This Week in Crypto – 21st January 2022

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First edition back in the new year, and I'm still not accustomed to writing 22 instead of 21, I wonder if you all feel the same way! The time really flies quickly but you know that in crypto world you always count two seconds as one!

🚀CBDCs, FED, and something more…

A big topic that did not receive enough attention last year has been CBDCs (central bank digital currencies). However once 2022 beat the gong for the first time, something has started to change this trend. Last week many countries shared some future plans. The most notable came from China where the government launched its digital yuan wallet (+ the fact that the Winter Olympics will be held there next month).

With the digital yuan rising in popularity, last week the tone for the digital dollar gained momentum. JP (Jerome Powell) said the report for CBDCs is "ready to go" and would be released in the coming weeks. However, what the report will reveal remains a mystery at the moment.

Another significant moment for the Fed in the last 7 days was Tom Emmer's introduction of legislation that aims to prohibit the Federal Reserve from issuing a central bank digital currency (CBDC) directly to individuals. . In the bill, he explained his worries about the powers that the digital dollar would give to JP and his company.

In particular, Emmer believes that the digital version of the cash could threaten the freedom of Americans if one day they could be forced to register in front of the Fed to access their funds. This will give the Fed the power to track every transaction, to monitor account balances. Even more frightening is the scenario in which someone decides whether you can make a payment to a business (public behavior).

🚀Crypto derivatives on the radar of stock exchanges

In the last 24 hours previous to writing, the total volume of the top three largest crypto spot exchanges was about $ 16 billion, and of the top three crypto derivative exchanges - $ 63 billion. Binance is definitely pouring its bags with money but some other crypto exchanges have spotted the niche.

Last week, Coinbase acquired the derivatives exchange FairX with the idea of using the infrastructure to provide crypto derivatives to all Coinbase customers in the United States.

It is important to note that FairX is not a random company, but is registered with the CFTC, the body which regulates all derivatives and commodities.

Coinbase is not the only one who wants a piece of the cake - recently FTX.US has acquired LedgerX, and Crypto.com - North American Derivatives Exchange.

🚀Jack Dorsey dedicated to Bitcoin

Last year Dorsey resigned as CEO of Twitter, to give 100% of his time to Block (Formerly know as Square) and… Bitcoin!

Last week, he announced the creation of the Legal Defense Fund, a fund that will protect the legal cases of anyone helping develop Bitcoin and the Lightning Network. The rise of cryptocurrencies is a problem for many, and the voluntary help of lawyers and other crypto developers aims to make it easier to get through the hell of the courts.

The second news from Dorsey is related to Block, which is building Bitcoin mining systems.

"We are officially building an open Bitcoin mining system," the CEO wrote in response to a tweet from Thomas Templeton (Block's hardware manager). According to Templeton, the company is working on affordable Bitcoin mining facilities that anyone can use at home.

🚀Rio de Janeiro - the latest crypto newbie

"Innovation Week" was recently held in Rio de Janeiro and among the guests was the Mayor of Miami - Francis X. Suarez. Eduardo Paes, the mayor of Rio, was so inspired by Miami's development as a crypto hub that he announced that 1% of Rio's Treasury would be invested in Bitcoin.

Rio will pursue a crypto transformation that aims to bring more fans to the carnival city. Ideas were also mentioned about paying taxes in Bitcoin.

Dreams have spread on Twitter that crypto-adaptation will help Latin America emerge from the economic pit.

🚀NFT update

Although the crypto market went up and down during the week, NFTs seemed to stay hot!

FTX has announced the launch of a $ 2 billion web 3 venture fund that will focus on Web 3 games as well as Web 3 social media applications. It will be led by Amy Wu, who has been a lead partner at Lightspeed Venture Partners. The fact that one of the leading crypto exchanges has focused on metaverse is proof that web 3 should be on our radar in 2022.

While for a long time OpenSea seemed like a platform that would never be pushed out of the forefront of the NFT market, the launch of LooksRare gave rise to various theories.

LooksRare is a new NFT marketplace that enjoyed $ 110 million in trading on its first day. The platform attracts customers not only with lower fees of 2% (OpenSea has a fee of 2.5%) but also with something highly desired by all OpenSea users - TOKENS.

LooksRare offers an airdrop of LOOKS tokens to all OpenSea users who have transmitted at least 3 Ethereums between June 16 and December 16, 2021.

If that is not enough, there's more. Fees generated by LooksRare will be distributed as rewards to LOOKS holders who stack the token on the platform.

With all these advantages, LooksRare seems to be a good alternative to OpenSea. On the day of its launch, the OpenSea exchange had $ 180 million in trading and LooksRare $ 110 million, which is a great achievement for a newborn NFT platform.

Militsa Dimitrova

Crypto Enthusiast

Militsa Dimitrova is a crypto enthusiast with experience in content creation & social media, who produces her own Cryptocurrency Newsletter and Podcast both in English and Bulgarian. She joined FXCM as an Accountant in 2020, after obtaining a Bachelor's degree in Accounting from the University of National and World Economy of Sofia.

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