Bank of England Governor Andrew Bailey thinks it is unlikely that the current generation of crypto assets lack the design and structure needed to ensure long term regulatory survival.
Speaking during the World Economic Forum’s Jan. 25 online panel “Resetting Digital Currencies” Bailey responded to a question on whether cryptocurrencies are here to stay for the long term with skepticism:
“Are crypto-currencies here to stay? Digital innovation in payments – yes. Have we landed on what I would call the design, governance and arrangements for a lasting digital currency? No, I don’t think we’re there yet […] I don’t think cryptocurrencies as originally formulated are it.
Bailey indicated the levels of transactional privacy afforded by crypto assets is a source of concern among regulators, asserting the establishment “a privacy standard for transactions” is in the public interest.
“The whole question of a privacy standard for transactions made in any form of digital currency, and where the public interest lies […] this is a big one that is coming on to the landscape,” he said.
Bailey also extended his concerns regarding privacy to stablecoins, stating:
“The whole question of people having assurance that their payments will be made in something with stable value […] ultimately links back to what we call fiat currency, which has a link to the state.”
However, not everyone at the BoE is alarmed by cryptocurrencies. In November, Andy Haldane, BoE chief economist and a sitting member of the Monetary Policy Committee, stated that crypto assets may be a key component of a ‘new monetary order’.
The Bank of England is among many central banks researching the development of its own fiat-backed digital currency, alongside the European Central Bank and more recently the Reserve Bank of India
BLOCKCHAIN
A Look at The DYP Staking dApp and Other Upcoming Features
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DeFi Yield protocol (DYP) is a revolutionary project that rewards liquidity providers directly in Ethereum. All rewards from supported tokens (DYP/ETH, DYP/USDC, DYP/USDT, and DYP/WBTC POOL) are distributed transparently and fairly.
Each pool offers four different staking options, with rewards starting from 30,000 DYP up to 100,000 DYP each month, depending on the lock time (a minimum of three days up to 90 days).
As per the latest DYP tweet, liquidity providers earned 2,139.44 ETH worth about $2,930,424 in the last 44 days – 95,62 ETH earned in the previous 24 hours!
DYP is looking to transform how DeFi is perceived by prioritizing equity in the control of funds on its platform. The project achieves this goal via the DYP anti-manipulation feature that denies whales the power to take control of the network and manipulate DYP token prices to their advantage.
The anti-manipulation feature reduces the risk of a whale dump by automatically converting rewards from supported tokens to ETH every 24 hours. Smart contracts then distribute the rewards to liquidity providers in the form of wrapped Ethereum (WETH).
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Read on to learn the latest product offerings from DYP and how you can start earning rewards from your DYP tokens. If you don’t own DYP, you can buy the tokens from Uniswap.
The DYP Farming dApp is Live!
DeFi yield farming has come to the DYP platform via its staking dApp with a referral system integrated. Users get to earn lucrative rewards in each pool, starting from 20% APR up to 35% APR, depending on the lock time from a minimum of thirty days up to 120 days.
The referral program offers users 5% of their friend’s rewards whenever the friend stakes DYP tokens. The rewards are sent directly to users, free of gas fees.
Investors looking to join the staking dApp and earn ETH rewards must deposit their liquidity provider tokens (Uniswap LP tokens) into the corresponding list of pools.
The dApp also introduces the RE-INVEST function that allows investors to add their daily rewards to the staking pool. The DeFi project will soon integrate support for multiple DYP liquidity lockers for token developers, as well as the functionality to lock Uniswap liquidity for numerous pools.
DYP Earn Vaults and ETH Mining Pool
In Q1 of 2021, the DYP team will roll out automated earn vaults combined with the best Ethereum mining pool.
The DYP earn vaults will introduce an automated yield farming contract that maximizes users’ profits by moving the liquidity provider’s funds through the most profitable platforms. 75% of profits generated from the vaults will be distributed amongst LPs, with the remaining 25% used to buyback DYP governance protocol tokens to enhance liquidity.
This upcoming product supports ETH, WBTC, USDC, USDT, and DAI in five lockup durations/pools for each deposit token (lock durations of 3, 30, 60, 90, and 120 days).
The ETH Mining Pool with 0% fees offers participants a 10% monthly bonus of the ETH monthly revenue earned + 0% mining fees. Any user wishing to claim monthly DYP tokens must first join the zero-fee ETH mining pool set up by the DYP team, meaning they will also earn more ETH monthly.
This product will launch as soon as the DYP protocol achieves the hashrate required to mine a pool (250 GH/s).
Also scheduled for Q1 of this year are DYP tools with decentralized trust score, which serve as an informative platform for investors.
The tools are designed to gather open-source data cached from decentralized exchanges (DEX) and the latest liquidity providers. The information will be available on the custom DEX tools dashboard to help DeFi investors make decisions that maximize yields.
The DYP tools also allow users to view and explore pools/pairs on Uniswap and access trading charts and DEX real-time info for all projects listed on Uniswap.
Moreover, the tools will tap into the DYP liquidity locker to generate a 100% decentralized trust score. The trust score will be computed based on broad criteria, including a project’s contract security audits and liquidity on Uniswap.
Phase one of Switzerland’s blockchain law goes into effect
On Monday, part one of the Swiss blockchain law covering company reforms went into effect. Back in September 2020, the country’s parliament passed an expanded regulatory framework for crypto and blockchain technology in the country.
According to a Swissinfo report, the implementation of the new regulatory paradigm will help to improve Switzerland’s burgeoning crypto and blockchain scene. Indeed, industry stakeholders in the country praised the expanded financial and corporate reforms included in the amended legislation passed by parliament in September 2020.
For Hans Kuhn, a board member at digital bank SEBA, the blockchain law establishes Switzerland’s place in the emerging digital economy. According to Kuhn, the regulated issuance of blockchain-based securities points to the country’s focus on promoting digital innovation.
Also on Monday, Crypto Broker AG announced it had secured a license from the Swiss Financial Market Supervisory Authority, or FINMA. With the license, the brokerage firm that cleared over $1 billion in trades last year can now offer tokenized securities to its clients.
Crypto Broker AG now joins the likes of SEBA and Sygnum Bank as FINMA license holders in a further expansion of the regulated crypto securities trading arena in Switzerland. With part two of the Swiss blockchain law expected to come into effect in the summer, companies will be looking to establish a significant presence in the asset exchange market for regulated trading of these crypto securities.
Part two of the Swiss blockchain law will cover significant upgrades to the country’s financial market infrastructure. This part of the blockchain act will provide legal backing for trading crypto securities as well as other cryptocurrency exchange operations.
Switzerland now joins Liechtenstein as one of the few countries to pass full-spectrum crypto and blockchain regulations that account for all major facets of the industry. However, unlike the Swiss approach that amended existing laws to fit the blockchain market, Liechtenstein created a new legal framework for its cryptocurrency and blockchain market.