Latest In Metaverse, Web3, and NFTs

Hello, and welcome to the latest edition of my weekly newsletter, where I bring you updates on the latest happenings in the world of Metaverse, Web3, and NFTs. As a passionate follower of this industry, I want to keep you up to date on the most exciting and thought-provoking developments in the space.

This week's edition features some significant stories that illustrate the broad applications and implications of blockchain technology. We'll take a closer look at how a bank run can impact the crypto ecosystem, a proposal for a privacy-respecting 'Europeum' blockchain for public services, and the latest developments from Goldman Sachs as they embrace blockchain technology.

I believe that blockchain has the potential to revolutionize the way we interact and transact in various industries. By leveraging the power of Web3 technologies, we can create new opportunities for innovation, decentralization, and collaboration.

Thank you for joining me on this journey, and I hope this newsletter helps you navigate the exciting world of blockchain and beyond.

So without further ado, let’s get started!

SVB Bank Run Sends Shockwaves Through Crypto Ecosystem

Over the weekend, Silicon Valley Bank (SVB), one of the 20 largest banks in the US and the bank for over 40% of venture-backed startups, faced a bank run after fears that treasury bonds they were holding were underwater due to rising interest rates. The bank had already been experiencing headwinds from "continued higher interest rates, pressured public and private markets, and elevated cash burn," according to SVB's CEO, Greg Becker.?

California regulators intervened, shutting the bank down and placing it in receivership under the Federal Deposit Insurance Corporation. Startups could not access any funds for payroll, payments, etc., and some are now worried about how they'll pay their employees.

This event also had a ripple effect on the crypto industry. Circle, the company behind USDC, confirmed that $3.3 billion of its cash reserves were stuck in the failed SVB. Panic ensued, and the bank stablecoin fell to $0.88 at its lowest on Saturday. Companies and DAOs were scrambling to derisk, with some fearing that Circle would face a bank run of its own on Monday. The incident served as a reminder of the importance of risk management over treasuries, the fragility of banks in volatile economic environments, and USDC's reliance on the traditional banking system.

Belgium's Digital Minister Proposes Building Privacy-Respecting 'Europeum' Blockchain for Public Services

European politicians are considering the creation of a tailor-made blockchain called “Europeum” after regulating cryptocurrencies. This blockchain could be used to record property ownership, driving licenses, or professional qualifications while respecting the European Union’s high regulatory standards. Belgium’s digital minister, Mathieu Michel, suggests moving beyond financial applications of distributed technology into public services and supply-chain management. Michel is in favour of using blockchain to digitize administrative documents or educational diplomas to be recognized across the EU.

Michel wants to reflect European values in Web 3, highlighting the need for privacy protection in the blockchain. He cited Ethereum's traceability as excessive and is convinced that Web 3 can help companies organize their supply chains and governments offer public services. Michel launched Blockchain for Belgium on February 20 to offer advice to policymakers and networking opportunities for entrepreneurs in the sector. Despite this, Michel acknowledges the challenges of raising capital and dealing with lawmaker scepticism.

Julien Romanetto of the Smurfs Society welcomes the support from Michel as policymakers have a crucial role to play in determining the blockchain ecosystem's future. He says that Europe has a strong hand to play in blockchain and needs regulation that does not constrain too much, as too much regulation may force people to move to Dubai.

What are your thoughts on this?

Goldman Sachs Sets Sights on Blockchain Technology: Patent Filed for Joint Claims on Tokens

Goldman Sachs is stepping up its game in the world of blockchain technology. The banking giant has recently filed a patent with the US Patent office, outlining the technical requirements for the bank to use blockchain. The patent application includes a computer-implemented method of providing joint claims to tokens, facilitating a networked computing environment for this purpose. This move is part of Goldman Sachs' broader push to embrace blockchain applications, with global head of digital assets Mathew McDermott expressing strong support for the technology in a recent interview with Bloomberg. Some analysts suggest that an "arms race" is brewing in the blockchain sector, as companies like Goldman Sachs seek to secure patents for their blockchain-related innovations.