Seeds of Wisdom RV and Economic Updates Thursday Afternoon 10-31-24

Good Afternoon Dinar Recaps,

US TREASURY DISCUSSES THE TOKENIZATION OF TREASURIES

During Tuesday’s meeting of the US Treasury’s Borrowing Advisory Committee, the members explored the topic of tokenizing US Treasuries. It discussed the impact of stablecoins on the demand for short term Treasuries, concluding that the effect is marginal.

The presentation covered the use of tokenized Treasuries as a safe haven in the digital asset sector. And finally, it focused on how blockchain and tokenization could improve Treasury market operations, including the benefits, costs and risks.

Stablecoins
Our calculations show the combined US Treasury and repo holdings of the two largest stablecoins, Tether and USDC as $120 billion in June 2024. Putting them on a list of the largest foreign country investors would rank them (combined) in the eighteenth spot. Yet given the total size of Treasury issuance, the figure is indeed marginal.

However, the presentation raised the concern that a collapse of a “major stablecoin like Tether could lead to a fire sale of short-dated Treasuries.”

Some other comments on the stablecoin front might be viewed as controversial by the crypto sector.

For example, it states “In a similar manner to how privately-issued ‘wildcat’ currencies were replaced by government-backed central currencies in the late-1800s, Central Bank Digital Currencies (CBDC) will likely need to replace stablecoins as the primary form of digital currency underpinning tokenized transactions.”

It also notes that “History shows that ‘private currency’ that does not meet NQA requirements leads to financial instability and as such is highly undesirable.”

 NQA refers to no questions asked, in the sense that the recipient should not need to perform due diligence before receiving a stablecoin. Both quotes referenced a paper, “Taming Wildcat Stablecoins.”

The importance of intraday for tokenized Treasuries?
When discussing the potential for tokenizing Treasuries, there were some curiosities. Firstly, the presentation outlined the potential benefits, which include:

▪️Improvements in clearing and settlement
▪️Improved collateral management
▪️Improved transparency and accountability
▪️Composability and innovation
▪️Increased inclusion and demand? (fractionalization)
▪️Increased liquidity? (including 24/7)

While ‘intraday’ repo was mentioned in a description of JP Morgan’s repo platform, it was not explicitly covered in the list of advantages. Of course, the enablement of intraday transactions is a direct side effect of improvements in clearing, settlement and collateral management that were mentioned.

Intraday allows banks to use repo to borrow and lend for an hour or two, rather than having to wait for T+1 settlement. Repurchase agreements (repo) involve the temporary transfer of securities in exchange for cash, with the transaction reversed a short while later, plus a small amount of interest. 

We’re emphasizing the point because the importance of intraday to traditional financial institutions may be underappreciated in government circles. In a recent speech by Federal Reserve Governor Waller, he emphasized the potential for 24/7 repo. Yet within the industry, intraday is considered far more important than the ability to trade 24/7.

Treasuries and tokenization platforms
A list of tokenization platforms were presented, including JP Morgan’s intraday repo platform. However, there was no mention of Broadridge’s Distributed Ledger Repo (DLR). If someone asked Ledger Insights to state the most important platform in Treasury tokenization right now, it would be Broadridge’s DLR.

The total amount of tokenized Treasury funds on public blockchain is around $2 billion. DLR is used for $1 – $1.4 trillion in transactions per month, whereas JP Morgan’s platform has processed roughly $1.5 trillion since its launch in 2020. One would not expect JP Morgan’s solution to be of the same scale as DLR since it purely serves JP Morgan clients.

DLR has several purposes, with intraday repo as the main one. It also supports sponsored repo via the DTCC’s FICC platform. DLR and JP Morgan’s repo platform already achieve many of the advantages explored during the presentation. However, today they are tiny compared to the scale of the Treasury market.

The conclusion was that a tokenized Treasury platform would ideally be on a private permissioned blockchain managed by a trusted government authority.

@ Newshounds News™

Source:  Ledger Insights

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Pound Sterling Suffers Biggest Drop in 18 Months Amid Reeves' Tax-and-Spend Storm

Following the latest budget reveal, the pound sterling has taken a sharp tumble, fueled by mounting worries about the U.K.’s fiscal outlook. Chancellor Rachel Reeves’ decision to pump £70 billion into government spending—funded through additional borrowing—has stirred up significant unease among investors. They’re concerned this move could lead to higher inflation and escalating interest rates.

@ Newshounds News™

Read more:  Bitcoin News    

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FRANKLIN TEMPLETON LAUNCHES TOKENIZED MONEY FUND ON BASE

Franklin Templeton says this is the first tokenized money fund to launch on Coinbase's layer-2 network.

Franklin Templeton is launching its tokenized money fund on Base, Coinbase’s layer-2 network, the asset manager said on Oct. 31.

The Franklin OnChain US Government Money Fund (FOBXX) is the first tokenized fund to launch on Base, Franklin Templeton said in a post on the X platform.

Created in 2021, FOBXX has previously launched on blockchain networks including Stellar, Polygon, and Arbitrum.

Franklin Templeton is unique among tokenized fund managers in outsourcing a meaningful portion of reporting requirements — such as share ownership records typically handled by an off-chain transfer agent — to blockchain networks’ public ledgers.

“We are currently the only product with the ability to use public distributed ledger technologies for official transaction record-keeping,” Roger Bayston, Franklin Templeton’s head of digital assets told Cointelegraph in July.

The launch of FOBXX on Base indicates United States regulators consider Base’s public ledger to be a legitimate instrument for financial recordkeeping.

Franklin Templeton’s FOBXX currently has net assets of approximately $435 million and has been generating annualized returns of about 4.7% as of October 2024.

It is accessible through Franklin Templeton’s Benji Investments platform.

The Base launch marks Franklin Templeton’s latest effort to enhance the accessibility of its tokenized real-world assets (RWAs).

Since its 2023 launch, Base has emerged as Ethereum’s second most popular layer-2 scaling solution, with a total value locked (TVL) of approximately $8 billion, according to L2Beat.

Arbitrum leads with upwards of $13 billion in TVL, the data shows.

Tokenized RWAs — from money funds to artworks — represent a $30-trillion market opportunity globally, Colin Butler, Polygon’s global head of institutional capital, told Cointelegraph in August.

Demand is surging for products that tokenize T-bills and other highly liquid yield-bearing assets.

FOBXX’s top rival is BlackRock USD Institutional Digital Liquidity Fund (BUIDL), with assets under management (AUM) of approximately $530 million, according to data from RWA.xyz.

@ Newshounds News™

Source:  CoinTelegraph

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How The Rich Stay Rich: The 8 Best Ways To Preserve Your Wealth

How The Rich Stay Rich: The 8 Best Ways To Preserve Your Wealth

Rachel Christian  Thu, October 31, 2024  BANKRATE

The ultra-wealthy have a knack for not just getting rich but also staying rich. Many wealthy people start out with a lot more money than the average person, but growing and protecting their money over time can be a challenge. To do this, they often make use of a number of wealth preservation strategies.

You don’t have to already be rich to benefit from these strategies, though. Anyone looking to boost their net worth and make their money last can apply these practices to their own financial situation.

How To Stay Rich: 8 Ways To Preserve Your Wealth

Wealth preservation isn’t just about saving money. It’s about making thoughtful, long-term decisions that help secure your finances for today and tomorrow.One of the foundational steps to preserving wealth is to develop a comprehensive financial plan. This financial road map should include your long-term goals and overall strategy for managing income, expenses, investments, debt and taxes.

Wealthy people regularly review and update their financial plans, especially after major life events, like a marriage or the birth of a child, to keep their finances on track.

What You Can Do

You can create a simple financial plan by following a few basic steps:

List out your goals: Start by identifying your financial goals, whether that’s saving up to buy a home or investing for retirement. Your plan should then align with those goals and their timelines.

Create a budget to reach your goals: Construct a detailed monthly budget that outlines your income and expenses. By understanding where your money goes, you can make conscious spending choices, save more and accelerate your progress toward your goals. You can refer to Bankrate’s guide on how to create a monthly household budget to help you get started.

Build an emergency fund: Allocate a specific amount within your budget to build an emergency fund if you don’t have one already. Most financial experts recommend saving three to six months’ worth of living expenses.

Invest for the future: Explore different types of investment accounts, such as retirement plans, 529 accounts and taxable brokerage accounts. Earmark a percentage of your take-home pay to investments so that your money grows over time.

Revise your plan: As your life evolves, so should your financial plan. Be prepared to regularly review it and make adjustments as needed.

For more advanced planning, consider speaking with a financial advisor, who can help tailor your plan to your specific needs.

TO READ MORE: https://www.yahoo.com/finance/news/rich-stay-rich-8-best-110000119.html

“Coffee With MarkZ” Thursday Morning Chat 10-31-2024

Thank you MarkZ for all your time, and encouragement daily….. PDK

MarkZ  Update- Some highlights by PDK-Not verbatim

MarkZ Disclaimer: Please consider everything on this call as my opinion. People who take notes do not catch everything and its best to watch the video so that you get everything in context.  Be sure to consult a professional for any financial decisions

Member:   Happy Halloween everyone

Member: We have had enough tricks…..let’s see some RV treats!

Member: Bankers in Iraq have opened exchange centers. To exchange cash dinar for electronic dinar.

MZ: There are some pure gold articles out of Iraq today…even the selection for speaker of the house is supposed to happen today.

Member: I heard that session started at 1pm Iraq time

MZ: “ Hours before the session Sovereignty settles his position and “satisfied” Mushadanl as speaker of Parliament”  there is a few more rubber stamps to finish…..but we have a new speaker of parliament that has been agreed too. This is a big development in Iraq .

MZ: “The Governor of the Central Bank reveals important figures on Iraq’s economy and foreign reserves” They go into how much currency in circulation today and how much before it was devalued ..  Revenues are up massively and they can afford an increase in the valuation. Their financial position is beyond strong. This is a fantastic article and MilitiaMan did a good video on it this morning.

MZ: “Calls for establishment of a digital gold market in Iraq” ….another big one. They can convert gold to digital……there is a physical amount representing it….but you can exchange for bullion if you want…..Part of the I-dinar in Iraq. I am excited….They are headed for

Member: Other intel people think it’s happening any minute now.

MZ: Bond are starting to see some excitement again.

Member: I hope bonds are getting paid and not just punted to next week again

MZ: Some really cool bond paperwork hitting bond holders yesterday. My big whale that was supposedly fully liquid yesterday is still MIA. Most of my contacts are still expecting their payments between the 2nd and 9th of Nov.  

MZ: But, a number of facilitators are hearing they could get their 1% payment before the 2nd. I am very excited about the news overnight and early this morning.

Member: Do we need to wait until all new rules and regulations that Goldilocks mentioned are passed and become a law?

Member: What does your gut say Mark?

MZ: I sure hope I’m right this time – but my gut is screaming that under the distraction of this election that the whole world is watching- they are going to pull the trigger…..That’s what my gut is saying…

Meber: Remember Sunday Nov 3rd to turn your clocks back one hour. An extra hour of sleep…woohoo

Member: Happy Halloween and may all the kids have a safe & good time tonight

Member: Wishing you all the greatest of hopes and fulfilled blessings

THE CONTENT IN THIS PODCAST IS FOR GENERAL & EDUCATIONAL PURPOSES ONLY&NOT INTENDED TO PROVIDE ANY PROFESSIONAL, FINANCIAL OR LEGAL ADVICE. PLEASE CONSIDER EVERYTHING DISCUSSED IN MARKZ’S OPINION ONLY

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Mod:  MarkZ "Back To Basics" Pre-Recorded Call" for Newbies 10-19-2022 ) https://www.youtube.com/watch?v=37oILmAlptM

MARKZ DAILY LINKS: https://theoriginalmarkz.com/home/

Note from PDK: Please listen to the replay for all the details and entire stream….I do not transcribe political opinions, medical opinions or many guests on this stream……just RV/currency related topics.

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THANKS FOR JOINING. HAVE A BLESSED DAY! MAY OR MAY NOT BE EVENING NEWS @ 7:00 PM EST

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MilitiaMan & Crew News Report-Central Bank Governor of Iraq-Monetary Stability Directly Stimulating the Economy

MilitiaMan & Crew News Report-Central Bank Governor of Iraq-Monetary Stability Directly Stimulating the Economy

10-31-2024

The Crew:  Samson, PompeyPeter, Petra, Daytrader, Sunkissed, GIGI and Militia Man

Be sure to listen to full video for all the news……..

https://www.youtube.com/watch?v=lVyzn37EDO4

“Tidbits From TNT” Thursday 10-31-2024

TNT:

Tishwash:  The private sector has begun a new phase

Dr. Murtadha Al-Khafaji, a member of the Iraqi Businessmen Union, stated that the Iraqi private sector has begun a new phase that is different from the previous one, and it has become possible to rely on its capabilities to implement projects.

Al-Khafaji said: The projects implemented by the Iraqi private sector indicate the potential of local effort, which has become comparable to global effort, as local capabilities have been developed during the last decade. He added that Iraqi human resources have gained a lot of experience, through interaction with global expertise, which has worked in more than one economic aspect. He pointed out that national companies must occupy the appropriate place within the local labor market.  link

Tishwash:  Call to establish a digital gold market in Iraq

The economic and financial expert, Dr. Saif Al-Halfi, called for the establishment of a digital gold market in Iraq, the establishment of which requires cooperation between the Central Bank of Iraq, the Securities Commission, and the Iraq Stock Exchange, as it provides Iraqi investors with the opportunity to participate in the global gold market, which attracts additional investments to Iraq, and also enhances cooperation between the Iraqi banking system and international financial institutions.

Al-Halfi said that the Central Bank can issue digital gold bullion in different weights: 1 gram, 10 grams, 100 grams, approved by the government. These digital bullion can be traded on the Iraq Stock Exchange in the same way that stocks or bonds are traded, and through the market’s financial intermediaries system, where investors can buy bullion using local currencies or convert them into foreign currencies. 

He added that the market can be linked to global gold prices and currency exchange rates, which enhances transparency and interaction with the global market. A platform similar to the Forex markets can also be used to trade digital gold inside Iraq in the Iraq Stock Exchange, noting that gold prices will be determined according to global exchange rates for gold and foreign currencies. This will allow investors the opportunity to speculate on gold price fluctuations and link them to changes in global currency prices, which increases profit opportunities and creates many job opportunities.

Regarding the economic benefits, Al-Halfi said: Through this market, liquidity is withdrawn from the banking system, and the digital gold market can act as a tool to withdraw cash liquidity. Instead of keeping money in banks, investors may prefer to buy digital gold, which is a safe asset that maintains its value, protects the investor’s money from high inflation rates, reduces the money supply, which is the goal, and limits inflation.

He pointed out that the digital gold market contributes to diversifying the Iraqi economy, away from the traditional reliance on oil. The market can be a platform to encourage financial innovation and develop new investment tools, especially exploiting the opportunities of the Faw Port entering operation next year, and what it provides in terms of a large base for investors, especially individuals and companies, as well as the goal we seek on the path of development.

He pointed out that establishing a digital gold market requires a strong technical infrastructure, including secure electronic platforms and clear regulatory laws to protect investors’ rights. This will increase job opportunities, the ability to diversify and innovate, and the emergence of a start-up culture.

Al-Halfi explained that the digital gold markets aim to enhance transparency and ease in gold trading, and provide investors with a real opportunity to work, trade and speculate on gold prices without the need to own actual gold. When the investor wants to convert gold into bullion or jewelry, these foundations allow him to convert digital gold into bullion while paying mining and crafting fees. All of these products create real and comprehensive investment business opportunities, which creates and enhances a flexible and innovative investment environment in Iraq. 

Gold is one of the financial assets that has always been a safe haven for investors, especially in times of economic, political and regional turmoil. Here, with the global digital and financial development, new markets have emerged for digital gold trading, where gold can be easily bought and sold through electronic platforms. In light of these developments, it is possible to create a market for digital gold trading in Iraq, especially with the government’s trend towards establishing digital banks and strengthening electronic payment systems, especially the use of electronic payment cards.  link

************

Prime Minister's Advisor: Iraq is moving towards strengthening partnership with foreign companies and stimulating investment

The Prime Minister's Representative, Technical Advisor and Head of the Sovereign Loans Initiative, Mohammed Sahib Al-Daraji, confirmed today, Thursday, that the private sector is a fundamental pillar in the government's new economic plan, while pointing to the government's efforts to reduce the transfer of hard currency and support national projects.

Al-Daraji conveyed, in his speech during the first Iraqi Economic Forum, which was attended by the correspondent of the Iraqi News Agency (INA), "the greetings of Prime Minister Mohammed Shia al-Sudani and his support for this conference," explaining that "the Iraqi government has begun taking real steps to support the Iraqi economy, as it has changed the philosophy of the economy that suffered from a lack of clarity in the economic vision for more than twenty years."

He pointed out that "the government is working on a new approach that considers the private sector a fundamental pillar and seeks to integrate its outputs into the national product," noting that "the government provides special support to the investment and business environment sectors, as it seeks to separate direct investment and provide an appropriate environment for the private sector to participate in projects. The government also encourages partnerships with foreign companies to demonstrate developments in the customs and tax system, such as unifying taxes and customs tariffs across regions, and exempting foreign companies from some special taxes."

He pointed out that "Iraq has begun to guarantee the private sector before international financial institutions through the Sovereign Guarantees Initiative, and has moved towards establishing an international market for carbon bonds to support project financing."

He pointed out the "three priorities of the Iraqi economy: localizing industries, integrating with global financial institutions, and developing competencies for the public and private sectors," adding that "the Iraqi market is open to global companies, especially in the construction and clean energy sectors, and that there is a trend to support the private sector through new legislation such as laws to protect intellectual property and partnerships between the public and private sectors."

He added, "The government supports the economy based on partnership with the private sector, with a focus on reducing the transfer of hard currency abroad.

He expressed his "hope that these conferences will produce outcomes that support the current government's orientations, which is the most attentive to the private sector and the most involved in decisions," noting "the presence of representatives from the private sector on the Development Fund's Board of Directors and within the Prime Minister's official delegations as a message of support for businessmen  link

Mot.. ""Opal"" Loves October - cause ~~

Mot:  . He Knew She Knew - that He Knew She Knew - so He .....

Mot:  ... You Can Use Him fer 2 Months or More!!! 

Iraq Economic News and Points To Ponder Thursday AM 10-31-24

The Arab Accounting Dinar: A Strategic Tool For Arab Economic Integration

 October 30, 2024 Last updated: October 30, 2024 

  Hussein Al-Falluji*   In light of the growing economic challenges facing Arab countries,   the role of the Arab Accounting Dinar is emerging as an important strategic tool that may contribute to enhancing economic integration and providing effective solutions to common Arab problems.

 Perhaps many followers of Arab affairs are unaware of the existence of the Arab Accounting Dinar,  this important economic tool that can play a vital role in promoting economic integration and providing effective solutions to common problems among Arab countries.

Some people wonder about the reasons for not activating this vital project optimally, despite the great opportunities it provides for achieving financial stability and economic prosperity.

The Arab Monetary Fund relies on the Arab Accounting Dinar as the official base currency, which differs from the currencies circulating in Arab and international markets.

 The arithmetic exchange rate of the Arab dinar was fixed at the equivalent of three units of Special Drawing Rights specified by the International Monetary Fund.

 Special Drawing Rights are an international reserve asset created by the International Monetary Fund in 1969 to supplement the official reserves of member states.

 The value of these rights is determined based on a basket of five major international currencies: the Chinese yuan, the US dollar, the European euro, the Japanese yen, and the British pound.

 This link to a basket of strong currencies gives the Arab Accounting Dinar relative stability and reduces the risk of global exchange rate fluctuations, enhancing confidence in it as an instrument of financial exchange.

The use of the Arab Accounting Dinar can contribute to facilitating commercial and financial operations between Arab countries, as

 it provides a common monetary unit for settling transactions, which may reduce currency conversion costs and increase the efficiency of financial systems.

This unification helps promote intra-regional trade, opens new horizons for economic cooperation, and stimulates growth by expanding markets and facilitating the movement of goods and services.

 In addition, the Arab Accounting Dinar represents a step towards greater financial independence for Arab countries.

 By reducing dependence on foreign currencies, Arab countries can better control their monetary policies and mitigate the negative effects of global economic fluctuations.

This enhances the ability to plan financial and investment with greater confidence, supporting sustainable development and investment in vital projects and infrastructure.

 The widespread use of the Arab Accounting Dinar may also open new opportunities for joint investment among Arab countries.

 It facilitates the financing of major regional projects and enhances cooperation between Arab financial institutions.

By providing a stable and unified financial environment, Arab countries can coordinate their financial and investment policies, which enhances the competitiveness of Arab economies at the international level.

 Moreover, the Arab Accounting Dinar reflects a collective commitment by Arab countries to achieving integration and unity.

It is not just an economic tool, but a symbol of cooperation and solidarity in facing common challenges.

 This commitment strengthens confidence among member states and paves the way for further cooperation in other areas such as education, health and culture.

 Although there may be challenges to promoting the use of the ABD, such as the need to modernize financial infrastructure and coordinate monetary policy, the potential benefits make it an essential investment for the future.

Political will and joint cooperation are the basis for achieving success in this endeavor and overcoming obstacles to achieve the desired economic integration.

 In conclusion: Activating and adopting the Arab Accounting Dinar represents a real opportunity for Arab countries to enhance economic integration and achieve common prosperity.

By expanding the use of this unit of account and activating the proposals supporting it, Arab countries can build a more stable and prosperous future for their people, based on economic cooperation, solidarity and unity.

 * Independent politician  

 https://www.xe.com/currencyconverter/convert/?Amount=1&From=XDR&To=USD

 1.00 IMF Special Drawing Rights = 1.3302209 US Dollars

1 USD = 0.751755 XDR

https://mustaqila.com/الدينار-العربي-الحسابي/     

The Unfair Decision Of The Central Bank Of Iraq To Reduce Interest Rates For Banks And Issue Securities

Shawan Zangana  2024-10-30 - The Central Bank of Iraq decided, Thursday 10/24/2024, to reduce the annual interest rate between it and the banks registered with it from 7.5% to 5.5%, and to reactivate the work with securities (Islamic certificate of deposit and cash transfers) between it and the banks operating in Iraq, with an annual return of 4% for 14 days, and an annual return of 5.5% for 182 days.

Note that the maximum investment ceiling was set not to exceed 50% of the total private sector deposits with the bank, and that the bank’s investment ceiling in one auction should not exceed (500) billion Iraqi dinars.

What does this decision mean?

The following is understood from this decision:

 1- The Central Bank reduced the interest rate on lending to banks operating in Iraq by 2%, and attributed this to its desire to stimulate local investment, direct liquidity towards alternative investments, develop the national economy, and create stability.

 The Central Bank deliberately forgot to point out that this reduction in the interest rate is for the benefit of the banks, and not for the benefit of companies and individuals, as the banks do not, based on the Central Bank reducing the interest rate in their favor, reduce the interest rates on lending to companies and individuals by the same percentage, so that This support includes them, and liquidity is transferred to development and investment destinations.

 Therefore, it clearly appears that the goal of the central bank is to provide liquidity to some banks, and not to citizens, so that these banks can lend to the influential class around them and smuggle currencies abroad.

 This procedure will provide banks and financial institutions working with the Central Bank of Iraq with great liquidity to practice interest trade (carry trade), as

these banks will be able to employ the funds borrowed from the Central Bank, at a low interest rate, by depositing them with international financial institutions, in exchange for annual returns, and at high interest rates. (For example, Turkish banks pay annual interest of up to 50% on deposits), and

thus, these banks will reap huge profits, and with the money of the Iraqi people stored in the Central Bank, Without using their own financial assets, these banks will also seek to employ the funds borrowed from the central bank in speculation in global markets and stock exchanges, with the aim of reaping quick and abundant profits.

 This investment of central bank funds by banks will inevitably harm the Iraqi economy, which suffers from structural dysfunction and chronic fragility, not to mention that this investment of money is forbidden by Sharia, which is, at the same time, a door to usury, not because of interest, but because of trafficking. With it.

2- The Central Bank has issued securities, in the form of Islamic certificates of deposit and cash transfers, with fixed and specified returns and terms, and attributed this to its endeavor to provide a window for banks under US Treasury sanctions, which are unable to deal in dollars, and have large cash liquidity in Iraqi dinars.

To invest the surplus local cash it has with the Central Bank, through its possession of Islamic certificates of deposit and cash transfers, in order to reap lucrative financial returns, while

 it was necessary to The Central Bank is to punish these banks for their legal and ethical violations, and not reward them with financial returns from public funds and from citizens’ rights.

3- Government borrowing through the issuance of sovereign bonds is considered one of the central bank’s monetary policy tools, but at the same time it indicates that the Ministry of Finance is suffering from a shortage of cash liquidity in the local currency, and this leads us to the following question:

 Why is the Ministry of Finance suffering from A shortage in the monetary supply in the local currency, despite the cash issuance that exceeded 100 trillion Iraqi dinars?

 The answer may be that there is a large monetary mass in the local currency outside the banking system, and that a portion of it is circulated at home and abroad for the purposes of financing smuggling operations.

Implications Of This Decision

This decision will have the following effects:

 1- The decision will lead to an increase in the exchange rate of the dinar towards the dollar and other currencies, but temporarily, as the demand for the Iraqi dinar will increase, and

this will cause an increase in its exchange rate, but it will soon move towards a decline towards the dollar, as a result of operations to exchange it for the dollar, for the purposes of smuggling or employment. External cash.

 2- This decision will provide large liquidity to banks and financial institutions, which will be exploited to carry out financial transactions outside the development process, with the aim of reaping huge and quick profits.

 The Iraqi economy will be exposed to serious damage, as a result of wasting its money and using it by an influential faction to achieve its own interests at the expense of the people, in When the central bank was supposed to reduce the interest rate, on the condition of implementing development projects, and allowing banks to borrow from it, within the scope of the files that individuals and companies submit to local banks, in order to prevent these banks from exploiting these funds for their own interests, outside the development process.

 3- This decision, in this form, is a waste of public money, a violation of the rights of citizens, and an economic crime, punishable by law. The Central Bank of Iraq should avoid such decisions, which are economically harmful and forbidden by Sharia.

 4- This decision, and similar decisions taken by the Central Bank, have caused, and are causing, the deepening of the imbalance and fragility in the Iraqi economy and its monetary policy, and the prolongation of monetary fluctuation and instability.

 Conclusion

It appears that the decision to reduce the interest rate was taken and designed in accordance with what the interests of the ruling class over money in Iraq require, and not in accordance with the interests of national development and the future of the rentier Iraqi economy, which needs financing to diversify its sources of income.

 It also appears that the securities are designed to achieve the interests of the sanctioned banks. By the US Treasury, while it was supposed to punish her and cancel her vacations, instead of rewarding her by providing her with lucrative profits from the central bank.

 I warn the Central Bank of Iraq against making decisions that harm the currency and deepen its wounds, and

 I call on it to conduct an orthodox policy that is consistent with the principles of economics and monetary policy, and to avoid formulating policies or making decisions that contribute to achieving the interests of powerful fragmentation in the country and abroad.    https://shafaq.com/ar/مقـالات/قرار-البنك-المركزي-العراقي-الجا-ر-بخفض-سعر-الفا-دة-للمصارف-و-صدار-ال-وراق-المالية    

For current and reliable Iraqi news please visit:  https://www.bondladyscorner.com/

Seeds of Wisdom RV and Economic Updates Thursday Morning 10-31-24

Good Morning Dinar Recaps,

SOME EU STATES UNHAPPY WITH ECB CONTROLLING DIGITAL EURO LIMITS – REPORT

Politico reported that some European states, including Germany, France, the Netherlands and six other countries, are concerned about the European Central Bank (ECB) having the right to specify holding limits for the digital euro central bank digital currency (CBDC).

A concern is that the ECB could set the wallet limits too high, resulting in deposits flowing out of banks. One diplomat called it a “battle for power” between central banks and politicians. 

An opposite worry is that the limits might be viewed as inhibiting financial freedoms and hence a Big Brother move. A related concern is that the digital currency could be out of touch with consumer needs and not adopted.

While the EU’s treaty gives the ECB certain privileges, the digital euro will have its own legislation, which has yet to be passed. 

Before the recent European elections, several amendments were proposed to a draft. Politico viewed the notes of one of the meetings, which showed that nine countries objected to the ECB deciding on wallet holding limits.

If the ECB sets the holding limit, it views this as preserving any decision from political pressures.

How would digital euro holding limits work?
A couple of key points were not covered in the Politico piece. Firstly, the whole point of the digital euro is to create a pan European payment system in an attempt to dislodge the dominance of non-European players such as Visa and Mastercard. While SEPA may be pan European, it is purely a backend solution. Hence, it seems logical that there needs to be a single limit for the entire EU block.

If the ECB doesn’t get to decide, how would it work practically? An annual vote on limits?

Messy waterfalls
The messier point is the implementation of the holding limits. If the holding limit is €3,000 and someone receives money that pushes the balance over, then any excess funds will be swept into a bank account.

On the other hand, if someone makes a payment and doesn’t have enough digital euros in their wallet, it can automatically pull the money from the connected bank account. These are the waterfall and reverse waterfall functions.

This has a few implications. At a practical level, some people like to keep tabs on how they spend money. If there’s a lot of movement between your bank and the digital euro wallet, that gets rather messy and hard to track. A lack of visibility also helps fraudsters.

Changing tack, one of the potential advantages of a CBDC is it could provide super efficient payments. However, with the waterfall and reverse waterfall, some payments could have three payment legs: the sender doesn’t have enough funds so it pulls money from their bank; the CBDC payment; and the recipient now has too much in their wallet, so that’s swept into their bank account.

That’s why several countries believe there will be pressure to provide higher limits, so there’s less need to use the waterfall functionality.

Some have noted that the waterfall also requires all banks in the EU to support real time payments 24/7, involving significant work. However, EU instant payment regulations were adopted earlier this year, so that will be a requirement with or without the digital euro.

Debates around setting the holding limit
In one of the more recent legislative proposals, it was suggested that banks and payment providers could set the limits themselves. The Dutch central bank published a digital euro paper concluding that holding limits would be critical, especially during the transition phase.

 Another report commissioned by the European Banking Federation found a €3,000 limit with a 40% takeup would increase bank funding costs by €8.8 billion.

For its part, the ECB says it would set the limits based on the economic circumstances at launch. However, one of the tasks it’s been working on recently is coming up with a methodology to make the decision.

@ Newshounds News™

Source:  Ledger Insights

~~~~~~~~~

STABLECOINS WILL THRIVE OVER CBDCS: CIRCLE CEO

Jeremy Allaire believes most governments are open-minded toward crypto and stablecoin regulations.

Speaking at the current Binance Blockchain Week in Dubai, the CEO of Circle, the issuer of the second-largest stablecoin, expressed optimism regarding global regulation toward the sector.

He also asserted that people would prefer privately-issued stablecoins over government-launched CBDCs, which has been evident in China.

Allaire spoke a lot about the current regulatory environment in numerous countries and outlined the overall positive sentiment coming from most. In fact, he noted that even those who have been publicly against the sector or sitting on the sidelines, are actually watching carefully what others would do and are ready to follow suit with comprehensive regulations.

He believes the next 12 months will be crucial for the stablecoin space, which has already grown to roughly $170 billion, with Tether’s USDT and Circle’s USDC responsible for the lion’s share.

However, Allaire noted that this is still a fraction of the global financial space, which is hundreds or even thousands of times larger. This means that the stablecoin industry still has lots of room for growth.

On the question whether the majority of global population will prefer central bank digital currencies or stablecoins, Circle’s CEO was adamant that they will go for the latter.

This is because people prefer privately-issued products and the innovation coming from them, rather than government-backed alternatives.

He outlined China as a good example. The world’s most populated nation launched its own CBDC a few years ago, but is yet to see actual usage, according to Allaire. He said people only use it once the government provides free coupons.

@ Newshounds News™

Source:  CryptoPotato

~~~~~~~~~

🌱TOP QUESTIONS ABOUT EXCHANGING FOREIGN CURRENCY ANSWERED! SOWT   |  Youtube

@ Newshounds News™

Source:  Seeds of Wisdom Team RV Currency Facts

~~~~~~~~~

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News, Rumors and Opinions Thursday AM 10-31-2024

Note: All intel should be considered as "Rumors" until we receive official announcements ...and “Rates and Dates” could change anytime until we get to the banks/redemption centers.

RV Excerpts fro the Restored Republic via a GCR: Update as of Thurs. 31 Oct. 2024

Compiled Thurs. 31 Oct. 2024 12:01 am EST by Judy Byington

Global Currency Reset:

Wed. 30 Oct. 2024 Wolverine: Looks like this is it everyone! 

Things have started in certain places. Some Bond Holders have already got notifications with appointments on Monday. Some Bond Holders already have notifications for tomorrow. 

Tier4b (us, the Internet Group) should be getting notifications for the currencies today Wed. 30 Oct, from 6 pm RENO time onwards. 

All needs to be done before the election.

I have been assured all is ready to go 

I received this info from Brazil Tues. 29 Oct. 2024: Tier4B internet group is officially active. It is a great honor to announce the Launch of the Tier4B internet Group. The use and unification under Tier4 ensure that all systems are flawless.  

We are waiting for the determination of the Wells Fargo National Bank Association, which is the guardian of these resources. Miguel Ribeiro is one of these people. The release of funds by the BC, requires authorization determination by Wells Fargo Bank which can happen at any time. The authorization has already arrived since 4 pm and all good to go from tomorrow (October 30, 2024).

I received a call from a close friend of mine and things are moving on his side, and hopefully, we will get 4B notifications.

Wed. 30 Oct. 2024: Tier4b funds released in Brazil.

On Fri. 1 Nov. 2024 Texas, the possible site of the new US Republic Capitol, was going to gold-backed currency.

On Wed. 30 Oct. 2024 Joanna Morning Star: “I was on the phone with Chief Fast Horse and his guest, Robert.  Chief Fast Horse was driving to a private plane hangar they have in Santa Barbara to then fly over to the Hopi reservation in Sedona, Arizona.  So yeah, this is cool. Humanitarian work is commencing.  Chief says the RV would never work when the US was a corporation.  He says they are now dispersing the funds because we are in the new Republic. Wanted to share the good news.” 

~~~~~~~~~~~~

Global Financial Crisis:

Wed. 30 Oct. 2024 US Banks were sitting on $750 Billion in Real Estate losses, seven times larger than total during the Global Financial Crisis.

Wed. 30 Oct. 2024: The U.S. Treasury plans to borrow nearly $1.4 trillion over six months, with $546 billion from October to December and $823 billion from January to March next year, reflecting rising debt and fiscal challenges. With the national debt nearing $36 trillion and interest payments consuming a growing share of federal revenues, economists warn the debt outlook remains uncertain, with no stabilization expected by 2029.

Read full post here:  https://dinarchronicles.com/2024/10/31/restored-republic-via-a-gcr-update-as-of-october-31-2024/

************

Courtesy of Dinar Guru:  https://www.dinarguru.com/

Frank26  [Iraq boots-on-the-ground report]   FIREFLY:
CBI saying they have plans in place to cancel out the dollar auctions soon because there is still corrupt in these transaction.   FRANK:  That is correct.  Sudani is removing the auctions from the CBI because that's where all the stealing was occurring. The auctions will no longer be in the control of the banks but in control of Sudani of the GOI...Sudani is not playing any more games. You are about to have your purchasing power as he promised you...

Mnt Goat  Remember about the Cash Center that recently opened to receive the stashes and hordes of dinars. The first point is these were dinars NOT dollars...These are NOT exchange centers. They are simply depositing their hoards of dinars in the bank and putting them into electronic form...They are staying in dinars, NOT U.S. dollars... these centers  show us some success of just the beginning stages of the process to delete the zeros. This is part of the process is to collect  these stashes of notes. These are not only needed for liquidity in the banks but also to coincide with the shrinking of the monetary mass that is needed to raise the rate of the dinar, when they do pull the trigger on the higher “official” CBI rate in- country.  

Putin Pushes For NEW International Payment System: What Is It And How Does It Work?

GeoFlux:  10-30-2024

In a bold move, Russian President Vladimir Putin is pushing for a new international payment system that could potentially reshape the global economic landscape.

The proposed BRICS Pay System, backed by the expanding BRICS group, aims to challenge the dominance of the US dollar and provide an alternative to the Western-controlled SWIFT system.

Built on blockchain technology, this system promises faster, cheaper, and more secure transactions in member nations' currencies.

The development of the BRICS Pay System is part of a broader trend of de-dollarization, as countries seek to reduce their reliance on the US dollar in international trade. This shift could lead to significant changes in global trade patterns, financial power dynamics, and economic governance.

While the BRICS Pay System faces significant challenges, such as economic disparities among member nations and regulatory hurdles, it presents intriguing opportunities for investors.

As the global financial landscape evolves, staying informed about these developments will be crucial for navigating the future of international finance.

https://www.youtube.com/watch?v=DuNPj0FBWPU

MilitiaMan & Crew News Reporting-Security & Stability-Sinjar Allocations-Unprecedented Developments

MilitiaMan & Crew News Reporting-Security & Stability-Sinjar Allocations-Unprecedented Developments

10-30-2024

The Crew:  Samson, PompeyPeter, Petra, Daytrader, Sunkissed, GIGI and Militia Man

Be sure to listen to full video for all the news……..

https://www.youtube.com/watch?v=C44Lh9B-tec

Iraq Economic News and Points To Ponder Wednesday Evening 10-30-24

Continuing Talks Between The Kurdistan Regional Government And The Federal Government To Resolve Outstanding Issues

Kurdistan Region President Nechirvan Barzani discussed on Wednesday morning with Iraqi Parliament member and head of the Azm Alliance parliamentary bloc, Muthanna al-Samarrai, the general situation in the country, in addition to the Kurdistan Parliament elections and relations between Erbil and Baghdad, as well as the upcoming general elections in Iraq.

During the meeting, al-Samarrai congratulated President Barzani on the success of the Kurdistan Parliament elections, according to a statement issued by the presidency of the region.

During the meeting, both sides praised the ongoing talks between the Kurdistan Regional Government and the federal government to resolve outstanding issues, as they agreed that addressing these issues benefits Iraq as a whole and enhances the country's stability.

In another context, the risks resulting from the complex situation in the Middle East region were discussed, as they stressed the need for Iraq not to get involved in regional conflicts and disputes, and to work to spare the country their repercussions.  https://www.radionawa.com/all-detail.aspx?jimare=40009

Al-Alaq: The Volume Of Currency In Circulation Exceeds 100 Trillion Dinars.

Banks   Economy News – Baghdad   103 views  Added 10/30/2024 -- Al-Alaq: The volume of currency in circulation exceeds 100 trillion dinars.   https://economy-news.net/content.php?id=49311

Monetary Policy Price And Reactivation Of Securities
 
October 30, 2024     Based on monetary policy trends to enhance access to targeted inflation rates 
     in a way that does not conflict with expected economic growth rates, and
     is consistent with the policy of developing deposits and increasing credit ratios aimed at targeting projects,  relying thus on following the approach based on data obtained from the banking sector ..

For more click here    https://cbi.iq/static/uploads/up/file-173027681336323.pdf   
 
https://cbi.iq/news/view/2703 
 
~~~~~~~~~~ 
(approximate & incomplete translation of https://cbi.iq/static/uploads/up/file-173027681336323.pdf)  
 
DATE:  30/10/2024  (Population Census... the Pillar of Development)
Exchange Companies for the Art (4)
 
M/ Opening Branches    M/ Monetary policy rate and reactivation of securities
 
Based on the monetary policy orientations in enhancing access to targeted inflation rates in a manner that does not conflict with the expected economic growth rates, and is consistent with the policy of developing deposits and increasing credit ratios aimed at targeting projects, relying on the approach based on data obtained from the banking sector, the Board of Directors of this bank decided the following:-
 
1. Reducing the monetary policy rate to be (5.5%) instead of (7.5%).

2. Reactivating securities (Islamic certificates of deposit; traditional transfers) according to an annual plan and with two terms:
     A. Term (14) days with a return of (4%).
     B. Term (182) days with a return of (5.5%).

3. The maximum investment limit shall not exceed (50%) percent of the total private sector deposits at the bank, which are sent to the Open Market Operations Office via the weekly liquidity management form within the system (BSRS), where data received two weeks before the auction implementation date will be approved. In case the bank exceeds the percentage set above, it will be deprived of the auction return.

4. The bank's investment ceiling in a single auction shall not exceed (500) billion dinars.

5. For further inquiries, you may contact the office via e-mail (omo.office@cbi.iq).
 
With appreciation.
Attachments:-
- Auction issuance plan for (14) days.
- Auction issuance plan for (182) days.

Al-Sudani Discusses With The Commander Of The NATO Mission In Iraq Ways Of Cooperation In Light Of The End Of The International Coalition Mission

Wednesday 30 October 2024 18:05 | Politics Number of readings: 125  Baghdad / NINA / Prime Minister and Commander-in-Chief of the Armed Forces Mohammed Shia al-Sudani discussed with the Commander of the NATO Mission in Iraq, Lieutenant General Lukas Schweizers, ways of cooperation in light of the end of the international coalition mission.

The Prime Minister's media office said in a statement: "Al-Sudani met today with the Commander of the NATO Mission in Iraq. During the meeting, ways of security and military cooperation between Iraq and the alliance countries were discussed, in light of the end of the mission of the international coalition to fight ISIS in Iraq."

Al-Sudani was briefed on the outcomes of the high-level meeting between Iraq and the alliance, which was held in Brussels last August, and directed the formation of a joint committee between the two sides, headed by the Iraqi side by the National Security Advisor, to discuss all frameworks of cooperation.

The Prime Minister stressed Iraq's desire to move to bilateral cooperation with the alliance countries that participated in the international coalition, and to enhance the areas of training and joint advice with the Iraqi armed forces, especially after the Iraqi forces have acquired advanced levels of technical and field effectiveness.

Al-Sudani also touched on the developments in the security situation in the region, with the continued Zionist aggression on Gaza and Lebanon, its threat to regional peace, and its attempts to expand the conflict, reiterating the importance of international and UN organizations and major countries assuming their roles and responsibilities towards stopping the aggression and preventing the genocide of the steadfast Palestinian people. /  https://ninanews.com/Website/News/Details?key=1165272  

Ministry Of Justice: Completing The Electronic Documentation System And Canceling The Validity Of Paper Issuances Of Agencies

Buratha News Agency1662024-10-30   The Ministry of Justice announced today, Wednesday, the completion of work on the electronic documentation system and the cancellation of the validity of paper issuances of agencies in all notary public departments in Baghdad and the governorates.

The ministry stated in a statement that "based on the directives of the Minister of Justice, Khaled Shawani, to rely on modern technologies in the work of the judicial departments, and in cooperation with the General Secretariat of the Council of Ministers, the Notary Public Department announced the completion of work on the electronic security code system (QR) for all agencies and in all departments affiliated with it in Baghdad and the governorates."

The ministry quoted the Director General of the Notary Public Department, Youssef Hawiz Khorshid, as saying, "All 178 notary public departments in Baghdad and the governorates have been fully equipped with the requirements for working with the barcode system in order to achieve a complete transition to digitization in the department's work."   https://burathanews.com/arabic/news/452191

Basra Crude Continues To Decline

Wednesday 30 October 2024 | Economic Number of readings: 188   Baghdad / NINA / Basra Heavy and Basra Medium crude prices witnessed a decline, despite the stability of global oil prices.  Basra Heavy crude prices fell by $1.79 to reach $66.01, and Medium crude prices fell by $1.79 to reach $69.16.

Oil prices stabilized during Asian trading on Wednesday, after industrial data showed a surprise decline in crude and gasoline inventories in the United States, after losses in the previous two sessions due to the possibility of a decline in the intensity of the conflict in the Middle East. / End9 https://ninanews.com/Website/News/Details?key=1165160

Rafidain Bank Studies Establishing An Electronic Platform For Trading Government Bonds

Banks  Economy News – Baghdad   Rafidain Bank confirmed, on Wednesday, that it is studying the establishment of an electronic platform for trading government bonds.

A statement by the bank received by "Al-Eqtisad News" stated: "Under the direct supervision of the Minister of Finance and the Governor of the Central Bank of Iraq, Rafidain Bank sponsored an expanded meeting in cooperation with the Securities Commission and the Iraq Stock Exchange to discuss launching an electronic platform for trading government bonds.https://economy-news.net/content.php?id=49303

Customs Announces A Significant Increase In Trebil Port Revenues After Linking It To The ASYCUDA Program

Trebil border crossing between Iraq and Jordan   Money and business  Economy News – Baghdad  The General Authority of Customs confirmed, on Wednesday, that linking the Trebil port to the global ASYCUDA program has reduced cases of smuggling, manipulation and forgery, while indicating a significant increase in the port’s revenues.

The Director of the Trebil Border Customs, Asim Hamid Al-Shawka, said in a statement reported by the official news agency, and reviewed by "Al-Eqtisad News", that "the Trebil port is a commercial and vital port and one of the most important ports in the western region in terms of revenues and exports that pass through it", noting that "it is a link between the Hashemite Kingdom of Jordan and the world through the port of Aqaba."

He added that "the reasons for the increased flow of commercial traffic inside the port are due to the ease of work there and the facilities it provides in accordance with the controls and instructions," noting that "this has made most traders import their goods through the Trebil border port."

Al-Shawka explained that "the movement of travelers from Iraq to Jordan is witnessing large numbers of travelers entering and leaving from Iraqis, Arab tourists and foreigners," indicating that "the credit goes to all the security forces that secured the expressway that connects the port to Anbar Governorate, reaching Baghdad and the rest of the governorates of Iraq."

He continued: "All goods are imported through our center from various global origins, the most important of which are food, agricultural fertilizers, dyes, construction materials, human medicines, veterinary medicines, medical supplies, agricultural materials and cars,"

noting that "our center is distinguished by a transit line for transporting goods from various countries of the world through Iraq to neighboring countries, and various Iraqi products are exported through it to the Hashemite Kingdom of Jordan and the rest of the world, the most important of which are soft drinks, juices, dates, asphalt, furniture and other Iraqi products."

He pointed out that "a crude oil pipeline passes through our center to the Hashemite Kingdom of Jordan, and based on the directives of Prime Minister Mohammed Shia Al-Sudani and Minister of Finance Taif Sami, and under the direct supervision of the Director of the General Authority of Customs Hassan Hamoud, the port was linked to the global ASYCUDA program, which enhanced the reduction of cases of smuggling, manipulation and forgery, and led to a significant increase in revenues over previous years."

He pointed out that "cases of smuggling food items unfit for human consumption were monitored and destroyed, and the smugglers were referred to the judiciary to receive their just punishment," explaining that "this success was achieved through cooperation between the General Authority of Customs, represented by the Trebil Customs Center, and the Border Ports Authority and all supporting departments in terms of the mechanism for exchanging information.

We must not forget the Anbar government, represented by the Anbar Governor and the Chairman of the Provincial Council, with their unlimited support for the Western Region Customs Directorate and the ports affiliated with the Western Region."   https://economy-news.net/content.php?id=49310

For current and reliable Iraqi news please visit:  https://www.bondladyscorner.com/

Seeds of Wisdom RV and Economic Updates Wednesday Evening 10-30-24

Good Evening Dinar Recaps,

STABLECOINS BOOSTING DEMAND FOR US T-BILLS: TREASURY DEPT

The United States Treasury Department is taking an interest in stablecoins and tokenization.
Stablecoins seem to be increasing demand for short-term United States government bonds known as Treasury bills, according to US Department of the Treasury meeting minutes published Oct. 30.

In an Oct. 29 meeting, the US Treasury’s Borrowing Advisory Committee weighed the benefits of stablecoin adoption and Treasury bill tokenization, with one member suggesting the US create a permissioned blockchain for T-bills, the minutes said.

The comments are the latest from US government officials indicating a nascent openness to meaningfully integrating blockchain technologies into the US financial system.

“[B]ecause most stablecoin collateral reportedly consists of either Treasury bills or Treasury-backed repurchase agreement transactions, the growth in stablecoins has likely resulted in a modest increase in demand for short-dated Treasury securities,” one Committee member said, according to the minutes.

The committee said T-bill tokenization “could lead both to operational improvements and to innovation in the Treasury market” but could also pose risks to financial stability.

One member suggested that “tokenization in the Treasury market would likely require the development of a privately controlled and permissioned blockchain managed by a trusted government authority.”

Stablecoins — tokens pegged to the US dollar — are emerging as the core infrastructure for trading and payments.

Total stablecoin market capitalization hit record highs in 2024 and now approaches $180 million, according to CoinMarketCap.

Tether USDT dominates among stablecoins with a market capitalization of $120 billion.

Circle’s USD Coin USDC is a distant second, with a market capitalization of approximately $35 billion, according to CoinMarketCap.

Meanwhile, tokenized real-world assets (RWAs) — from Treasury securities to artworks — represent a $30-trillion market opportunity globally, Colin Butler, Polygon’s global head of institutional capital, told Cointelegraph in August.

Demand is surging for products that tokenize T-bills and other highly liquid yield-bearing assets.

Among the largest in terms of assets under management (AUM) are BlackRock USD Institutional Digital Liquidity Fund (BUIDL) and Franklin OnChain US Government Money Fund (FOBXX), with AUM of approximately $530 million and $410 million, respectively.

@ Newshounds News™

Source:  CoinTelegraph

~~~~~~~~~

A Tax-free Crypto era?
This idea of tax-free crypto transactions has generated buzz among investors and entrepreneurs. If the U.S. is successful in eliminating capital gains taxes on crypto transactions, it could position itself as a global crypto hub. This could attract significant capital from international investors and encourage U.S.-based companies to invest in blockchain and crypto technology.

For an average crypto holder, this could be the start of a new era where crypto can be used as both a payment method and a store of value without further tax concerns.

@ Newshounds News™

Source:  CoinPedia

~~~~~~~~~

RIPPLE NEWS: EX-CTO’S GAME-CHANGING ANNOUNCEMENT COULD REDEFINE XRP LEDGER

▪️ Ex-Ripple CTO Stefan Thomas says he’s working on a new version of Codius, the smart contract hosting protocol that allows more versatility and flexibility.

▪️One expert says this is a big deal for the XRP Ledger as it allows off-chain smart contract execution and cross-ledger
 compatibility.

Stefan Thomas, Ripple’s first Chief Technology Officer (CTO), is developing a new version of Codius, the smart contract protocol he developed a decade ago. This could open up new opportunities for the XRP Ledger.

Today, smart contracts are widespread and easier than ever to write and deploy. However, this wasn’t always the case. Back in the early 2010s, these contracts were still in their early stages and quite rigid. Thomas, who was the CTO of Ripple at the time, set out to change this, and Codius was born.

While it initially launched as a Ripple project, Codius soon gained a life of its own. Essentially, it offers a more versatile and flexible approach to deploying smart contracts, which allows them to run on any blockchain, dApp or server. These contracts can also interact with multiple other ledgers and blockchains, besides the one on which they are deployed.

Codius died years ago, but Thomas—now the CEO of Coil—recently revealed that he is working on reviving it.

Smart contracts have evolved since the days of Codius, and many of the features the team was working on in 2014 can now be found in existing blockchain networks. However, Codius retains some key tech that one expert believes could be vital to the XRP Ledger today.

Could Codius Accelerate XRP Ledger Adoption?
In a thread on X, renowned writer and entrepreneur Max Avery revealed that Codius’s unique features include decentralised hosting, which creates a peer-to-peer network for services, built-in billing, which allows programs to pay for their operations and language flexibility, which allows developers to use the language they are most proficient in.

But why does this matter for the XRP Ledger? Well, according to Avery, integrating Codius’ technology would introduce off-chain smart contract execution, which would reduce the load on the XRP Ledger and allow it to continue processing transactions at high speed.

Codius also comes with cross-ledger compatibility, which would allow dApps on the XRP Ledger to interact with those from multiple other blockchains.

“Codius’s blockchain-agnostic approach enhances versatility, enabling complex decentralized applications and cross-chain operations,” he noted.

Other benefits would include flexible smart contracts and a scalable application layer that distributes the computation load.

He added:  “Codius enhances the XRP Ledger ecosystem by providing off-chain smart contract execution, preserving and potentially increasing XRP’s TPS, and opening up new use cases through interoperability. It’s a significant step forward for the XRP Ledger.”

XRP trades at $0.524, gaining 2% in the past day

@ Newshounds News™

Source: Crypto News Flash  

  ~~~~~~~~~

CENTRALIZED STABLECOINS MAY POSE RISK TO DEFI — CURVE FINANCE FOUNDER

As centralized US dollar-pegged stablecoins continue to gain popularity, the potential for regulatory capture has grown.

The potential risks of overcollateralized stablecoins have recently come into sharper focus. Michael Egorov, founder of the decentralized borrowing and lending platform Curve Finance, argued that these risks are not necessarily the reserve-related risks commonly noted by investors but geopolitical risks posed by government regulation.

In an interview with Cointelegraph, Egorov said that the underlying assets backing collateralized stablecoins, including cash deposits in financial institutions and government securities such as United States Treasury bills, are vulnerable to asset freezes and seizures.

The Curve founder’s answer to these potential sanctions is to achieve maximum decentralization through algorithmic stablecoins, which do not rely on physical cash deposits or short-term cash equivalents:

“If you have something totally decentralized, then it is just software running onchain autonomously, so you cannot really do anything to it, and, in principle, it's still fully trackable.”

“For [the US dollar], keys are never yours. So, that’s a problem,” Egorov stated, before asserting that truly decentralized stablecoins, provide “algorithmic assurance” to investors that their funds won’t evaporate due to asset seizures.

Stablecoins backed by physical fiat assets lack any such guarantee, Egorov told Cointelegraph.

Stablecoins and growing geopolitical risk
The geopolitical risks posed by centralized stablecoins outlined by the Curve Finance founder are a growing concern among industry executives and lawmakers.

On Oct. 25, The Wall Street Journal published a story claiming that USDt
issuer Tether was under investigation by US authorities for allegedly breaking Anti-Money Laundering laws and US sanctions.

Tether CEO Paolo Ardoino denied the claims and outlined the company's reserve assets backing the USDT stablecoin.

During a recent appearance at the Plan B event in Lugano, Switzerland, the Tether CEO also argued that the European Union’s Markets in Crypto-Assets Regulation (MiCA) poses systemic risks for crypto and financial institutions due to banking reserve requirements.

Ardoino explained that the MiCA regulations require stablecoin issuers to hold at least 60% of their deposits in regulated banks, which can lend 90% of those assets to clients and create significant deposit risk for stablecoin firms in the event of bankruptcy or bank failure.

@ Newshounds News™

Source:  Cointelegraph

~~~~~~~~~

🌱TOP QUESTIONS ABOUT EXCHANGING FOREIGN CURRENCY ANSWERED! SOWT   |  Youtube

@ Newshounds News™

Source:  Seeds of Wisdom Team RV Currency Facts

~~~~~~~~~

Seeds of Wisdom Team RV Currency Facts Youtube and Rumble

Newshound's Podcast Link

Newshound's News Telegram Room Link

Q & A Classroom Link  

Follow the Roadmap

Follow the Timeline 

Seeds of Wisdom Team™ Website

Subscribe to Newsletter

Thank you Dinar Recaps