Bitcoin News and Finance: What You Need to Know

The U.S. Commodity Futures Trading Commission (CFTC) charged the former CEO of bankrupt cryptocurrency lender Voyager Digital with fraud. The regulator accused Stephen Ehrlich and the company of luring investors with promises of high-yield returns while breaking derivatives rules. Ehrlich was also sued by the Federal Trade Commission (FTC). U.S. Commodities Regulator Takes Legal Action Against Former Chief Executive of Voyager The CFTC filed a lawsuit against co-founder and ex-CEO of Voyager Digital, Stephen Ehrlich. The complaint submitted to the U.S. District Court for the Southern District of New York charges him with fraud and registration failures in connection with Voyager and the operation of an unregistered commodity pool, the Commission announced . The U.S. regulator also alleged that Ehrlich and the company falsely touted Voyager as a “safe haven” offering an opportunity to earn high-yield returns, of up 12%, in order to lure customers to purchase and store digital assets...

India’s central bank, the Reserve Bank of India (RBI), has initiated a pilot for a second use case of its wholesale central bank digital currency (CBDC), focusing on the call money market. The Indian central bank reportedly plans to expand its e-rupee testing to cover the entire wholesale segment, including asset tokenization and repo transactions. RBI Begins Testing Second Use Case of Its Wholesale CBDC India’s central bank, the Reserve Bank of India (RBI), has begun testing its wholesale central bank digital currency (CBDC) in the call money market, Money Control reported Thursday, citing two unnamed people who claimed to be aware of the development. One of them was quoted as saying: We have started the wholesale CBDC pilot in the call money market and some deals have also taken place. The call money market is an essential part of the Indian money market, where banks and other financial institutions trade their surplus funds overnight or for a few days at market rates. Nine ...

Mastercard says its new solution that enables central bank digital currencies (CBDCs) to be tokenized or wrapped onto different blockchains provides consumers with “a new option to participate in commerce across multiple blockchains with increased security and ease.” A Mastercard executive described: “As the digital economy continues to mature, Mastercard has seen demand from consumers to participate in commerce across multiple blockchains, including public blockchains.” Mastercard’s New CBDC Tokenization Solution Payments giant Mastercard announced Thursday that it has “successfully demonstrated capabilities of a new solution that enables CBDCs to be tokenized (or ‘wrapped’) onto different blockchains.” The company stated that this solution will provide consumers with “a new option to participate in commerce across multiple blockchains with increased security and ease.” Richard Wormald, Mastercard Australasia’s division president, commented: “As the digital economy continues to ma...

Shenzhen has become home to an industrial park established to promote China’s central bank digital currency (CBDC). Several financial companies are already settling there, the Chinese megacity announced while unveiling almost a dozen initiatives to boost the digital yuan use in the region. Shenzhen to Invest $14 Million in 3 Years to Develop Digital Yuan Ecosystem The city of Shenzhen, a global center for technology, manufacturing, and finance in the Chinese Guangdong province, has launched the country’s first business and industrial park for the purpose of promoting China’s CBDC . The digital yuan (e-CNY) park is located in the city’s Luohu district, reported the China Internet Information Center (China.org.cn). Nine financial companies, including the fintech platform Lakala Payment, have already set up offices there, according to the state-run portal. The district government announced 10 initiatives to back the development of the local digital yuan ecosystem. A total of 100 mill...

A recent report published by River, a Bitcoin technology and financial services company, has revealed that the Lightning Network, a scaling layer for Bitcoin, has grown by 1,212% in two years. River’s estimation comes from examining operators of nodes comprising 52% of the public capacity on the network, concluding that it has “become much more global, with more equally distributed activity.” River States Lightning Network Transactions Grew by 1,212% in Two Years A report published by River, a Bitcoin services company, has released estimations indicating a significant growth in the use of Lightning Network, a Bitcoin scaling layer. The report, which used data provided by node operators that facilitate 52% of the public capacity of the network, estimates that 6.6 million transactions constitute a “lower bound” of the routed transactions of the whole network in August 2023. River states that an upper bound for these transactions could be a multiple of this number “if there was data ...

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Decentralized finance (defi) brings risks for investors but is yet to pose “meaningful risks” to financial stability, according to Europe’s securities watchdog. The agency believes, however, the phenomenon deserves attention in light of the EU’s new crypto rules as well as growing user base and has presented its assessment of the sector’s development. Defi Requires Monitoring as It Continues to Evolve Quickly, ESMA Says The European Securities and Markets Authority (ESMA), the European Union’s financial markets and securities regulator, has published an article focused on decentralized finance which it recognizes as the most innovative development in the crypto space. While investors’ exposure to defi remains limited, it comes with “serious risks” to investor protection, the report notes, emphasizing on the speculative nature of defi offerings, the absence of responsible parties as well as associated operational and security vulnerabilities. At the same time, ESMA remarks: Defi...

Jack Dorsey, co-founder of Twitter and current CEO of Square Inc., is contributing $1 million to support the launch of a pilot program for guaranteed basic income in his hometown of St. Louis, Missouri. According to the city, applicants will be selected on a first come, first serve basis “for $500 monthly payments for 18 months.” Jack Dorsey Supports St. Louis’ Guaranteed Basic Income Pilot Twitter’s co-founder and the current CEO of Square Inc., Jack Dorsey, is contributing $1 million to jumpstart St. Louis’ Guaranteed Basic Income (STL GBI) Pilot Program, which aims to combat poverty in the city. The city of St. Louis announced the launch of the program on Tuesday, noting that participants will receive $500 a month for 18 months. The announcement details that in December last year, St. Louis Mayor Tishaura Jones signed Board Bill Number 116 (BB116), sponsored by Alderwoman Shameem Clark Hubbard, to establish the first guaranteed basic income program in the U.S. state of Missouri...

Banking giant JPMorgan Chase has debuted its blockchain-based collateral settlement system. Blackrock became the first client to use JPMorgan’s Tokenized Collateral Network (TCN). The world’s largest asset manager used the system to convert shares in one of its money market funds into digital tokens, which it then used as collateral in an over-the-counter derivatives trade with Barclays Plc. JPMorgan Debuts Tokenized Collateral Network JPMorgan Chase & Co. has completed its first blockchain-based collateral settlement for clients, Bloomberg reported Wednesday. Tyrone Lobban, head of Onyx Digital Assets at JPMorgan, revealed in an interview that Blackrock, the world’s largest asset manager, utilized JPMorgan’s Tokenized Collateral Network (TCN) to convert shares from one of its money market funds into digital tokens. These digital tokens were subsequently used as collateral in an over-the-counter derivatives trade with Barclays Plc. “Blackrock and Barclays are now live on TCN, a...

Seven U.S. senators have called on the Treasury Department and the Internal Revenue Service (IRS) to “implement the proposed crypto broker reporting rule as rapidly as possible.” The lawmakers stressed: “We are alarmed by the self-inflicted two-year delay for the rule’s implementation.” Senators Want Crypto Tax Reporting Rule Implemented Swiftly Senators Elizabeth Warren, Angus King, Richard Blumenthal, Gary Peters, Bernie Sanders, Sheldon Whitehouse, and Brian Schatz sent a letter to Treasury Secretary Janet Yellen and Internal Revenue Service (IRS) Commissioner Daniel Werfel on Oct. 10 concerning cryptocurrency taxation. “We write regarding the Treasury Department and Internal Revenue Service’s (IRS) recently proposed rule concerning tax reporting requirements for crypto brokers,” the letter begins. “We are alarmed by the self-inflicted two-year delay for the rule’s implementation, which would contravene the requirements of the bipartisan Infrastructure Investment and Jobs Act, ...

Coinbase’s chief legal officer has called on U.S. Congress to pass sensible crypto legislation following reports that Hamas has amassed millions in cryptocurrency amid the escalating Middle East conflict. “We need this industry flourishing in nations committed to the rule of law, not driven to places where human rights and public safety mean much less,” the executive stressed. ‘We Need Sensible Crypto Legislation Passed’ The chief legal officer of cryptocurrency exchange Coinbase (Nasdaq: COIN), Paul Grewal, has called on U.S. Congress to swiftly pass sensible crypto legislation as the conflict in the Middle East escalates. In a post on social media platform X on Wednesday, Grewal opined: “What’s happened in and to Israel is evil. No funds should EVER be used to support Hamas or any other organization responsible [for the war] — whether those funds are in the form of fiat currency, gold, crypto, or whatever.” In a follow-up post on X, the Coinbase executive emphasized: That’s al...

Grocery chain Trader Joe’s filed a lawsuit this month against the decentralized exchange (dex) platform Trader Joe for trademark infringement. The suit, filed in federal court in Los Angeles, alleges that Trader Joe illegally copied the Trader Joe’s brand name and seeks to bar the exchange from using the name. Supermarket Trader Joe’s Says Dex Platform Causes Reputational Damage and Brand Erosion Trader Joe’s, the national chain of grocery stores known for its private label products, sued Trader Joe in federal court for illegally using its trademark. The lawsuit alleges that the dex platform , which launched in 2021, infringes on Trader Joe’s brand name. The grocery retailer outlined several instances of alleged illegal use, including Trader Joe naming their exchange “after the supermarket” without permission and using the exact “Trader Joe’s” trademark on their website and social media. Trader Joe’s sent multiple cease-and-desist letters demanding the exchange stop using the name,...

Bitcoin fell below the $27,000 level on Thursday, ahead of the upcoming inflation report in the United States. Consumer prices are expected to have risen by 3.6% in September, down 0.1% from the month prior. Ethereum plunged to a multi-week low. Bitcoin Bitcoin ( BTC ) fell for a fifth consecutive day, as markets prepared for the release of last month’s U.S. consumer price index (CPI) BTC /USD dropped to a low of $26,561.10 earlier in the day, which comes less than 24 hours after trading at a high of $27,258.45. Thursday’s sell-off has seen the world’s largest cryptocurrency remain near its lowest point since the end of September. Looking at the chart, the move pushed the relative strength index (RSI) to a support point at the 44.00 level. Price strength has since marginally rebounded, and at the time of writing, is tracking at 45.28. This floor may serve as a buffer ahead of the inflation report, which could then trigger an increase in volatility. Ethereum Ethereum...

In a disclosure on Wednesday, bitcoin mining entity Cleanspark has reserved 4.4 exahash per second (EH/s) of Bitmain’s latest S21 Antminers. The mining company, recognized on the public market, detailed that the consignment is valued at approximately $61.6 million, translating to $14 for each terahash per second (TH/s). Cleanspark Amplifies Mining Capabilities, Snags 4.4 EH/s of Bitmain’s S21 Antminers Cleanspark (Nasdaq: CLSK ), a U.S.-based bitcoin mining firm, divulged its procurement of 4.4 EH/s of the fresh S21 miners from mining equipment titan Bitmain. Though the specifics were not openly shared, the dispatch indicates that the Bitmain S21 Antminers boast an efficiency quotient of 17.5 joules per terahash (J/TH), suggesting the purchase likely involved the air-cooled S21 models . These air-cooled S21 models yield 200 TH/s each, necessitating 22,000 units for the company to hit the 4.4 EH/s mark. The apparatuses hold a cumulative worth of $61.6 million, as per Cleanspark. ...

The Ghanaian central bank said it will be hosting a 12-week hackathon where participants are expected to explore the e-cedi’s nine different use cases. At the end of the hackathon, the central bank will hold a conference where individuals with outstanding solutions are recognized. Addressing Ghana’s Financial Inclusion Challenges The Ghanaian central bank, also known as Bank of Ghana (BOG), recently announced the launch of a central bank digital currency (CBDC) hackathon. According to the bank, this event seeks to avail opportunities to fintech startups, developers and innovators to develop innovative solutions that explore various use cases of CBDC. https://t.co/bvOB6EsBoW #eCedi #hackathon #bankofghana pic.twitter.com/KOGqPwBrGT — Bank of Ghana (@thebankofghana) October 6, 2023 In a press release jointly issued with technology partner Emtech, the Ghanaian central bank said the hackathon will run for a period of 12 weeks. During this time, innovators are expected to come...

Veteran investor Jim Rogers, who co-founded the Quantum Fund with billionaire investor George Soros, has reiterated his warning of the end of U.S. dollar dominance. “I know that the era of the U.S. dollar is coming to an end. No currency stayed on top forever,” he stressed, adding that the only currency with the potential to displace the USD as the world’s reserve currency is the Chinese yuan. Jim Rogers on End of U.S. Dollar Hegemony Veteran investor Jim Rogers discussed a variety of topics, including the end of the U.S. dollar dominance and alternative currencies, in an interview with Nomad Capitalist, published on Oct. 1. Rogers is George Soros’ former business partner who co-founded the Quantum Fund and Soros Fund Management. While admitting that he owns a lot of U.S. dollars, Rogers stressed: I know that the era of the U.S. dollar is coming to an end. No currency stayed on top forever — no more than 100-150 years, none in history. While reiterating that he “can see the era...

Economist Peter Schiff compared the attack on Israel to 9/11, calling it “the beginning of a bad situation.” He highlighted several factors that will weaken the U.S. economy, which he described as “already structurally weak.” The economist stressed: “The U.S. can’t even afford peace. It certainly can’t afford war.” Warning that Fed policies could “unleash run-a-way inflation, an implosion in the dollar, bonds, and the economy,” he cautioned: “Crisis is assured!” Peter Schiff Says ‘Crisis Is Assured’ Economist and gold bug Peter Schiff discussed a number of topics affecting the U.S. economy on social media platform X and in his podcast, live-streamed on Monday, including the potential economic ramifications of the war in the Middle East. Commenting on the attack on Israel, the economist described: “This is like September 11th for Israel.” He added: “What did America do as a result of 9/11? We didn’t just shrug it off, no. We had the ‘war on terror,’ we had all sorts of stuff that ha...

A new computing model, BitVM, aims to enhance Bitcoin’s smart contract capabilities without requiring changes to the blockchain’s consensus rules. The white paper, published on October 9, 2023, has drawn significant attention and its fair share of criticism. Can BitVM Set a New Precedent for Bitcoin’s Smart Contracts? BitVM was proposed in a recent white paper by blockchain programmer Robin Linus . It allows for the expression of Turing-complete Bitcoin contracts through fraud proofs and a challenge-response protocol between two parties. While some believe the model has limitations, others say it paves the way for more intricate Bitcoin transactions. BitVM operates with a prover making a claim that a program runs correctly for specific inputs and outputs. The verifier can challenge that assertion with a series of succinct fraud proofs, penalizing the prover if their claim is untrue. By encoding the program into a binary circuit and committing to it bit by bit in a Taproot addre...

In a riveting development, Caroline Ellison’s recent testimony revealed that Alameda Research is believed to have shelled out a whopping $150 million to Chinese officials to unlock accounts valued over $1 billion. The narrative thickens as the former co-CEO, Sam Trabucco, has seemingly vanished from public view after FTX’s downfall. FTX’s Downfall, Alameda’s Bribery Allegations, and the Big Question: Where’s Sam Trabucco? Although Sam Bankman-Fried (SBF) isn’t facing charges of bribery, given the Bahamas’ intervention, federal prosecutors ensured the topic was front and center during Caroline Ellison ‘s Wednesday testimony. She recounted that in 2020, Chinese officials put a freeze on accounts totaling $1 billion. By November 2021, the team allegedly turned to David Ma, a colleague with purported “connections” in China, for guidance. Remarkably, Ma managed to thaw the funds. Court coverage was broadcast by Inner City Press reporter Matthew Russell Lee. But it wasn’t smooth sai...

The Nigerian central bank has disputed media reports suggesting its Sept. 11, 2023 document implies that its e-naira currency poses a threat to financial stability. The central bank said it felt compelled “to clarify the reports to ensure that misunderstandings are not fostered.” Book Gives an ‘In-Depth Understanding of CBDCs’ The Central Bank of Nigeria (CBN) has refuted media reports that its central bank digital currency (CBDC) known as e-naira, poses a threat to financial stability. In a statement issued on Oct. 9, the bank suggested that the authors of the reports lacked an understanding of portions of the foreword in its recently published document. PRESS RELEASE: eNaira No Threat To Financial Stability pic.twitter.com/MYwxUoHvWe — Central Bank of Nigeria (@cenbank) October 9, 2023 The document — or “book” as the CBN calls it — is titled Economics of Digital Currencies: Book of Readings. In the foreword, the central bank characterizes the book as an attempt “to provide ...

Members of Israel’s Web3 community have launched Crypto Aid Israel, a fundraiser in support of those affected by the conflict with Hamas. The goal is to attract cryptocurrency donations to relieve the humanitarian situation of thousands of Israelis displaced by the surprise attack of Palestinian militants from Gaza. Web3 Firms Unite in Crypto Aid Israel Initiative Amid War With Hamas A group of companies from the Web3 space, including the Israeli Blockchain Association, announced they have come together to launch Crypto Aid Israel . The fund will raise donations in digital assets for Israeli citizens suffering from what their government calls a war with Hamas. On Oct. 7, the militant Palestinian movement, designated as a terrorist organization by a number of nations, launched a large-scale invasion by land, air and sea of Israeli territories in the south from the Gaza Strip which it controls. On Tuesday, the death toll in Israel reached 900, with hundreds of thousands of people for...

The Nasdaq-listed bitcoin mining company Iris Energy has announced its acquisition of 1.4 exahash per second (EH/s) of Bitmain’s latest S21 Antminers. This acquisition will increase the company’s self-mining capacity by 25%, from 5.6 EH/s to 7 EH/s. Nasdaq-Listed Iris Energy Bolsters Mining Arsenal with Latest Next-Gen Mining Rig Purchase Just over two weeks ago, Bitmain introduced its S21 series Antminers, boasting an efficiency rating of less than 20 joules per terahash (J/T). Following this, the publicly traded bitcoin mining company Iris Energy, traded on Nasdaq under the ticker IREN, confirmed its purchase of 1.4 EH/s of Bitmain’s S21 miners. The company revealed that this acquisition came with a price tag of $19.6 million, breaking down to $14 per terahash. An additional $2.9 million will be deferred and paid one year post-shipment. The S21 units will be stationed at the company’s Childress, Texas, location, as detailed in their announcement. This new addition will elevate ...

Billionaire investor Paul Tudor Jones has warned of the effects of the geopolitical uncertainty around four nuclear powers, including China, Russia, and Iran. “It might be the most threatening and challenging geopolitical environment that I’ve ever seen,” Jones stressed. “It is also happening at the same time the United States is in its weakest fiscal position since World War II.” ‘Most Threatening and Challenging Geopolitical Environment That I’ve Ever Seen’ Billionaire hedge fund manager Paul Tudor Jones, founder and chief investment officer of Tudor Investment Corp., discussed the impact of global geopolitical conflicts on markets in an interview with CNBC Tuesday. Commenting on the war between Israel and Hamas, he said what is happening in Israel is “a huge tragedy.” However, Jones stressed: “You have to put it in a larger geopolitical context.” The billionaire explained: “We now have possibly three theaters where we’re going to have geopolitical challenges. We’ve got the Middl...