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Stable.Report, May 20th —May 26th

Updated: May 29, 2019


Stablecoin News of the Week:

Crypto-Assets: Implications for Financial Stability, Monetary Policy, and Payments and Market Infrastructures 🏦 As part of their ongoing “Occasional Paper Series,” the European Central Bank (ECB) has published this paper, produced by the ECB Crypto-Assets Task Force to assess whether, or not, crypto is impacting monetary policy or engendering any systemic risk. The paper states that “in the current regulatory framework, crypto-assets can hardly enter EU financial market infrastructures (FMIs).”  The paper briefly covers stablecoins stating “…stablecoins could become less volatile if the coins were collateralised by central bank reserves, for example. Such collateralisation could result in additional demand for central bank reserves, which could have implications for monetary policy and its implementation. However, such collateralised stablecoins are not crypto-assets as defined in this paper.” -via FinExtra


The Rand is Going Digital — and the Reserve Bank is Open for Suggestions 🇿🇦 “SARB does not presently have a formal position on the feasibility of issuing an Electronic Legal Tender (ELT), however, it is proactively seeking to understand the policy considerations of issuance, and to understand the associated implications of such issuance…The research conducted to date focused primarily on developing an understanding of the various forms of public and private virtual currencies, as well as the potential implications, should a central bank decide to issue a general purpose CBDC.” The next phase will be practical hands-on experimentation with potential design models, taking all the security and risk aspects into consideration. The closing date for the expression of interest is 6 June 2019. -via Daily Maverick


Banks to Invest Around $50 Million in Digital Cash Settlement Project 🏦 The previously disclosed project, known as the “utility settlement coin,” was first proposed by Swiss bank UBS Group AG and London-based technology startup Clearmatics in 2015. Around a dozen banks are investing in a new entity called Fnality which would run the project, and could launch in 2020. Banks that had previously disclosed they were working on earlier phases of the project include UBS, Banco Santander, Bank of New York Mellon Corp, State Street Corp, Credit Suisse Group AG, Barclays PLC, HSBC Holdings Plc and Deutsche Bank AG. -via Reuters


Chinese Central Bank-Led Fintech Research Institute Seeks New Blockchain Talent 🇨🇳 The new listings for blockchain talent have been posted as part of a broader recruitment effort, with openings for a total of 29 positions. Last fall, a PBoC expert advocated for the launch of a government-endorsed yuan-backed stablecoin, notwithstanding the country’s heavy restrictions on decentralized cryptocurrencies. -via CoinTelegraph


Tether Admits in Court to Investing Some of its Reserves in Bitcoin 🏛️ New York Supreme Court Judge Joel M. Cohen questioned the logic, noting the paradox of a stablecoin being invested in a volatile asset like bitcoin. He said: “Tether sounded to me like sort of the calm in the storm of cryptocurrency trading. And so if Tether is backed by bitcoin, how is that consistent? If some of your assets are in a volatile currency that Tether is supposed to somehow modulate, that seems like it’s playing into what they are saying.” Paolo Ardoino, CTO of Bitfinex, said in a tweet that on May 16, 2019, Tether owned 0.076 BTC. It’s still unclear how much bitcoin the firm has owned historically and in how many addresses. Stuart Hoegner, General Counsel for both Bitfinex and Tether, in a tweet referred to this report as “neither breaking (as advertised) nor news.” -via TheBlock


Outstanding Stablecoins, Spot Trading Volumes Hit Record 📊 Stablecoins have hit an all-time high with over $4Bn tokens representing the Greenback now on the blockchain. While Tether dominance remains, new stablecoins that came to market recently have made leapfrogs of progress. And trading volumes have already in less than 5 months beat that of last year’s record with 2019 set to dwarf the now infamous bear market in comparison. -via Diar


Russian Central Bank to Consider Gold-Backed Cryptocurrency 🇷🇺 Elvira Nabiullina, governor of the Bank of Russia, said at the nation’s lower house, or Duma: “As for mutual settlements, we will consider, of course, [the] proposal on … a gold-backed cryptocurrency. But, in my opinion, it is more important to develop settlements in national currencies…we do not see the possibility that cryptocurrencies could act as monetary surrogates. Definitely not in this part.”  -via CoinDesk


Facebook Held Talks with Winklevoss Twins Over New Currency 🌐 To make sure that its new currency, a digital coin linked to the value of the dollar, is liquid and tradeable, Facebook has talked to Jump and DRW, Chicago’s biggest high-frequency trading firms about making a market, according to two people familiar with the talks. Facebook has also held talks with at least two cryptocurrency exchanges, Coinbase and Gemini, through which users could store their coins safely or could convert the Facebook coin into other cryptocurrencies or fiat currencies such as the dollar. Both exchanges declined to comment. -via FinancialTimes


Facebook Plans to Launch ‘GlobalCoin’ Currency in 2020 🌐 Referred to internally as “GlobalCoin”, Facebook wants to start testing and deploying a digital payments system in about a dozen countries by the first quarter of 2020. The company has already spoken to Bank of England governor Mark Carney and has also sought advice on operational and regulatory issues from officials at the US Treasury. -via BBC


SIX Stock Exchange Is Working on a Swiss Franc Stablecoin 🇨🇭 SIX, the Swiss national stock exchange group, is working on creating its own stablecoin pegged to the Swiss franc, to facilitate transactions on the SIX Digital Exchange (SDX). A spokesman for SIX confirmed the move in an email “Yes, we are currently working on a CHF Stable Coin.” -via CoinDesk


Project Updates:

COTI to launch IEO on KuCoin Spotlight on June 4th 📍 COTI and KuCoin have joined forces to launch COTI’s IEO on KuCoin Spotlight! COTI is one of the first projects to partner with Spotlight, which assists blockchain companies with raising funds, gaining market traction and raising industry awareness. -via COTI

Makkah Investment will Issue Stablecoin on everiToken 🤝 Makkah Investment is based in Saudi Arabia and the United Arab Emirates and has received local sovereign fund investments. The founder of Makkah Investment, Sultan Alsadoon, said that he is very optimistic about the advantages of everiToken and everiPay micropayment solution in cross-border payment and also expressed his investment intention. -via everiToken


Weekly Progress Report: May, 13th — 19th 📅 This update shares with the community the recent partnerships and developments by the project, from capital raised and white paper translations published, to presentations attended and technological progress made. -via everiToken


Dai (DAI) is Now Available on Coinbase 👏 Coinbase now supports DAI at Coinbase.com and in the Coinbase Android and iOS apps. Coinbase customers can now buy, sell, convert, send, receive, or store DAI. DAI will be available for customers in most jurisdictions, but will not initially be available for residents of the state of New York. -via Coinbase


Governance Poll: Stability Fee Adjustment Poll — May 27 🗳️ Another week, another Poll proposed by the Maker Foundation Interim Risk Team to signal support for a Stability Fee within a range of 13.50% to 23.50%. This weekly cycle of Polling and Voting will continue until the community believes that stability has returned to the peg. This Governance Poll will be active for three days beginning on May 27th at 4 PM UTC, the results of which will inform an Executive Vote which will go live on May 31st at 4 PM UTC. -via MakerDAO


Upvote/Downvote: Piloting a New Way for Design Feedback 👨‍💻 The MakerDAO is testing a new tracking tool, Canny, to receive user feedback on their evolving CDP Portal, Governance dashboard, and other products. Whereas most of their feedback was received via social media, this would be a one-stop-shop to receive and vote on user feedback for the product. -via MakerDAO


Update: The Road to Multi-Collateral Dai — Kovan Release v0.2.6 🤓 This post shares the details of the most recent update, MCD v0.2.6, deployed on the Kovan testnet. The release covers the newest development updates within the following areas: CDP Portal, Governance Dashboard, Testchain DSS deployment scripts, and New Developer Guides. -via MakerDAO


Monetization Platform Coil Pays Content Creators in Stronghold USD 🤝 Coil, a monetized platform for creators and their fans, has launched its public beta using Stronghold as its off-ramp for users who want to cash out in U.S. dollars. Coil’s platform is designed to make it easy for creators to monetize content across the internet. As subscribing fans enjoy content on Coil’s publishing platform or on a creator’s own website, Coil uses an open API called Web Monetization to stream micropayments to creators in real time. -via Stronghold


Synthetix.Exchange: Month in Review 📈 The launch of several new Synths tracking the prices of more cryptocurrencies, as well as the ability to essentially short them, has added substantial utility to Synthetix.Exchange. In the last 30 days, the exchange has seen nearly $7m sUSD worth of trading volume, with over $20,000 sUSD generated in trading fees distributed to all SNX stakers. This brief post explains in detail the exciting developments going on. -via Synthetix


May 2019 Terra Community Update 🙌 Terra’s mainnet, columbus, launched April 23rd and has successfully produced its first 380k blocks. This post provides a recap on some details from the mainnet launch (e.g. tools, traction, press), updates on upcoming events (e.g. first partners, wallets and exchange integrations, open research) and new hires. -via Terra Money


Dharma Now Supports P2P Lending in USDC to Attract Mainstream Investors to DeFi 🤝 Previously, the only stablecoin that Dharma supports was Dai. Dharma expects the addition to bring more liquidity to its platform. With $123 million worth of daily trading volume, USDC is among the more popular stablecoins. One market observer said that Dharma customers usually use their borrowed coins on decentralized exchanges, on which DAI is much more liquid than USDC. Therefore the addition of USDC may not spark much interest among investors who favor DeFi. -via TheBlock