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- City of Lugano integrates Polygon into its crypto payment system 🇨🇭💳
City of Lugano integrates Polygon into its crypto payment system 🇨🇭💳
PLUS: South Korea to invite 100K citizens to test CBDC in 2024. Austria’s Raiffeisen Bank to Roll Out Crypto Trading for Retail Customers in January.
Manan Vora
November 24, 2023
Snapshot Web3
November 24, 2023
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Regulatory and Legal News
Consensys' Bill Hughes urges swift U.S. stablecoin regulation, calling it a "no-brainer" at the North American Blockchain Summit. Hughes sees stablecoins crucial for the crypto ecosystem but notes a policy stumbling block. While critical of Senator Warren's bill, he finds the Clarity for Payment Stablecoins Act sensible. Hughes highlights crypto's rising political role, anticipates SEC approval for a Bitcoin ETF, and notes candidates' support at the Summit, though crypto isn't central in 2024 election debates.
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Innovation and Launches
The Bank of Korea plans to involve 100,000 citizens in testing its central bank digital currency (CBDC) from September to October 2024, lasting three months. Participants will be limited to using the CBDC solely for payments, excluding storage, exchange, or transfers to others. The pilot aims to assess the viability and effectiveness of CBDC issuance and distribution. The BOK will collaborate with the Korea Exchange to integrate the digital currency into a carbon emissions trading simulation system, examining the feasibility of delivery versus payment transactions. The CBDC pilot, announced in October, involves private banks, public institutions, and support from the Bank for International Settlements.
The city of Lugano in Switzerland, known for its pro-crypto stance, is integrating the Polygon proof-of-stake (PoS) protocol into its crypto payment app, MyLugano. The updated app includes a multichain digital wallet for personal custody, with plans to add more tokens. Polygon has been a partner since 2022, supporting Lugano's stablecoin LVGA. The MyLugano app, developed with stablecoin issuer Tether, serves almost half the city's population, allowing users to pay local businesses in digital currencies. Lugano, a crypto adoption leader, previously established a Center of Excellence for Blockchain Adoption and aims to enable crypto tax payments for citizens and businesses.
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NFT, Gaming and Metaverse
During the recent Blur NFT marketplace's season 2 airdrop, a pseudonymous trader using the Ethereum Name Service tag "hanwe.eth" claimed $11 million worth of Blur (BLUR) tokens. The airdrop is part of Blur's strategy to attract users to its platform, with a total reward pool of 300 million tokens, valued at around $146 million. While over 38,000 addresses have claimed rewards totaling 267 million tokens, not all participants are content. Notably, NFT whale Jeffrey Hwang, known as Machi Big Brother, expressed dissatisfaction after receiving 6 million tokens worth approximately $2.9 million, leading to speculation about profit-maximizing strategies in the competitive NFT market.
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Scams and Hacks
The KyberSwap attacker exploited a complex smart contract glitch, termed an "infinite money glitch," to drain $46 million. The attacker manipulated KyberSwap's concentrated liquidity feature, causing liquidity to be "double-counted" and obtaining favorable swap prices. The exploit was specific to Kyber's implementation and involved intricate manipulations of liquidity and prices across multiple identical attacks. Despite a failsafe mechanism, the attacker carefully engineered the exploit to avoid triggering it. The attack is considered one of the most complex seen, with potential negotiations for fund return ongoing.
Scammers impersonating Elon Musk conducted a fraudulent crypto giveaway via deepfake YouTube streams, raising $165,000 in donations. Users were directed to a website through a QR code, where they were told to send cryptocurrency for a promised reimbursement and a 200% bonus. The scammers collected 2.48 BTC (around $91,566), transferring funds to different addresses, including the deposit address of the KuCoin exchange. This incident is part of an ongoing trend of crypto scams, contributing to the $32.2 million lost in October and a total of $290 million stolen in November.
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Interesting Reads
Argentinian President-elect Javier Milei's vow to close the central bank and potentially adopt the U.S. dollar or Bitcoin presents challenges. The country, known for defaults, faces complexities in transitioning without a central bank. The IMF, a major creditor, holds influence, and Argentina's $7.7 billion monetary base poses a challenge. Milei may consider initially adopting the U.S. dollar, similar to El Salvador, and possibly integrating Bitcoin. The move could attract savings held in dollars back to Argentina. Unifying exchange rates and declaring free currency convertibility may be early steps, emphasizing fiscal policies' importance in the absence of a central bank.
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Funding and Acquisitions
Korean firm Double Xsoft's CryptoTax, a virtual asset tax and accounting platform, secures funding in a pre-Series A round, following Hashed's seed investment a year ago. While the funding amount is undisclosed, the CEO aims to use it for expanding partnerships and accelerating growth in virtual asset tax services. CryptoTax caters to individuals and corporations, offering services like cryptocurrency monitoring and tax calculation. Positioned as essential for transparent reporting, it provides individual tax estimates via an app and specialized services for institutions under "CryptoTax Enterprise." FuturePlay's CEO sees CryptoTax as vital for all virtual asset holders due to its knowledge and analytical capabilities.
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Miscellaneous
Ripio CEO Sebastián Serrano predicts that stablecoins will remain crucial in Argentina under President-elect Javier Milei, regardless of economic changes. The crypto community in Argentina has shown enthusiasm for Milei's election, with Ripio witnessing a significant increase in new users. Serrano notes the importance of stablecoins in Argentina's financial landscape, especially given challenges in accessing traditional banknotes and dollars. Even if the country moves toward dollarization, stablecoins are expected to become increasingly vital due to limited accessibility to dollars. Serrano also highlights the necessity of stablecoins in the absence of a well-structured central bank for maintaining monetary stability.
Austria's Raiffeisen Bank International is set to launch cryptocurrency trading services for retail customers in Vienna by the end of January 2024. The service, in partnership with Bitpanda, targets digital-savvy customers interested in smaller investments, differentiating itself from offerings for wealthier individuals. Bitpanda, founded in Vienna in 2014, operates under regulatory supervision in Austria and Germany, offering regulated trading and investment services for various assets, including cryptocurrencies. The move signals growing crypto adoption in regions with emerging regulatory clarity.
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The information provided in this newsletter is for informational purposes only and should not be interpreted as investment advice, endorsement, or recommendation. Cryptocurrency investments carry significant risk due to their volatility. You should consider your financial situation, investment goals, and risk tolerance before making any investments. We strongly recommend consulting a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.
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