Fringe economies are starting to talk about cryptocurrency

Wei Lin

By Wei Lin

Around the world, cryptocurrency adoption is slowly gaining support from states, banks and the general public -- but nowhere more readily than in bankrupt or un-banked economies. The Central Bank of Iran is working on a 1-to-1 state backed cryptocurrency. While the Venezuelan government attempts to do issue an oil-backed Ethereum coin, the people and businesses caught in the currency crisis are turning towards bitcoin to preserve and transfer money.

Iran’s answer to SWIFT removal? A state-issued cryptocurrency
"In conversation with RT, stockbroker Max Keiser said the U.S. decision to eject Iran from the SWIFT network would hasten the demise of the dollar as the world’s dominant currency, as excluded states lead the way with blockchain-based state-backed fiat currencies."

The ‘Wal-Mart’ of Venezuela Has Started Accepting Bitcoin
"Bitcoinist reported November 7 that the country has traded 1075 BTC in 7 days until November 3, beating all previous highs. The above example is only one which outlines why cryptocurrencies are shaping up as preferred means of payment in the country."

ECB Official Calls Bitcoin ‘Evil Spawn of the Financial Crisis’
“Despite bitcoin’s issues, central banks can take advantage of distributed ledger technology to possibly issue central bank-backed digital currencies (CBDCs), he went on to add.
Some banks have already begun exploring the concept of central bank digital currencies, with 69 percent of central banks already – or at least planning to in the near future – studying how these may be used to aid national monetary systems.”

Firm Tied to Cryptocurrency Entrepreneur Faces SEC Investigation
"Now, the Securities and Exchange Commission is probing another company that has been affiliated with Mr. Voorhees, Salt Lending Holdings Inc. The company, which loans money to people using their cryptocurrency as collateral, received a subpoena from the SEC in February seeking records related to a $50 million digital-token sale it held last year, the people familiar with the matter said."

Technical Reading

Counterfactual Loan Repayment
"Using this method, we were able to simplify the process for the end user by adding a little extra complexity on our side. Instead of the user having to approve() the Loan contract and call the repay() function themselves. They were able to just transfer() the tokens to a repayment address and our off-chain cron will automatically sweep the tokens. This is a much easier task for a new user in the space. If we are going to drive mass adoption in Ethereum, we need to make the UX as smooth as possible. But maybe it isn’t worth it? Maybe just a good UX around the approve() and repay() is good enough?"

Why Lightning Payments Are Not Always Cheaper Than On-chain Bitcoin Transactions"Due to the different ways in which the fees associated with on-chain transactions and lightning payments are calculated, users will have to choose the correct type of payment method for different scenarios — or more probably, developers will do this for them in the backend."

Vindication
"Today’s post to my blog is the latest, and arguably best, post in my ICO Mania series. Indeed: looking forward to today, and this post, is the very reason I started the ICO Mania series a year and a half ago, and why I have opposed publicly the practice of unregistered ICO sales in the U.S. for half a decade. That’s because, today, I can prove that my bear case for crypto was absolutely correct in predicting major regulatory headwinds at a scale that few other lawyers, or investors for that matter, foresaw."

You Had A Stamp Collection?
"The logic of the flock has two main drivers – jealousy and schadenfreude – and it struck me today how much of the mainstream presentation and representation of Bitcoin! as a meme over the past two years or so has been intentionally framed within these two other-regarding behaviors. I mean … I think of myself as being pretty self-aware when it comes to the means and modalities through which I am nudged into flock behavior, but it struck me today how little I’ve thought about this when it comes to Bitcoin."

Other News

Nvidia Grapples With Cryptocurrency Miners’ Exit
"Nvidia misjudged how quickly prices for the graphics cards that those chips go into would normalize now that cryptocurrency mining isn’t as hot, and the company is now dealing with months of expensive inventory that price-conscious gamers won’t touch."