BoE Governor Calls for Setting Global Standards for Stablecoins, Instead of Playing Catch Up

Stablecoins have been enjoying tremendous growth, and DeFi mania has only been pushing it further, so much so that these USD-pegged coins have been adding $100 million per day since mid-July.

“DeFi yields/interest rates are clearly a vacuum sucking in a lot of stablecoins,” shared Coin Metrics co-founder Nic Carter.

Source: CoinMetrics

As such, it makes sense these coins will continue to be under the increased scrutiny of regulators, which first came under their radar after Facebook unveiled its Libra stablecoin last year.

Now, Bank of England Governor Andrew Bailey is saying that financial regulators must avoid playing catch up with them. Bailey said in a speech to the Brookings Institution,

“If stablecoins are to be widely used as a means of payment, they must have equivalent standards to those that are in place today for other forms of payment types and the forms of money transferred through them.”

Calling for a clear G20 mandate for standard-setting bodies to clarify or refresh standards, he said existing regulatory standards must be examined and updated as necessary in the light of stablecoins. He said in the prepared speech,

“Regulators of global stablecoins must, and are, working with other regulators in other jurisdictions to ensure that they are appropriately regulated and gaps in coverage, opportunities for regulatory arbitrage, do not emerge.”

Any stablecoin which is based on the pound and launched in Britain should meet standards that are applied to banks, Bailey said. Also, the issuer of the stablecoin needs to be based in the country, he added.

“If a sterling retail stablecoin wishes to operate at scale in the UK, then we will strongly consider the need for an entity to be incorporated in the UK.”

Meanwhile, central banks have taken to work on their own state-owned digital currencies. China is already in the testing phase of its DC/EP, and Japan is also making digital yen its priority while both the BOE and US Federal Reserve have taken a cautious approach towards launching their central bank digital currency.

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Author: AnTy

DApp Q2 Market Report Shows Massive DeFi Impact in The Decentralized App Ecosystem

The DeFi realm has registered tremendous growth in the past quarter (Q2) with some products posting some impressive figures. $4.9 Billion was channeled through DeFi dApps, a stellar 67% increase from Q1’s figures.

Q2 Dapp USD Vol

Q2 Dapp Market
Source: Dapp.com

The Basic Attention Token (BAT) emerged as the most popular token in Decentralized Finance Q2 figures recording a transactional value of $930 Million. The token that is utilized by parties in the digital advertising sector, dwarfed Ethereum’s numbers by a cool $300 and more than Ether and Dai combined.

The Ether, on the other hand, saw their active user numbers soar to an All-Time High of 1,258,527 more than doubling Q1’s figures. Their daily average active users have also increased from the 7,682 in the first quarter to over 40% in the second quarter, mostly attributing the COMP governance token launch.

The COMP token, incentivizing debt and lending facilities, has perhaps posted the most notable growth following massive response from the market on launch. Their market capitalization is skyrocketing from $131 Million to more north of $3 Billion in just the second month. Daily user numbers also more than doubling 2,629 to 11,879 as their value of the token achieved an all-time high of $372.27 on 21st June.

However, the supply of the BAT has dipped steadily from $324 million to $155 million last week and now just at $24 Million. This happened as soon as Compound restructured their reward system to scrape off the incentives after the Compound community voted to change their COMP token issuance criteria on 30th June. Just a meager $67 Million BAT has been lent in Compound since the dawn of July.

Notably, after the Hive hard fork from Steem after Sun’s hostile takeover, some budding dApps have opted to move to Hive from Steem. With Steem failing to launch new projects recently, the active users in Hive have now surpassed Steem’s.

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Author: Lujan Odera

Canadian Pacific (CP) Transcontinental Railway Aligns with Blockchain in Transport Alliance (BiTA)

Canadian Pacific (CP) Transcontinental Railway Aligns with Blockchain in Transport Alliance (BiTA)

There was never any doubt that Blockchain would revolutionize the world in tremendous proportions. The latest to embrace this exciting technology is none other than Canada’s transcontinental railway, Canadian Pacific.

CP is now part of the Blockchain in Transport Alliance (BiTA), a member-driven organization comprising of companies in the freight, transportation and logistics businesses. This was announced by Canadian Pacific on July 31.

The historic Canadian Class I railroad operator is looking to leverage the Blockchain in enhancing efficiency while supporting improvements in the supply chain based on this technology. This, according to BiTA, would greatly help boost the worldwide supply chain interoperability that the organization is fighting for.

The body’s president, Patrick Duffy, is convinced that Blockchain finally has the potential to streamline the operations happening between shippers and carriers. To him though, the realization of its full benefits hinges upon the active participation of every stakeholder in the transportation industry, including CP.

What BiTA Is All About

BiTA is growing quickly and it already has about 500 members, all drawn from freight, transportation, and logistics as well as a host of affiliated industries.

All of them reportedly share an ambition of facilitating successful adoption of Blockchain, besides working to formulate industry standards. They additionally strive to educate others on the principles of Blockchain and the entire distributed ledger technology.

Duffy, according to the Canadian Broadcast Corporation, spoke on the need for the current transportation industry to have one central tracking system. The president of BiTA is reported to have called for the abandonment of the current multiple tracking systems, saying they are largely responsible for errors and accidents bedeviling the industry.

Using an example of a pair of shoes made in Vietnam and ordered online, Duffy explained how the use of different ERP systems in the item’s various stages induces errors. The “human-induced error” encountered right from the product’s dispatch all the way to its eventual point is because of the different software used by different persons handling the commodity.

The Potential Blockchain has in Transportation and Logistics

As evidenced by the recently concluded piloting of a container shipment from Seoul to Rotterdam, the potential that Blockchain has in smoothening out the transport business is huge. The project, carried out by Samsung SDS in collaboration with Dutch bank ABN AMRO and the Port of Rotterdam, was a success.

DELIVER, the platform that managed the whole pilot process, undoubtedly showed that Blockchain has all it takes to successfully transform tracking of shipment. And this, by extent, is the potential that this technology has in transportation in general.

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Author: Lillian Peter