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Summary of Past Week Articles July 04, 2022

Crypto Platforms Launch New Recruitment Wave:

Several large cryptocurrency firms have begun a new round of hiring during a bear market.

Kraken, a major cryptocurrency exchange, is leading the crypto recruitment rush, with 650 new roles posted in the US and the UK in the last week.

According to a recent blockchain job site Crypto Jobs List survey, the opportunities are all full-time and remote.

Circle, the business that created the popular stablecoin USD coin (USDC), had the second-highest number, with 159 full-time, remote job postings in the last week.

By the survey, Jack Dorsey’s Square ranks third with 119 new job postings. Additionally, more than 85 percent of them were promoted to remote roles. Furthermore, 562 crypto job adverts have been posted in the UK during the last week, with approximately 44 percent being remote.

Meanwhile, according to a separate Bloomberg story, Coinbase intends to increase its footprint in Europe through new hires after the exchange reduced its headcount by approximately 18 percent, or 1,100 employees.

Nana Murugesan, Coinbase’s vice president of international business development, stated that the cryptocurrency exchange plans to open offices in new regions such as Italy, Spain, France, and the Netherlands.

With a more flexible proposal, the Basel Committee warms up to Bitcoin and cryptocurrency:

Following criticism from industry participants last year for being excessively conservative, a group at the Bank for International Settlements (BIS) has advocated limiting traditional banks’ participation in crypto assets

According to a new consultation study from the BIS’ Basel Committee on Banking Supervision, banks’ exposure limit should be 1% of “Tier 1 capital,” which refers to the capital kept in a bank’s core reserves.

The proposed cap applies to any crypto assets that are unbacked, or have no counterparty, as defined by the BIS.

Bitcoin (BTC) is one such asset, according to their research. The 1% cap will apply to overall exposure, which means that a bank that already has 0.5 percent of its capital in BTC can only invest another 0.5 percent in another unbacked crypto asset.

The proposed 1% cap attempts to align laws for banks’ crypto exposure with those that apply to other business areas for banks.

The BIS’s current study is the international body’s second of its kind.

In its original report from last year, the Committee stated that unbacked crypto-assets offer additional and higher risks than backed crypto assets such as stablecoins and tokenized tangible assets.

More crypto meltdowns are possible this summer, but the worst is over, according to Pantera’s Morehead:

According to Pantera Capital CEO Dan Morehead, the crypto industry will likely experience several meltdowns similar to the Terra (LUNA) and crypto hedge fund Three Arrows Capital.

However, he believes that most of the contagion from recent meltdowns has already been factored in.

In his latest newsletter, published on Wednesday, Morehead stated that despite seeing three big crypto, there could be a few more in the coming month or two due to meltdowns with Terra, Three Arrows Capital, and Celsius (CEL).

Morehead added that his fund, generally focused mainly on altcoins, has suddenly taken on bitcoin, a more significant allocation to bitcoin to limit adverse risk.

Pantera’s co-CIO, Joey Krug, explained in the newsletter that values in the crypto ecosystem have separated, with lower valuations for tokens but higher prices for shares in crypto start-ups.

As a result of this valuation disparity, Krug said that Pantera had allocated more funds to token sale seed fundraising rounds and less to traditional venture capital transactions.

Morehead commented on the correlation between bitcoin and other risk assets, particularly equities, noting that the increase in correlations during this risk asset bear market has lasted longer than in the previous.

In February of this year, Morehead and Krug anticipated that bitcoin would decouple from traditional macro assets, even as interest rates rose.

We now comprehend How Little We Know About Inflation – Powell, Fed:

The current inflation levels in the US and Europe have provided a chance for central bankers to understand better how little we know about inflation. 

The statement came from US Federal Reserve (Fed) head Jerome Powell on Tuesday at the European Central Bank’s (ECB) Forum on Central Banking in Portugal. He added that central banks did not wholly comprehend inflation and its origins during and before the COVID-19 epidemic.

Powell claimed that economists and the models they utilized, primarily based on the Philips curve, did not forecast the present high inflation levels. Instead, according to Powell, nearly all experts projected inflation to be less than 4% last year. 

They were all, however, utilizing the same Philips curve model. Powel claimed it was just not capable of causing significant inflation.

The war in Ukraine has substantially added to inflationary pressures in food and energy commodities, according to the Fed chair.

Commenting on how the Fed will now strive to reduce inflation, Powell stated that while we can affect the demand side, we can’t affect the supply side.

Powell also stated that for inflation to fall, growth must moderate, which the Fed is attempting to achieve with interest rate hikes. Furthermore, Powell noted that the Fed hopes growth can remain positive, albeit he conceded that there is a chance that it may not.

When demand falls, inflation may drop more quickly, he remarked.

The CEO of CoinFLEX claims Roger Ver owes them USDC 47 million, but Ver denies the claim:

According to Mark Lamb, CEO of crypto derivatives exchange and yield platform CoinFLEX, the high integrity individual whose account dipped into negative is Bitcoin Cash (BCH) proponent Roger Ver.

Ver, popularly known as “Bitcoin Jesus,” announced after publicly denying claims that he had defaulted on a debt to a counterparty.

He even asserted that the counterparty owes him a sizable quantity of money.

According to FatMan, a pseudonymous crypto researcher, Ver had a long position in BCH, a Bitcoin fork formed in 2017.

He stated that CoinFLEX permitted Ver to run a deficit since he promised to repay them. 

As previously reported, CoinFLEX revealed late Monday that they want to tokenize a client’s debt into a token called Recovery Value USD (rvUSD) to fund other customers’ withdrawals.

 Notably, as the turmoil continues, the platform’s native token FLEX has taken a beating.

At 7:26 a.m. UTC on Wednesday, the coin was trading at roughly USD 0.76, down 17 percent in the previous day and more than 83 percent during the last week.

Mastercard: 51% of Latin America and the Caribbean Consumers Have ‘Experienced’ Crypto:

Interest in cryptocurrency is growing in Latin America and the Caribbean (LAC). According to recent Mastercard reports, more than half of consumers have used cryptocurrency.

According to the business, it spoke to more than 35,000 people worldwide as part of its New Payments Index poll. As per results, 51% of LAC respondents stated they had undertaken at least one crypto-related action in the previous 12 months.

The report stated that more than a third of Latin American / Caribbean respondents had used a stablecoin to pay for a routine purchase.

A Poll conducted between March and April of this year claims that 54 percent of Latino and Caribbean consumers are optimistic about the performance of digital assets as an investment. Moreover, 66 percent of Latin Americans and Caribbeans said they wanted more flexibility to interchange crypto and traditional payment methods in their regular financial activities.

Seventy-seven percent of surveyed citizens said they would be willing to use cryptocurrency more if they knew more about it.

Furthermore, 67 percent answered they would be willing to make or receive payments in crypto assets provided tokens were backed by tradfi (conventional finance).

Globally, more than a third of respondents said they were somewhat or very likely to attempt paying with cryptocurrency. However, fewer than six in ten said they would feel more secure about crypto if they knew it was issued or supported by a credible organization. 

According to Mastercard’s survey, digital payments are on the rise in Latin America, with 95 percent of respondents planning to use digital payment methods in the coming year.

Almost a third of those polled said they had spent less money in the previous year.

The survey findings follow a rush of investment in the region by Mastercard’s rival Visa.

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