The Unchained Web Daily #146

If you enjoy and find value in the newsletter, please feel free to donate for its upkeep and independent nature as much as you think is fair:

Monero Wallet Address:

42EkgN23XZoLJXrgMJjrRM7jYpmirk1WvWUWc2SDF6kZAXVzHMGy5XB8JM8Vce3iHGKh9H8ACWF9J6ErrfKCP48mL2yeWcw

Bitcoin Wallet Address: bc1q4283c60tv2p7exfeu2ql7dk2n7utswgl43n2fk

ETH & ERC-20 Address: 0xD16429e3F253f50CfF306B2bE8966ce935332116

BNB & BRC-20 Address: 0xD16429e3F253f50CfF306B2bE8966ce935332116

Reclaim (some) Privacy Webinar Series: Intro to SearXNG & other privacy engines

In April, I am planning my first webinar in a series focused on privacy. The specific webinar will be focused on why Google may not be the best search engine to use and the SearXNG meta search engine and how it can be used to enhance privacy when using a search engine to research or find something to one's interest.

If you are interested in the topic, feel free to click "attend" on the link to the event below: https://www.dhirubhai.net/events/7167975601373458433/about/

UK Government Monitored The Social Media Activity of Education Critics

The UK's Department for Education has come under scrutiny for conducting social media surveillance on prominent education specialists. The investigation revealed that the DfE maintained extensive records of the social media activities of at least nine educators, with some records spanning up to 60 pages. They even created Excel spreadsheets detailing individuals' social media connections and interactions. Furthermore, the DfE attempted to cancel a conference due to the previous criticisms of government policies by two key speakers, Ruth Swailes and Aaron Bradbury, raising concerns about free speech in the UK. This situation has prompted educators to demand disclosure of any related documents, highlighting the threat to democratic principles and free speech posed by such surveillance practices. Click here for more.

Eyeball Scanning Global Digital ID System Worldcoin Suggests Using It For Social Welfare

Worldcoin, a biometric cryptocurrency and digital ID project founded by OpenAI CEO Sam Altman, aims to expand its global digital ID system, known as World ID, to social welfare users. Despite concerns about privacy and potential exploitation, Worldcoin maintains its mission is to promote equality and create a massive identity and financial network for global access and ownership. They argue that biometric data, specifically iris scans, is necessary to prevent fraud in social benefit programs. While citing India's success in using biometric data for anti-fraud measures, Worldcoin suggests implementing its decentralized "proof of personhood" system worldwide, with vague references to countering economic power concentration through AI advancements. Ultimately, the project seeks individuals' biometric data to achieve its goals. Click here for more.

Reddit To Block Users From Opting Out of Personalized Ads

Reddit has announced a significant change to its advertising strategy, indicating that users will no longer have the option to opt out of ad personalization based on their platform activity. Reddit's head of privacy, Jutta Williams, presented this update as an opportunity to improve ad relevance by leveraging minimal user data. While Reddit insists that this won't increase ad volume or data sharing with advertisers, critics express concerns about potential impacts on user behavior and privacy, suggesting that this change could lead to more invasive data surveillance. Williams clarified that data collection and sharing practices with third parties for advertising outside Reddit would remain unchanged, but some objections related to increased surveillance were left unaddressed. Click here for more.

PwC Urges Blockchain in Developing Nations, 43% Lack Digital Payment Access

PricewaterhouseCoopers (PwC) has highlighted the role of blockchain technology in addressing the global financial inclusion challenge, which affects over 1.4 billion people who lack access to essential financial services. PwC's report underscores the growth of innovative services within blockchain networks, with a particular emphasis on stablecoins, offering stability while retaining the benefits of digital assets. These platforms enable the creation of digital wallets on blockchain networks, allowing users to store stablecoins and earn yields, providing an alternative for individuals in developing nations with limited access to traditional financial institutions. Additionally, central bank digital currencies (CBDCs) are gaining traction in developing countries, with 61% of respondents favoring them in emerging markets, further emphasizing the importance of digital financial solutions in addressing financial inclusion issues. Click here for more.

Bitcoin miners Marathon, Riot, CleanSpark increase BTC output in September

In September, Bitcoin mining companies Marathon Digital, Riot Platforms, and CleanSpark saw notable increases in Bitcoin production, leading to positive stock performance. Marathon Digital produced 1,242 BTC in September, a 16% increase from August and a substantial 245% increase from September 2022, thanks to a 508% increase in their installed hash rate. Riot Platforms increased BTC production by 9% month-on-month, generating 362 BTC, while CleanSpark recorded its "best quarter" and "best fiscal year ever," producing 643 BTC in September and 6,903 BTC for the fiscal year ending on September 30, 2023. These results came despite Bitcoin's sideways price movement, and the companies are looking to expand their operations and efficiency. However, Bit Digital saw a 7% decrease in Bitcoin production in September due to miners going offline during a power utility-mandated maintenance outage. Click here for more.

Central banks will face unfamiliar challenges to achieve CBDC inclusivity, study says

A Bank of Canada discussion paper explores the potential benefits of a central bank digital currency (CBDC) in promoting financial inclusion, highlighting the need to address various barriers and redefine the concept of inclusion. The paper identifies three key aspects of accessibility for a universally accessible payment method: financial inclusion, digital inclusion, and practical accessibility. It suggests that private financial institutions may not prioritize the underserved population. The authors emphasize that a CBDC must address all three aspects of accessibility to avoid perpetuating disadvantages faced by specific groups, such as First Nations with limited access to financial institutions and digital technology. Additionally, issues related to financial literacy, digital skills, security concerns, cognitive load, and disability access need to be considered in CBDC design. The study concludes that central banks will need to tackle these challenges to achieve inclusive CBDC adoption. Click here for more.

Bitcoin mining restricted to legal entities in Uzbekistan — Regulators

Uzbekistan's crypto market regulator, the National Agency for Perspective Projects (NAPP), has introduced a framework for licensing cryptocurrency mining operations in the country. Under these regulations, only legal entities are allowed to engage in cryptocurrency mining, effectively banning individual miners. Moreover, mining operations are required to use solar power, although exceptions are possible as per legislation. Companies must establish dedicated mining equipment rooms at registered addresses, comply with mining fee payments, and refrain from mining anonymous cryptocurrencies like Monero. The NAPP emphasizes that all mining operations and services must be conducted with the proper permitting document and license. It remains unclear if these regulations represent a final decree, given previous similar documents issued by the government. Click here for more.

Yield Protocol to permanently ‘wind down’ operations by December 2023

Yield Protocol, a decentralized finance (DeFi) lending platform, has announced its decision to shut down by the end of the year. The closure is attributed to a lack of sustainable business demand for fixed-rate borrowing on the platform and the global regulatory pressures faced by DeFi projects. Yield Protocol will cease operations after its December 2023 series matures, and the March 2024 fixed rate series launch has been canceled. Unfavorable cryptocurrency regulations in the United States, Europe, and the United Kingdom also played a role in the decision. Liquidity providers for certain strategies will no longer accrue fees, and all borrowing and lending will end by December 31st, 2023. This move follows other protocol shutdowns in 2023 due to external attacks and financial losses in the DeFi space. Click here for more.

BIS, EU central banks building data platform to track crypto, DeFi flows

The Bank for International Settlements (BIS) has collaborated with several central banks, including the Deutsche Bundesbank, De Nederlandsche Bank, the European Central Bank, and the Bank of France, to develop a proof-of-concept (PoC) called Project Atlas. This PoC aims to track both on-chain and off-chain transactions from cryptocurrency exchanges and public blockchains, including Bitcoin, with the goal of understanding the macroeconomic relevance of cryptocurrency markets and decentralized finance (DeFi) protocols. The project combines data from cryptocurrency exchanges with on-chain data from public blockchains, initially focusing on tracking cryptocurrency flows across different geographical locations. While acknowledging potential limitations, such as the difficulty of discerning exchange locations, the project's pilot suggests that inter-exchange activity is economically significant. The PoC will continue to evolve, incorporating additional data sources and expanding its analysis to include the Ethereum network and DeFi protocols. This initiative seeks to provide central banks with insights into the economic significance and potential risks of the cryptocurrency ecosystem. Click here for more.

CBDC lays foundation for new global monetary system: French central bank

Representatives from Banque de France, the French central bank, have expressed their view that central bank digital currencies (CBDCs) could serve as the foundation for a new international monetary system. Denis Beau, the first deputy governor at Banque de France, emphasized the importance of considering cross-border issues related to CBDCs from the outset rather than as an afterthought. He outlined two potential paths for CBDC development: the first involves creating common standards and interoperability between wholesale CBDCs and legacy systems, while the second, promoted by organizations like the International Monetary Fund (IMF) and the Bank for International Settlements (BIS), envisions the development of regional or global CBDC platforms where wholesale CBDCs could be exchanged directly and used for various transactions. Beau also discussed the tokenization of finance and the need for public sector support to unlock the full potential of blockchain technology while managing associated risks, highlighting that tokenized central bank money and tokenized assets can be complementary rather than competitive. Click here for more.

Argentine presidential candidate wants CBDCs to ‘solve’ hyperinflation

Argentine presidential candidate Sergio Massa has announced plans to launch a central bank digital currency (CBDC) if elected, with the aim of addressing the country's persistent inflation crisis. Massa, who serves as the Minister of Economy, outlined his proposal during a presidential debate, stating that the digital currency would be made available to all of Argentina and accompanied by a money laundering law allowing the repatriation of funds held abroad without additional taxes. He rejected the idea of dollarization, urging citizens to defend their national currency. Massa faces competition from pro-Bitcoin candidate Javier Milei, who advocates for adopting the U.S. dollar as Argentina's currency and eliminating the central bank. The Argentine general election is scheduled for October 22. Click here for more.

Head of Portugal central bank deems crypto unsustainable, calls for global regulation

Mário Centeno, the governor of Banco de Portugal, has stressed the importance of international cooperation in regulating cryptocurrencies and decentralized finance (DeFi) during his speech at the 2023 Banco de Portugal Financial Stability Conference. Centeno argued that a robust global framework is necessary to prevent regulatory arbitrage and effectively oversee the global risks posed by crypto assets and international players. He expressed skepticism about the long-term viability of digital assets and DeFi, citing their volatility and the collapse of several products. Centeno praised the European Union's Markets in Crypto-Assets (MiCA) regulations but called for further international consolidation of regulatory efforts based on the principle of "same risk, same regulation." This sentiment aligns with recent calls for global collaboration on crypto regulation from regulators in Germany and India. Click here for more.

Singapore awards major payment institution license to Sygnum Bank subsidiary

Sygnum Singapore, a subsidiary of the Switzerland-based cryptocurrency bank Sygnum, has obtained a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). This license allows Sygnum Singapore to offer crypto brokerage services to accredited investors and institutions in Singapore. The company transitioned from in-principle approval to a full license within four months. With this approval, Sygnum Singapore plans to extend its services, including digital payment token (DPT) trading, to its clients in Singapore and expand its regulated offerings to other Asia-Pacific markets, such as Hong Kong. The company manages nearly $3.5 billion in assets under management across various countries and regions. Coinbase also recently received an MPI license from the MAS to conduct payment services without transaction limits of SGD 3 million. Click here for more.

Fed inspector blames crypto focus, nepotism for Silvergate Bank collapse

The United States Federal Reserve inspectors have pointed to the over-dependence on risky crypto deposits and nepotism within Silvergate Bank as key factors leading to its collapse earlier this year. The Fed Board's Office of Inspector General revealed in a review that Silvergate's shift in strategy to focus on crypto clients, along with rapid growth and multiple funding risks, resulted in the bank's voluntary liquidation. The bank had become essentially a single-industry lender, with most of its customer deposits being uninsured and non-interest bearing. The report also highlighted nepotism within the bank's senior management as a factor contributing to an ineffective corporate structure that failed to address the associated risks. Silvergate Bank voluntarily wound down in March 2023. Click here for more.

IMF working paper proposes country-level assessment matrix for crypto risks

The International Monetary Fund (IMF) has published a working paper titled "Assessing Macrofinancial Risks from Crypto Assets," proposing a crypto-risk assessment matrix (C-RAM) to help countries identify indicators and triggers of potential risks in the cryptocurrency sector. The C-RAM matrix includes a three-step approach: assessing crypto macro criticality, monitoring traditional financial sector indicators, and analyzing global macro-financial risks affecting systemic risk assessment. The authors of the paper applied the C-RAM to El Salvador, highlighting market, liquidity, and regulatory risks associated with the country's use of Bitcoin as legal tender. The IMF has consistently discouraged El Salvador from adopting Bitcoin, citing concerns about financial stability, integrity, and consumer protection. The IMF and the Financial Stability Board previously collaborated on policy recommendations for crypto-related risks. Click here for more.

If you enjoy and find value in the newsletter, please feel free to donate for its upkeep and independent nature as much as you think is fair:

Monero Wallet Address:

42EkgN23XZoLJXrgMJjrRM7jYpmirk1WvWUWc2SDF6kZAXVzHMGy5XB8JM8Vce3iHGKh9H8ACWF9J6ErrfKCP48mL2yeWcw

Bitcoin Wallet Address: bc1q4283c60tv2p7exfeu2ql7dk2n7utswgl43n2fk

ETH & ERC-20 Address: 0xD16429e3F253f50CfF306B2bE8966ce935332116

BNB & BRC-20 Address: 0xD16429e3F253f50CfF306B2bE8966ce935332116

Reclaim (some) Privacy Webinar Series: Intro to SearXNG & other privacy engines

In April, I am planning my first webinar in a series focused on privacy. The specific webinar will be focused on why Google may not be the best search engine to use and the SearXNG meta search engine and how it can be used to enhance privacy when using a search engine to research or find something to one's interest.

If you are interested in the topic, feel free to click "attend" on the link to the event below: https://www.dhirubhai.net/events/7167975601373458433/about/

Brought to you by Alexandros Dolgov CBA? (Study/Bitcoin)