Is Tim Cook Satoshi? Undiplomatic Diplomats! Shameless Puppy photos!

Greetings,

The Crypto 5 is back from its puppy break. This week we look at a bitcoin easter egg on you macbook, Japan's crypto red carpet rollout, and what happens when diplomats are undiplomatic.

Don't forget, share this newsletter! I've heard sharing is caring.

1. Steve Jobs = Satoshi?

Could Steve Jobs have given us the easter egg of easter eggs? Every new MacOS comes with the Bitcoin White Paper by anonymous creator Satoshi.

If you’re on a Mac, open a Terminal and type the following command:

open /System/Library/Image\ Capture/Devices/VirtualScanner.app/Contents/Resources/simpledoc.pdf

OR open Finder and click on Macintosh HD, then open the System→Library→Image Capture→Devices folder. Control-click on VirtualScanner.app and Show Package Contents, open the Contents→Resources folder inside, then open simpledoc.pdf.)

Leave a comment if you find it. Thanks to Andy Baio, and his Waxy.org sandbox for finding this just in time for the weekend festivities.

2. State Department Goes Rogue

A US State Department official said the US is at risk of blowing its approach to the next generation of the internet.

Why?

(I'm paraphrasing) While the rest of the world is playing the game - the US is trying to choose which car to drive to the game in. It all comes down to ignoring crypto.

Consumers globally now can choose where and how to save digital assets. They can avoid banks and store them in “self-custody” digital wallets instead.

Inventors and artists no longer need national patent authorities: They can preserve their creative output with non-fungible tokens, or NFTs, designed specifically to protect intellectual property.

Property exchange and lending don’t need intermediaries if they take place over this emerging network of networks.

What's at risk is the global influence of the dollar, and, therefore, the US financial institutions and the punches that come with US sanctions. If everyone can go around you, they dont' have to play by your rules.

Whose rules could they play by? China's.

After their ban on bitcoin, many thought the Chinese government was ignoring the industry. But, China is building a closed network that amounts to a state-backed competitor to open blockchain systems like Bitcoin, Ethereum, or Solana.

On this network, the Chinese government has the power to shut out people, companies or countries that lose its favor. And the data Beijing gathers from it offers an intelligence trove far more consequential than anything it might gather from Americans watching TikTok videos.

Beijing is also aggressively promoting its central bank digital currency, the digital yuan or eCNY, which has raised privacy concerns and furthers China’s ambitions to displace the dollar as the global reserve currency.

Will this happen overnight? No. But, is the US going to make the same mistake and offshore crypto just like it did the semiconductor industry? Let's hope not. Otherwise, we may be seeing White House factsheets about bringing crypto back to the US. And we all know how smoothly that is going.

3. The "dollar hex"

Don't believe that there are long term threats to the dollar?

Former ASEAN officials voiced their concerns this week about the weaponization of the dollar and how it is weakening local currencies.

The US dollar is a hex on all of us. If you weaponize the international financial system, alternatives will grow to replace it and the US dollar will lose its advantage - George Yeo, former foreign minister of Singapore.

The comments, unusual for the region, follow increased pressure on local currencies due to sanctions "estranging" Russian banks. Reserve currency diversification was hailed as a necessary option - one that advances in digital payments can help facilitate.

The direct digital payments systems — which have boosted local currency settlement between Malaysia, Indonesia, Singapore and Thailand — are “another great outlet for our financial infrastructure" - former Indonesian trade minister, Thomas Lembong.

As the region continues its lead in adoption of digtial assets, more and more people will be willing to experiment with new systems and technology to streamline commerce. If the US isn't in the game, it can't set the rules.

4. DeFi and the Treasury

What did the US do this week?

The Treasury took a break from fining celebrities like Lindsay Lohan, Ne-yo, and Akon to issue a much anticipated DeFi report. Overall, it attempts to encourage industry and developers to integrate Anti-money Laundering (AML) compliance into DeFi services.

The WSJ sums it up: The report sketches out how the Treasury Department plans to bring the market under greater federal oversight, suggesting that platforms that fail to establish sufficient vetting policies risk enforcement action.

However, how to comply was not specified. Since many DeFi platforms are governed by code and do not have traditional concrete responsible parties, some additional information is required. Something that we still do not have.  

It continues to further caveat - not all types of DeFi services will fit under current obligations. Clearly, more reports are needed.

5. Japan to welcome crypto

Meanwhile, another report was issued in Japan. This week, the Liberal Democratic Party's Web3 project team released a white paper outlining that it was in the country's national interest to be more welcoming to crypto.

Japan was one of the first countries to regulate stablecoins, and its tight regulations protected many from FTX-related losses. Overall, the country is looking forward and doubling down on digital assets.

The group proposed regulatory guidelines for the country's crypto industry, a DAO law, modifying tax requirements, the need for accounting standards, and the establishment of a prominent stance on ethical innovation.

Japan must exhibit leadership during this year’s G7 summit, which will address cryptocurrency issues - Japan's Web3 White Paper.

In addition to this white paper, Web3, NFTs and event DAO's were mentioned in the PM's economic plan. The new white paper emphasizes the significance of preparing the environment for stablecoin registration and creating a self-regulatory organization. It also suggests developing proposals for yen-backed stablecoins.

Before you go

At the beginning of this newsletter, I mentioned my brief break to be a puppy owner. Little Potato is settling in nicely and eating everything insight. You can follow his adventures on Instagram.