TL;DR: Welcome to In Case You Missed It (ICYMI), a daily crypto news update. Digital Dollar project explained in Davos. Traders leaving Poloniex. Square wins crypto-to-fiat payments network patent. LocalBitcoins blocks users’ accounts in 22 countries. Bitcoin Cash keeps dominating crypto retail spending in Australia, and Paxos will enable bank wire to crypto conversions.
Digital Dollar Project Explained in Davos
Christopher Giancarlo, former CFTC Chairman, presented the first remarks about his new project to build a digital dollar in the US during an event in Davos during World Economic Forum week. Giancarlo stated the digital dollar project is an idea fueled by the current state of US central bank money distribution. He described it as a “new digital form of the Dollar that, alongside traditional fiat coins, banknotes, and reserves, would enjoy the full faith and credit of the U.S. government as central bank money,” said Giancarlo.
Traders are Leaving Poloniex
Poloniex, the cryptocurrency exchange recently separated from Circle, is facing a trader exodus, according to a study from Coin Metrics, a provider of market and crypto data. The study found its BTC reserve has fallen 70% during the last 18 months. However, it has kept falling at a linear level since Circle sold the exchange to a group of Asian investors rumored to be led by Justin Sun, founder and CEO of TRON, who has been promoting the exchange via social networks recently.
Square Wins Crypto to Fiat Network Patent
Square, the payment provider company owned by Jack Dorsey, CEO of Twitter, won a patent for a payments network that would enable currency swaps. “The present technology permits a first party to pay in any currency, while permitting the second party to be paid in any currency,” the filing states. This could be very useful to enable cryptocurrency payments to merchants who don’t accept crypto, making the conversion of crypto assets into fiat currency in real-time. The system can also be leveraged to allow payments in securities derivatives or loans in the future.
LocalBitcoins Blocks Users’ Accounts In 22 Countries
LocalBitcoins, a popular P2P bitcoin market, blocked the accounts of users residing in more than 20 countries considered by the exchange as “high risk” locations. Impacted countries include Panama, Puerto Rico, Botswana, Ghana, Afghanistan, Tunisia, Yemen and Saudi Arabia. The platform also informed users in these countries will have to face an “improved” KYC process to be implemented at a later date. This is likely the result of LocalBitcoins tightening its AML compliance due to new strict regulations being applied in regulatory regions such as Europe.
Bitcoin Cash Keeps Dominating Retail Crypto Spending in Australia
Bitcoin BCH, a Bitcoin Cash company based in Australia, released its Australian Cryptocurrency Expenditure at Retail Businesses for the month of December 2019. According to their data, the Australian Bitcoin Cash economy grew 13.9% in December, accounting for 96% of all physical merchant cryptocurrency trade across the nation. In the same way, HULA, their implemented POS and exchange platform for BCH, accounted for 75% of all the cryptocurrency transactions made in the country during last month, trouncing competing system TravelByBit.
Paxos to Enable Automatic Bank Wire Crypto Conversions
Paxos, the company behind the Paxos Standard stablecoin pegged to the US dollar, announced a system that will let users exchange dollars for stablecoins automatically using bank wires or vice versa. This will provide a quick and easy way for people to digitize their dollars. Zach Kwartler, senior product manager at Paxos, declared, “The blockchain and the real financial world need to be closer together. For us, our vision is to use this as an infrastructure layer, to get more and more dollars on the blockchain.” The goal is to make these currencies to be more accessible for trading and payment uses.
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