LianGuai Morning News | Stablecoin activity is shifting from the United States, USDT adoption is soaring in Brazil

LianGuai Morning News | Rise in Stablecoin Usage in Brazil Drives USDT Adoption Away from the United States

Headlines

▌Report: Stablecoin Activity Shifting Away from the US

A report published by Chainalysis reveals that stablecoin activity is also shifting away from the United States. The report indicates that the usage of stablecoins in North America has declined relative to other digital assets since around February 2023. Confidence in stablecoins like Circle’s USDC has been shaken following the collapse of Silicon Valley Bank with significant risk exposure.

The report states that the majority of stablecoins flowing into the top 50 crypto services have shifted from licensed services in the US to non-US licensed services. Despite initially helping to legitimize and nurture the stablecoin market, an increasing number of cryptocurrency users are engaging in stablecoin-related activities through exchanges and issuers headquartered abroad.

This shift has also reduced US regulation of stablecoins tied to the US dollar. Despite many proposed bills by cryptocurrency-supporting politicians, progress in Congress regarding the regulation and legalization of stablecoins has been slow.

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In conclusion, cryptocurrency and stablecoin regulations will play a vital role in reversing the decline in North America.

▌Adoption of USDT Surges in Brazil, Accounting for 80% of Cryptocurrency Trading Volume

According to data from Brazil’s tax services agency, the usage of USDT has significantly increased in Brazil, accounting for 80% of all cryptocurrency trades in the country. As of mid-October, the trading volume of USDT in Brazil this year reached 271 billion Brazilian reais (approximately 55 billion US dollars), nearly double the volume of Bitcoin trades, which stood at 151 billion reais (approximately 30 billion US dollars).

Since 2021, the volume of USDT trades in Brazil has been steadily growing, surpassing Bitcoin’s trading volume for the first time in July 2022, during the peak of the cryptocurrency industry storm when Three Arrows Capital and Voyager Capital collapsed.

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Market Update

As of writing, according to coinmarketcap data:

The recent trading price of BTC is $34,518.7, with a daily change of +0.21%;

The recent trading price of ETH is $1,794.7, with a daily change of +0.13%;

The recent trading price of BNB is $227.05, with a daily change of +0.24%;

The recent trading price of XRP is $0.5559, with a daily change of -0.12%;

The recent trading price of DOGE is $0.0693, with a daily change of -0.09%;

The recent trading price of ADA is $0.2956, with a daily change of -0.37%;

The recent trading price of SOL is $32.884, with a daily change of +0.78%.

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Policies

▌Mintable CEO: Risks of Incorrectly Regulating NFTs in the UK

Mintable CEO Zach Burks says the UK government faces the risk of regulating NFTs in a manner that doesn’t align with the true essence of emerging technology. Burks believes that a recent report from the UK parliamentary committee greatly exaggerates the role NFTs play in copyright infringement and fails to recognize that they are more than just unstable digital images.

▌Cantor Research Analyst: SEC Officials More Likely to Approve Newly Submitted Proposals

Cantor research analysts Josh Siegler and Will Carlson state that SEC officials are more likely to approve newly submitted proposals, unlike previous rejected applications. They reference the successful applications of heavyweight Wall Street firm BlackRock and Trust’s victory over the opposition from the US Securities and Exchange Commission in court.

In a Friday report, Josh Siegler and Will Carlson state that the approval of a Bitcoin spot ETF is the most important short-term catalyst for Bitcoin’s price. The approval of a spot Bitcoin ETF in the US would be a “cornerstone moment for Bitcoin’s long-term adoption and legalization.” They also add that investment tools would simplify the process of finding Bitcoin custodians, self-storage, or investing in futures products.

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Blockchain Applications

▌BIS-led Project Northern Star Provides Guidance for Offline CBDC Design

The design of offline payments for central bank digital currencies (CBDCs) is a complex task, with some challenges and trade-offs that aren’t easily resolved. Additionally, there is no one-size-fits-all solution due to unique requirements from each central bank. In the fourth report of the Northern Star project, the Bank for International Settlements Innovation Hub will release guidance to deepen central banks’ understanding of the technology supporting offline CBDC payments, building on the extensive overview of offline payments provided in the project’s first report.

This guidance aims to assist central banks that have already accumulated knowledge and now wish to delve deeper into the requirements and design choices for CBDC offline payments. The report is based on information gathered from a series of workshops held between May and September 2023, involving 12 solution providers and 6 observing central banks.

▌UniSat Wallet Announces Support for 14 Available Assets

UniSat Wallet, a wallet by Ordinals, announced support for its limited selection of 14 available assets on the mainnet with the release of brc20-swap, following in-depth research.

▌Chainalysis: Adoption of DeFi in North America Continues to Rise

A report released by Chainalysis shows that the adoption of DeFi in North America continues to rise. The estimated total on-chain value transferred between July 2022 and June 2023 stands at approximately $1.2 trillion, slightly higher than 24% of the global digital total. Meanwhile, DeFi usage in North America continues to grow in line with the original transaction volume, particularly in protocols that experience high levels of speculative trading.

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Cryptocurrency

▌US Financial Lawyer: Vaneck Updates Suggest Bitcoin as Seed Fund

US financial lawyer Scott Johnsson commented on Vaneck’s updated Bitcoin ETF filing on X platform, stating that Vaneck’s amendment language regarding the seed period is similar to BlackRock’s. Considering that both issuers are represented by the same lawyer from the high-end WeiShen law firm, this might not come as a surprise. However, unlike iShares, Vaneck suggests using Bitcoin as their seed fund instead of cash.

▌US Deputy Treasury Secretary: Cryptocurrency Not Main Source of Hamas Funding

US Deputy Treasury Secretary Adeyemo mentioned that cryptocurrency is not the main source of funding for terrorist organization Hamas. When we discover terrorist organizations using cryptocurrency to hide funds, we will go after them.

▌USDT Stablecoin PYUSD Total Issuance Reaches Nearly 150 Million

On-chain data shows that the total issuance of the stablecoin PYUSD launched by LianGuaiyLianGuail is close to 150 million, and as of now, the total issuance is 148 million.

▌Coinbase Spot Trading Volume Reaches $28.2 Billion in October, a 100% Increase from September

Data from The Block’s dashboard shows that from October 1 to the present, the cumulative trading volume of cryptocurrency exchanges has reached $443.27 billion. Among them, Binance’s spot trading volume reached $179.41 billion, ranking first among cryptocurrency exchanges. Upbit, a Korean cryptocurrency exchange, had a spot trading volume of $51.88 billion, ranking second, while OKX had a spot trading volume of $27.68 billion, ranking third.

Meanwhile, Coinbase’s spot trading volume was $28.22 billion, a 100% increase from the previous month. It is worth noting that Coinbase’s spot trading volume in September was $14 billion.

▌Michael Saylor: No Asset Compares to Bitcoin

MicroStrategy founder Michael Saylor stated in a recent article that when people examine the cumulative returns brought by Bitcoin, its exceptional performance becomes evident. According to the asset class total return chart shared by Saylor, from 2011 to 2023, Bitcoin’s return rate reached an astonishing 1,120,785%, equivalent to an annualized return rate of 147.5%. This number is simply jaw-dropping.

Compared to traditional assets such as the Nasdaq 100 and US large-cap stocks, these numbers are impressive. Although these two assets have performed strongly, they lag far behind Bitcoin in terms of returns. Based on the shared data, the Nasdaq 100 has risen by 613% since 2011, while US large-cap stocks have risen by 315%.

▌Robert Kiyosaki: Bitcoin, Gold, and Silver to be the Main Investments in 2024

Robert Kiyosaki, the author of “Rich Dad Poor Dad,” shared his investment portfolio allocation template for 2024 on his official X account. Kiyosaki suggests investing in Bitcoin, gold, and silver instead of stocks and bonds.

Kiyosaki is known as a major critic of the existing financial models and he strongly criticizes financial experts and their seemingly foolproof investment portfolio allocation templates. He believes that the long-time recommended 60/40 model for smart investors (60% bonds, 40% stocks) is no longer ideal.

▌Data: S&P 500 Drops Over 10% from July 31 Peak as Gold and Bitcoin Rise

Due to concerns over a possible economic recession in the United States, the S&P 500 index, the major US stock market index, has dropped over 10% from its July 31 peak of 4,577 points. The Dow Jones Industrial Average also fell 1.7% in the last week of October 2023, slightly below 32,420 points. The 10-year US Treasury yield surpassed the 5% threshold for the first time since 2007 this week.

Furthermore, in search of “safe-haven” US Treasury bonds, more and more investors seem to be choosing gold, which has risen to $2,000 per ounce for the first time since May, and Bitcoin, which has surpassed the $35,000 mark for the first time since March 2022. Economists warn that the rising US Treasury yields will eventually make them more attractive than stocks. When this happens, it will stimulate capital flow from stocks to US Treasury bonds, leading to a lack of crucial investment funds for businesses and contributing to higher borrowing costs.

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Important Economic Developments

▌97.4% Probability of No Change in Interest Rates by the Fed in November

According to CME’s “FedWatch,” there is a 97.4% probability that the Federal Reserve will maintain interest rates in the range of 5.25% to 5.50% in November. The probability of a 25 basis point rate hike to the range of 5.50% to 5.75% is 0.0%. The probability of no change in interest rates in December is 78.6%, while the probability of a cumulative 25 basis point rate hike is 19.3%, and the probability of a cumulative 50 basis point rate hike is 0.0%.

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LianGuai Encyclopedia

▌Differences Between Bitcoin Spot ETF and Trust Products

Unlike trust products such as the Grayscale Bitcoin Trust, there are some key differences between these instruments and spot ETFs. Firstly, trust products are usually not redeemable in the form of the underlying asset, which helps explain why there can be significant differences between the price of the underlying asset (Bitcoin) and the trust product itself. On the other hand, spot ETFs operate under an open-ended fund structure, allowing for more flexibility in issuing new derivatives and better tracking of the spot price of Bitcoin. Additionally, spot ETFs can provide investors with better liquidity and tax treatment, further highlighting their appeal to a wide range of investors.

Disclaimer: LianGuai, as a blockchain information platform, publishes article content for informational purposes only and does not serve as actual investment advice. Please establish the correct investment concept and always be aware of the risks.

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