Sports Betting Platform DraftKings to Become Polygon Network Validator & Support Custom NFTs Drops

Sports Betting Platform DraftKings to Become Polygon Network Validator & Support Custom NFTs Drops in Marketplace

Popular sports betting company DraftKings has taken a step further into the world of cryptocurrencies and blockchain by becoming a full validator for Polygon Network, an Ethereum-based scaling platform.

The firm, whose market capitalization currently stands at $20 billion, announced that scalability remains a challenge in the blockchain space, noting that they aim to set the ground running for the DraftKings marketplace — an ecosystem that focuses specifically on NFTs.

To become a validator, the betting giant will launch a node on the Polygon Network to enhance the verification of transitions using a proof-of-stake (PoS) consensus protocol.

DraftKings and Its Validator Status

Paul Liberman, co-founder and president of global product and technology at DraftKings, in a statement, said,

“Scalability and sustainability remain among the critical challenges of blockchain technology, so as we lay the groundwork today for the vision of DraftKings Marketplace tomorrow, the vast insights and proven products from Polygon around scalable solutions are invaluable.”

Through this collaboration, DraftKings will have the option of contributing to Polygon’s governance. This means the betting firm, being a token holder, will have a say in implementing changes to the network after staking their tokens on the platform.

DraftKings, in August this year, collaborated with the Tom Brady-backed NFT marketplace Autograph to roll out the Preseason Access Collection, a marketplace for NFT collectibles from famous athletes. Some of these athletes include Jamaican sprinter Usain Bolt and U.S. gymnast Simone Biles.

The marketplace debut came as trades in blockchain-registered images soared, making NFTs more attractive to retail traders.

DraftKings’ NFT

As sports companies and athletes are more interested in the NFT markets than ever before, DraftKings, backed by over 5.5 million users, is ready to tap the potentials of this market.

According to DraftKings’ president, Matt Kalish, turning that audience onto NFTs and keeping them engaged was a key focus of the marketplace launch.

“Whether someone is well-versed or barely familiar with digital collectibles, we envision DraftKings Marketplace being a premier platform for all within a trend that is decidedly here to stay.”

As issues of stability and increased transaction fees continue to trail the Ethereum blockchain, decentralized applications (dApps) development are now shifting attention to alternatives with more scalable solutions and lesser transaction fees. Some of these solutions include Algorand, Solana, Cardano, and Polygon.

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Author: Jimmy Aki

Russian President says Cryptocurrency May Become A “Means of Savings” at Some Point

Russian President says Cryptocurrency May Become A “Means of Savings” at Some Point

Vladimir Putin also said cryptocurrencies can also be used as payment though it is still too early to say.

Russian President Vladimir Putin said on Thursday that cryptocurrency can become a settlement unit though it is very unstable and still too early to use for energy.

These positive comments for digital currencies were given by Putin in an interview with CNBC that was posted on the Kremlin’s website Thursday.

Cryptocurrency “has the right to exist and can be used as a means of payment,” said Putin. But he did say that it was too soon to use crypto assets for trading oil and other commodities that make up the bulk of Russia’s exports.

“It’s too early to talk about this issue. Of course, cryptocurrency can become a settlement unit, but it is very unstable. It is possible to transfer funds from one place to another. But I think it’s too early for transactions, especially energy transactions, to use cryptocurrency for settlement.”

Russia, on which the US has imposed sanctions since 2014, has sought alternatives to trading in USD and has accelerated the de-dollarization plans with gold and has also set up an alternative SWIFT System to connect with other countries.

As we reported, Deputy Finance Minister Alexei Moiseev said this week that the country has no plans to ban crypto in countries like China.

Meanwhile, the central bank, the Bank of Russia, continues to issue warnings to investors about the crypto market being volatile and digital currencies not allowed to be used as a method of payment domestically. Putin meanwhile emphasized that they will

“pay attention to the development trend of cryptocurrency, which may also become a means of savings at some point. We have seen how the market fluctuates, and it is still early.”

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Author: AnTy

Compound Bug Puts 490k COMP at Risk to Become the Largest Fund Loss in a Smart Contract Incident

Compound Bug Puts 490k COMP at Risk to Become the Largest Fund Loss in a Smart Contract Incident

The total COMP at risk has now increased to about 490k COMP tokens, amounting to over $155 million at the current price of $317.71.

This latest surge in the affected tokens is due to another $68.8 million of COMP being sent to the Comptroller. Last week, this updated Comptroller Contract containing a bug had resulted in erroneously sending millions of dollars to some users.

At the time, Robert Leshner, founder of Compound Labs, had said that the mistaken claims could be at worst 280k COMP tokens.

Now, this figure, according to Leshner, has further increased to 490k after Banteg, the core developer of DeFi protocol Yearn Finance (YFI) — which has more than $5 billion in total value locked (TVL) — tweeted “The best-kept secret in DeFi is out,” on Sunday.

“Someone called drip() on Compound’s Reservoir, which sent another $68.8m of COMP to Comptroller,” added Banteg, noting about 1/4 of that could already be drained. The number was later found to be even higher.

“The bug tallies to $147m, making it officially the largest fund loss in a smart contract incident.”

Leshner then took to Twitter to acknowledge the situation, noting that in the Reservoir contract, the majority of the COMP tokens are reserved for users and drips 0.50 COMP per block into the protocol.

“Nobody had called the function in weeks, and community developers were hopeful that Proposal 63 or 64 (in governance) could go into effect before it was called.”

Mudit Gupta, a developer at DEX SushiSwap, noted that this is why “timelocks on everything are not always the best option,” because though people know about this issue, no one could do anything about it due to the timelock.

Out of the total 490k COMP at risk, 136k is still in the Comptroller, and 117k has been returned to the community so far, Leshner shared.

“Going forward, I’m optimistic about the patches making their way through the governance process, which fix the distribution, and the community members that are working to manage this bug.”

Leshner thanked those who had returned the COMP and said that the protocol had created portraits for them to recognize their deeds.

Last week, as we reported, Leshner had threatened the users that he would report those who did not return the funds to the IRS. But later backtracked the statement as he received criticism and realized his mistake in doing so.

“I’m sorry, and I hope you can forgive me. It was a very very dumb tweet,” he said in response to one user talking about Leshner’s original tweet making him wanna leave the Compound platform.

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Author: AnTy

Interactive Brokers Founder Already Red Pilled, Has Been “Itching” to Offer Crypto Trading for a Long Time

“There is a small chance that these cryptocurrencies could become very, very valuable, and you don’t wanna not be exposed to them,” said Thomas Peterffy, who has been a Bitcoiner since the 2018 bear market.

While the brokerage service provider started offering crypto trading services just now, the firm’s founder has been involved with Bitcoin in a personal capacity for the past three years.

In an interview with CNBC, Thomas Peterffy, the founder of Interactive Brokers, revealed that he has been a Bitcoiner since 2018. This means, Peterffy bought Bitcoin during the bear market, showing his conviction in the leading crypto asset.

“I have had Bitcoin for three years in my portfolio,” said Peterffy on Thursday.

Earlier this week, Interactive Brokers, which manages $360 billion worth of assets, partnered with New York-based crypto broker Paxos — which was also chosen by payment giant PayPal to enable their digital asset services — to start offering its 1.5 million customers the option to trade Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).

In the interview, Peterffy also revealed that he wanted to do this for some time now and finally took the step.

“I’ve been itching to do this because many of our customers have been asking for this, especially registered investment advisors whose clients are asking for some crypto exposure so we’ve been wanting to do this for quite some time.”

“Great Compression” Coming

The founder of one of the leading traditional brokers also shared that they are offering crypto trading services at low prices, at 0.12%, which he said is about half as much as the next lowest platform Gemini and one-third of Coinbase.

“So yes we have been itching to do this for a long time and we’re really happy to be able to do it.”

He actually believes that there is “great compression” coming in trading cost, which is going to go down in cryptos just as it has gone down in securities.

As for crypto being used as a payment mechanism, AMC Theaters CEO tweeted this week that they will be accepting Bitcoin, Ether, and other cryptos as payment for online tickets and commissions; Peterffy doesn’t really see crypto that way.

“Frankly, it doesn’t make sense to me because what is the advantage of these cryptocurrencies visibly,” said Peterffy, adding stablecoins are stable “just like the dollar” while being “better, easier regulated,” and the mechanism of using it for payment equally as simple.

“So, I don’t see it as but you never know so I think there is a small chance that these cryptocurrencies could become very very valuable and you don’t wanna not be exposed to them.”

Call for Clarity

When it comes to regulation with the SEC Chair working overtime to regulate the crypto industry and saying the space is troubled with fraud, hype, and abuse, Peterffy said these “criticisms are fine” but called for clarity.

“We really need to know what to do, and nobody is telling us,” but at the same time, the regulators come after companies two to four years down the road, and they accuse them of not doing things right, but they didn’t ever clear what to do in the first place, he said.

Commenting on the crypto offering high-yield, Peterffy does not understand how they can be so high yield, especially for a stablecoin. While it can be so long as people want to borrow the crypto and are willing to pay a lot for it, “otherwise I don’t see where the yield is coming from, and then I don’t see where the money comes from, it usually doesn’t come from a good place,” said Peterffy.

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Author: AnTy

Lake County Illinois Treasurer Accepts Campaign Contributions in Multiple Cryptocurrencies

In the midwest state of Illinois, Lake County Treasurer has become one of the first political candidates to accept digital currency, according to the local publication.

Holly Kim, a Democrat running for reelection next year, received a $3 donation in Litecoin (LTC), with a promise of more to come later.

Kim also accepts the popular meme coin, Dogecoin, which has surged 4,717% YTD in value and is currently trading at $0.273.

After consulting with the election board to include an option for crypto donations, Kim has started accepting Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and stablecoin DAI besides Dogecoin (DOGE) and Litecoin (LTC).

“I believe you’ll probably find crypto enthusiasts will support candidacies of government officials who see the potential of blockchain technology as something that’s moving forward,” said Mark Tan, founder of Lake Forest-based investment management firm T Capital Coin, who sent a fraction of a single LTC, to test the donation system works as planned. “(Crypto donors) are more supportive and open-minded,” he added.

FTX CEO Sam Bankman Fried actually made the second-biggest contribution of $5.2 million to the Biden campaign. After the recent debacle with the controversial infrastructure bill containing a crypto tax provision in the Senate, the crypto community is further motivated to spend their riches on supporting those political candidates who support the crypto industry.

Getting Things Right

The election board is treating crypto donations like in-kind donations of corporate stock instead of cash.

Kim, who is also a crypto believer, plans to hold onto the donations in expectation of a rise in their value, and “if worse comes to worst, we can always convert it (to dollars),” she said.

The value of crypto assets is established in USD on the day they’re donated for the purpose of staying within campaign contribution limits, said Matt Dietrich, spokesman for the Illinois State Board of Elections.

In order to make crypto donations, the donor has to provide their name, address, and occupation, just as with traditional contributions.

“Since we’re trailblazing here, I want to be sure we’re good ambassadors.”

“This could reflect how crypto donations are received in the future, so we want to be sure we do everything right.”

The election board can also investigate if it believes crypto donations are being used to subvert reporting requirements, Dietrich said. But Kent Redfield, a campaign finance expert and professor emeritus of political science at the University of Illinois at Springfield, said the rules already allow a level of opaqueness. People can shield their identities by donating to nonprofits then contributing to political action committees (PACs).

A New Frontier

By accepting cryptocurrency for campaign donations, Kim said it is a way to connect with tech-savvy people who might be new to political donations.

“It seems to be how people want to give,” she said. “I feel like it’s a new frontier.”

Crypto donations have been allowed by the Federal Election Commission since 2014, but few politicians have taken advantage of that so far.

A couple of months back in June, the campaign arm of the Republican House reportedly started accepting contributions in crypto in collaboration with crypto payment processor BitPay.

Andrew Yang, the entrepreneur, and Democratic presidential candidate, actually made digital currencies an important part of the campaign last year and shared his plans to make New York a hub for Bitcoin and cryptocurrencies.

Aaron Merreighn, a Conservative Party candidate for lieutenant governor, might be the first one in Illinois to receive a Bitcoin contribution in 2018, which was never spent, and was returned to the donor at the campaign’s conclusion, said Rick Crosley, a DuPage County-based political consultant who was the treasurer on that campaign and believes crypto has several advantages that will bring it in the political mainstream.

“The speed and efficiency of this financial instrument will allow a candidate to do much more.”

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Author: AnTy

Budweiser Joins NFT Frenzy, Purchases Ethereum Beer-Themed Domain Name

Budweiser Joins NFT Frenzy, Purchases Ethereum Beer-Themed Domain Name

Budweiser has become the latest global firm to jump on the non-fungible tokens (NFTs) bandwagon. The company purchased the Ethereum domain name, Beer.eth, alongside an NFT rocket ship.

Budweiser Changes Twitter Profile Picture To Rocket Design

The NFT rocket ship is a rocket artwork that features three components with the Budweiser name and logo. It was custom named “Life of the Party” and purchased 8 ETH (about $25,000 at press time).

Budweiser also bought the domain “beer.eth” for 30 ETH (around $100,000 at press time).

Reflecting on the multiple purchases, Budweiser changed its Twitter profile picture to a rocket ship designed by renowned NFT artist and owner of the NFT platform Rocket Factory Tom Sachs. The Tom Sachs Rocket Factory was launched earlier this month. The factory is a trans-dimensional manufacturing plan, according to a post by Sachs published last month.

Budweiser is yet to announce the NFT purchase officially. However, the beer outfit’s social media channels posted an update with three rocket emojis.

Budweiser is the largest-selling beer company in the United States by volume. The brand has become a household name and is available in over 80 countries.

Richard Oppy, VP of global brands at Anheuser-Busch, Budweiser’s parent company, had previously announced the company’s plan to invest in an NFT media shop in partnership with internet entrepreneur Gary Vaynerchuk.

According to him, NFTs are a huge opportunity for a brand like Budweiser that’s been closely associated with art, music, sports, and culture for decades.

Companies Continue To Experiment With NFT

AB InBev has had success with NFTs, having released a project under beer brand Stella Artois for National Fried Chicken Day. The brewer believes NFTs can play a role in limited edition packaging, merchandise drops, collectible items, and others.

Payment giant Visa has also jumped into the NFT scene. A few days ago, the firm announced the purchase of CryptoPunk 7610, one of the thousands of NFT-based digital avatars, for nearly $150,000 in Ethereum.

The NFT scene has witnessed unprecedented success over the past few months. In March, auction house Christie’s set records when an image created by the digital artist Beeple sold for $69 million.

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Author: Jimmy Aki

Asset Manager Files for a Bitcoin ETF But Won’t Invest Directly in BTC to Appease SEC Chair

Investment manager Invesco, which has $364 billion in assets under management (AUM), has become the latest company to file with the US Securities and Exchange Commission (SEC) for an exchange-traded fund (ETF) that will offer exposure to Bitcoin and other assets.

However, the firm says it won’t be investing directly in the cryptocurrency instead in Bitcoin futures.

According to the filing Thursday, Invesco Bitcoin Strategy ETF will invest in cash-settled bitcoin futures contracts traded on CME. At times, it also seeks to invest in exchange-traded products (“ETPs”) and ETFs listed outside the US, and open-ended private investment trusts that are linked to bitcoin such as Grayscale Bitcoin Trust (GBTC).

The “non-diversified” Fund will also invest in cash, cash-like instruments such as U.S. Government securities, money market funds, corporate debt securities, and other short-term unsecured promissory notes.

The collective “Collateral is designed to provide liquidity, serve as margin or otherwise collateralize the Subsidiary’s investments in bitcoin futures,” reads the document.

SEC Chair Gary Gensler, who has been getting increasingly vocal about regulating the crypto industry, said he is open to approving a crypto ETF this week. The agency has received several, in double digits applications.

But as we reported, Gensler has warmed to a Bitcoin futures backed ETF and not a physically-backed ETF, which is the main deal.

Eric Balchunas, the Senior ETF Analyst for Bloomberg, noted that Invesco rushed this filing in for a Bitcoin Strategy ETF under 40 Act to “satisfy Gensler” and won’t be surprised if several like these are filed by Friday night alone. Balchunas said,

“Here’s inv strategy. Basically the SEC’s hang up w 40 Act could end up funneling billions into derivatives, GBTC (which is a major reason ETF needed!), as well as up north into another country when the ppl just want an ETF that holds bitcoin directly.”

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Author: AnTy

Shift in Momentum: Binance Yields to Regulatory Pressure, the Definition of HQ Changing for CZ Too

Binance aims to move from its start-up origins to become a financial institution, but CZ isn’t leaving, rather is putting “commitment to compliance” as their top priority. The exchange has also launched the Tax Reporting Tool to help its users fulfill their tax reporting requirements.

Leading cryptocurrency exchange, Binance now wants to set up regional headquarters and be recognized by local regulators, said chief executive officer, Changpeng Zhao.

“We want to be licensed everywhere,” Changpeng Zhao told journalists, saying he wanted to “work with regulators everywhere.”

“From now on, we’re going to be a financial institution,” he said, adding that this would be breaking from its earlier decentralized model and maturing from its start-up origins.

As a first step towards getting a regulated move, Binance is becoming KYC (know your customer) compliant in order to “support” the security of its users, it said.

The exchange announced a reduction in its daily withdrawal limit to 0.06 BTC for those who are not completely verified but only have Basic Account Verification. This adjustment will be effective in phases starting from August 4 and will be completed by August 23.

The same restriction applies to new account registrations but is effective immediately.

“We continually review our policies to ensure that we surpass industry standards. This adjustment better accounts for current BTC prices. You can increase your withdrawal limit by completing identity verification.”

The same day, Binance launched the Tax Reporting Tool to help its users keep track of their crypto activities so that they are fulfilling the reporting requirements laid out by their regulatory bodies.

‘What if the less reg friendly things move to BSC/ some other chain. I’m thinking things like derivatives and lending markets. Binance has been writing a shit ton of checks in that space,” noted market maker IamNomad in response to Binance’s latest move.

Binance Smart Chain (BSC) is actually seeing a renewed interest lately, with the daily transactions on the blockchain hitting a new peak above 11.9 million on July 27 after bottoming around 3.14 million earlier this month, as per BSC Scan.

Unlike the last peak, this time, DEX PancakeSwap is not behind this success but CryptoBlades, a play-to-earn NFT game. This makes sense, given that Axie Infinity has been leading the market during the downturn of the last three months.

Amidst all this came reports of CZ looking to hire his replacement as the next CEO.

During a conversation with Mukaya Panich, CIO at Thailand’s Siam Commercial Bank’s venture arm SCB 10X, CZ said he is looking for a senior person with strong compliance and regulatory background.

“I don’t think I’m the best person to lead that effort. I think having somebody with a very strong regulatory background is actually better.”

CZ, however, took to Twitter to explain that “there are no immediate plans to replace me as CEO,” though he would like to hire someone with a special regulatory background to show their “commitment to compliance,” which he said is their top priority.

“I feel CEOs should not stay for more than 10 years, ideally around 5 years… We are always hiring for CEOs. I don’t need to be CEO, and I am not leaving.”

Much like in 2018, Binance became the leader in the crypto space; market participants believe the momentum is shifting yet again, with FTX coming on fast behind Binance to take up the first spot.

While Coinbase already had its initial public offering to mark Bitcoin top so far this year and Kraken is also planning sometime next year with FTX considering but not really needing it, CZ is now mulling a future IPO in the US but said the plan “is not 100% fixed yet.” Such plans would require Binance to have a legal entity and headquarters.

“We are setting up those structures.”

“Once those structures are in place, you may make it easier for an IPO to happen. So that’s not out of the question. But right now, we are still in the early stages.”

Binance has been facing a lot of regulatory scrutiny from all over the world especially due to not having an HQ, something regulators aren’t comfortable with, especially UK watchdog FCA which called the lack of a headquarters a “huge issue.”

Up until now, CZ has maintained that his definition of a headquarters is different from others, which is finally changing as the exchange faces the pressure of regulators and, given the latest changes made by the exchange, is also caving to them.

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Author: AnTy

Tom Brady and Gisele Bündchen Become FTX Ambassadors and Take an Equity Stake in the Exchange

Tom Brady and Gisele Bündchen Become FTX Ambassadors and Take an Equity Stake in the Crypto Exchange

Cryptocurrency exchange FTX and celebrity couple Tom Brady, a popular football player, and Gisele Bündchen, a renowned supermodel, have announced a long-term partnership.

Both Brady and Bündchen will serve as ambassadors for FTX and have taken an equity stake in the firm but did not disclose it. They did say the duo will receive an unspecified amount and type of crypto assets. Bündchen will also take on the role of FTX’s environmental and social initiatives adviser.

“Tom and Gisele are both legends and they both reached the pinnacle of what they do,” said Sam Bankman-Fried, founder and CEO of FTX.

“When we think about what FTX represents, we want to be the best product that is out there.”

Bankman-Fried further said both Brady and Bündchen were “really into” this partnership.

“This isn’t the first time that they’ve been involved in crypto, not the first time they’ve thought about it or even used it, which I think makes it a much more natural and authentic partnership,” said Bankman-Fried. “They’re examples of audiences we’d really like FTX to be the product for.”

Brady has been advocating cryptocurrencies for some time now and last month he added laser eyes to his Twitter profile picture in support of Bitcoin. On Monday, the quarterback for the Tampa Bay Buccaneers asked for other ideas after the laser eyes “didn’t work,” in reference to the drop in Bitcoin’s price over the past month.

During the CoinDesk Consensus 2021 forum, earlier this year, Brady said his coaches and teammates had been talking about cryptocurrencies and their prices on a daily basis.

“We’re very interested,” he said at the time, and that they are learning about these emerging markets. “So I’m a big believer in it, I don’t think it’s going anywhere,” said Brady, adding volatility will “absolutely” be there.

“This particular opportunity showed us the importance of educating people about the power of crypto while simultaneously giving back to our communities and planet,” Brady said in a statement.

Brad and Bündchen have also committed to annual multi-million dollar contributions for the duration of the partnership with FTX, which was founded with the goal of donating to charity and has already earmarked $10 million so far.

This latest marketing splash from FTX came on the back of the exchange’s partnership with Major League Baseball earlier this month and before that acquiring the naming rights to Miami Heat’s National Basketball Association stadium to FTX Arena as well as buying 10-year naming rights to an eSports team for $210 million.

“A lot of what we’ve been looking at is what are the things that we can do that will really stand out and represent us well, fit our brand and really capture people’s attention,” said Bankman-Fried.

“We’re going to be doing what we can to try to get news about FTX out there and get more eyeballs on it.”

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Author: AnTy

Billionaire Ray Dalio Believes Digital Yuan Could Become Global Reserve Currency

Billionaire Ray Dalio Believes Digital Yuan Could Become Global Reserve Currency; Could Run on Ethereum

According to billionaire investor Ray Dalio, the CBDC race seems to be heating up, and China may emerge a winner.

Digital Yuan To Outpace Digital Dollar

Bridgewater Associates founder Ray Dalio pointed out that China’s digital yuan could serve as a threat to the continued dominance of the US dollar in the global marketplace.

Speaking on CNBC’s Managing Asia, the American investor noted that China is clearly at the forefront with its digital yuan program compared to the US, which is still undergoing consultation.

This delay by the world’s largest economy could enable the Asian nation’s digital version of its fiat to become more competitive than a potential digital dollar.

According to Dalio, the US will launch a digital dollar, but it will not be the most competitive digital currency given the US rising debt level. However, he pointed out that it will still be viable given the US position as a market leader.

Earmarking China’s digital yuan, Dalio said it would be the most competitive given its pricing and return on investment. He also pointed out that the digital yuan would be a viable alternative to the dollar if it enjoys international acceptance and comes with attractive interest rates.

CBDCs, short form for central bank digital currencies, have been the rave ever since the decentralization era began with Bitcoin. BTC -1.72% Bitcoin / USD BTCUSD $ 36,661.69
Volume 34.62 b Change -$630.58 Open $36,661.69 Circulating 18.72 m Market Cap 686.46 b
2 h HRF Bitcoin Development Fund & BitMEX Disburses $210,000 in Grants to Developers 3 h Marathon’s Mining Pool, Marapool, to Signal for Taproot in a Change of Heart 4 h Riksbank Governor Believes Crypto Regulation is Certain, But Exchanges & Trading Is Already Regulated

They are state-backed digital versions of a country’s fiat and are usually issued by the apex bank. The majority of national banks have launched independent CBDC programs in pivoting to a digital economy.

Even some small countries have launched a digital version of their currency, but China has drawn the world’s attention given the implication of its program.

The digital yuan, which started six years ago, has been labeled a ‘threat’ by financial experts to the US dollar’s position as the world’s reserve currency. Dalio points to a potential toppling of the greenback.

The International Monetary Fund (IMF) data puts China at 2% behind the Pound, Euro, and the Japanese Yen. The US leads with 60%, and Dalio says this may not be for long.

According to the American investor, China’s digital yuan could scale up to 10 and 15% in the next couple of years.

China is close to launching its digital yuan, with pilot tests presently ongoing in its major cities. The forthcoming Olympics in Beijing has been chosen as the official wholesale launch.

The US Federal Reserve is only just picking the cue, and Fed boss Jerome Powell has announced plans to publish a discussion paper on the likely impact of a CBDC in the country.

Smart Contracts Compatible With CBDCs

China is planning to launch a digital yuan and make them ‘smart’ with time, per reports from Sina Finance. This is according to the director of the Science and Technology Supervision Bureau of China’s regulatory commission Yao Qian.

Speaking at the International Finance Forum 2021, Qian said that national banks should not only aim to launch digital versions of their currencies but add smart contract functionality. This will enable it to run on the Ethereum blockchain. ETH -2.63% Ethereum / USD ETHUSD $ 2,630.81
Volume 27.35 b Change -$69.19 Open $2,630.81 Circulating 116.12 m Market Cap 305.48 b
4 h Riksbank Governor Believes Crypto Regulation is Certain, But Exchanges & Trading Is Already Regulated 6 h Billionaire Ray Dalio Believes Digital Yuan Could Become Global Reserve Currency; Could Run on Ethereum 10 h Ethereum (ETH) Holders Grows by 8.16 Million, Despite the 60% Drawdown

However, Qian advises that this should not be rushed given the inherent challenges smart contracts come with as the industry is still young. He said that the best approach would be to start with a simple, smart contract and then build more complex ones as security and legality become clearer.

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Author: Jimmy Aki