Crypto
Liberal senator drafts crypto bill to regulate ‘stablecoins’ and China’s digital yuan
The usage of cryptocurrency is on the rise and the shortage of regulation within the sector might threaten Australia’s nationwide safety, based on Liberal senator and crypto advocate Andrew Bragg.
Senator Bragg will introduce a personal member’s invoice when parliament subsequent sits, together with new guidelines governing crypto exchanges, and Chinese language banks coping with e-yuan in Australia.
“The Chinese language authorities is piloting what they name the digital yuan, which is a digital type of forex, and so they’re at the moment trialling that exterior of China as effectively, with the UAE [United Arab Emirates], Hong Kong and Thailand,” he advised RN Breakfast host Patricia Karvelas on Monday.
“That forex, if it grew to become widespread within the Pacific, and even inside Australia, would give the Chinese language state monumental energy, financial and strategic energy that it does not have at this time.
“So I feel we should be ready for that. We have to know extra about this digital forex, so the invoice establishes reporting necessities in that regard.”
China far forward of Australia on digital currencies
China was the primary main financial system to discover the usage of digital currencies in 2014, and is way forward of its international friends.
It has been conducting restricted trials of the e-yuan over the previous three years.
Nevertheless, China has but to launch the digital forex throughout its inhabitants of 1.4 billion folks — which is seen by critics as a method to ramp up state management of the funds system.
In September final 12 months, China’s authorities imposed a blanket ban on all cryptocurrency buying and selling.
Not like bitcoin, ether and different cryptocurrencies (that are “decentralised”, or not managed by the federal government), the e-yuan falls beneath the authority of the Individuals’s Financial institution of China.
Australia, in the meantime, is nowhere close to as near launching its personal digital greenback.
Reserve Financial institution governor Philip Lowe has lengthy been sceptical concerning the thought of a digital forex, saying Australia already had a quick and environment friendly digital funds system in place.
However final month, the RBA introduced it was endeavor analysis into digital currencies as a part of a restricted “ring-fenced” pilot program — to see the way it might truly be utilized by shoppers and companies in Australia.
More durable guidelines for ‘stablecoins’
There’s at the moment little or no regulation within the Australian cryptocurrency trade.
A crypto alternate is just required to observe the final provisions of the Companies Act, and gather information about its prospects (for the monetary crimes regulator AUSTRAC) after they open a buying and selling account.
Final 12 months, Mr Bragg chaired a Senate committee that made 12 suggestions on tips on how to enhance cryptocurrency regulation.
They embrace a brand new market licensing regime for digital forex exchanges, amendments to tax guidelines round cryptocurrencies to make clear when a capital achieve or loss is realised, and the introduction of tax incentives for firms that use renewable power for crypto mining (a course of that results in the creation of recent digital cash).
However after the Coalition’s defeat within the Could federal election, Senator Bragg’s suggestions haven’t been progressed by the brand new Labor authorities.
His non-public member’s invoice goes additional than his preliminary suggestions by in search of to control “stablecoins” (a kind of cryptocurrency often pegged to an actual world asset, just like the US greenback), by making it an offence to subject one and not using a licence.
“What we have seen within the final six months or so has been the collapse of main stablecoins, together with the US stablecoin Terra,” Senator Bragg mentioned.
“The Governor of the Reserve Financial institution in Australia and Janet Yellen [the US Treasury Secretary] have been calling for regulation, in order that if somebody needs to subject a stablecoin, they’re required to carry reserve capital to satisfy any danger.”
In Could, the worth of Terra crashed spectacularly – to the purpose the place it grew to become utterly nugatory.
Many traders had been burnt as this explicit “stablecoin” was promoted as a “protected” method to earn excessive returns (as much as 19.6 per cent) in a low rate of interest surroundings.
Nevertheless, Terra was not backed by actual world forex, however by its ‘sister coin’ Luna, which additionally noticed its worth plunge to zero.
‘Pointless hurt’ for shoppers
“It is crucial that we shield shoppers in opposition to any pointless hurt,” the senator mentioned.
Australian shoppers misplaced $158 million to funding scams between January and Could, based on information from the Australian Competitors and Shopper Fee (ACCC).
This was a 314 per cent surge in comparison with the identical interval final 12 months, and the overwhelming majority of these scams associated to cryptocurrency investments.
Given the federal Liberal celebration is in opposition, the percentages of Senator Bragg’s non-public member’s invoice being handed are slim.
In August, Treasurer Jim Chalmers mentioned step one of Labor’s crypto agenda was to prioritise “token mapping” work this 12 months.
Mainly, the purpose of this train is to work out which crypto property are already lined by to monetary providers regulation – and which of them are “non-financial merchandise” (which would require their very own particular laws).
Crypto
[Analysis] “Cryptocurrency Holders Surge Over the Past Two Years”
Image=Santiment
It has been observed that the number of cryptocurrency holders has surged over the past two years.
On the 23rd (local time), the on-chain analysis platform Santiment reported on X (formerly Twitter) that “the number of cryptocurrency holders has significantly increased over the past two years. The number of non-empty wallets for the top 4 cryptocurrencies by market capitalization has generally increased.”
Specifically, Bitcoin (BTC) has 54.7 million wallets (a 27% increase), Ethereum (ETH) 134.9 million wallets (a 47% increase), Tether (USDT) 657 million wallets (a 66% increase), and Ripple 575 million wallets (a 28% increase).
Crypto
Blockchain Revolution: How Cryptocurrency is Transforming Global Logistics – theafricalogistics.com
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The global logistics industry is undergoing a seismic shift, driven by the integration of blockchain technology and cryptocurrency.
These innovations promise to enhance transparency, efficiency, and security across the supply chain. From tracking shipments to streamlining cross-border payments, the synergy between blockchain and cryptocurrency is setting new benchmarks for the logistics sector.
1. Blockchain’s Role in Logistics
Blockchain technology, essentially a decentralized ledger system, enables secure and transparent recording of transactions. For logistics, this translates into the ability to track goods in real-time, authenticate the origin of products, and mitigate fraud. Key benefits include:
- Enhanced Traceability: Every transaction, from the manufacturing stage to delivery, is recorded on an immutable ledger. This ensures that stakeholders have a comprehensive view of the supply chain.
- Reduced Paperwork: By digitizing documents such as bills of lading and certificates of origin, blockchain eliminates the inefficiencies of manual processes.
- Improved Trust: Smart contracts, self-executing agreements coded on the blockchain, reduce disputes and enhance trust between parties.
2. Cryptocurrency in Cross-Border Transactions
Traditional cross-border payments in logistics are often marred by high fees, long processing times, and currency exchange risks. Cryptocurrencies, like Bitcoin and stablecoins, are addressing these challenges by:
- Lowering Transaction Costs: Cryptocurrency transactions bypass intermediaries, significantly reducing fees.
- Speeding Up Payments: Transactions settle in minutes, eliminating delays common with traditional banking systems.
- Enhancing Financial Inclusion: For businesses in emerging markets, cryptocurrencies provide access to global trade without reliance on conventional banking infrastructure.
3. Use Cases Transforming the Sector
Several real-world applications highlight the impact of blockchain and cryptocurrency in logistics:
- Walmart’s Blockchain Initiative: Walmart leverages blockchain to track the origin of produce, ensuring food safety and traceability within its supply chain.
- Maersk’s TradeLens Platform: Developed in collaboration with IBM, TradeLens uses blockchain to digitize and streamline global shipping documentation, reducing inefficiencies.
- Cryptocurrency-Powered Freight Payments: Startups like Slync.io enable shippers to pay carriers using digital currencies, enhancing payment speed and reliability.
4. Challenges to Adoption
Despite its potential, the adoption of blockchain and cryptocurrency in logistics is not without hurdles:
- Regulatory Ambiguities: The legal status of cryptocurrencies varies across countries, complicating implementation.
- Scalability Concerns: Processing thousands of transactions per second remains a challenge for blockchain networks.
- Skill Gaps: The logistics workforce often lacks the technical expertise to deploy and manage blockchain systems.
5. The Road Ahead
The integration of blockchain and cryptocurrency in logistics is still in its nascent stages but holds immense promise.
Industry players are investing in pilot projects to explore scalability and operational viability. The convergence of these technologies with artificial intelligence and IoT will further revolutionize the sector, enabling predictive analytics, autonomous supply chains, and more.
Conclusion
Blockchain and cryptocurrency are not just buzzwords but transformative tools reshaping the logistics landscape.
By fostering transparency, reducing costs, and expediting processes, these technologies are addressing long-standing inefficiencies in the supply chain.
As adoption accelerates, businesses that embrace this revolution stand to gain a significant competitive edge in an increasingly digital and globalized economy.
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Crypto
My Top Cryptocurrency to Buy Right Now (Hint: It's Not Bitcoin) | The Motley Fool
The performance of Bitcoin (BTC -0.53%) this year has been nothing short of extraordinary. It’s now up about 46% since the election on Nov. 5, and 146% year to date. Best of all, Bitcoin recently broke through the $100,000 price level to hit another all-time high just north of $108,000.
But what if I told you that there is another top cryptocurrency that is up more than 120% since the election, and 430% year to date? And that this cryptocurrency also just set a new all-time high? That cryptocurrency is Sui (SUI -3.69%), which now ranks 14th among all cryptocurrencies with a $13 billion market cap.
What is Sui and why haven’t I heard of it before?
If you’ve never heard of Sui, that’s understandable. The cryptocurrency only launched in May 2023, just as the market was emerging from the crypto winter of 2022. So, in many ways, its launch flew under the radar of investors. There were bigger issues to consider. The industry was still coping with the aftermath of the collapse and scandal of crypto exchange FTX in November 2022, and nobody was very interested in hearing about another new cryptocurrency launch.
But fast-forward to August 2024. That’s when 21Shares — the company that partnered with Cathie Wood’s Ark Invest on the launch of spot exchange-traded funds (ETFs) for Bitcoin and Ethereum (ETH -0.79%) — released a research report on Sui, detailing all of its unique characteristics. For example, it described how a new technical upgrade suddenly made Sui faster than any other top blockchain by a substantial margin. It pointed out how Sui was rapidly growing in terms of total value locked (TVL), which is a key metric showing the relative strength of a particular blockchain.
The title of the report (“Is Sui a Solana (SOL -0.00%) Killer?”) was very provocative, at least for crypto investors. It suggested that Sui had the technological chops to take on Solana, which now ranks as the fifth-largest cryptocurrency. For several years now, Solana has been positioned as the next Ethereum, so Sui being tabbed as a potential Solana killer is a big deal. In fact, 21Shares suggested that there might be a $68 billion market opportunity for Sui if it was able to take on Solana and win.
How high can Sui go in 2025?
My primary concern right now with Sui is that it may be overheating. Just like Bitcoin, it is smashing through all-time high after all-time high. Right now, Sui is trading at about $4.50 after briefly testing the $5 price level. From the perspective of crypto traders, $5 presents the same psychological price barrier for Sui that $100,000 did for Bitcoin. It took Bitcoin a while to break through the $100,000 level, so Sui may not be able to break through the $5 price level by the end of this year.
But, in 2025, watch out. Just take a look at this comparison chart of Bitcoin and Sui since the presidential election. That leads me to think that the market is very bullish on Sui’s prospects under the Trump administration.
Moreover, consider the trading volume that Sui is now seeing on Coinbase Global (COIN 1.75%). Sui has become one of the 10 most popular cryptocurrencies on the platform in terms of 24-hour trading activity. Granted, the trading volume in Sui is nowhere near that of Bitcoin or Ethereum. But there’s more activity in Sui than in popular cryptocurrencies such as Chainlink, Litecoin, Cardano, Shiba Inu, and Avalanche.
Best of all, Sui has a major new product launch coming in 2025. It’s a $599 handheld gaming device that is currently available for pre-order online. If that product launch is a success, then it could be off to the races for Sui. It could easily double in price to hit the $10 price level.
This cryptocurrency could soar even higher if it ever realizes its full potential as the next Ethereum. Imagine if you had invested in Ethereum just 18 months after its launch. Most likely, you’d be a crypto millionaire by now. In December 2016, Ethereum was trading around $5, which is roughly where Sui is trading right now. Today, Ethereum trades for about $3,400.
That said, I can’t emphasize enough how speculative Sui is. It is still a baby in crypto terms. It has only been around for 18 months, and it can be difficult to get good data and reliable information about it. So, do your due diligence before investing in Sui, and keep your expectations in check. An investment opportunity like Ethereum might only come around once in a lifetime, so it’s asking a lot for it to happen with Sui as well.
Dominic Basulto has positions in Bitcoin, Ethereum, SUI, and Solana. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, Ethereum, SUI, and Solana. The Motley Fool has a disclosure policy.
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