Square Bitcoin DeFi Business; Elon Musk dogecoin tweets
Major cryptocurrencies by market value, including bitcoin and ether, remain in the red on Monday, extending losses from last week. Dogecoin has also fallen over 18% in the past seven days.
But there is still a lot going on in the crypto world. From Jack Dorsey announcing that Square is building a decentralized bitcoin-focused finance company to Elon Musk continuing to tweet about dogecoin, here are six things to know about crypto from the past week.
1. Federal Reserve Chairman Jerome Powell calls for more stable regulation of coins
In his In testimony before the House Financial Services Committee on Wednesday, Federal Reserve Chairman Jerome Powell called for tighter regulations on stablecoins, which are cryptocurrencies believed to be tied to reserve assets like gold or fiat money.
“If they’re going to be a significant part of the payments universe, which we don’t think crypto assets will be, but stablecoins could be, then we need a proper regulatory framework, this that we frankly don’t, âsaid Powell. .
Powell has also advocated for the creation of a central bank digital currency, or CBDC, in the United States. If the United States had a digital currency, “you wouldn’t need stablecoins. You wouldn’t need cryptocurrencies,” he said. “I think that’s one of the strongest arguments in its favor.”
U.S. Treasury Secretary Janet Yellen said on Friday she would meet with the president’s financial markets task force on Monday to discuss the role stablecoins could play in the financial system.
2. The co-creator of dogecoin does not plan to return to crypto
Jackson Palmer, the co-creator of the memes-inspired cryptocurrency dogecoin, made a rare comeback on Twitter on Wednesday with harsh words about crypto in general.
In 2013, Palmer and Billy Markus created dogecoin as a joke based on the “Doge” meme, which depicts a shiba inu dog. They didn’t intend to take dogecoin seriously. Despite its recent surge in popularity, Markus and Palmer didn’t profit, as they both sold off before dogecoin’s meteoric rise.
“I am often asked if I will ‘go back to cryptocurrency’ or if I will return to regularly sharing my thoughts on the subject. My answer is a wholehearted ‘no’,” Palmer said. tweeted wednesday.
In his Twitter thread, Palmer criticized those in power in the cryptocurrency space, saying it is “controlled by a powerful cartel of wealthy figures” who “have evolved to incorporate many of the same institutions linked to the system. existing centralized financial institution that they are supposed to put in place to replace. “
3. Square is building a DeFi business using bitcoin
On Thursday, Jack Dorsey announced that his financial services company Square is starting a new business focused on “decentralized financial services” using bitcoin.
Decentralized Finance Applications, or DeFi, aim to recreate traditional financial systems, such as banks and exchanges, with cryptocurrency. Most run on the ethereum blockchain.
“Square is building a new company (joining Seller, Cash App and Tidal) focused on building an open development platform for the sole purpose of facilitating the creation of non-custodial, unlicensed and decentralized financial services,” tweeted Dorsey. “Our main focus is #bitcoin. Its name is TBD.”
After the announcement, Cathie Wood’s investment firm ARK Invest bought another 225,937 shares of Square for a value of approximately $ 53.6 million, The Street reported.
4. Malaysian police destroy 1,069 bitcoin mining rigs
Friday, the local newspaper of Sarawak Dayak Daily posted a video of Malaysian police destroying 1,069 bitcoin mining rigs, and the video has gone viral.
In the video, Malaysian authorities used a steamroller to crush all the platforms, which were laid out in a parking lot at the police headquarters. Deputy Police Commissioner Hakemal Hawari told CNBC it came after miners allegedly stole $ 2 million worth of electricity siphoned from Sarawak Energy power lines.
5. Ethereum co-founder quits crypto due to security concerns
Anthony Di Iorio, co-founder of Ethereum, told Bloomberg he was quitting crypto. He plans to sell his software company Decentral Inc., which focuses on blockchain technologies.
“It’s a risk profile that I’m not too excited about,” said Di Iorio. “I don’t necessarily feel safe in this space. If I focused on bigger issues, I think I would be safer.”
Before launching Decentral in 2014, Di Iorio co-founded ethereum in 2013 with eight other people, including Vitalik Buterin.
âI want to branch out so that I’m not a crypto guy, but a guy who tackles complex issues,â Di Iorio said. “I will integrate crypto if necessary, but a lot of times I don’t. It’s really a small percentage of what the world needs.”