CRYPTO - CBDC: central banks show declining interest in digital currencies
A recent survey by the Official Monetary and Financial Institutions Forum (OMFIF) reveals that central banks are losing interest in CBDCs despite ongoing research efforts.
The annual Future of Payments report highlights a sharp decline in support for CBDCs as a solution for cross-border payments: only 13% of respondents in 2024 see them as a viable option, compared to 31% in 2023.
Preference is shifting towards interconnected instant payment systems, such as the U.S. FedNow service, which is backed by 47% of central bankers. Stablecoins, meanwhile, received no votes for the second consecutive year.
This cooling interest coincides with the withdrawal of the Bank for International Settlements (BIS) from the mBridge Project, a multi-CBDC initiative led by China. Although the BIS denies political motives, the move underscores the geopolitical tensions surrounding digital currency adoption.
The survey also reaffirms the dominance of the U.S. dollar, with only 11% of central banks reporting a reduction in its use.
Currently, over 130 countries are exploring CBDCs. Early adopters include China, the Bahamas, Jamaica, and Nigeria, while others, such as the United States, are moving more cautiously. President-elect Donald Trump has repeatedly voiced opposition to the potential issuance of a digital dollar.
https://atlas21.com/cbdc-central-banks-show-declining-interest-in-digital-currencies/
BITCOIN - Bitcoin in Africa: Jack Dorsey supports development with investment in Recursive Capital
On November 29, Recursive Capital, a venture capital firm specializing in #Bitcoin investments across the African continent, announced the completion of its first capital-raising round (Fund I).
Among the main backers are Jack Dorsey, CEO of Block, Peter L. Briger Jr., former Goldman Sachs partner and chairman of Fortress Investment Group, and Jeff Booth, author of The Price of Tomorrow.
The fund, led by Nigerian CEO Abubakar Nur Khalil, will focus on three strategic areas: companies developing commercial products such as wallets or exchanges, mining operations with a focus on renewable energy, and innovative technologies like the Lightning Network. Investments, ranging from $50,000 to $100,000 per portfolio company, aim to build a robust Bitcoin ecosystem in Africa.
Nur Khalil, who also serves as interim CEO of ₿Trust, a non-profit organization funded by Jay-Z and Jack Dorsey that supports African Bitcoin developers, stated:
“The focus of Fund I is to lay the foundations for a thriving Bitcoin ecosystem in Africa that will lead the world in innovation, growth, and impact.”
Recursive Capital has already invested in several ventures, including Bitnob, Fedi, and Synota. Next year, the company plans to launch Recursive Labs, a mentorship initiative for its portfolio companies.
https://atlas21.com/bitcoin-in-africa-jack-dorsey-supports-development-with-investment-in-recursive-capital/
BITCOIN - Canton Bern evaluates Bitcoin mining for power grid stability
The Parliament of the Canton of Bern has approved, with 85 votes in favor and 46 against, the launch of an in-depth study on Bitcoin mining. The initiative, led by the Bitcoin Parliamentary Group comprising 23 cross-party members, could mark a turning point despite resistance from the cantonal executive.
The study will focus on three key aspects: identifying surplus energy sources in the canton, potential collaborations with Swiss miners, and the impact of mining on power grid stability. The reference model is Texas, where integrating mining into energy policies has already shown promising results.
According to the proposal, creating a favorable environment for Bitcoin-related companies could give Bern a competitive edge over other regions aspiring to become innovation hubs for digital assets:
“Bitcoin mining companies bring investments, create jobs and help many parts of the world develop renewable energy sources. For several years now, Bitcoin mining has been one of the greenest industries in the world.”
Through a post on X, parliamentarian Samuel Kullmann commented:
“Even though the debate was heavily influenced by classic FUD arguments and missed the point, the proposal ultimately found a clear majority. […] This result is an expression of the fact that the narrative on Bitcoin is changing.”
The Executive Council, while opposing the initiative, raised concerns about the international scale of energy consumption, noting that the canton is an energy exporter. It also highlighted the growing energy demand from traditional data centers.
https://atlas21.com/canton-bern-evaluates-bitcoin-mining-for-power-grid-stability/
BITCOIN - Ocean supports Samourai Wallet's legal defense despite past tensions
On November 27, @ocean_mining announced its support for the legal defense of Samourai Wallet‘s co-founders, who are currently facing federal charges. This gesture comes after moments of tension between the two teams, including accusations of transaction censorship directed at the mining pool.
Ocean has implemented a system allowing miners to contribute directly to the legal defense of Keonne Rodriguez and William Lonergan Hill, developers of Samourai Wallet accused of conspiracy to launder money and operating an unauthorized money transfer service. Miners can now direct their hash power to a dedicated address, ensuring that all fees generated are donated to the legal defense fund.
https://x.com/ocean_mining/s/ocean_mining/status/1861899102482813133
This development is particularly significant given that in December 2023, Samourai Wallet publicly accused Ocean of censoring their CoinJoin and BIP47 transactions. The controversy, centered on technical differences in protocol implementation (Ocean initially used Bitcoin Knots as its default client), sparked heated debate within the community.
Meanwhile, the legal case against Samourai’s founders continues. During the latest hearing at the Southern District of New York court, the prosecution presented evidence allegedly including a “flight plan” found at Rodriguez’s residence, containing passports, cash, emergency communication devices, and wallet seed phrases. The defense argued that it was a general emergency preparedness plan, but the judge maintained bail restrictions, including house arrest.
The next hearing is scheduled for December 17, while the defense attorneys are still reviewing over 8 terabytes of evidence provided by the prosecution.
https://atlas21.com/ocean-supports-samourai-wallets-legal-defense-despite-past-tensions/
CRYPTO - Trump aims to assign crypto oversight to the CFTC
In an effort to reshape the U.S. regulatory landscape for digital assets, Donald Trump‘s team is exploring a reform that could shift crypto oversight from the Securities and Exchange Commission (SEC) to the CFTC.
According to a report by Fox Business, the Trump administration plans to assign the CFTC a central role in regulating spot markets for digital assets classified as commodities and in overseeing exchange activities. This move would significantly reduce the SEC’s regulatory power.
Trump’s team argues that the SEC’s enforcement actions have hindered innovation in the U.S. digital asset space, advocating for a lighter regulatory approach to foster growth in the industry. For the crypto sector, this shift is seen as favorable since the CFTC is historically perceived as a less stringent regulator.
Chris Giancarlo, a former CFTC chairman, expressed optimism about the agency’s potential, stating that with adequate funding and proper leadership, the CFTC could begin regulating digital assets immediately.
Currently, the CFTC operates with a $706 million budget and employs around 700 staff, compared to the SEC’s $3 billion budget and 5,300 employees.
The proposed reform comes during a leadership transition for regulatory agencies. SEC Chairman Gary Gensler has already announced his resignation effective January 20, 2025, coinciding with Trump’s inauguration. SEC Commissioner Jaime Lizárraga is also set to step down.
https://atlas21.com/trump-aims-to-assign-crypto-oversight-to-the-cftc/
BITCOIN - Brazil: proposed Bitcoin strategic reserve to counter economic instability
On November 25, a bill was introduced in Brazil proposing the creation of the “Reserva Estratégica Soberana de Bitcoins” (RESBit), a national strategic reserve in bitcoin.
The proposal, presented by Deputy Eros Biondini, outlines the allocation of up to 5% of Brazil’s international reserves, currently estimated at around $372 billion, into bitcoin. The potential investment could reach $18.6 billion. The goal is to increase the country’s economic resilience in the face of currency fluctuations and geopolitical uncertainties.
The bill is part of an increasingly global context that is open to Bitcoin. Biondini cited examples such as Bitcoin’s adoption as legal tender in El Salvador and the approval of spot ETFs in the United States.
Several analysts have emphasized the significance of this move, describing it as part of a “national race” to acquire bitcoin.
The initiative further reinforces the view of Bitcoin as a strategic opportunity for managing national reserves.
https://atlas21.com/brazil-proposed-bitcoin-strategic-reserve-to-counter-economic-instability/
CRYPTO - US Court declares sanctions against Tornado Cash illegal
On November 26, the U.S. Fifth Circuit Court issued a ruling against the authority of the U.S. Department of the Treasury, declaring the sanctions against the Tornado Cash mixer illegal.
The decision marks a turning point in the legal definition of smart contracts. A panel of three judges determined that Tornado Cash’s smart contracts cannot be classified as property and are therefore not subject to sanctions under the International Emergency Economic Powers Act (IEEPA).
The judges dismantled the Treasury’s accusations, asserting that the Office of Foreign Assets Control (OFAC) exceeded its regulatory powers. Since Tornado Cash’s smart contracts are autonomous and lack ownership, they fall outside OFAC’s jurisdiction. This ruling overturns a previous court decision.
Bill Hughes, an attorney with Consensys, commented that smart contracts are merely “lines of code,” more akin to tools than services. This legal interpretation could have significant implications for the future of open-source technology.
In August 2022, the Treasury had accused Tornado Cash of facilitating the laundering of over $7 billion in digital assets between 2019 and 2022. Despite this allegation, the Court found that sanctioning immutable code was beyond congressional authority.
Paul Grewal, Chief Legal Officer at Coinbase, emphasized the importance of the decision, stating that blocking open-source technology due to the actions of a small fraction of its users does not fall within the powers of the U.S. Congress.
The lawsuit was filed by six Tornado Cash users, supported by Coinbase, who challenged the inclusion of 44 smart contract addresses on the Specially Designated Nationals (SDN) list. The plaintiffs argued that the sanction was an overreach, as Tornado Cash is neither a person nor an entity but software.
Although the ruling is a positive development, Hughes noted that Tornado Cash’s blocked status remains unchanged. The case will now return to the district court for review under the newly established criteria.
https://atlas21.com/us-court-declares-sanctions-against-tornado-cash-illegal/
LEARN - Guide to Bitcoin wallets for mobile
How to use smartphone applications to store, receive, and send bitcoin.
Bitcoin mobile wallets are smartphone applications available for download from app stores. They allow you to store, send, and receive #bitcoin directly from your smartphone.
https://atlas21.com/guide-to-bitcoin-wallets-for-mobile/
BITCOIN - Rumble invests in Bitcoin: up to $20 million to diversify treasury
Rumble, the video platform with around 67 million monthly users, is preparing to enter in #Bitcoin. The board of directors has approved a strategy to allocate a portion of its cash reserves into Bitcoin, with a maximum investment of $20 million.
The initiative, announced by CEO @chrispavlovski through a poll on X that received 93.9% support, represents a strategic move to diversify the company’s financial resources.
Pavlovski explained the decision by highlighting the advantages of Bitcoin as an inflation hedge:
“Unlike any government-issued currency, Bitcoin is not subject to dilution through endless money-printing, enabling it to be a valuable inflation hedge and an excellent addition to our treasury.”
Following the announcement, Rumble’s stock rose by 12.63% during the trading session.
The company clarified that the implementation of the strategy remains flexible and can be suspended or modified at any time based on market conditions and business needs.
https://atlas21.com/rumble-invests-in-bitcoin-up-to-20-million-to-diversify-treasury/
BITCOIN - Bitmain: U.S. Customs halts Antminer ASIC imports
According to a report by Blockspace, U.S. Customs has been holding Bitmain Antminer S21 and T21 mining devices for nearly two months, raising questions about the technological supply chain between the U.S. and China. The situation, still unclear, reportedly involves seven American mining companies affected by this administrative hold.
The measure, requested by the Federal Communications Commission (FCC), is causing significant financial losses to businesses: some companies are already incurring over $200,000 in daily storage fees for 200 machines. The holds do not appear to affect other manufacturers such as MicroBT or Canaan but specifically target Bitmain, the global leader in Bitcoin mining hardware production.
Speculation suggests a possible connection to investigations into Xiamen Sophgo, a chip manufacturer under scrutiny for alleged violations of U.S. sanctions. Sophgo, founded in 2019 by Micree Zhan – CEO and co-founder of Bitmain – produces critical components such as the CV1835 chip, which has already attracted regulatory attention. This chip model is used in the Antminer T21 and some S19 series models.
This development unfolds against a geopolitical backdrop of growing technological tensions between the U.S. and China. In the background, President-elect Trump’s ambitions to make the U.S. a “global leader” in mining include statements hinting at a significant national strategy for the industry.
At this time, there is no direct evidence linking the ASIC holds to the ongoing investigations. Authorities have yet to issue official comments, while mining companies await further developments.
https://atlas21.com/bitmain-u-s-customs-halts-antminer-asic-imports/
CRYPTO - Cantor Fitzgerald acquires 5% stake in Tether: a $600 million investment
According to the Wall Street Journal, financial services giant Cantor Fitzgerald has finalized an agreement to acquire a 5% stake in Tether. The transaction, valued at $600 million, takes on particular significance in light of recent U.S. political developments.
The news comes just five days after Howard Lutnick, CEO of Cantor Fitzgerald, was named Secretary of Commerce by President-elect Donald Trump. Sources cited by the Wall Street Journal suggest that this move could provide Tether with substantial political support in the incoming U.S. administration.
Giancarlo Devasini, Tether’s primary shareholder, reportedly commented:
“Lutnick will use his political clout to try to defuse threats facing Tether.”
Lutnick is already actively working with Trump as a transition advisor, assisting in the selection of candidates for key government positions.
Cantor Fitzgerald, a critical banking partner for Tether, currently manages the majority of the company’s reserves, estimated at $134 billion, primarily in U.S. Treasury bills.
Lutnick, who has confirmed he will resign as CEO of Cantor Fitzgerald if confirmed by the Senate, has repeatedly expressed confidence in Tether’s financial strength, emphasizing its crucial role in inflation-stricken countries like Argentina, Turkey, and Venezuela.
https://atlas21.com/cantor-fitzgerald-acquires-5-stake-in-tether-a-600-million-investment/
MINING - Texas imposes new rules on miners: registration and energy monitoring required
On November 21, the Texas Public Utility Commission (PUCT) approved new regulations requiring all Bitcoin miners operating on the ERCOT (Energy Reliability Council of Texas) grid to register and provide detailed information about their activities.
The new rules mandate that mining facilities must report essential data to state authorities, such as the location of their operations, ownership details, and energy requirements. Operators will have only one business day from the time of connection to the ERCOT grid to complete their registration, which must be renewed annually by March 1.
In addition to registration, miners will be required to submit regular reports on their operations. These reports must include data on the volume of bitcoins mined, energy consumption, and other operational details.
According to PUCT Chairman Thomas Gleeson, the new rule was designed to help manage the power grid as more mining facilities come online. Gleeson stated:
“To ensure the ERCOT grid is reliable and meets the electricity needs of all Texans, the PUCT and ERCOT need to know the location and power needs of virtual currency miners.”
Miners who fail to register under the new regulations will face violations that could result in fines of up to $25,000 per day.
This move represents a shift for the mining industry in Texas, a state previously known for its favorable environment for the sector and its abundant energy resources. However, the rapid growth of the industry has raised concerns about its impact on the state’s power grid, prompting authorities to introduce stricter controls.
For miners, compliance with the new regulations will mean additional administrative responsibilities. They will need to allocate resources to collect data and ensure timely submission of the required documentation.
The new rules aim to prevent potential overloads on the power grid and minimize environmental impact.
https://atlas21.com/texas-imposes-new-rules-on-miners-registration-and-energy-monitoring-required/
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