The emergence of a new crypto paradigm? “While regulatory pressure is becoming more pronounced from the US and Europe, Asia, for its part, is advancing. It is even taking a confident step towards greater democratization of cryptocurrencies and asset tokenization. It is enough to catch a cold from timid and reluctant Western politicians who are trying by all means to slow down the development of an industry that is eluding them.
Crypto transition: US slows down…
Along with the SEC, Crypto-City has a new sheriff
Judging by its decisions in recent months, the intentions of the SEC (Securities and Exchange Commission) appear to us more and more clear. The regulator, as the new self-proclaimed sheriff, is embarking on a sweeping cleanup of this pesky cryptocurrency sector, even if it means exceeding its jurisdiction. Attempts denounced by the Digital Chamber of Commerce that it believes will ultimately endanger the health and vitality of the US digital asset market.
Needless to say, the SEC is putting more and more trophies on its hunt list. After fixing the Kraken exchange, it is now BUSD as a result of the partnership between Paxos and Binance, which is currently under its wrath. As Coinbase points out in its latest press release, the token is being phased out of the list of trading platforms through rivalry.
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Regulatory threat when the press gets involved
To add fuel to the fire, Forbes recently published a new incriminating report against Binance. This would mean that holders of the version of USDC transposed into the BNB (Binance-peg USDC) chain would be out of warranty at some point. The topic is as taboo as it was feared after the crisis of confidence associated with the FTX case. The media is covering suspicious movements of approximately $1.8 billion in funds.
Changpeng “CZ” Zhao, the boss of Binance, defended himself on Twitter. For him, this is just the dishonesty of journalists who have no idea about the work of the crypto exchange. For CZ, this article is nothing more and nothing less than another attempt by the United States to discredit its exchange, which, we recall, is the largest in the world … and to date. An ultradominance that the United States could rightly look down on.
For the SEC, all cryptocurrencies, with the possible exception of bitcoin, are nothing more than ordinary shares (securities). A simplistic vision of these new digital UFOs, but very practical for a regulator who thus arrogates to himself the right to poke his nose absolutely everywhere.
Anti-crypto stance also shared by the IMF (International Monetary Fund). The latter apparently wants to spin off MNBCs (Central Bank Digital Currencies) over which governments will have full control. Even stablecoins are allowed to be used. But other cryptocurrencies will definitely be based on nothing.
… while Europe and Asia are accelerating
Tokenization: The Beginning of a Whole New Finance
Far from worrying about the normative baseness of the US, on the other side of the world things are moving forward. The technology continues to evolve despite turbulence, driven in part by an innovative concept: asset tokenization. Because apart from the artistic aspect of our cute NFTs, virtually every component of our economy could be tokenized one day: real estate, agri-food, stocks, bonds… Thousands of billions of dollars are at stake. Numbers that make your head spin.
According to BlackRock analysts, the true tokenization of finance is in the process of initiation. Tokenization, the beginning of which we can hardly see today. Tokenization of corporate securities is usually a new and innovative way for startups to launch their activities. The funding method that is suddenly available to everyone is very easy.
New initiatives are emerging, emerging from alliances between traditional financiers and professionals in the crypto sector. The partnership between Cité Gestion and Taurus is a good example. The Swiss banking giant simply decided to initiate the tokenization of shares of its capital. An unprecedented initiative in the banking sector and probably not the last.
Tokenization: the key to this new web3 crypto financeAsia and Europe open their doors to crypto potential
Several Asian countries have recognized the unprecedented opportunities offered by this new technology. Thailand is generally willing to give the green light to investors so they can tokenize any asset.
Meanwhile, Hong Kong recently issued $100 million worth of blockchain green bonds. Tokenized bonds responsible for incentivizing initiatives related to sustainability. Here we are witnessing the real digitalization of the capital market at the heart of the blockchain ecosystem.
Germany leads Europe. If the word “Bitcoin” is still persona non grata in the banking world, then the intrusion of blockchain technology is on the rise there. Thus, Deutsche Bank launched the first financial asset tokenization initiative. Contrary to all expectations, these banks are already using DeFi (decentralized finance) methods on Ethereum and the latest Soulbound Token (SBT) technology.
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Cryptocurrency: the revolution of tomorrow is being prepared today
Ethereum thrives ahead of Shanghai
Thus, it seems that the world is slowly starting to realize the real potential of cryptocurrency and that it offers a whole new way of representing finance. Revolutions that very often spearhead Ethereum: DeFi, NFTs, dApps, … The enthusiasm for the blockchain, invented by Vitalik Buterin, does not abate year after year.
Proof of this is the Lido betting protocol, whose high appeal never seems to want to slow down. The protocol recently recorded the largest influx of ETH staking since its inception: 150,000 ETH in a single day. Record.
Ever-restoring confidence in the Ethereum blockchain, which is rapidly moving towards the Shanghai update, more than 6 months after the success of The Merge. While the final stage, Goerli tesnet, took place on February 28, this new evolution of the network is inexorably approaching. Scheduled for March, no date yet.
In particular, Shanghai will allow investors to unlock their precious ETH placed on the network at will. A small revolution that could attract many investors looking to secure a return of around 5% of their capital.
Ethereum: the irresistible appeal of a blockchain ready to emulate?Ethereum and Bitcoin: the eternal duality of two technological UFOs
Tempting prospects, which are enough to tickle the nerves of speculators of all stripes. Indeed, according to Bernstein analysts, the planets have never been so perfectly aligned for the dominance of the second cryptocurrency in the market in relation to the supreme leader, bitcoin. Between the transition to Proof of Stake (PoS), supply reduction and the Shanghai update, it must be said that Ethereum, which, by the way, has become a “green blockchain”, is accumulating advantages.
Meanwhile, this digital gold called Bitcoin continues the democratization momentum that is spreading faster and faster. Its invaluable value is imitated among a populace abusing the monetary excesses of their governments. And the use cases for the Lightning Network, Bitcoin’s second layer network, are multiplying.
Whether you are a bitcoin maxi or an Ethereum fan, one thing is certain: democratization is proceeding at a rapid pace. Recent research conducted in February 2023 by Morning Consult at the request of Coinbase shows an ever-increasing interest in these digital currencies. The polled public, tired of the growing inequality of the traditional system, will show a growing interest in the crypto sector. This trend is increasingly evident among the younger generation. The very ones who will be at the helm of the world of tomorrow.
Crypto revolution: clash of two visions of the world
While the US seeks above all to protect the hegemony of its cherished dollar, its excesses are gradually catching up with them. Failing trust and a dollar that is slowly losing its luster. More and more countries are looking for alternative currencies, ways to escape from the American monetary oppression. That, Africa, at first troubled by these economic drifts, understood this long ago. And Asia also seems to be gaining momentum, also attracted, it must be said, by the potential benefits inherent in a completely new kind of finance.
There is no certainty that over-regulation, the path that the US government seems to be taking through its armed wing, the SEC, is a solution that could thwart the crypto sector, which is so open to the world. It may well be that this path is a dead end that will simply lead America to an inexorable lag behind competitors, and not the stranglehold of this technology as intangible as the lines of code that make it up. A technology whose value proposition will only get stronger with time and monetary excess.
Even if the technology is still far from being adopted, there is no doubt that the innovations it brings, such as tokenization, will become vectors for even wider adoption around the world. Starting from the Asian continent indeed. A trend that Vitalik may have sensed by naming his next protocol update: “Shanghai”. This name is very appropriate today, however, in the light of current events. No wonder, since this little blockchain genius has always had a sunken nose… even if the latter, perpetually dissatisfied, reminds us that there is still a lot to come. And, perhaps fortunately, the best part of this beautiful crypto story has yet to be created.
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