View profile

China's Crypto Ban, Visa, EthCap in the Media and Weekly News!

Ether Capital Newsletter
Ether Capital Newsletter
The big story this week was China.
China announced new restrictions on crypto, including a ban on the trading, exchange and issuance of digital assets.
This represents an escalation of China’s crypto rebuke from earlier in the year.
So why is China doing this?
One theory is that the country is close to launching a digital Yuan and it doesn’t want a decentralized digital asset, like Bitcoin, Ether or a stablecoin, competing with it.
That said, there seems to be deeper undertones. Decentralization in crypto means that a protocol like Bitcoin or Ethereum can’t be owned or controlled by anyone - a prospect that is likely frightening to China’s political elite.
 As EthCap’s Brian Mosoff noted in a Bloomberg piece this week: “you can’t regulate at the protocol level, meaning you can’t change the code of Bitcoin.”
China’s actions were criticized by many, including this US Senator:
https://twitter.com/SenToomey/status/1441398415712129024
https://twitter.com/SenToomey/status/1441398415712129024
He argued that China’s ban is “a big opportunity for the US” and a reminder “of [its] huge structural advantage” over China. 
Jeremy Alliare, CEO of US dollar-backed stablecoin issuer Circle, also commented:
https://twitter.com/jerallaire/status/1441367755261759497
https://twitter.com/jerallaire/status/1441367755261759497
Allaire said that crypto is “a threat to systems that are built around total control, centralization of power, elimination of privacy, etc.” and asked “which side of this do we want to be on?” 
The US reaction was notable given the tough talk from regulators last week
And speaking of regulation…
This week, the former CFTC commissioner in the US spoke out about the regulatory environment, saying that crypto is “a multi-generational change in the nature of finance and the nature of money.”
On regulation, he urged current regulators to “get it right”, saying:
“We’ve got [crypto] that’s fundamentally different than what we’ve had before, and we need to think about whether those regulatory schemes without any further amendment are fit for purpose or whether we do need to make some adjustments to them to better accommodate this technology.“
And this isn’t just academic…👇
Visa Launches Blockchain Interoperability Concept
Visa even deployed a smart contract on an Ethereum testnet to work through the idea. Of the initiative, Visa’s head of crypto noted:
 “This is a much longer-term future thinking concept around a way that Visa could potentially help become a bridge between one digital currency on one blockchain and another digital currency on another blockchain.”
 This is the kind of innovation that China and its citizens may miss out on. We hope that policymakers, not just in China but globally, eventually “get it right.”
Ether Capital In The News This Week!
EthCap’s Brian Mosoff, was quoted/featured in:
Check them out and let us know if you have any questions or comments!
Newsworthy Links and Highlights:
One of the biggest operators of ETFs in the US, with AUM of over $450 billion, has plans to roll out a lineup of digital asset funds.
Fees on Ethereum hit over US$1 billion in the past month, which is orders of magnitude above the same metric from other platforms.
Another exchange on Ethereum has surpassed Coinbase’s daily volume, likely a result of the news of Chinese exchanges shutting down.
NFTs in art and pop culture are getting more difficult to ignore, particularly now that auction houses like Christie’s are seeing repeat business opportunities.
As always, feel free to contact us at info@ethcap.co with any comments or questions or just to say hello.
Thanks for reading - until next week!
Ether Capital (NEO:ETHC) is an Ethereum ecosystem investor based in Toronto, Canada. Ether Capital selectively invests in projects, protocols and businesses that leverage the Ethereum ecosystem and Web 3 technologies. For more information, visit www.ethcap.co.
Did you enjoy this issue? Yes No
Ether Capital Newsletter
Ether Capital Newsletter @ethcap

We provide public market investors access and exposure to the Ethereum and Web 3 ecosystem. (NEO:ETHC)

In order to unsubscribe, click here.
If you were forwarded this newsletter and you like it, you can subscribe here.
Created with Revue by Twitter.