Between revolutionary announcements, technological developments and regulatory turbulence, the crypto ecosystem continues to prove that it is both a territory of limitless innovation and a field of regulatory and economic battles. Here is a summary of the most significant news of the past week around Bitcoin, Ethereum, Binance and Solana, and Ripple.
Bitcoin: A solution to the national debt according to Trump?
Former President Donald Trump has proposed a bold idea to solve the US national debt crisis, currently at $35 trillion: using Bitcoin. He suggests that the government could issue “crypto checks” to absorb dollar inflation and transform the financial system into a sound currency backed by blockchain technology. This proposal, supported by other political figures like Robert F. Kennedy Jr. and Senator Cynthia Lummis, also aims to maintain the US’s dominance in global markets. Lummis has even proposed that the US Treasury acquire 5% of the total Bitcoin supply as a strategic reserve. This support for a pro-crypto policy could play a significant role in future presidential elections.
Ethereum: Buterin's Plans for the Future
At EDCON2024, Vitalik Buterin outlined his outlook for the next ten years of Ethereum, with a focus on innovative application development and wallet security. Key areas include decentralized finance (DeFi), decentralized identities (DIDs) via the Ethereum Name Service (ENS), DAOs, and NFTs. Some of the flagship projects include prediction market Polymarket, social media aggregator Firefly, wallet Daimo, and voting tool Rarimo. To improve security, Buterin proposes embedding private keys directly into phone chips or storing a portion of them with regulated custodial institutions. He also discussed using zero-knowledge (ZK) proofs to link KYC information to wallets, ensuring user privacy while complying with regulations.
Bitcoin legalized in Russia for international trade
Russia has officially legalized the use of Bitcoin for international payments, a strategic move in the face of Western economic sanctions. The legislation, approved by the State Duma and set to come into force on September 1, 2024, allows Russian businesses to use Bitcoin as an alternative to traditional banking, particularly following the exclusion of the SWIFT network. The once-sceptical Bank of Russia is now taking a pragmatic approach by recognizing Bitcoin as a foreign currency and is even considering experimental crypto payments by the end of the year. At the same time, the country is developing the digital ruble, a digital and controlled version of its national currency, aimed at modernizing its financial system while maintaining state oversight. This opening to cryptocurrencies marks a major shift in Russian economic policy, aimed at mitigating the impacts of sanctions and exploring new opportunities offered by the digital economy.
Ripple Releases 1 Billion XRP: A New Wave Coming?
Ripple has started releasing 1 billion XRP from its escrow accounts, following its monthly practice since 2017. This release, from the 'Ripple (24)' and 'Ripple (25)' accounts, is part of a gradual management of the 55 billion XRP placed in escrow. Approximately 44.02 billion XRP still remained blocked. While these monthly unlocks are often followed by reconsignments of a large portion of the tokens, they sometimes lead to partial sales on the market, thus increasing the volatility of XRP. In July, for example, of the 1 billion XRP released, 800 million were returned to escrow, limiting the impact on the market. Nevertheless, price fluctuations are observed following these unlocks, such as in January where a sale of 226 million XRP led to a notable drop in value. Ripple's strategies, aimed at stabilizing the market while ensuring liquidity for its operations, are closely observed by investors.
Bybit leaves France under regulatory pressure
Bybit, the well-known crypto exchange, is withdrawing from the French market following an alert from the Autorité des Marchés Financiers (AMF) which called it a risky platform, as it is not authorized. Since August 2, French users can no longer open new positions, switching to “Close-Only” mode and will have to liquidate all their open positions. The list of affected services includes One-Click Buy, Bybit Card, P2P, all Spot and derivative products, Copy Trading, Trading Bot, and Bybit Earn structured products. Unclosed positions will be automatically liquidated starting August 13. Bybit justified this decision by saying it wanted to comply with local regulations, a situation similar to its withdrawal from the Canadian market in early 2023. French users will therefore have to look for alternatives on other platforms such as Bitvavo, BitMart, Swissborg or Coinbase.
That's the bottom line for this week. But if you want a more detailed recap and in-depth analysis delivered straight to your inbox, feel free to sign up. to subscribe to our weekly newsletter.
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