Seeds of Wisdom RV and Economic Updates Saturday Morning 9-7-24
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BRICS SUMMIT 2024: 54 NATIONS TO ATTEND, DITCHING THE US DOLLAR – IS BITCOIN ADOPTION NEXT?
▪️The BRICS summit for 2024 is gaining momentum, with about 54 nations likely to attend.
▪️Bitcoin might take center stage as the group explores an alternative currency in an aggressive de-dollarization push.
About 54 nations are set to attend the highly anticipated BRICS 2024 Summit scheduled for next month. A major discussion at the event would focus on reducing US dollar trade settlements within the group. This has raised questions about the adoption of Bitcoin (BTC) among BRICS member countries.
This bloc is an intergovernmental organization with Brazil, Russia, India, China, and South Africa as its founding members.
Expectations of BRICS Expansion
Market participants are highly anticipating an expansion announcement from BRICS, just like it did in the BRICS 2023 Summit. As noted in our previous report, the economic group welcomed UAE, Egypt, Ethiopia, and Iran in January, bringing the total number of member countries to nine.
Notably, the BRICS Group’s first attempt at expansion was in 2010, when it welcomed South Africa as a member. With 54 countries expected to attend the BRICS Summit this year, a similar expansion could take place. Russian aide Yury Ushakov said 36 heads of state have received invitations, while 18 nations have already confirmed they will attend.
Compared to 2022, the BRICS group has grown into a key economic collective on a global scale. With a key event on the horizon, the group’s influence has amplified further this year. While 2023’s summit had the most historic announcement, this year’s event is set to be the biggest in the Bloc’s history.
Officials have praised the preparations for the upcoming event. Ushakov stated,
We are satisfied with the way the perpetration [for the summit] is going. The preparations are indeed serious, as the event is of an unprecedented scale.
Notably, talks about expansions have also been going on, with many countries expressing interest in joining the economic group. As discussed earlier, almost 30 countries expressed interest in joining the group in January. This has only increased over the previous eight months, highlighting the group’s growing influence on economic, political, and security collaboration.
BRICS De-dollarization Efforts With Blockchain
The upcoming event could have an unprecedented impact on global finance as the BRICS bloc has been actively working towards de-dollarization. A recent update we covered shows that the group has been developing its BRICS Pay system.
The blockchain-based payment system is set to be the global south’s answer to the West’s SWIFT. Market players think the system could finally debut at the upcoming summit.
As more nations move away from the US dollar’s dominance, BRICS may contemplate embracing Bitcoin. The digital asset is largely decentralized and inclusive of all investors without discrimination, which makes it a good fit for the BRICS.
The approval of spot Bitcoin exchange-traded funds (ETFs) in the United States has further strengthened Bitcoin’s position as an asset class. Therefore, integrating Bitcoin into the new BRICS payment system could be a major topic at the BRICS 2024 Summit.
@ Newshounds News™
Source: Crypto News Flash
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US SEC TARGETS CRYPTO MARKET AGAIN, REVOKES SECURITIES LICENSE OF CRYPTO LENDER
The US SEC has revoked the securities license of a crypto lender for non-compliance with reporting requirements, sparking concerns of regulatory overreach in the crypto market.
▪️US SEC revokes Salt Blockchain's securities license due to non-compliance with reporting rules.
▪️SEC claimed that the crypto lender failed to file periodic reports since December 31, 2021.
▪️Regulatory action sparks concerns about SEC's regulatory overreach in the crypto market.
▪️Expert predicts increased enforcement actions by SEC near fiscal year-end.
The US SEC has once again targeted the digital assets sector, with the latest regulatory actions against crypto lender Salt Blockchain. The agency has revoked the securities license of the crypto lender, sparking discussions in the market. It’s worth noting that the regulatory body has received heavy backlash from the crypto community recently, claiming the regulatory overreach of the agency.
US SEC Revokes Salt Blockchain’s Securities License
The US SEC has recently disclosed in a report that it has revoked the registration of securities for Salt Blockchain. The move against the Delaware-based crypto lender comes as the firm failed to comply with legal report requirements, the report showed.
The order states that the company hasn’t filed periodic reports since December 31, 2021, which violates Section 13(a) of the Securities Exchange Act of 1934, along with other rules. Notably, this non-compliance with reporting requirements has led the agency to impose sanctions, ultimately revoking the firm’s securities license.
Meanwhile, Salt Blockchain had previously faced regulatory hurdles in 2020, but it appeared that the firm has resolved those issues. Besides, the company has even explored potential buyers at a point. However, the latest regulatory action highlights the firm’s ongoing compliance struggles.
Meanwhile, the revocation became effective on September 6, 2024, and marks a significant setback for Salt Blockchain as it navigates the regulatory landscape.
Notably, the order showed that Section 12 (j) of the Securities Exchange Act grants authority to the agency to suspend to freeze a securities license if an issuer fails to maintain the legal requirements.
Crypto Market Remains On Edge
The SEC’s latest action against Salt Blockchain has stirred debates about the agency’s regulatory approach toward the crypto sector. Critics argue that the SEC’s enforcement strategy is too aggressive, potentially stifling innovation and growth within the digital assets market.
Many in the crypto community view these actions as part of a broader pattern of regulatory overreach. Notably, the agency has recently faced heavy criticism for issuing a Wells Notice against OpenSea, targeting NFTs.
In addition, Jake Chervinsky, Chief Legal Officer of VariantFund, noted that enforcement actions by agencies like the US SEC and CFTC could intensify as their fiscal year-end approaches on September 30. Chervinsky suggested that regulatory bodies often increase enforcement activities near fiscal deadlines to bolster performance metrics for budgetary reviews. In a recent X post, the CLO said:
“It’s typical in September to see a flurry of enforcement actions as they shore up their performance reports and budget requests for Congress.”
@ Newshounds News™
Source: CoinGape
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ANALYSTS BELIEVE TOKENIZATION SOLVES GLOBAL TRADE FINANCE ISSUES
▪️Tokenization can solve global trade finance issues, say major financial analysts.
▪️It simplifies financing, increases liquidity, and reduces transaction costs.
▪️Efforts like MakerDAO's competition promote tokenization despite adoption challenges.
Analysts from major financial institutions believe tokenization will significantly solve global trade finance issues. According to stakeholders from Standard Chartered and HSBC, tokenization will make financing options more accessible for interested organizations.
HSBC Global Trade Solutions Product Manager Bhriguraj Singh recently stated in an interview that tokenization would be directly beneficial for these companies and trade finance providers.
According to Singh, tokenization will simplify financing and distribution in global trade processes, which could make banks and other companies more liquid.
Tokenization and Trade Finance Gap
Tokenization is the process of representing real-world assets (RWAs) or data on a blockchain. This process increases liquidity and improves accessibility.
By converting assets into tokens on a blockchain, tokenization speeds up trade transactions and reduces transaction costs due to the absence of intermediaries.
Steven Hu, Head of Digital Assets, Trade, and Working Capital at Standard Chartered, believes blockchain technology will optimize financial services and make credit facilities more accessible.
The trade finance gap refers to the difference between import and export demands and the corresponding approvals. According to the Asian Development Bank (ADB), this gap worsened by 29.4% in 2022, reaching $2.5 trillion from $1.7 trillion in 2020. Estimates predict this figure will rise to $36.2 trillion by 2030.
“Imagine a future where the trade finance element is structured within a digital token and can be freely traded in secondary markets. This will turn into a new potential business model based on fees.” – Steven Hu
Advantages of tokenization include expanding a company’s target audience and making it easier to invest in unfamiliar markets. Additionally, it significantly reduces the transaction process, allowing companies to transfer securities and make instant payments via blockchain. Otherwise, this process could take several days.
While Steven Hu praises the benefits of tokenization, he also noted that a lack of expertise could delay its adoption.
Ongoing Efforts
While widespread adoption of tokenization may take time, efforts are already underway by various stakeholders. For instance, in July, MakerDAO announced a tokenization competition for innovators looking to introduce related products.
MakerDAO’s Spark Tokenization Grand Prize plans to include $1 billion worth of tokenized real-world assets (RWA) into the decentralized finance (DeFi) ecosystem. The competition prioritizes proposals aligned with MakerDAO’s Spark ecosystem and focuses on those with high liquidity and competitive pricing potential.
The judging panel includes renowned platforms such as Steakhouse Financial and Phoenix Labs, which will evaluate the submitted proposals. After selecting several finalists, MKR token holders will vote to determine the ultimate winner.
Tokenization has the potential to narrow the global trade finance gap. HSBC and Standard Chartered officials state that this technology will optimize financial services and make credit facilities more accessible. However, the lack of expertise and the process of widespread adoption may take time.
Meanwhile, organizations like MakerDAO are undertaking various initiatives to promote tokenization. These processes should be closely monitored, and developments should be carefully followed.
@ Newshounds News™
Source: CoinTurk News
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STAKING REWARDS TO HOST WORLD’S LARGEST STAKING SUMMIT IN BANGKOK NOVEMBER 8–9, 2024
Crypto staking explorer Staking Rewards has announced that its international staking conference is returning for its third consecutive year.
The two-day summit will be hosted in Bangkok, Thailand, from November 8-9, 2024, uniting key participants in the global staking industry to provide insights and innovations that will shape the future of PoS (proof-of-stake).
Set to be hosted at the Siam Kempinski Hotel in Bangkok, the 2024 Staking Summit promises to be the largest event of its kind.
Over the course of two days, delegates will hear keynotes, panel discussions, fireside chats and participate in workshops that illuminate the latest industry developments across the multi-chain landscape.
Topics such as Bitcoin staking, restaking, LSTfi, validators, home staking and emerging PoS chains will be among the many themes up for debate during a conference that covers every aspect of the multi-billion dollar staking industry.
@ Newshounds News™
Read more: Daily Hodl
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