Welcome to your bi-weekly crypto-verse update with Breach.
The Movers
Bitcoin (BTC) - $43,977.38 (+1.51%)
Ethereum (ETH) - $3,022.49 (+0.325%)
Cardano (ADA) - $2.12(+1.14%) 
Solana (SOL) - $141.37 (+2.31%)
Binance Coin (BNB) - $394.87 (+5.02%)
Ripple (XRP) - $0.958 (+1.53%)
*Data as of 8 am WAT on 1st, Oct 2021. Via Coinmarketcap
All roads lead to CBDC

Though they're mixed on crypto, most countries seem to agree on one thing: central bank digital currencies (CBDCs) are the future of currency. The Bank for International Settlements (BIS) has published a report that supports this notion.


According to the report, CBDCs will make global trade easier by reducing the cost of international payments by half, and cutting the payment time from an average of "five business days to a few seconds"


So far, at least 80% of central banks around the world are exploring CBDCs, with half already testing pilot programs.


CBDC: It's just the money in your bank account, but less risky

CBDC is the virtual format of a country's currency, issued and is regulated by its central bank. They can be used, just like traditional currency, to buy goods and services in the country.


Unlike a bank account where, if the bank were to go bankrupt, you run the risk of losing all the money you hold with them, CBDCs are tied directly to central bank reserves and don't hold that risk.


CBDCs vs crypto: While CBDCs and cryptocurrencies (digital assets) like Bitcoin have the same security components, they differ in control and issuance.

  • Typical cryptocurrencies fluctuate according to market trends and are not issued by any central administrators, CBDCs are more stable and controlled by a country's economy
  • Cryptos are also decentralised; meaning they can be sent directly from user-to-user without institutional intermediaries, but CBDCs are managed by the country's central bank, which also acts as an intermediary between sender and receiver.
What's in it for the country? The general belief is that CBDCs could help move economies further into digitisation. Some digital currency experts say CBDCs are structured in a way that makes them cheaper than bank accounts, which is a barrier that has so far been difficult to overcome. This implies that countries with high underbanked populations will have a better chance at integration, which could boost economic growth.
Nobody puts crypto in a corner

China may have declared cryptocurrencies as illegal, but that hasn't phased Chinese investors. Many are taking it as an opportunity to buy the dip.


In our last newsletter, we reported that China's crypto ban triggered a drop in the value of the crypto market. China has banned crypto in the past and local investors have come to see the cycle as an opportunity to buy a lower value to earn more when the market re-adjusts.


In other Asian countries, Bitcoin is still hitting milestones. According to a report, India now has the most crypto users in the world, followed by The United States, Russia, Nigeria, and Vietnam. The report estimates India's user base at 100 Million.


Higher than gold? A recent survey revealed that while Australian investors are still conservative in their choice of investment assets, cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) are becoming more popular than high-value assets like Gold. According to the survey, Australians are using crypto as a way to diversify their portfolio.


Bottom line: China has held a significant slice of the crypto market for a while, but when the bans and restrictions started, the crypto community started to move and adjust as needed. A blanket ban might however be concerning because it means even investors will be wiped which could, in theory, have erased a large chunk of the market and shrink overall value; but the market’s growth seems to be offsetting any potential losses.  Not to mention popular payment platforms like Paypal, and social spaces like Twitter also normalising the use of Bitcoin and other cryptocurrencies by integrating them into their products.

Breach reads

A few other stories we think you'll enjoy.

  • The Central European country, Slovenia has announced the issuance of its own NFT, becoming the world’s first-ever country to do so. The tokens will be distributed to visitors as a gift in the form of a promotional card, along with a unique eight-digit number that will further allow them to access the digital wallet to claim their NFTs (Decrypt)
  • PayPal has recently announced that it has completed its rollout of crypto offering in the United Kingdom. People in the UK Now Able to Buy, Hold, and Sell Cryptos Using PayPal (CryptoDaily)
  • Binance announced on Monday that it would withdraw the ability to purchase or trade any cryptocurrencies on its global platform for Singaporean citizens as of 26 October. The move is aimed at bringing the world’s largest crypto exchange into line with the regulatory standards of the Monetary Authority of Singapore (CryptoDaily)
  • Virgil Griffith, a former Ethereum developer who was also famous as “Chinese Vitalik” has pled guilty for violating sanctions against North Korea and could serve up to 78 months in prison. The Ethereum developer was arrested in November 2019 after giving a presentation on how to use crypto assets to avoid international sanctions at a North Korean cryptocurrency conference (Coingape)
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