This Week in Crypto – 16th of December 2021
The highest inflation in the US since 1982
Christmas is almost here and with so many of us searching for the right gift for our nearest and dearest, the supply chain issues start to rise. Logically, such a shortage of products leads to a price increase, but there is one more thing that causes price escalations
That of course is money printing.
Seemingly out of nowhere, inflation became so visible that it set a new record - the highest in 39 years.
Last week the U.S. The Bureau of Labor Statistics revealed the CPI results.Surprisingly, results show higher inflation compared tothe previous month. Last month the inflation was 6.2% but this month it hit a new record at 6.8% year-over-year, whie it sits at 0.8%Month-over-month.
As expected, food and shelter are affected the most,up with 6.4%. The US government therefore,is in a really tough situation. A recent survey shows that one of every three Americans has inflation concerns. Last month Joe Biden renominated Jerome Powell for head of the FED. His stated goal is to balance unemployment, inflation, and interest.
Top crypto CEOs meet the Congress
Last week, some of the top crypto CEOs appeared in Congress to talk about crypto. This was one of the most significant events and would have a huge impact on the industry.
Among the crypto representatives were:
- Jeremy Allaire - CEO of Circle, USDC issuer
- Sam Bankman-Fried - CEO of FTX
- Brian Brooks - former head of the OCC, a former advisor in Coinbase, former CEO of Binance US
- Charles Cascarilla - CEO of Paxos, USDP issuer
- Denelle Dixon - CEO of Stellar
- Alesia Haas - CFO of Coinbase and CEO of Coinbase US
One of the main talking points in the conference named "Digital assets and the future of finance" was the dollar hegemony and the future of the reserve currency. China was pointed to as the main competitor with its economic growth and the development of the digital yuan.
The debate also focused on stablecoins, highlightingthat the largest stablecoins by market cap - USDT and USDC are backed by the US dollar. The US Dollar is still recognized worldwide as the main reserve currency, and therefore endorsement of a USD-backed digital stablecoins benefitsthe US.
"Well designed stablecoins are safer than bank deposits."- said Jeremy Allaire.
Another topic touched upon was the crypto regulatory framework. In this regard, the conversation was described by many as "the most positive integration with American politicians." On the other hand, stablecoins will be discussed in another meeting this week, which is expected to be much bloodier.
The last subject was web 3.0 and crypto. This time the tone was different which gives us hope for the future.
Visa launches crypto consultation service
With so many companies pouring capital into crypto and even buying some NFTs, Visa aims to expand its crypto plans and meet customers' needs.
Last week the payment giant announced the launch of its crypto consultation service.That way, Visa will facilitate mass adoption of Bitcoin and other cryptocurrencies.
"We've seen a material shift in our clients' mindset in the last year, from a desire to explore and experiment with crypto, to actually building a strategy and product roadmap," Carl Rutstein, global head of Visa Consulting and Analytics, said in a statement.
OpenSea with new CFO plans IPO
The NFT marketplace is reaching new records when it comes to trading volume. As a result, many started talking about an eventual airdrop that will reward the early-stage users.
Unfortunately for the NFT community, the new CFO of OpenSea, Brian Roberts, has quite different plans. Previously Roberts served as CFO of the ride-sharing app Lyft but his new position made him state the NFT marketplace should go public via IPO (Initial public offering).
"When you have a company growing as fast as this one, you'd be foolish not to think about it going public," - he said according to Bloomberg. Roberts added that it "would be well-received in the public market given its growth."
He might be right. Earlier this year the crypto exchange Coinbase went public and according to many, this was the most exciting IPO in years.
Despite Brian's ambitions most of the NFT fans are disappointed. They expected the NFT platform to launch an OpenSea token and reward its early adopters. However, OpenSea has not confirmed weather will not issue a native token. The platform could use a hybrid model that combines a traditional IPO with some type of community token.
Militsa Dimitrova
Crypto Enthusiast
Militsa Dimitrova is a crypto enthusiast with experience in content creation & social media, who produces her own Cryptocurrency Newsletter and Podcast both in English and Bulgarian. She joined FXCM as an Accountant in 2020, after obtaining a Bachelor's degree in Accounting from the University of National and World Economy of Sofia.
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