Welcome, and thank you for being part of the MyZucoins community! Dive into our daily crypto, finance and tech news summary to stay in the know.
The current state of the crypto industry, particularly in the context of regulatory challenges and market volatility. Here are the key takeaways:
Volatility and Regulatory Challenges: The crypto industry is known for its volatility (coin prices and activity swings hugely up and down, often very quickly), and it’s currently facing regulatory challenges. This has led to a cycle of euphoria, then doom-and-gloom, then euphoria again.
Long-Term Perspective: Stéphane Ouellette, founder of FRNT Financial, and David Pakman, managing partner of Coin Fund, offer a long-term perspective on the industry. They acknowledge the current regulatory climate but note that it’s better than the early days of crypto. They also argue that the industry is still thriving in many parts of the world, despite challenges in the U.S. Many major institutions have been joining and expanding their involvement.
Regulatory Response: Ouellette and Pakman suggest that the industry should avoid public standoffs with regulators (like what Coinbase/Binance exchanges are doing), instead their focus should be on long-term strategies. They also note that the regulatory climate varies across the U.S., with some states being more crypto-friendly than others.
Global Perspective: Pakman points out that while U.S. regulators may be trying to smother the crypto industry, it’s thriving in places like Europe, Dubai, Singapore, and Hong Kong. This suggests that the future of crypto may be more global than U.S.-centric. The U.S.’s attempt to control this emerging innovation may be futile if other nations won’t join in, though not without a fight.
In the broader economic and social context, this article highlights the tension between innovation and regulation. It’s a common pattern in the history of technology, where new inventions often outpace the ability of societies and regulatory bodies to understand and manage them. This was seen in the early days of the internet, and we’re seeing it again with cryptocurrencies.
What’s surprising here is the resilience and adaptability of the crypto industry. Despite regulatory challenges and market volatility, the industry continues to grow and evolve, often finding ways to thrive in different parts of the world. This suggests a level of decentralisation not just in the technology of cryptocurrencies but in the industry itself. Read more here.
By leveraging the innovative features of the Splitchain network, Zucoins has, and is continuing to solve lots of issues in the still-emerging industry, by addressing scalability and transaction fees with efficient node structure, layer-1 in-built 2-factor transaction authentication, very short transaction history caches and so much more. With their focus on innovation and problem-solving, Zucoins and the Splitchain network contribute to the evolution of the crypto industry and the realisation of a decentralised and productive digital economy.
It’s a reminder that while the road to innovation can be bumpy, it’s also full of unexpected twists and turns that can lead to new opportunities and discoveries. It’s all part of the process.
US Democratic presidential hopeful Robert F. Kennedy Jr.’s views on Bitcoin and cryptocurrencies, which he shared at the 2023 Bitcoin Conference in Miami. Here’s a summary with a focus on the surprising and unconventional findings:
Bitcoin as a Political Platform: In an unconventional move, Kennedy incorporated Bitcoin into his political campaign. This challenges the conventional wisdom that cryptocurrencies are a fringe issue and not a mainstream political topic. It suggests that cryptocurrencies have become a significant social and political phenomenon, not just a financial or technological one.
Bitcoin and Freedom: Kennedy linked Bitcoin to the concept of freedom, particularly in the context of the 2022 trucker protest in Ottawa, Canada. This is surprising because it reframes Bitcoin not just as a financial instrument but as a tool for political expression and resistance against government control.
Opposition to Energy Tax on Bitcoin Miners: Kennedy opposes President Joe Biden’s proposed 30% tax on energy use for Bitcoin miners. This challenges the conventional wisdom that cryptocurrencies should be regulated and taxed like other industries and raises questions about the balance between environmental concerns and technological innovation.
Opposition to CBDCs: Kennedy opposes the idea of a U.S. central bank digital currency (CBDC), stating that the U.S. government is waging a “war on crypto.” This is surprising given the growing interest in CBDCs among many governments and central banks around the world.
These insights challenge conventional expectations about the role of cryptocurrencies in society and politics. They suggest that the debate about cryptocurrencies is not just about technology or finance but also about broader issues like freedom, privacy, and government control. Read more here.
This also shows that crypto is further entering mainstream media, politics and household conventions. Yet, the existing solutions are cumbersome, struggling to scale and in ways becoming more centralised. Zucoins’ goal is to achieve the needs of scalability and safety, but maintain an efficient system that can easily be adapted for per-use-case compliance purposes by either: A wallet user allowing disclosure of certain details as needed, for example, by transacting to reveal certain details to a receiver that is asking for it, or via a network caching node’s configuration that a group of users are using (let us know if you’d like more info on this feature).
This aligns with Kennedy’s emphasis on freedom and individual rights, as Zucoins and the Splitchain network contribute to the evolution of the crypto industry and the realisation of a decentralised future, but also balances the requirements from a complex regulation perspective. The winners of the crypto race (and we believe there will be more than one), need to solve all of these things, hence they’re a core focus of Zucoins.
Westpac’s new initiative to block certain cryptocurrency payments as a measure to reduce scam losses. This resulted in the popular Binance exchange unable to process transfers last week for Australian users. Here are the surprising and unconventional findings:
Blocking Cryptocurrency Payments: Westpac, one of Australia’s major banks, is trialing new customer protections that involve blocking some cryptocurrency payments. This is surprising because it’s a drastic measure that could potentially impact legitimate transactions as well as fraudulent ones.
Investment Scams: Westpac’s data shows that investment scams account for about half of all scam losses and a third of all scam payments are transferred directly to a cryptocurrency exchange. This challenges the conventional wisdom that cryptocurrencies are primarily used for legitimate transactions and suggests that they are also being used extensively for fraudulent activities.
There is lots of counter data to this, that we’ll cover in future newsletters. Most fraud still happens via traditional bank payments and cash, not cryptocurrencies, though the activity is growing, hence this action.
Potential Savings: Scott Collary, Westpac’s executive of customer services and technology, estimates that the new security measures could save customers millions of dollars. This is surprising because it suggests that the scale of scam losses involving cryptocurrencies is much larger than many people might expect.
Red Flags: The article lists several red flags for investment scams, including fake social media ads, fake websites and documents, scammers knowing personal information, scammers wanting you to take action, and the use of spoofing software. This challenges the conventional wisdom that scams are easy to spot, and suggests that scammers are using increasingly sophisticated tactics.
These insights challenge conventional expectations about the role of cryptocurrencies in the financial system. They suggest that while cryptocurrencies can offer many benefits, they also pose significant risks, particularly in terms of facilitating scams. Read more here.
Westpac’s decision to block certain cryptocurrency payments as a measure to reduce scam losses raises concerns about individual control and privacy. While it is important to protect customers from fraudulent activities, taking an authoritative approach and limiting cryptocurrency transactions may undermine the decentralised nature of cryptocurrencies and the positive use cases they offer.
By implementing restrictions on cryptocurrency payments, Westpac is assuming the role of a gatekeeper and exerting control over individuals’ financial choices. This goes against the principles of decentralisation, which aim to give individuals greater autonomy and control over their financial transactions. It is essential to strike a balance between protecting customers and allowing them the freedom to make their own decisions.
Zucoins and the Splitchain network, on the other hand, empower individuals by providing a secure and decentralised platform for transactions. It prioritises privacy and give users full control over their funds without relying on traditional financial institutions. This alternative approach allows individuals to engage in secure transactions while maintaining their privacy and autonomy.
Not to mention, Zucoin transactions have in-build two-factor authentication. (2FA) This means the sender and receiver must both confirm a transaction. Unlike most bank transfers, or even crypto transfers, they’re one-way. Meaning, a receiver can’t stop a sender from transferring money to them. This has bigger effects of potentially associating you with illegal activity, simply by being unable to deny a transaction.
For example, if a criminal sends you one coin, you can’t stop this from entering your bank or crypto account. Law enforcement agencies would “follow the money” and see you are connected to them by receiving some associated payment. This is just one of the many scenarios Splitchain has solved, in the base layer-1 of the system.
While it is crucial to address scams and protect consumers, it is equally important to foster innovation and embrace the positive potential of cryptocurrencies. Instead of limiting individual freedoms, efforts should be directed towards educating users and implementing effective safeguards to mitigate risks. The decentralised and user-centric approach of Zucoins and the Splitchain network offers an alternative path that promotes individual control, privacy, and the positive use cases of cryptocurrencies.
What did you think of this newsletter? Reply to send me feedback on what you liked or want to see featured more. There’s more coming, so stay tuned.
All the best,