Anyway – look – inflation is one of the most important themes in politics going forward.

Trump gets it. Whether or not he actually had a change of heart towards decentralization is anyone’s guess. But Trump sees how important inflation and the loss of fiat currency’s purchasing power is to the wider population.

People are tired of watching prices go up while pay stagnates and the value of their savings is ravaged!

Damn Inflation!

With certainty – inflation is a problem. If the central bankers were actually doing their job, and maintaining the value of money, most people wouldn’t care about cryptos. But that isn’t the case. We live in a world where the official narrative is fiction.

Trump is making political hay out of cryptos because the banking cartel and its media assets trumpet inflation data that isn’t connected to reality. Prices are way up. Check out these charts for more info on how terrible official inflation stats really are.

In short, since 2008, inflation in the USA never went under 5% per year. At the moment US inflation is well over 10%. Central bankers aren’t dumb. They are duplicitous. Behind closed doors the central bankers know the inflation situation is dire – on CNBC they tell a different story.

Lies Are Power

If you live in the USA – you must accept violence. Terrible violence exists at every level of the US socioeconomic structure. At the street level, murders in US cities are an issue. At the global level, the world has never seen a war machine like the US military industrial complex.

People go along with the idea that cities are safe and the US is spreading democracy because few people are impacted directly by the lies. The marginalized populations in the cities who are shot frequently are just that – marginalized.

The people who get bombed in far off lands aren’t a part of the US political landscape!

As long as the lies don’t impact the general population directly – people will go along with the fiction. Enter inflation. The problem with inflation is that it directly impacts most people. Every time a person goes to buy food, they see how much less they get for the same amount of money.

While we used the USA for the example above, it applies to every major currency bloc. The UK, EU, and Japan are all being nailed by reduced buying power. If you are rich, you don’t care. But in a world where ‘rich’ is the top 1%, inflation is a real problem.

Dangerous Politics

In theory, Bitcoin attacks modern social structures at a very basic level.

In the world of modern money, the USA sits at the center of the global banking cartel’s power structure. The US dollar has been the de facto global reserve currency since the Suez Crisis, so any interruption in the USD’s dominance could have major consequences for the Western financial system.

Bitcoin has always sat opposed to the banking cartel. With it becoming a political issue in the USA, there may be an unstoppable cycle in play. People know that the US dollar is losing value. The FED was willing to tank the global economy to maintain the USD’s buying power.

If people in the USA now see cryptos like Bitcoin as a way out – the political landscape in the US just became far more treacherous. Donald Trump is a political opportunist, so if be backs Bitcoin, he may not be considering second and third order consequences of that position.

No Way Out

If you are one of the ten people who regularly read our work – you will know we see the modern fiat currency system as a house on fire with the exits nailed shut. Should someone manage to escape the house, there is a banking cartel machine gun nest waiting to open fire on anyone running from the inferno.

Money is power – but not for the reasons you may think. We mean that the ability to issue money is power, not the money itself. A little more than a week after someone (or a few people) took aim and fired at Donald Trump – he decided to fully support Bitcoin in a very public way.

The writing on the wall is pretty clear after the recent FED meeting – the Western financial system is at its breaking point. With the Bank of Japan raising rates, and the US steady, we can safely say that central bankers are terrified at the prospect of out-of-control inflation.

With a major election coming in the USA, and markets tumbling, central bankers will be under pressure to deliver some relief. Otherwise, the Democratic party will have to just give up on politics for the next few years, as the results of its disastrous economic policies work their way through the system.

The Scary Version

There is a good chance that inflation can’t be managed. We may be in the opening inning of a hyperinflationary event. With the US federal debt out of control, the US could look like Argentina in a few years.

For those of you who never lived in a hyperinflationary environment, watching prices go up as products disappear from the marketplace is terrifying.

There is no solution for the US public debt problem. It will continue to grow, and will grow faster for the rest of the decade. Cutting spending (which won’t happen) would not impact the existing debt – which already costs more than $1 trillion to service annually.

Rate cuts would help the government to service the debt, but lower interest rates mean higher inflation. Most of the West is in the same situation!

The EU’s finances live in a perpetual twilight state, and debts continue to mount. There is no way out of this burning house – and if you try and escape – you will find few options out there. Central banks and governments force you to use fiat currency – with no other options on the table.

If you use gold or cryptos, get ready to jump through hoops and pay taxes on something governments see as an asset – or ban outright.

With the FED top-bound at around 5%, we see clearly that rates can’t go any higher without smashing the financial system to bits. Inflation isn’t going anywhere. People everywhere are upset. Fake inflation stats don’t quell an angry mob. Trump’s move to politicize Bitcoin will make him more popular, but it also raises existential questions about the Western financial system.

Inflation matters – but today, there is no solution for fiat-led structural inflation. People are stuck in a system that harms them, and will get worse before it collapses into either remonetization or hyperinflation (or both). The bottom like it that Klaus Schwab may get the angrier world he is looking for!

The post Op-Ed: Guess What? Inflation Matters! appeared first on Blockonomi.

• BlackRock’s tokenized BUIDL fund has paid $7 million in dividends since March 2024
• BUIDL’s monthly dividend payouts have increased each month, reaching $2.12 million in July
• The fund has attracted $500 million in capital and is the largest tokenized US Treasury investment fund
• BUIDL is BlackRock’s first tokenized fund issued on a public blockchain (Ethereum)
• Tokenized government debt funds are gaining popularity among institutional investors

BlackRock’s tokenized United States Dollar Institutional Digital Liquidity Fund (BUIDL) has been making waves in the world of digital assets since its launch in March 2024. The fund, which invests in U.S. Treasury Bills, cash, and repurchase agreements, has paid out $7 million in dividends to investors in just five months.

BUIDL’s dividend payments have shown consistent growth month over month. According to asset tokenization firm Securitize, the fund distributed $265,400 in its first month. This amount increased to $1.21 million in April, $1.67 million in May, $1.82 million in June, and reached an all-time high of $2.12 million in July.

BUIDL breaks a new record, paying out $2.1M in July and over $7M since March. @BlackRock USD Institutional Digital Liquidity Fund (BUIDL) pays out dividends monthly to holders on the @ethereum blockchain.

BUIDL remains the largest tokenized fund, providing US dollar yields… pic.twitter.com/QiS6exLUZU

— Securitize (@Securitize) August 1, 2024

The fund’s rapid growth has been remarkable. In April 2024, BUIDL surpassed Franklin Templeton’s Franklin OnChain US Government Money Fund (BENJI) to become the world’s largest tokenized government debt investment fund. By July 2024, BUIDL had attracted $500 million in capital, solidifying its position as the leading tokenized US Treasury investment vehicle.

BUIDL represents BlackRock’s first venture into tokenized funds issued on a public blockchain. The fund operates on the Ethereum network, which allows for the issuance and trading of ownership on a blockchain. BlackRock states that this approach offers several benefits, including expanded investor access to on-chain offerings, instantaneous and transparent settlement, and the ability to transfer across platforms.

The success of BUIDL aligns with a growing trend in the crypto industry towards real-world asset tokenization. Other financial institutions are also entering this space. Goldman Sachs recently announced plans to introduce three new tokenized products in 2024, focusing on funds in the US and European debt markets.

Institutional investors are increasingly embracing tokenized money market funds due to their improved liquidity, accessibility, and efficiency compared to traditional funds, according to financial services firm Deloitte.

The rise of these funds comes at a time when the total US national debt has surpassed $35 trillion, leading some analysts to speculate about potential impacts on the US dollar’s value.

While some see the growing national debt as a catalyst for a return to alternative assets like Bitcoin, others believe that the demand for the US dollar from stablecoin issuers and tokenized debt instruments could potentially support the currency’s stability.

Beyond its role as an investment vehicle, BUIDL is also being leveraged by DeFi protocols such as Ondo for their derivative products, further integrating the fund into the broader digital asset ecosystem.

BlackRock’s involvement in tokenized funds extends beyond BUIDL. The firm is also among the leading providers of spot Bitcoin ETFs and spot Ethereum ETFs, with the latter beginning trading on July 23, 2024.

However, BlackRock’s chief investment officer, Samara Cohen, has indicated that additional funds based on other cryptocurrencies are unlikely in the near future.

As of August 2024, BUIDL’s market value stands at approximately $522 million, according to Etherscan data. The fund’s success demonstrates the growing interest in tokenized traditional assets and the potential for blockchain technology to reshape the investment landscape.

The post BlackRock’s BUIDL Fund: $7 Million in Dividends Since March Launch appeared first on Blockonomi.

• The Bank of England (BoE) plans to conduct experiments with wholesale CBDCs and distributed ledger technology
• The experiments will test settlement capacity, interoperability, and various transaction types
• The BoE aims to ensure “singleness of money” is maintained with stablecoins and tokenized deposits
• The central bank will work with other UK financial regulators on these experiments
• The BoE is cautious about widespread DLT adoption but wants to prepare for potential impacts

The Bank of England (BoE) has revealed plans to conduct a series of experiments with wholesale central bank digital currencies (wCBDCs) and distributed ledger technology (DLT).

This move comes as the central bank aims to keep pace with innovations in the payments landscape and assess both the opportunities and risks presented by emerging financial technologies.

In a discussion paper released on July 30, 2024, the BoE outlined its intention to test the settlement capacity and interoperability of wCBDCs and DLT within its Real-Time Gross Settlement (RTGS) system.

The bank plans to undertake these experiments within the next six months, focusing on comparing CBDC settlement with the synchronization of non-CBDC central bank money.

The BoE’s experiments will explore various transaction types, including delivery-versus-payment (DvP) for securities and payment-versus-payment (PvP) for foreign exchange. These tests will build upon findings from previous projects, such as Project Meridian, which examined synchronization networks integrated with existing RTGS systems.

While the central bank expresses caution about the widespread adoption of DLT, it acknowledges the need to prepare for potential impacts on monetary and financial stability. The BoE notes that the extent of these impacts will depend on the financial markets’ uptake of these technologies at scale.

A key focus of the experiments is ensuring the “singleness of money” is maintained, even with the introduction of stablecoins and tokenized deposits. This concept refers to the interchangeability of different forms of money, including cash, bank deposits, and potentially new digital assets.

To address these complex issues, the BoE plans to collaborate with other UK financial regulators, including the Treasury, Payments Systems Regulator, and the Financial Conduct Authority. This cooperative approach aims to create a comprehensive framework for integrating new technologies into the existing financial system.

The announcement comes as central banks worldwide grapple with the rise of cryptocurrencies and the potential need for CBDCs. The BoE’s experiments are part of a broader trend of central banks exploring how to interact with DLT and digital currencies effectively.

One notable aspect of the BoE’s approach is its consideration of both wCBDCs and synchronization methods. Synchronization would allow separate ledgers to communicate, facilitating fund earmarking and payment settlement. The bank plans to compare these approaches to determine their relative merits.

The BoE also raised design questions about wCBDCs, noting that previous experiments have typically minted CBDC from currency already present in the RTGS, rather than minting it “natively.”

The bank is considering whether the platform on which CBDC is minted should be controlled by the central bank or a third party.

These experiments represent a significant step in the BoE’s ongoing exploration of digital currencies. The central bank has been investigating the feasibility of a CBDC, sometimes referred to as “Britcoin” or the digital pound, since at least February 2023.

While a potential launch of a retail CBDC is not expected before the end of the decade, the BoE has been steadily increasing its resources dedicated to CBDC research and development.

The BoE’s cautious yet proactive approach reflects the complex challenges posed by rapidly evolving financial technologies. As Governor Andrew Bailey stated,

“Confidence in money and payments is fundamental to the Bank’s responsibility for monetary and financial stability. As innovation in this space continues, our role must also evolve, to support a robust and dynamic UK economy.”

The central bank is inviting responses to its discussion paper through October 31, 2024, as it seeks to engage with a wide range of stakeholders in shaping the future of the UK’s monetary system.

The post Bank of England Announces Experiments with Wholesale CBDCs and DLT appeared first on Blockonomi.

Not to be held back by the SEC – Ripple is actively expanding its global footprint beyond the U.S., with initiatives aimed at enhancing its presence in international markets.

The partnership will be facilitated through the Next accelerator program, the largest accelerator program in Brazil’s financial sector. Fenasbac’s Next provides resources, mentorship, and investment opportunities for fintech startups with high growth potential.

“We believe Brazil provides an ecosystem that fosters both technology advancement and progressive policies in blockchain. We see Brazil’s forward-thinking approach as a catalyst for transforming financial services across international markets,” said Silvio Pegado, Managing Director of LATAM at Ripple.

Ripple In Demand Offshore

As part of the strategic collaboration, Ripple will sponsor two fintechs developing solutions using blockchain technology in areas like payments, asset tokenization, and financial services.

In addition, startups can leverage XRPL (XRP Ledger), Ripple’s decentralized, open-source blockchain focused on cross-border payments, smart contracts, and digital currencies.

Rodrigo Henriques, Innovation Director at Fenasbac, believes the partnership with Ripple will strengthen Fenasbac’s mission to promote blockchain technology and develop innovative solutions that have a positive impact on society.

It’s not the first partnership between Ripple and Fenasbac. The two companies previously collaborated on a research initiative with participation from other high-profile entities like the Federal University of Rio de Janeiro (UFRJ) and Polkadot.

The project explored blockchain interoperability solutions for Brazil’s digital currency DREX in conjunction with the Central Bank of Brazil. The initial, successful partnership laid the groundwork for the two organizations to continue working together to advance blockchain innovation in Brazil’s financial sector.

Ripple Sees Promise in Brazil

The fintech sector in Brazil is thriving, with companies like Nubank, a Warren Buffett-backed digital bank, entering the crypto space and rapidly gaining users. Nubank’s crypto service, Nu Cripto, reached one million users shortly after launch. That demonstrated the appetite for crypto solutions among Brazilian consumers.

High adoption rates and regulatory developments are other highlights in Brazil’s crypto market. The Brazilian government is actively working to establish a regulatory environment that supports innovation while ensuring consumer protection.

In late 2022, Brazil’s Congress passed a bill regulating the crypto market, which was signed into law by the President in December, 2022. The legislation aims to provide a clear framework for the operation of virtual asset service providers (VASPs) in the Latin American nation.

The new regulations were originally expected to take effect in 2023, with the Central Bank of Brazil in charge of formulating the processes for compliance and oversight. However, the bank announced a phased approach to the implementation of these regulations and decided to delay the finalization of the regulatory framework until the end of this year.

Ripple believes Brazil’s approach to crypto can transform financial services globally. While focusing on Brazil, Ripple is also expanding its operations to Japan, South Korea, and the UK to foster blockchain innovation worldwide.

Last month, Ripple launched the XRPL Japan and Korea Fund to foster innovation on the XRP Ledger in these two markets. The fund seeks to support corporate partnerships, developer grants, startup investments, and community growth initiatives.

Ripple has identified Asia-Pacific as one of its fastest-growing regions and is prioritizing the adoption of its crypto payment services in the region. The firm has partnered with HashKey DX in Japan and SBI Ripple Asia to bring XRPL-powered solutions to the region

Ripple’s ongoing expansion comes amid regulatory challenges in the U.S., where the company faces a year-long legal battle with the U.S. Securities and Exchange Commission (SEC). Following a court ruling last year, the two entities are expected to close the case soon after reaching a settlement.

The post Ripple and Fenasbac Join Forces to Support Blockchain Startups in Brazil appeared first on Blockonomi.

• Andrew Left, a prominent short seller, surrendered to authorities in Los Angeles to face federal criminal securities fraud charges.
• Left is accused of manipulating stock prices through misleading public statements and trading contrary to his public positions.
• The Justice Department and SEC allege Left made at least $16 million through these tactics.
• Left targeted stocks popular with retail investors, including GameStop, Nvidia, Tesla, and others.
• Left’s lawyer argues the case is misguided and could have a chilling effect on short sellers sharing research.

Andrew Left, a well-known short seller and founder of Citron Capital, turned himself in to authorities in Los Angeles on Monday.

He faces federal criminal charges for securities fraud. The U.S. Department of Justice and the Securities and Exchange Commission (SEC) have accused Left of manipulating stock prices for personal gain.

Left, 54, is known for publicly criticizing companies he believes are overvalued. He often shares his views on social media and news programs. The government claims Left used this platform to mislead investors and make money illegally.

According to the indictment, Left made public statements about certain stocks that were different from his actual trading actions. For example, he might tell people to sell a stock while he was buying it, or vice versa. The Justice Department says Left made at least $16 million through these tactics.

The case involves several well-known companies. Left reportedly targeted stocks that were popular with small investors, including GameStop, Nvidia, Tesla, Twitter (now X), Meta (formerly Facebook), and others. The government says Left knew his statements could affect stock prices and used this to his advantage.

Left’s lawyer, James Spertus, strongly disagrees with the charges. He told reporters that the case is “misguided” and that Left’s public statements were usually accurate. Spertus argues that Left had no legal duty to disclose his private trading plans to the public.

The case raises questions about freedom of speech in financial markets. Short sellers like Left often publish research criticizing companies they believe are overvalued. This can help keep markets honest by exposing problems. However, the government argues that Left crossed a line by lying about his own trades.

Left stopped sharing his research publicly in 2021 when the government began investigating short sellers. Some think these lawsuits might be meant to discourage other investors from using similar tactics.

The charges against Left include both criminal and civil complaints. If found guilty of the criminal charges, Left could face prison time. The SEC is also suing Left in a separate civil case.

Left’s surrender and court appearance have attracted attention in the financial world. He was scheduled to appear before Judge Rozella A. Oliver in U.S. District Court in Los Angeles. His lawyer expected Left to be released on bail, although prosecutors initially sought a multi-million dollar bond.

This case comes after the “meme stock” craze of 2021, where Left was a key figure. He had publicly criticized GameStop, which angered many small investors who were buying the stock. Left’s firm, Citron Capital, eventually stopped shorting GameStop due to the stock’s unusual behavior.

The outcome of this case could have big effects on how short sellers operate. If Left is found guilty, it might make other investors more cautious about sharing negative research on companies. This could change how information flows in the stock market.

The post Short Seller Andrew Left: Faces Federal Fraud Charges in $16 Million Stock Manipulation Scheme appeared first on Blockonomi.

Countries facing U.S. sanctions have increasingly turned to cryptocurrencies to circumvent restrictions. And why not – they can be used all over the world no matter what!

“We have difficulties with calculations because the official currency in El Salvador is the US dollar. As an alternative, El Salvador offers to use cryptocurrency in trade operations,” Ilyukhin stated.

Bitcoin Works Anywhere

El Salvador has maintained a neutral stance regarding the Russia-Ukraine conflict. The Latin American country has neither condemned Russia nor joined sanctions, despite pressure from Western nations and regular diplomatic visits from Ukraine.

But for Bitcoin, El Salvador’s stance is clear. The country went down in history as the world’s first nation to adopt Bitcoin as legal tender. The administration of President Nayib Bukele, a known Bitcoin advocate, continues to promote Bitcoin adoption as part of its broader economic strategy.

The latest proposal shows El Salvador’s ongoing commitment to its pro-crypto stance. Arkham’s data shows that as of July 29, El Salvador had over 5,800 Bitcoin, valued at around $384 million. The country has consistently acquired BTC as part of Bukele’s Bitcoin plan.

El Salvador has recently drafted a reform proposal to create a private investment bank called the Bank for Private Investment (BPI). The bank would be authorized to conduct operations in both Bitcoin and U.S. dollars, allowing it to provide financial services to Bitcoin investors.

Despite El Salvador’s enthusiasm, the proposal faces hurdles since Russia has prohibited the use of cryptocurrencies for payments. The ban has been broadened to include security tokens, utility tokens, and non-fungible tokens (NFTs) as forms of payment.

“Bitcoin is not widespread in our country, so we are looking for other ways to strengthen trade. The government of El Salvador is ready to continue economic cooperation with Russia,” said Ilyukhin.

The Central Bank of Russia previously proposed a comprehensive ban on all cryptocurrency operations, including trading and mining, citing systemic financial risks. However, the proposal has not been fully enacted.

The Russian government has since decided to regulate rather than completely ban cryptocurrencies. Earlier this month, the State Duman, the Lower House of the Russian Parliament, passed a bill that legalizes Bitcoin mining and allows using cryptocurrencies for international trade.

The bill seeks to establish a regulatory framework to oversee crypto mining activities, ensure compliance with tax regulations, and prevent illicit operations. If approved by the Federation Council, the Upper House, and the President, it will come into effect later this year.

El Salvador May Apply to Become a BRICS Member

El Salvador officially accepts Bitcoin as a means of payment and is open to adopting cryptocurrency for trade with Russia. However, there are challenges due to the reliance on the US dollar and intermediary banks.

Ilyukhin said that the U.S. has proposed a “Marshall Plan” for Latin America to strengthen its regional influence. Despite this, many Latin American countries, including El Salvador, show interest in cooperating with Russia and potentially joining BRICS.

El Salvador could submit its application to join the BRICS group within the next one to two years. Joining BRICS could provide El Salvador with new economic opportunities and a stronger geopolitical standing, particularly as the group aims to enhance cooperation among emerging economies and challenge Western dominance in global affairs.

Several other countries are also exploring this possibility. The BRICS alliance, originally formed by Brazil, Russia, India, China, and South Africa, has recently welcomed many new member countries, including Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates.

The post El Salvador Suggests Bitcoin For Trade With Russia As Sanctions Bite appeared first on Blockonomi.

The darling central bankers have some new ideas about how money should work. You can find an asterisk at the bottom of the page defining CBDC for this article – but we will save you the trouble.

CBDC means Central Bank Dystopian Control!

And people’s faith in stablecoins is going to usher in an age of centrally planned horror.

Just use cryptos already!!!

Central Bankers Want 1984 To Look Like 1776

Central bankers want to empower governments in frightening new ways. In fact – the centralized systems they want to create look like a dark reflection of the decentralization Bitcoin inspired.

The fiat currency system we have now is highly centralized. Many people don’t understand they have no money at all – just IOUs from banks. Unless you hold physical currency, all you have is a promise to pay from a bank.

But that isn’t enough for the banking cartel. Sadly, the levels of control they want to build with CBDC will empower central planners in ways few can imagine right now. Let is help you understand what we are facing.

You Already Own Nothing

Stablecoins are popular. It’s easy to see why. Traders need a way to take profits. Some people need fiat-linked assets to pay expenses in the real world. The sheep keep using fiat money, so the world of crypto needs a solution.

Here is the problem. Most people don’t understand money. Like the weather and daytime television, money just is something that exists. The backend of the system is a mystery. To many, using a stablecoin is a lot like using PayPal or Venmo.

To put it simply, using USDT with Metamask is entirely different from sending “money” with PayPal. With USDT and a decentralized wallet, you own the asset. When you trust PayPal, user ownership is questionable.

The Value Question

Personal ownership has value. Today, most people have no ownership whatsoever. If someone was able to afford a house in a place like the US or UK, most of the buyers would use a mortgage to buy the property.

So, when most people “own” a property – they actually own a loan. Maybe one day they will own the house, but who knows. 30 years is a long time. The same dynamic is true for autos, and most major assets.

The banks own everything!

Stablecoins represent one of the first assets people can own that doesn’t rely on third-party custody. There is no bank taking control over the money. A person can easily own 1 USDC in a decentralized wallet, with no bank getting in the way.

CBDC uses a totally different system – which takes the personal ownership stablecoins offer and pervert it into something terrible.

Control Freaks

The banking cartel wants CBDC to be a social control mechanism par excellence. The danger is difficult to overstate. As imagined by the global planning class, CBDC would rewrite the existing social contract to a degree that few can imagine.

Like any major undertaking, the planners already ran a demo in a sandbox. The sandbox is called China. The CCP has an outrageous amount of power within its borders. Working with “private” companies, it rolled out digital payment platforms that are linked with social credit scores.

Remember our way of defining CBDC – Central Bank Dystopian Control!

WeRule!

WeChat is an interesting platform. It looks a lot like WhatsApp, but it integrates aspects of a platform like Grab or Uber (there are others, but you get the idea). It is also linked to your identity, and collects ALL the data you create.

Combined with the CCP’s social credit score system, the WeChat platform offers the government a huge amount of control over how a person in China lives. If you are in China, opting out is basically impossible. Even if you use cash, widespread surveillance uses biometrics to track you – and cut you off from basic social services (both public and private).

Admittedly, it is the first iteration of this idea in the modern world. The CCPs system is clunky. As a proof-of-concept it is decent, but the Western central planners want a whole lot more control. If CBDCs move forward – they will get it.

Default State Of Mind

The global control state wants power over your life on a micro scale. It wants to control what you can buy, where you can go, and even how much money you are permitted to have. It is full spectrum control where the state is able to dictate lifestyle on a minute-by-minute basis.

At the moment, many central banks don’t want to connect with retail users. The current crop of central bankers don’t want to upend the retail banking model. In order for a new system to be rolled out – modern fiat currency will have to fail.

Money is a math game. At the moment, all the major Western currencies are on a collision course with destiny. The destiny of any fiat currency is failure. With no exceptions all fiat currencies in human history have failed. It is just a matter of time.

Here are a few features of the CBDC system that is coming:

Use In Limited Locations: In a world where CBDC is used, you will only be able to use money in given geographic locations. With GPS tracking, your digital wallet can only be used in places the state requires you to live – and any escape from your zone is not possible (payment is not possible, and you will be punished for disobedience).

No Need To Diet: With CBDC, governments and banks can choose what you can buy at the grocery store – or anywhere in the zone you are required to live. All of your medical records and lifestyle information will be available to the AI and central planners, so they will decide what is best for you.

Total Compliance: Everyone will want to be a good “citizen” with CBDC. Anyone in the power structure can suspend your ability to use the CBDC system, which makes resistance to the state impossible. In fact, because your location is tracked in real time, you can be marked as untouchable, and people will avoid any contact with you – they don’t want to be “shut off” too.

As you can see, CBDC is the perfect system for a power-mad controller class. Stablecoins are part of the conditioning process that leads people away from decentralization. Fiat currencies are still in control – and with CBDC coming soon – the hopes of early Bitcoins will be dashed on the rocks of centralized control.

All is well. Return to your regular media consumption now. TikTok is waiting for you.

*Central Bank Dystopian Control

The post Op-Ed: Stablecoins Are A Backdoor To CBDC appeared first on Blockonomi.

• Sygnum Bank reported profitability in the first half of 2024, with doubled crypto trading volumes.
• The bank saw a 500% increase in crypto derivatives trading and a 360% rise in loan volume.
• Sygnum attributes growth to the approval of Bitcoin and Ethereum ETFs in the US.
• The bank plans to expand in Europe and become fully MiCA compliant by Q1 2025.
• Sygnum is also looking to expand its regulated offerings in the Asia-Pacific region.

Sygnum Bank, a Swiss crypto bank managing $4.5 billion in client assets, has announced profitability for the first half of 2024.

The bank reported a significant increase in crypto trading volumes and other key metrics, signaling strong growth in the crypto banking sector.

According to Sygnum, crypto spot trading volumes doubled compared to the same period last year. The bank also saw a remarkable 500% increase in crypto derivatives trading and a 360% rise in loan volume.

These impressive figures reflect the growing interest in cryptocurrency investments and services.

Martin Burgherr, Sygnum’s Chief Client Officer, pointed to the recent approval of spot Bitcoin and Ethereum exchange-traded funds (ETFs) in the United States as a major factor driving this growth.

“The approval and launch of Bitcoin and Ethereum ETFs were a watershed moment for the crypto sector this year, leading to a major increase in demand for trusted, regulated exposure to digital assets,” Burgherr stated.

The bank’s success extends beyond trading volumes. Sygnum’s staking-as-a-service offering has gained popularity, with 42% of all Ether held by Sygnum customers now being staked.

The bank highlighted that for institutional clients, staking Ethereum offers unique benefits that go beyond the current limitations of ETF frameworks, which do not include staking yields.

Sygnum’s client base is approaching 2,000, including institutional and professional investors from over 60 countries. The bank has also expanded its business-to-business partnerships, now working with more than 20 banks and financial institutions. These partnerships enable over a third of the Swiss population to trade crypto through their primary banks.

Katalin Tischhauser, Sygnum’s Head of Investment Research, comments on yesterday’s launch of the Ethereum spot ETFs:

"I expect strong demand over the next 12 months from traditional institutional investors. #Ethereum, the leading smart contract platform with a multitude of use… pic.twitter.com/jYyyc4BrRW

— Sygnum Bank (@sygnumofficial) July 24, 2024

Looking ahead, Sygnum has ambitious expansion plans. The bank is eyeing further growth in the European market and aims to become fully compliant with the European Union’s new Markets in Crypto-Assets (MiCA) Regulation by the first quarter of 2025.

Although Switzerland is not an EU member, Sygnum has been licensed in Luxembourg since 2022, giving it a foothold in the EU market.

Beyond Europe, Sygnum is setting its sights on the Asia-Pacific region. The bank already has an office in Singapore and plans to expand its regulated offerings to other countries in the area, including Hong Kong, in the coming months.

Sygnum’s growth comes at a time of increasing institutional interest in cryptocurrencies. The bank offers several crypto-related exchange-traded products, including the Sygnum Platform Winners Index ETP, which holds a variety of large market cap cryptocurrencies.

The bank’s recent success follows a $40 million capital raise in January, which valued Sygnum at $900 million. This funding round, led by asset manager Azimut Holding, has helped position the bank for its current expansion efforts.

The post Sygnum Bank Reports Profitability in First Half of 2024 appeared first on Blockonomi.

• HSBC Australia is blocking customer payments to crypto exchanges starting July 24, 2024.
• The bank cites rising concerns over crypto-related investment scams as the reason for this action.
• At least six major Australian banks have taken similar measures to restrict crypto transactions.
• HSBC will still allow customers to receive payments from crypto exchanges.
• Australian regulatory bodies are increasing scrutiny of the cryptocurrency sector.

In a move that reflects growing concerns about cryptocurrency-related scams, HSBC Australia has announced it will block all customer payments to crypto exchanges starting July 24, 2024.

This decision makes HSBC the latest in a line of major Australian banks to restrict crypto transactions, citing customer protection as the primary motivation.

HSBC Australia, which serves 1.5 million customers across 45 branches, informed its clients via email about the upcoming changes. The bank pointed to data from Australia’s competition and consumer regulator, which reported that Australians lost up to $171 million in investment scams in 2023.

While HSBC will prevent outgoing payments to crypto exchanges, it will continue to accept incoming transfers from these platforms.

This action by HSBC is not isolated. At least six major Australian banks have implemented similar restrictions over the past year. The Commonwealth Bank, National Australia Bank, Westpac, and Australia and New Zealand Banking Group have all taken steps to limit access to cryptocurrency platforms.

Bendigo Bank quickly followed HSBC’s lead, also citing the need to protect customers from investment scams.

The trend has raised concerns within the cryptocurrency industry. Amy-Rose Goodey, managing director of the Digital Economy Council of Australia (DECA), expressed worry about the impact on Australians’ “financial rights” to participate in the digital economy.

Goodey emphasized the need for dialogue and improved regulatory frameworks to support innovation while effectively addressing potential risks.

These banking restrictions come amid increased scrutiny of the cryptocurrency sector by Australian regulatory bodies. AUSTRAC, Australia’s financial crime watchdog, has recently intensified its warnings about the potential for money laundering through cryptocurrencies.

The agency noted particular vulnerabilities with digital currencies being used for payments and predicted increasing risks in this area.

Other regulatory actions include a prohibition on using cryptocurrencies for online gambling payments in Australia. The Australian Taxation Office is seeking personal information and transaction details from crypto investors and exchanges.

Meanwhile, the Australian Securities and Investments Commission (ASIC) is targeting crypto entities suspected of offering unregistered securities.

The banking sector’s approach to cryptocurrency transactions highlights the ongoing challenges in balancing innovation with consumer protection.

While banks argue that these measures are necessary to safeguard customers from scams, critics worry that such restrictions may hinder the growth and adoption of digital currencies in Australia.

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• The U.S. national debt has reached nearly $35 trillion
• Interest payments on the debt are expected to exceed $1.14 trillion this fiscal year
• In June, interest payments consumed 76% of all personal income taxes collected
• Elon Musk expressed concern about the U.S. financial situation, saying “America is going bankrupt”
• Some experts predict potential economic challenges ahead, including a possible stock market decline

The United States is facing growing financial challenges as its national debt approaches $35 trillion. This massive debt is now consuming a significant portion of tax revenue, raising concerns among economists and business leaders about the country’s fiscal health.

Recent data shows that interest payments on the federal debt now account for 76% of all personal income taxes collected. This means that for every dollar Americans pay in income tax, about 76 cents go towards paying interest on the national debt.

The Treasury Department expects to spend more than $1.14 trillion on interest payments alone this fiscal year.

The rapid growth of the national debt is alarming many observers. At the start of 2000, the U.S. federal government debt stood at $5.77 trillion. By 2010, it had more than doubled to $12.77 trillion. The debt reached $23.22 trillion at the beginning of 2020. Now, just a few years later, it has climbed to nearly $35 trillion.

Elon Musk, CEO of Tesla and SpaceX, recently commented on the situation on social media.

“America is going bankrupt,” Musk wrote, expressing concern about the high percentage of income tax being used to pay interest on the debt. He referred to this as “interest on past government incompetence.”

America is going bankrupt btw https://t.co/UYpri3wyJU

— Elon Musk (@elonmusk) July 22, 2024

The growing debt and high interest payments are putting pressure on the government’s budget. The amount being spent on interest payments is now larger than many other important government expenses.

It even surpasses the combined spending on health and human services and Social Security, which have traditionally been the government’s largest expenditures.

Some financial experts are warning that these fiscal challenges could lead to broader economic problems. Paul Dietrich, chief investment strategist at B. Riley Wealth Management, suggested that the stock market might face a significant decline.

He predicted that the Federal Reserve might need to keep interest rates high to fight inflation, and the government might have to raise taxes to address its deficit.

The situation is complex, with various factors contributing to the growing debt. These include government spending decisions, economic conditions, and changes in tax policies. The recent series of interest rate hikes by the Federal Reserve since March 2022 has also played a role in increasing the cost of servicing the debt.

As the debate over the national debt continues, it’s clear that this issue will remain a key topic in economic and political discussions. The long-term implications of such high debt levels are still uncertain, but many experts agree that it poses significant challenges for the country’s financial future.

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