Global Crypto Adoption Improves as Retail and Institutional Users Take Bitcoin More Seriously
Welcome to the 16th edition of Shrimpy’s weekly newsletter, a place for staying up to date on the latest trends, news, and events in the cryptocurrency industry.
Digital assets evolve and move faster compared to any other market. For those who do not have time to constantly scroll Crypto Twitter, we wrote a special weekly update covering everything major that happened this week.
Summary
MicroStrategy plans to sell $1B of its stock to reinvest in Bitcoin
The first bank in China introduced cash-to-CBDC conversions
A former JPMorgan executive joined BitMEX as head of custody
The FCA reported a significant increase in UK crypto holders
Bitcoin’s hash rate reached the lowest level since November
Kyber will integrate scaling solution Polygon to improve access to DeFi liquidity
Coinbase listed three assets in a bid to capture a portion of the DeFi market
Booking platform Travala.com announced a decentralized Airbnb app
MicroStrategy plans selling $1B in stock to buy Bitcoin
MicroStrategy CEO Michael Saylor has made another dauntless decision by planning to sell $1 billion worth of stock to add more Bitcoin to the company’s holdings. The announcement comes shortly after completing a $500 million bond sale, which will be used to invest in cryptocurrency.
The software firm’s Bitcoin treasury is so large at this point that they have named Bitcoin a key part of its strategy in a filing with the Securities and Exchange Commission. After the latest investment, MicroStrategy’s total crypto holdings will be brought to $5 billion.
Chinese Bank enables cash-to-digital yuan conversions
The Industrial and Commerce Bank of China has introduced direct cash to digital yuan conversions to more than 3,000 ATMs all over Beijing. The state-owned bank is the first to dabble in China’s new CBDC by launching such a feature. With improved access to digital currencies, China is one step closer to turning CBDCs mainstream.
Former JPMorgan Executive joins BitMEX as Head of Custody
Leading cryptocurrency derivatives exchange BitMEX has hired Marc Robinson, a former JPMorgan Executive Director, as its new head of custody. According to BitMEX, the recent appointment is part of the exchange’s strategy to venture “beyond derivatives.”
Per an announcement, Robinson has 20 years of experience in the TradFi market and has mostly worked in Asian markets. Most recently, Robison has worked for SBI Holdings, but he also held a reputable role at JPMorgan as the company’s executive director for high-frequency trading products for the Asian market.
With the new arrival, BitMEX is bullish on expanding into new areas such as spot trading, brokerage, and crypto custody.
2.3M Adults in the UK hold crypto, reports the FCA
A survey held by the U.K.’s leading financial regulatory FCA estimates that a total of 2.3 million British citizens own cryptocurrencies, which marks a 21% increase compared to 2020.
The agency’s research shows that the overall understanding of decentralized technology is in decline. Only 71% of the surveyed participants have correctly defined cryptocurrency. Meanwhile, the perception of crypto investing as a ‘gamble’ dropped down to 38% from 47%.
Bitcoin hash rate drops to a new low after a resumption in China’s mining crackdown
The push for banning cryptocurrency mining in certain provinces in China led to adverse reactions in Bitcoin’s hash rate. Data shows that the hash rate fell to the lowest point since November 2020. A rebound is only possible if the now-banned miners relocate to other regions.
As a reminder, a majority of China’s bitcoin mining hubs have issued bans in the past few months. The list of regions where mining is prohibited includes Xinjiang, Inner Mongolia, and Qinghai. Two other provinces, Yunnan and Sichuan, are also in the process of discussing a potential crypto mining crackdown.
Kyber Network to integrate Polygon L2 scaling solution
DeFi liquidity protocol Kyber Network has announced that it will integrate the Ethereum layer-2 scaling solution Polygon in an effort to enhance DeFi liquidity.
The plan is part of Kyber’s Rainmaker program, which is the project’s future dynamic market maker (DMM) protocol that features a unique liquidity mining program for both Polygon and Ethereum users. Kyber’s program brings more than $30 million in rewards during a period of three months.
This week’s CBDC news
1. The Bank of England claims that any UK CBDC will be tens of thousands of times more efficient than Bitcoin. The Bank’s fintech director believes that any shortcomings found in modern decentralized digital currencies will not be relevant to practical implementations of CBDCs.
Fintech director Tom Mutton stated that UK citizens should not “throw the blockchain baby out with the Bitcoin bathwater.”
It was also pointed out that CBDC can play a key role in the UK’s transition to a net-zero economy.
2. BIS launches innovation hub focused on CBDCs with Nordic central banks. The Bank for International Settlements will work with four Nordic central banks on green finance, cybersecurity, and CBDCs.
The list of central banks includes Denmark, Iceland, Norway, and Sweden.
A recent survey reveals that two-thirds of all central banks currently conduct pilot projects with digital currencies.
3. Morgan Stanley deems Digital Euro as bearish for smaller countries. A new report notes that countries like Greece, Lithuania, Estonia, and Latvia would be hit the hardest with a digital euro as it would lead to depleted bank deposits.
Research conducted by the European Central Bank has also highlighted decreased bank deposits as one of the pitfalls of CBDCs.
In March this year, ECB President Christine Lagarde said that a digital euro would be launched within the next four years.
Coinbase lists Chiliz, Keep Network, and Solana in a bid to grab DeFi liquidity
Leading crypto exchange Coinbase revealed in an announcement that it had listed three new tokens: CHZ, KEEP, SOL, and SHIBA. All tokens have risen in value promptly after the reveal, with SHIBA increasing 31% in the span of a day.
Coinbase’s new listing policy is a stark contrast compared to what we have seen in previous years. The Shiba Inu meme token has been added only a month after the project’s creation. Before that, Coinbase listed Dogecoin, which was not tradable on the exchange despite being one of the market’s oldest altcoins. The revised policy came shortly after Coinbase’s NASDAQ listing.
Binance-backed booking platform announces plans for a decentralized version of Airbnb
Booking platform Travala.com, which is backed by Binance, revealed plans to launch a decentralized vacation rental service named Dtravel. The platform closely resembles Airbnb in its design, with the main difference being that it is decentralized.
Dtravel is a community-run platform organized through a DAO in which homeowners and guests can share governance proposals and vote on key issues via the native TRVL token.
Quote of the week
The Good News
A new report finds that one in six Australians own cryptocurrency, marking a 12% improvement compared to the start of the year.
An opposition politician in Panama wishes to follow El Salvador’s suit by presenting a crypto bill for July.
Crypto.com expands into institutional markets with a Fireblocks integration that enables them to deal with OTCs, liquidity providers, digital asset managers, and OTCs.
The Bad News
As the SEC’s Bitcoin ETF decision from VanEck reached a deadline, the regulator decided to delay the decision by 45 days once again.
Lending protocol Alchemix experienced an exploit this week, which resulted in 2,000 ETH being returned to borrowers prematurely.
Economist Steve Hanke commented on El Salvador’s Bitcoin adoption, stating that it will cause the country’s economy to collapse.
Crypto Twitter Highlights
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