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- Microsoft Opens Its Windows For Crypto 💻🌎
Microsoft Opens Its Windows For Crypto 💻🌎
PLUS: US Presidential candidate drafting a crypto policy framework. UK passes online safety bill that applies to metaverse.
Manan Vora
September 21, 2023
Snapshot Web3
September 21, 2023
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Regulatory and Legal News
Presidential candidate Vivek Ramaswamy plans to release a comprehensive crypto policy framework by Thanksgiving, aiming to address the government's interaction with crypto. He criticized regulatory agencies as an "unconstitutional fourth branch of government." Ramaswamy's open support for crypto signals a potential rightward shift in the industry. Ramaswamy, a former pharmaceutical entrepreneur, has gained political prominence and is currently ranked second in a CNN poll for the nomination race.
The UK has passed the Online Safety Bill, which will now apply to the metaverse. The bill requires companies to assess the likelihood of encountering harmful or illegal content, especially for children, and implement measures to mitigate risks. This move comes in response to the growing influence of the metaverse, spurred by Facebook's rebranding to Meta. The bill is designed to remain relevant to emerging technologies. Pending approval by King Charles, it will become effective immediately or at a later specified date.
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Innovation and Launches
Microsoft is reportedly planning to offer increased support for crypto wallets in its next generation of hardware products, according to documents revealed in the ongoing lawsuit with the US Federal Trade Commission. The documents indicate that Microsoft intends to introduce a range of new products, including consoles, phones, web browsers, PCs, and a new "cloud system" with enhanced crypto wallet functionality. While plans may have evolved since the document's release, this move from one of the world's tech leaders could be a significant catalyst for wider crypto adoption, particularly in making web3 services more user-friendly for non-crypto natives. Microsoft has been making notable strides in the crypto space, including partnering with blockchain protocol Aptos for AI-based blockchain products and joining forces with LeverFi to address challenges in the decentralized finance (DeFi) industry.
PayPal's stablecoin PYUSD, pegged to the US dollar, is now available on Venmo and will roll out fully in the coming weeks. It's backed by dollar deposits and short-term Treasuries. PYUSD is already on exchanges like Crypto.com, Bitstamp, Coinbase, and Kraken. About 90% is held in wallets controlled by Paxos Trust. BitPay is also supporting PYUSD. This move is part of PayPal's ongoing expansion into the crypto space, following its acceptance of digital asset payments in 2021 and the establishment of on- and off-ramps for Web3 payments in 2023.
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NFT, Gaming and Metaverse
Walmart plans to enhance its metaverse presence by integrating physical product purchases into its virtual world, House Flip. Customers can buy decor items virtually and order their physical counterparts. This move is part of Walmart's broader strategy to reshape retail through the metaverse. Additionally, Walmart is entering the virtual fashion space with its Scoop clothing brand on Asia's Zepeto platform. The company is also exploring options to offer virtual items to in-store customers. Walmart emphasizes the importance of digital safety and inclusivity in its metaverse ventures.
Magic Eden is introducing an open version that gives creators more control over their NFT series. The first batch of NFT collectibles will be released for one week, starting at 9 a.m. Pacific time. Magic Eden is also supporting Solana's compressed NFTs (cNFTs), offering a cost-effective option for digital collectibles. This reflects Magic Eden's commitment to innovation. Solana cNFTs provide efficient data storage, making them versatile for gaming, events, music, and the Metaverse, while minimizing minting costs.
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Scams and Hacks
Criminals are increasingly using cross-chain bridges instead of crypto mixers for illicit activities, according to blockchain forensics firm Elliptic. This shift is due to the "crime displacement" effect, where criminals change methods when the old one is under scrutiny. The transition to cross-chain bridges happened faster than expected, with a notable shift occurring after the U.S. Office of Foreign Asset Control sanctioned Tornado Cash in August 2022. Cross-chain bridges provide a level of anonymity that makes it challenging for forensic firms to track illicit activities across different blockchains. Elliptic estimates that $4 billion in illicit or high-risk cryptocurrencies have been laundered through cross-chain bridges since 2020.
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Resource of the Day
The rise of crypto as a new investment class brings the need for fresh analytical models and benchmarks. Understanding principles like Metcalf's Law and Moore's Law is crucial. Ethereum is on the cusp of a breakthrough with layer-2 blockchains resolving throughput issues. Layer-2 solutions currently retain about 23.5% of transaction fees, with the rest going to Ethereum validators. They are considered complements to Ethereum, and their efficiency is expected to drive more usage of Ethereum's layer 1. As competition increases, L2 margins are projected to decrease over time.
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Quick Links
The crypto held abroad accounts for about 70% of all assets held outside the country.
The world’s largest cryptocurrency generally outperforms in the fourth quarter, returning on average more than 35% over the past nine years, the report said.
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