Snapshot Web3

December 7, 2023

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Regulatory and Legal News

House Committee passes bill to ‘preserve U.S. leadership’ in blockchain

The House Committee on Energy and Commerce in the United States has unanimously passed the Deploying American Blockchains Act of 2023 (H.R. 6572), a pro-blockchain bill. The legislation directs the U.S. Commerce Secretary, Gina Raimondo, to take actions promoting the competitiveness of the United States in the deployment, use, application, and competitiveness of blockchain technology. The bill outlines various measures, including creating a Blockchain Deployment Program, forming government advisory committees, and conducting studies on federal agencies' current and future readiness to adopt blockchain technology. The bill now moves to the House for a vote and, if passed, will proceed to the Senate for further consideration.

Global policymakers are still pushing CBDCs despite their failures

Despite the failures and risks associated with central bank digital currencies (CBDCs), global policymakers continue to advocate for their development. Officials from organizations such as the International Monetary Fund (IMF), Bretton Woods Committee, and Bank for International Settlements (BIS) have urged governments to accelerate CBDC development. However, various CBDCs, including those in The Bahamas, China, Jamaica, and Nigeria, have faced challenges gaining adoption and have led to government waste and control. The article suggests that policymakers should reconsider the pursuit of CBDCs and focus on more fundamental reforms to create a freer financial system, citing the high costs and limited benefits of CBDCs.

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Innovation and Launches

UAE researchers launch blockchain carbon trading platform at COP28

Researchers from the Technology Innovation Institute’s Cryptographic Research Center, an Abu Dhabi government-affiliated research center, have launched a blockchain-powered carbon tracking and trading platform at the United Nations Climate Change Conference (COP28). The blockchain platform allows the international trade of carbon tokens linked to investments in green projects like reforestation and carbon capture. Users can create tokens representing a specific amount of carbon dioxide removed from the environment, which can be tracked throughout the supply chain. The lightweight and efficient blockchain aims to facilitate low-cost trading while ensuring transparency and security through auditors' involvement. The initiative aligns with the UAE's efforts toward a sustainable and low-carbon economy.

IEEE to issue blockchain skill certificates on Avalanche in India

The Institute of Electrical and Electronics Engineers (IEEE) plans to use the Avalanche blockchain to issue tamper-evident certificates in India. The IEEE, with over 75,000 members in India, will utilize Avalanche's C-Chain as the primary settlement layer for its certificate issuance via LegitDoc, a blockchain-based credential lifecycle management system developed by Zupple Labs. The decision to use Avalanche's C-Chain was driven by its compatibility with the Ethereum Virtual Machine (EVM). The move is part of the IEEE's effort to issue tamper-proof, instant, and secure certificates to trainees and users in India, encouraging broader Web3 participation in education credentialing.

Michael Jackson’s first-ever studio demo to be released on blockchain

The first-ever studio recording of a young Michael Jackson, dating back to July 13, 1967, will be released as a "digital vinyl" on the blockchain. The track, titled "Big Boy (One-Derful Version)," will be published on the blockchain music platform Anotherblock and will be available as both an open and limited edition. This historic recording captures eight-year-old Michael Jackson along with his brothers in their inaugural studio session at One-Derful in Chicago. The release is a collaboration between Recordpool, the owner of the recording, and Anotherblock, a Swedish blockchain-based music and royalty marketplace that has previously worked with artists like Rihanna, The Weeknd, and Justin Bieber. The digital vinyl format aims to create stories and community around the music, offering a unique way to preserve and share cultural heritage.

France’s 3rd-largest bank, Société Générale, launches euro-pegged stablecoin

Société Générale, France's third-largest bank, has introduced its native euro-pegged stablecoin, called EUR CoinVertible (EURCV). This move makes Société Générale one of the first European banking giants to enter the stablecoin market. The stablecoin will be fully backed by the euro, allowing the bank's customers to engage in the digital asset market. It will be available on the Luxembourg-based Bitstamp crypto exchange and can be used for trading. Jean-Marc Stenger, the CEO of Société Générale Forge, emphasized the stablecoin's applicability in settling trades involving digital bonds, funds, and various assets. Société Générale has been actively involved in offering crypto exposure to its customer base for years.

IBM unveils new air-gapped cold storage solution for digital assets

IBM has introduced the IBM Hyper Protect Offline Signing Orchestrator (OSO), an air-gapped cold storage solution for digital assets. Developed in collaboration with digital asset manager Metaco and tier-1 banks, OSO aims to address vulnerabilities found in typical cold storage solutions. OSO removes manual transaction functions, ensuring transactions between cold storage and the blockchain occur only at specific times or through authorized multibody governance. This helps prevent common forms of insider attacks and introduces resilience against physical or remote attacks, as digital assets can be placed in air-gapped storage containers. OSO operates through a virtual, partitioned server via IBM's Confidential Computing service.

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NFT, Gaming and Metaverse

Thrash-metal band Megadeth launches NFT collection and metaverse community

The thrash-metal band Megadeth has launched a new non-fungible token (NFT) collection featuring its digital mascot, Vic Rattlehead. The 5,000-piece NFT collection allows fans exclusive access to content and physical experiences. Beyond digital collectibles, the NFTs unlock physical and digital experiences in the metaverse, including one-on-one conversations with band members. This initiative aims to connect with fans in both physical and digital realms. Megadeth joins other music artists, like Avenged Sevenfold, entering the Web3 space by utilizing blockchain technology and NFTs to engage with their communities.

Web3 gaming trends in 2024: Execs weigh in on blockchain gaming future

Web3 gaming professionals anticipate a more eventful 2024 for the blockchain gaming sector. Henry Chang, the CEO of Wemade, predicts an increase in the release of blockchain-based games and expects greater experimentation and sophisticated use of blockchain elements in game mechanics and gameplay. He believes that more gaming studios will include Web3 in their portfolio, driven by blockchain gaming's potential for new revenue streams, unique experiences, and immersive community engagement. Bartosz Skwarczek, CEO of G2A Capital Group, anticipates increased collaboration between traditional industry players and Web3 startups, leading to more mainstream adoption. Challenges include onboarding a larger player base, with efforts focused on simplifying blockchain integration and making the technology more intuitive for gamers.

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Interesting Reads

Bitcoin’s huge rally has nuked $6B in shorts this year: S3 Partners

Short sellers betting against publicly traded crypto firms, such as Coinbase, MicroStrategy, and Marathon Digital, have incurred more than $6 billion in on-paper losses this year, largely due to Bitcoin's significant rally. The losses for short sellers were concentrated in the last three months, with Bitcoin staging a 77% rally from its quarterly low of $25,133 on September 11 to a new yearly high of $44,481 on December 5. The recent upside move resulted in approximately $2.65 billion in losses for short sellers. Bitcoin's 161% year-to-date rally has significantly impacted the share prices of crypto firms, contributing to the losses for short sellers. Despite the losses, some short sellers have continued to add to their positions, anticipating that the current rally will lose momentum.

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Miscellaneous

Crypto is for criminals? JPMorgan has been fined $39B and has its own token

JP Morgan CEO Jamie Dimon faced criticism on social media, particularly on Twitter, after making negative remarks about Bitcoin and cryptocurrencies during a hearing before the United States Banking Committee. Dimon claimed that Bitcoin's "only true use case" is to facilitate crime and suggested the government should shut it down. Crypto proponents were quick to point out the perceived hypocrisy, noting that JPMorgan, led by Dimon, has paid significant fines, totaling $39.3 billion across 272 violations since 2000. Critics highlighted JPMorgan's involvement in various legal issues, including a $75 million settlement related to Jeffrey Epstein's sex trafficking operation and a $13 billion fine for misleading investors over "toxic" mortgage deals. Despite Dimon's negative stance on cryptocurrencies, JPMorgan has launched its own crypto token, JPM Coin, and invested in blockchain-related initiatives. Crypto advocates emphasized the decentralized nature of cryptocurrencies and argued against the feasibility of a government-imposed ban on Bitcoin.

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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.