Blockchain
United Nations Embraces Cryptocurrency and ZK-Proof Technology for Refugee Safety
The United Nations, in its ongoing efforts to provide aid to refugees, has increasingly turned to innovative technologies, including cryptocurrency wallets and, most recently, ZK-proof technology. This initiative is spearheaded by the United Nations High Commissioner for Refugees (UNHCR) to build a reliable identity infrastructure for refugees. Carmen Hett, the Division of Financial and Administrative Management’s treasurer for the UNHCR, emphasizes the importance of decentralized identity through zero-knowledge proofs (ZK-proofs) in safeguarding refugees during border crossings.
Refugees often face the challenge of proving their identity, typically reliant on their home government’s validation. The UNHCR aims to circumvent this issue through a universally trusted system. Hett, speaking at a panel discussion hosted by Cointelegraph’s Kristina Cornèr in Geneva, Switzerland, stressed the importance of a secure, borderless identity system reinforced by ZK-proofs. These cryptographic protocols enable refugees to authenticate their identities without revealing underlying personal information, thus maintaining privacy and safety.
The absence of a verifiable identity can lead to significant hindrances for refugees, such as restricted access to banking, employment, and other essential services. The UNHCR’s treasurer highlighted the potential of ZK-proofs to overcome these barriers but also pointed out the need for increased regulatory support to broaden adoption.
The UNHCR, with a mandate to support and protect refugees and displaced individuals, has been exploring various technological solutions to enhance its mission. Notably, in December 2022, the agency launched a pilot project involving the distribution of USDC stablecoin to Ukrainian refugees affected by the Ukraine-Russia conflict. This project represents a significant step in leveraging digital currency to provide immediate financial aid in crises.
Also Read: Class Action Lawsuit Filed Against Lido DAO Over Crypto Losses by Former Token Holder
As the UNHCR continues to innovate in response to global refugee crises, the integration of cryptocurrency and ZK-proof technology marks a transformative approach to ensuring the safety and identity protection of vulnerable populations.
Blockchain
US GAO Issues Key Recommendations to SEC Prior to Historic Spot Bitcoin ETF Approval
Blockchain
Bitcoin ETFs Witness Surge in Trading Activity as SEC Approves 11 Products
In a significant development for the cryptocurrency industry, the U.S. Securities and Exchange Commission (SEC) recently approved 11 spot Bitcoin exchange-traded funds (ETFs). This approval comes after a decade-long struggle between regulators and the digital asset industry, marking a watershed moment for the acceptance of digital assets as mainstream investments. Among the approved ETFs are BlackRock’s iShares Bitcoin Trust, Grayscale Bitcoin Trust, and ARK 21Shares Bitcoin ETF.
Unprecedented Inflows:
On the first day of trading, these ETFs saw impressive activity, with $4.6 billion worth of shares changing hands across all the products, according to LSEG data. Bitwise, a crypto asset manager, reported that its spot Bitcoin ETF alone attracted $240 million, making it the most popular among the newly introduced products. Grayscale, BlackRock, and Fidelity dominated total trading activity, according to the LSEG data.
Also Read: Grayscale Court Decision Crucial in SEC’s Approval of Bitcoin ETFs, Says Chairman Gary Gensler
Bitwise’s Chief Investment Officer, Matt Hougan, expressed optimism about the future, stating, “We think that this will become a market measured in the tens of billions of dollars.” This surge in interest highlights a growing acceptance of Bitcoin and other cryptocurrencies among traditional investors.
Competition and Fee Wars:
The SEC’s approval has sparked intense competition among issuers to gain market share. Franklin Templeton, reacting swiftly, slashed the fee for its Bitcoin ETF to 0.19 percent, the lowest in the market. Additionally, the company waived fees entirely on the product’s first $10 billion in assets under management until August. Valkyrie, another player in the space, reduced its fees to 0.25 percent after its ETF started trading. This fee war is indicative of the fierce competition among ETF issuers to attract investor capital.
Grayscale’s Transition to ETF:
Grayscale, a prominent player in the cryptocurrency investment space, received approval to convert its existing Bitcoin trust into an ETF. This move instantly made it the world’s largest Bitcoin ETF, managing over $28.6 billion in assets. Despite this success, the ETF experienced outflows of $95 million on the first day of trading. The ability of Grayscale to navigate this transition will be closely watched, as it sets a precedent for other trusts considering a similar shift.
Regulatory Caution:
While the SEC’s approval is a significant step forward, it is important to note that SEC Chair Gary Gensler emphasized that the decision should not be interpreted as an endorsement of Bitcoin. Gensler referred to Bitcoin as a “speculative, volatile asset,” highlighting ongoing concerns about investor protection. The regulatory nod indicates a willingness to explore the potential of digital assets, but caution is warranted as the market continues to evolve.
Conclusion:
The approval of 11 spot Bitcoin ETFs by the SEC marks a turning point for the cryptocurrency industry. The influx of billions of dollars within the first day of trading demonstrates a growing acceptance of digital assets among traditional investors. The fee wars among ETF issuers and Grayscale’s transition into an ETF further highlight the competitive dynamics and challenges in the market. As the cryptocurrency market matures, ongoing regulatory scrutiny and investor sentiment will play crucial roles in shaping the future of these innovative financial products.
Blockchain
Tether CEO Advocates for Real-World Use Cases in Crypto Without Blockchain or Tokens
In a recent exclusive interview with Cointelegraph, Tether CEO Paolo Ardoino has voiced his belief that the future of the crypto industry lies in providing real-world use cases without necessarily relying on tokens or blockchain technology. Ardoino argues that the next breakthrough in the industry should focus on the fundamental value proposition offered by cryptography, emphasizing peer-to-peer transactions and privacy protections.
“Crypto doesn’t need a blockchain. It doesn’t need a token,” Ardoino stated, challenging the conventional reliance on these technologies. He proposes that the industry should shift its focus towards practical applications that offer tangible benefits to users.
Ardoino suggests that potential killer apps in the crypto space could take the form of everyday solutions, such as a booking system or a competitor to ride-sharing services like Uber. The key, according to him, is to leverage the core strengths of cryptography in facilitating secure and private peer-to-peer transactions.
One of the primary concerns raised by Ardoino is the centralization and regulatory scrutiny associated with token issuance. He argues that introducing a token creates a centralized point of failure, increasing the likelihood of regulatory challenges. Ardoino notes that many projects that issued tokens are currently under the scrutiny of regulatory bodies like the U.S. Securities and Exchange Commission (SEC).
“To be decentralized, this system wouldn’t need blockchain technology, which is slow and requires a global shared state,” Ardoino explained. He cited BitTorrent as an example of a decentralized system that achieved success without relying on blockchain technology.
The Tether CEO contends that departing from the conventional blockchain and token model could lead to more innovation and adoption in the crypto industry. By focusing on the core principles of cryptography, projects can potentially avoid regulatory challenges and offer solutions that resonate with a broader audience.
Also read:Bitcoin-Centric Firms Surge in Pre-market as BTC Soars Past $45K
As the crypto industry continues to evolve, Ardoino’s perspective challenges the status quo, encouraging a shift towards real-world applications that prioritize user experience and practicality over traditional blockchain and token-centric approaches.