Seeds of Wisdom RV and Economic Updates Tuesday Morning 8-27-24
Good Morning Dinar Recaps,
Cardano Founder Hints at New ‘Partner Chain’ Collaboration with Algorand: What’s Next for ADA?
▪️ Charles Hoskinson, Cardano’s CEO, praised Algorand’s blockchain technology and suggested a partnership for decentralized AI projects.
▪️ The much-anticipated Cardano Chang hard fork has been delayed to September 1, causing concerns within the community.
Cardano CEO Charles Hoskinson has expressed a strong interest in Algorand’s blockchain technology, suggesting a potential collaboration focused on decentralized artificial intelligence (AI) initiatives.
This potential collaboration can yield a lot of benefits for both Cardano and Algorand in the growing AI market.
Algorand has been receiving a lot of attention lately, and this has led Charles Hoskinson to express his opinion on the project. Furthermore, he stated that Algorand, in conjunction with a tailored proof of work suitable for AI tasks, could be a promising decentralized AI platform within the crypto market.
This recognition from Hoskinson highlights the strategic value he sees in Algorand’s technology, particularly in its application to AI-driven projects.
Hoskinson also suggested that Algorand could be a partner chain to Cardano, a partnership he thinks can harness the full potential of Minotaur, Cardano’s proof-of-stake/proof-of-work multi-asset consensus protocol.
Such a partnership could open up new avenues of benefits that would improve blockchain networks, foster innovation, and increase its application in the sphere of AI.
Algorand CTO Responds Positively to Collaboration Proposal
In response to Hoskinson’s statements, Gary Malouf, the Chief Technical Officer of Algorand Technologies, expressed his interest in the cooperation.
Malouf pointed out that previous conversations about the integration of AI capabilities have taken place, which means that there is some level of coordination between the two blockchain networks.
In response to this exchange, Hoskinson told IOHK’s Chief Technology Officer, Romain Pellerin, to arrange a meeting to discuss the proposed collaboration. Pellerin agreed excitedly, saying that it would be great to have Algorand as a partner chain.
Although this partnership is currently nascent, the conversation between the two blockchain pioneers suggests that the partnership between IBM and Microsoft could lead to a significant integration of AI and blockchain.
Chang Hard Fork Experiences Another Delay
In another major event, the long-awaited Cardano Chang hard fork has again been delayed, with a new expected launch on the 1st of September. As we previously reported, the initial plan was to take place on August 27, but this shift has caused some concern among the Cardano community.
The Chang hard fork is a vital upgrade that will change the face of Cardano’s governance model, signifying the start of the Voltaire era and paving the way for a completely decentralized and autonomous network.
Charles Hoskinson complained about the delay, mentioning that even large exchanges like Binance have not yet announced their support for the upgrade. He especially stressed the need to adhere to the timelines, saying that all the parties should hasten their work.
In addition to the hard fork, there has been a lot of development activity in the project recently, even more than Ethereum in terms of GitHub pull requests.
This rise in activity is in line with the ongoing development of the Cardano ecosystem, whereby the developers are still working on new upgrades and projects whose intention is to improve the network.At the time of writing,
ADA was trading at $0.379, marking a 2% increase over the past 24 hours.
@ Newshounds News™
Source: Crypto News Flash
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Russia plans stablecoins, 2 crypto exchanges to circumvent sanctions
Last week Russian news outlet Kommersant reported on the planned creation of two cryptocurrency exchanges for foreign payments to circumvent sanctions, citing sources.
The aim is to create stablecoins for the Chinese yuan and a BRICS currency basket. It’s expected that initially individuals won’t be able to take part, given the goal is to support importers and exporters.
Russia passed legislation in late July allowing cryptocurrency exchanges to operate as part of cryptocurrency experimental legal regime (ELR) under a program developed by the central bank.
The use of stablecoins rather than un-backed cryptocurrencies makes sense given the central bank’s role.
UPDATE: shortly after publication, Bloomberg said that preliminary tests start this weekend, citing sources. These trials will use the National Payment Card System to swap rubles for any cryptocurrencies using an existing crypto exchange.
Use of the card system gives the central bank oversight. The outcome of these preliminary tests will determine steps around the potential creation of crypto exchanges next year, as described below. Bloomberg’s sources reiterated the same two exchanges.
The Kommersant article was a little controversial. It stated that one of the cryptocurrency exchanges might involve the Moscow Exchange. The other exchange will use the St. Petersburg Currency Exchange (SPCE) database for foreign economic activity.
While the currency exchange disputed this point, it would make sense to use its database, given the currency exchange knows the details of the importers and exporters. Interfax, the state news agency, published a report in which the St. Petersburg Currency Exchange (SPCE) strongly denied involvement.
The Moscow Exchange runs the main currency exchange, but trading in dollars and euros came to an abrupt halt in June when OFAC placed it on the sanctions list. Hence, it also has data on who might qualify as a professional for FX trading in stablecoins.
There may be some confusion between two entities that we suspect are not related. The sanctions and sanction busting sometimes resemble Whac-A-Mole. Every time Europe or OFAC sanctions an entity or methodology, Russia tries something else.
Russia has iterated through foreign branches, digital financial assets involving tokenized commodities, CBDC, crypto and others. The foreign branches are gradually getting sanctioned, with warnings not to open new ones. And most of the digital financial asset (DFA) issuing platforms and known cryptocurrency exchanges have also been sanctioned. Sanctions announced this week cover commodities.
Sanctions and two similar sounding Russian entities
There are two Russian entities with similar names. There is the Saint Petersburg Currency Exchange known in English as SPCEX or SPVB and in Russia as JSC SPB, versus the Saint Petersburg Stock Exchange (PJSC SPB). OFAC sanctioned the stock exchange in November 2023. We don’t think the currency exchange has yet been sanctioned directly, but there’s a caveat.
It is believed that state owned bank Promsvyazbank controls the currency exchange. The bank was one of the first on the sanctions list, which includes subsidiaries and hence the currency exchange.
However, as the ownership isn’t entirely clear, it’s conceivable the currency exchange may have been ignored so far. That may be why it doesn’t want to be associated with the crypto exchange.
Google translates the currency exchange acronym СПВБ as the Saint Petersburg Stock Exchange.
On the other hand, the sanctioned stock exchange is registered as a digital financial assets platform. In a May interview, its CEO said its involvement as a cryptocurrency exchange operator was under discussion. However, we believe it’s the currency exchange that has the useful data.
While the Russian end isn’t clear yet, nor is the other side. If Russia wants to use a Chinese currency stablecoin, what assets would form part of the reserves? Likely it will use the excess reserves Russia received for all payments.
Which cryptocurrency exchange will be used on the Chinese end? Will China allow some off-ramping from a stablecoin to the mainland? Or will it be via Hong Kong?
An even bigger question is this: in the absence of CBDC, could stablecoins form the interim foundation of the so-called BRICS Bridge for local currency payments?
@ Newshounds News™
Source: Ledger Insights
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