BitDigest April 19 · Issue #883

• Cryptocurrencies recovering following weekend crash caused by traders liquidated bitcoin options following Coinbase IPO and announcements regarding Turkey banning bitcoin payments and temporary shutdown of Chinese mining rigs for safety precautions
• PBoC calls bitcoin an ‘investment alternative’
• Bank of England to lead UK CBDC task-force

Coinbase Direct Listing

I am a bit surprised by all of the reports, comments and tweets regarding the sale of COIN following the directly listing of Coinbase. This was a direct listing so there should be no surprise that senior management and early investors sold shares in the company.

The Headlines

China Has No Desire to Replace Dollar With DCEP and Sees Crypto Assets as Investment Alternatives

www.bloomberg.com

The deputy governor of the People’s Bank of China said China is not looking “to replace the U.S. dollar or other international currencies” with the digital yuan and is intending to focus its efforts on domestic use allowing “the market to choose, to facilitate international trade and investment.” Li Bo also added that China sees “bitcoin and stablecoins as crypto assets” and as an “investment alternatives.”

UK Forms CBDC Task Force

www.bankofengland.co.uk

A joint task force has been launched by the Bank of England and HM Treasury to explore the potential development of a UK CBDC.

e-Krona 5 Years Out

www.bloomberg.com

Riksbank Governor Stefan Ingves announced that it would be a ‘reasonable target’ to suggest that Sweden would have a digital currency within 5 years.

Nigerian Crypto Guidelines Remain Suspended

www.guardian.ng

The head of Nigeria’s Securities and Exchange Commission said its crypto investment guidelines will remain suspended until the Central Bank of Nigeria regrants digital currency exchanges access to their bank accounts which were closed to protect the financial system.

South Korea to Increase Monitoring of Crypto Activities

www.en.yna.co.kr

The government of South Korea announced plans to crack down on any illegality involving cryptocurrencies and will require local financial institutions to strengthen their monitoring on withdrawals of virtual money.

Kaplan Sees Bitcoin as a 'Store of Value' Not a 'Medium of Exchange'

www.coindesk.com

Dallas Fed President Robert Kaplan believes bitcoin is a “store of value” but said its volatility is hindering the digital currency’s ability to be considered a “medium of exchange” and gain “wide adoption, but that can change.”

Hut 8 Finalizes PPA for Alberta Operation

www.newswire.ca

📈Hut 8 Mining (TSX: HUT) has entered into a power purchase agreement with Validus Power Corp. to support Hut 8’s Alberta operations and secure up to 100MW of new power from the project on a physical off-take basis at highly competitive pricing starting in Q4.

HIVE Completes Acquisition of Green Energy

www.mailchi.mp

📈Hive Blockchain (TSX: HIVE) has completed its acquisition of Green Energy a 50MW data center in Grand Falls, New Brunswick.

Market Data

Bahamas and Cambodia Tops Rankings of CBDCs

www.bloomberg.com

A report on central bank digital currencies by PwC picked the Bahamas and Cambodia over China as having the top two CBDCs because both currencies are already live while China is still in a testing phase. PwC’s report finds that only 23% of CBDC retail projects have reached implementation stage, while nearly 70% of wholesale projects are running pilot programs.

Thoughts on the Ecosystem

Stablecoins Need to be Regulated

www.bloomberg.com

Yale Economist Gary Gorton is questioning the stability of stablecoins backed by a blockchain suggesting that while the underlying technology provides greater transparency, it does not guarantee that the coin is backed by anything real. As a result, he recommends that stablecoins need to submit to regulation to assure holders of their value.

Crypto Benefiting from its 'System of Trust'

www.cnbc.com

📺Airbnb CEO Brian Chesky said he is looking at digital currencies because he believes the system of trust underlying crypto is similar to the trust developed by Airbnb and suggests that unlocking these ‘systems of trust’ to allow more people to participate in the economy will become a major boom to the global economy.