BIS Paper Reckons With P2P Payments, Tokenized Securities, Central Bank Digital Currencies

Researchers at the Bank for International Settlements (BIS) are grappling with the future of payments – so much so that their newest quarterly report, released Sunday, is entirely dedicated to what that potential revolution holds. In its 138-page look at what lies beyond the financial horizon, the Swiss-based institution reckoned with coming trends that may well shape tomorrow’s payments infrastructure: tokenized securities, central bank digital currencies, cross-border payments and peer-to-peer innovations.   BIS Head of Research Hyun Song Shin said “the pace of change and potential for disruption” have made examining…

Draper-Backed Exchange in Lockdown Following ‘Sophisticated’ Attack

Coinhako, a cryptocurrency exchange backed by Tim Draper, has restricted user withdrawals after falling victim to a “sophisticated attack.” The Singapore-based exchange told users Friday that account send functions for cryptocurrencies had been temporarily disabled. Although a spokesperson initially said this was for “network maintenance”, the exchange admitted Saturday it had been victim to an attack and that it would impose account restrictions to prevent “unauthorized transactions,” until the matter had been fully resolved. The exchange has not provided further details on the attack’s nature, or any information on whether…

Compound Extends DeFi Ethos to Itself, Launches Governance Token

Decentralized finance (DeFi) platform Compound is going ahead and decentralizing itself. “My personal belief is that nobody would use bitcoin if it was run by the ‘Bitcoin Corporation,’” Robert Leshner, Compound’s founder, told CoinDesk in a phone call. “Its power comes from the fact that nobody truly controls it.” In that spirit, Compound is launching the testnet of its experimental governance platform today, complete with a trial version of its COMP governance token. Launched in late 2018, Compound has held steady as a top-three DeFi dapp on ethereum basically as…

Secretive Digital Fiat Project Emerges With New Partner as CBDC Chatter Grows

As central bank digital currencies (CBDCs) march into view, a privately-run version of digital fiat is adding a key tech partner. Utility Settlement Coin (USC), the blockchain-based payments system involving commercial and central banks, will be working with ConsenSys-backed startup Adhara, CoinDesk has learned. Adhara was behind Project Khokha, which used enterprise blockchain client Quorum to see how zero-knowledge proofs performed with the South African Reserve Bank (SARB). The move is one of only a handful of public overtures by Fnality, the company that oversees the development of USC. Fnality…

New Jersey Lawmaker Wants to Create a Crypto License

A New Jersey lawmaker wants to license crypto exchanges and custodians looking to conduct business in the Garden State. Assemblywoman Yvonne Lopez (D.-19) introduced the Digital Asset and Blockchain Technology Act Friday, putting forth a proposal to license any entity looking to provide digital asset trading, storage, purchase, sales, exchange, borrowing/lending or issuance services. The N.J. Department of Banking and Insurance would be tasked with overseeing this license and regulating businesses. The term “digital asset” encompasses virtual currencies, digital securities and other assets, including anything with a transaction history recorded…

How to Protect Bitcoin for Your Heirs With the Push of a ‘Dead Man’s Button’

What happens to your bitcoin after you die? This is more than just a philosophical question: It could involve a substantial amount of currency. The question of crypto and the Great Beyond is what prompted about 20 or so developers to get together in London recently to experiment with repurposing the current lightning protocol to send private messages as a “dead man’s button,” a system that can’t be censored and would keep your crypto safe for your heirs. Lightning Labs infrastructure engineer Joost Jager has been exploring using lightning for…

$10K Proving a Tough Nut to Crack for Bitcoin’s Bulls

View Bitcoin’s immediate outlook remains neutral with a lower-highs setup on 4-hour charts still intact. A sustained break above $10,028 would invalidate that pattern and revive the bullish view, opening the doors for resistance at $10,300 and $10,500. On the downside, key average support at $9,508 is the target for the bears. A violation there would likely bring a deeper drop to $9,075 (Feb. 4 low). Bitcoin retreated after crossing into five figures early on Monday, establishing the psychological level of $10,000 as the resistance to beat for the bulls.…

Isaiah Jackson on Bitcoin’s Impact

CoinDesk reporter Leigh Cuen is joined by Isaiah Jackson, author of “Bitcoin and Black America” and co-founder of KRBE Digital Assets Group, to talk about financial discrimination in the United States and the unique value bitcoin can offer minority communities. According to a survey of 5,126 Americans conducted by Coinbase and Qriously, “Twice as many Black Americans have been negatively impacted by the current financial system” compared to their white peers. As such, the survey suggested, they are much more likely to be curious about bitcoin (BTC). This finding is supported by…

Here’s Why Interest Rates on Cryptocurrencies Could Be a Game-Changer

Lending and borrowing cryptocurrencies is becoming an increasingly important sub-sector of crypto finance, one that may end up shaping how the underlying assets themselves are valued and priced in the markets.  While still in its infancy, the growth of crypto lending platforms has given birth to a new type of measuring metric: interest rates, which has the potential to draw in new investors while encouraging the movement of crypto capital out of storage and into markets. In traditional financial markets, interest rates reveal significant information about the health of the…