediction Coming True? 

The Galaxy Digital boss is fond of predicting bitcoin price. Even after the March crash, when bitcoin traded at a yearly low of around $3,500, he was still bullish on the cryptocurrency. 

He predicted in April that bitcoin will hit $20,000 before the end of 2020 and that he might ditch the cryptocurrency if his prediction does not come true. 

With the cryptocurrency trading less than 7% away from the 2017 all-time-high price of $20,000, it might not be long before it hits a new ATH. 

Bitcoin Will Not Trade Below $12,000

As Bitcoin approaches a record-breaking price, some speculators believe the cryptocurrency might see a correction soon. However, Novogratz believes that the asset will not trade below $12,000 in this bullish trend. 

“Right now, we’re getting close to 20,000, like the old highs. Rarely does a market trade to the old highs and go right through it, right? It’s just markets usually touch the old highs, exhaust themselves, correct a little bit, and then take out the high. And so there’s big support around 14 and a half, 15,000. And so listen– 19,000 to 15,000 would feel pretty painful if you just bought it here at 19. I don’t think we’re going to get down below 12,000 again in this episode,” he said. 

Institutional Investors Pushing Bitcoin Price

The Bitcoin bull also mentioned that the current rally is driven by high net-worth individuals, hedge funds, and real institutions. He thinks participation by these larger players, alongside increased regulation, should smooth out some of the volatility.

Not only them but “Game of Thrones” actress Maisie Williams also jumped in when she did a Twitter poll last week asking whether she should long Bitcoin, to which Mike Novogratz replied, “Duh!”.

Bitcoin’s current rally is a lot quieter than its last one. Google searches for “Bitcoin” peaked in late 2017. They’re now running at about one-fifth of that level. But Novogratz said the evidence supporting bitcoin prices is better than it’s ever been. 

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Source: https://cryptopotato.com/michael-novogratz-bitcoin-is-for-everyone-and-you-should-have-2-3-of-your-net-worth-in-it/

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