This is Charles Brett’s start-of-the-week Enterprise Times ‘blockchain catch-up’ Week 26. Necessarily it is idiosyncratic and selective.
It is not intended to be comprehensive but does seek to highlight ‘Quick Takes’ on specific developments as well interesting pieces to read, a listing of some (not all) announcements/press releases and pointers to upcoming events.
Quick Takes – Charles Brett’s Blockchain Catch-up Week 26
Stablecoins could pose new short-term credit market risks
Contagion risks are primarily associated with collateralised stablecoins, varying based on the size, liquidity and riskiness of their asset holdings, as well as the transparency and governance of the operator, among other things according to Fitch Ratings. The rapid growth of stablecoin issuance could, therefore and in time, have implications for the functioning of short-term credit markets.
Potential asset contagion risks, for example, linked to liquidation of stablecoin reserve holdings, could increase pressure for tighter regulation in what remains a highly speculative part of the overall financial system. Fitch ratings then breaks down Tether’s reserves.
Quick Take: this ‘advisory note’ concludes (which says it all): “We believe authorities are unlikely to intervene to save stablecoins in the event of a disruptive event, partly owing to moral hazard. Authorities could step in to support dealers and prime MMFs should stablecoin redemptions lead to or amplify a wider CP sell-off, pressuring market liquidity and impeding new CP issuance.”
When the authorities decline to act because of moral hazard, participants need to beware.
Data centers, crypto miners and gamers are all battling for semiconductors
In this ‘edition’ of Bloomberg’s Oddlots podcast, Joe Wiesenthal explores why there is a shortage of chips (and more) everywhere. Some of it is related to logistics. Some relates to production challenges and some relate to pre-existing trends. But, as Brian Venturo (the CTO of CoreWeave, a cloud services provider) describes, the role of crypto mining is tightening the chip market in unexpected ways.
Quick Take: though not primarily a discussion about blockchain, the relevance of blockchain (via mining) becomes all too apparent. Though recorded in May, this is a podcast to listen to if you want to understand how intertwined are various IT industry sectors that most would regard as distinct and with little inter-dependencies.
7 pieces to read – Charles Brett’s Blockchain Catch-up Week 26
- Concerns grow over energy consumption levels spurred by cryptocurrencies – new index reveals
- Blockchain Service Network: how little-known start-up Red Date is helping China lead the world in the cutting-edge technology
- Blockchain platform Chainalysis raises $100M, crosses $4B valuation
- Edward Snowden’s shocking revelations on Bitcoin are everything; you don’t need to buy Bitcoin to feel its impact
- 16 tech experts share blockchain’s potential outside the finance industry
- Startup from R3 accelerator to use blockchain to net cross-border payments
- Are Binance bans the start of deeper cryptocurrency regulation?
Selected announcements/press releases/opinions – Charles Brett’s Blockchain Catch-up Week 26
- How blockchain could change misinformation and voting (opinion)
- Governments planning worldwide regulation of Bitcoin (report)
- Blockchain and sustainability — There’s more to it than electricity usage (opinion)
- Blockchain’s ‘Netscape moment’ is here (opinion)
- Moore Cayman launches blockchain audit verification service (announcement)
- Forkast decodes China’s ambition behind Asia’s blockchain boom (report announcement)
- Decentralised blockchain networks are getting ready to disrupt talent markets (opinion)
- Queens College partners with SIMBA Chain for blockchain education program (announcement)
- Blockchain goes green: Signum – the world’s first truly sustainable blockchain – steps into the light (announcement).
Selected upcoming events
- Christies’ Art + Tech Summit: NFTs and Beyond (15th July 2021)
- CordaCon 2021 (28th-30th September 2021)
- LA Blockchain Summit (November 2nd-3rd, 2021)
- Blockchain Conference/Blockchain Expo Europe 2021 (23rd-24th November 2021)
- Blockchance Europe 2021 (8th-10th December 2021 – was July 7th-9th, 2021).