BitDigest March 30 · Issue #625

• Crypto markets show slight improvement but are down 6% since Friday morning
• Multidisciplinary supergroup formed to share coronavirus data on blockchain
• Singapore provides short term grace period to companies not yet licensed under new Payment Act

What I Read This Weekend?

The Coder and the Dictator

Gabriel Jiménez, a Venezuelan programmer, agreed to create a digital currency for the Maduro govenment. He though he could develop a ‘Trojan horse,’ a national currency to stem hyperinflation while “stealthily introducing technology that would give Venezuelans a measure of freedom from a government that dictated every detail of daily life.” Jiménez disregarded the advice of his friends and family and began working on the new digital asset but quickly encountered difficulties when the government chose to peg the currency to barrels of oil, prohibiting its ability to trade freely. “A Petro whose price always reflected oil reserves would essentially be a bond,” he warned. In the end, the decision by Jiménez was ill fated and he was named a traitor and investigated for “treason against the homeland.” Fortunately, he was able to flee Venezuela and is now working in the US.

Neural Science Meets Crypto

I recently have become fascinated by the study of neural science and the ability to control motor skills using brain waves. I saw results from a study that took a former violist with late stage Alzheimer and by installing a brain-control interface, similar to a cochlear implant for the hearing-impaired, he was suddenly able to play the world greatest concertos as he had done many years early. In another test, a paralyzed man was able to walk again. These tests are only the first steps and I am excited to see where this technology can take us.

Microsoft has filed a patent for a new digital currency and consensus mechanism that uses neural science. According to the patent titled Cryptocurrency System Using Body Activity Date, “instead of massive computation work required by some conventional cryptocurrency systems, data generated based on the body activity of the user can be a proof-of-work, and therefore, a user can solve the computationally difficult problem unconsciously.” If the defined activity is satisfied, the user is awarded a cryptocurrency.

The Headlines

Global Partners Develop Blockchain Platform to Share COVID-19 Data

www.mipasa.org

Major blockchain, health and tech companies have joined together to develop the MiPasa platform a blockchain-based platform for sharing data concerning the COVID-19 pandemic. The World Health Organization and IBM led “multidisciplinary supergroup” is working to provide “quality data and make it easily accessible to the appropriate entities in order to efficiently battle the ongoing Coronavirus pandemic in a humane, fair and more sustainable manner.”

Singapore Provides Grace Period for Companies Looking to Operate Under New Payment Services Act

www.mas.gov.sg

Singapore’s Monetary Authority (SMA) has granted an exemption to digital currency companies looking to operate in the country without a license. The SMA issued a 6-month grace period to companies looking to operate under the new Payment Services Act and continue to provide the specific payment services while completing their application. The companies include Binance, Bitstamp, Coinbase and Gemini.

Blockchain Focus a Top Governmental Priority in Taiwan

www.decrypt.co

Taiwan’s digital minister says that researching how blockchain can improve governance is a “top priority” as it provides proof of agreement without the cost of auditing. “Ledgers are very promising. [They are] a cheap way to build accountability and some sort of legitimacy across sectors,” said Audrey Tang.

UAE Using Blockchain to Allow Users to Activate and Track Remote Requests During COVID-19 Crisis

www.wam.ae

The United Arab Emirates announced a new blockchain-based service allowing citizens impacted by the COVID-19 virus a platform to contact and request different government services. The platform uses blockchain to enhance digital identity for customers by activating and tracking the requests remotely and reducing the receipt of required documents.

Missoula County Extends Crypto Mining Regulations for Another Year

www.missoulian.com

Missoula, Montana’s Board of Commissioners voted to extend the zoning regulations for digital currency miners for another year. The interim regulations require all new or expanded cryptocurrency companies to locate mining operation in industrial zoning districts, and purchase or build new sources of renewable energy to offset 100% of their energy requirements.

Bitwise Looking to List Index on OTC Markets

www.theblockcrypto.com

Bitwise is looking to get shares of its crypto index fund listed on the OTC Markets (OTCQZ). The asset manager is looking to file a 211 with the Financial Industry Regulatory Authority (FINRA) to allow investors to trade its Bitwise 10 Index Fund. “It’ll be the first index product publicly tradable through brokerage accounts,” CEO Hunter Horsley explained.

Telegram Asks Court About Distribution of Tokens to Foreign Investors

www.courtlistener.com

In response to the court injunction placed on the issuance of gram tokens, Telegram has requested a clarification on whether it can still issue tokens to the foreign investors who committed $1.2 billion. Telegram acknowledged the SEC’s concerns that these shares could “one day make their way back into the United States through secondary market activity,” and offered to implement safeguards to protect against” sales to US purchasers in the future.

Market Data

Kraken's Users Are Bullish on BTC and ETH in 2020

www.blog.kraken.com

Kraken has released a survey of global client sentiments and expectation in 2020. Among the group of 400 who consider themselves investors (41%) and traders (40%) the average price of bitcoin will reach $22,866 and $810 for ether. More optimistically nearly 50% of the respondents anticipate that the Securities and Exchange Commission will approve a bitcoin ETF this year.

Who Funds Bitcoin Development?

www.blog.bitmex.com

BitMEX completed a study on who is funding the development of both Bitcoin Core and other open source development programs. They identified the largest organization impacting the market are Blockstream and Lightning Labs followed by Square and MIT, with Chaincode and independent developers having the greatest impact on bitcoin’s core code itself.

Exchange, Custody and Product News

Binance Opening Shanghai Operation and Delisting Leverage Tokens

www.twitter.com

Binance Academy, the exchange’s education platform, announced it plans to establish an office in Shanghai. This could be the first openly public operation for the leading crypto exchange in China and follow a period where Binance attempted to distance itself from its initial market. In other Binance news, the company has decided to de-list its leverage tokens based on a “lack of understanding” by users. The recently introduced FTX tokens represented 3x leverage positions in different currency and allowed investors to go long or short without the use of margin.

Thoughts on the Ecosystem

Halving Would Immediately Spark Market

www.news.8btc.com

Bitmain CEO Jihan Wu believes bitcoin will continue to mature, “its volatility [will decrease] and [become] more stable.” But the mining rig executive does not see think the next bull run will happen right after the halving, “there [will] likely be a delay in time,” he said.