Author: Xiu Mu
Source: Bitpush.News
Original Title: [One Week in Review] Square Helps Bitcoin Break Through US$11,000
This week Square bought $50 million in Bitcoin, which injected a stimulant into the weak crypto market for many days.
Crypto market
At the beginning of this week, the cryptocurrency market continued its weakness a few weeks ago, especially after US President Trump announced on Twitter on Wednesday that negotiations on the economic stimulus plan would be suspended until after the general election. This has had an impact on the traditional market and the crypto market. The currency also fell below $10,500.
But on Thursday, Twitter CEO Jack Dorsey’s payment company Square announced the purchase of $50 million worth of Bitcoin, which pushed up the price of Bitcoin. According to Square’s announcement on Thursday, the company purchased approximately 4,709 bitcoins at a total purchase price of 50 million U.S. dollars. The average price of each bitcoin is approximately 10,600 U.S. dollars. As of the second quarter of 2020, this investment accounts for approximately 1% of Square’s total assets.
With the support of this good news, the price of Bitcoin has exceeded $11,000 by the end of the week.
Bloomberg predicted this week that Bitcoin, the most valuable cryptocurrency, will reach $100,000 in five years. In October’s Bloomberg Crypto Outlook, Bloomberg Commodity Analyst Mike McGlone predicted that Bitcoin will be accepted more and more, although the pace of development will not be very fast. But even so, based on the “historical growth data and demand and application measures”, he predicts that the price of Bitcoin will reach $100,000 by 2025.
Supervision
On Monday, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against John McAfee, a crypto celebrity, claiming that it violated U.S. securities laws by charging promotional fees to promote ICO tokens for profiteering. The indictment reads: “From November 2017 to February 2018, McAfee used his reputation to recommend at least 7’Initial Coin Offerings’ (ICO) to his Twitter fans, and obtained more than 23.1 million Undisclosed compensation in US dollars.”
David Schweikert, a US congressman and co-chair of the blockchain core group, proposed a bill this week to recognize the legality of digital signatures on the blockchain. The bill was submitted by Schweikeert to the House Energy and Commerce Committee. This bill is particularly important for the enforceability of smart contracts, which automate transactions or complete other contractual obligations in accordance with pre-specified binding rules.
The Financial Market Conduct Authority (FCA), the British financial regulator, will prohibit the sale of crypto derivatives to individual investors. The FCA announced on Tuesday that from January 6, 2021, the UK will ban the sale of derivatives and exchange-traded notes (ETN) related to crypto assets because this may cause “harm”.
In a speech at the Los Angeles Blockchain Summit, Acting Auditor General Brian Brooks said that the United States urgently needs clear encryption rules. Brooks said: “For bad crypto activities, we need to eliminate them. If we want to benefit from these new technologies, such as easier access to credit and help those who failed to participate in the old financial system, we must figure out the regulatory rules. .”
The U.S. Department of Justice announced the release of a cryptocurrency enforcement framework on Thursday. According to information on the official website of the US Department of Justice, the framework provides a comprehensive overview of new threats and law enforcement challenges related to the increasingly popular cryptocurrency, and details the important establishment of the Department of Justice with regulatory and law enforcement partners within the US government and around the world. Relationship and the department’s response strategy.
Digital currency
The Bank of Canada, the central bank of Canada, said the central bank’s digital currency is at risk. The Bank of Canada mentioned in a report on the risks and benefits of central bank digital currency, “An anonymous token-based central bank digital currency brings special security risks. These risks come from how the balance is stored and how the central bank digital currency For transactions, and how various solutions such as e-wallets, crypto exchanges and banks compete to attract users.”
US Deputy Secretary of the Treasury Justin Muzinich said at the digital seminar that the US Treasury Department is studying the Central Bank Digital Currency (CBDB) linked to the US dollar. Muzinich also said, “Using distributed ledger technology obviously has efficiency advantages and cost advantages, and in a broader sense, I think the government should accept innovation, not be scared by innovation.” Muzinich said to implement government-issued cryptocurrency It may change the money supply or cause financial disruption, (for example, foreign hackers obtain most of the tokens), which will cause changes in the basic reserve currency basket and may cause financial losses.
The Bank of Japan issued a document on Friday outlining Japan’s specific approach to developing central bank digital currencies. According to the report, Japan will begin the first phase of its central bank digital currency test in 2021. This stage will include the development of a testing environment for digital currencies and experiments with their basic functions as payment tools.
project
Google Cloud, a global super-scale cloud platform and infrastructure provider, will join the EOS community and is committed to developing as an EOS node on the EOS network. On Tuesday, Block.One officially released the news. The EOS network is built on the EOSIO blockchain protocol released by Block.One.
Covalent, a Vancouver-based Ethereum data analytics startup, raised $3.1 million in a new round of financing, led by Woodstock Fund, 1kx Capital, and Mechanism Capital, with participation from companies such as CoinGecko and Alameda Research. Covalent currently provides on-chain data and analysis for the Ethereum network. Its CEO Ganesh Swami said that with the arrival of new funds, the company will support data analysis on the Ethereum sidechain and other layer 1 blockchains.
Exchange
SBI Liquidity Market (SBILM), a wholly-owned subsidiary of Japanese financial group SBI Holdings, said on Wednesday that it had acquired Japanese cryptocurrency exchange TaoTao from Z Corporation. The transaction amount was undisclosed. TaoTao became a wholly-owned subsidiary of SBILM.
One week after being sued by the US government, the leadership of the crypto derivatives exchange BitMEX experienced a huge shock. On Thursday, the exchange announced the changes in its leadership. One of the defendants, Arthur Hayes, will no longer serve as the CEO of BitMEX from now on. Similarly, another defendant, Samuel Reed, who has been arrested, no longer serves as the chief technology officer of the exchange.
Coinbase CEO Brian Armstrong published a blog post this week stating that 60 employees (about 5% of employees) have received compensation for severance. There are also employees in the communication process, so the final number may be higher. According to a previous report by “Beijing”, a recent policy change by Coinbase has attracted national attention. The policy requires employees to stay away from social activism and politics and focus on its core mission-building an “open financial system facing the world.” Provide resignation compensation for employees who oppose this vision.
