Rapture #277: Brazilian Bank to Issue Stablecoin, Warmer Embrace of Crypto in Japan, and Thai Political Party Promises Crypto to Citizens
While I just got back from visiting family in Dallas, I am now gearing up to go to ETHGlobal Tokyo in the coming weeks and then ETHTaipei. Let me know if you will be there, as I would love to connect in person.
This past week, the market lost all of its upwards momentum yet has so far refused to drop. BTC volumes on centralized exchanges have fallen off a cliff (were below $10 billion daily volume yesterday). ETH volume on centralized exchanges is almost the same as BTC volume at this point. I can't remember the last time that happened.
Interestingly, Uniswap's volume in March was higher than Coinbase's. We might be entering a market where DEXs are preferred trading venues compared to CEXs, though if this bull gains steam I doubt that remains the case.
I remain fully allocated and my thesis has not changed from my past few editions.
While the market has largely stalled out, there has been exciting news coming out of the non-Western governments.
Brazilian bank issues stablecoin
BTG Pactual, one of the largest banks in Brazil, announced that they would be launching a new stablecoin pegged to the dollar dubbed BTG Dol. This stablecoin will be issued on Mynt, which the bank's "propietary blockchain technology."
Most likely some permissioned chain. I remember when JPM was working on JPM coin... never saw the light of day. I will be interested to see if BTG Dol actually launches and if there is any material adoption. Unless Mynt is EVM compatible and can easily bridge to Ethereum, I doubt the coin goes anywhere adoption wise anytime soon.
LDP releases white paper for crypto-friendly initiatives
While Japan is technically a democracy, the Liberal Democratic Party (LDP) has effectively held continuous control over the country since 1955. Recently, the LDP issued a whitepaper that proposes many changes to how the Japanese government treats crypto.
The paper specifically states that Japan should facilitate investment in tokens in order to promote blockchain-related businesses. Furthermore, tax reforms that favor cryptocurrencies should be considered.
Finally, according to the paper, DAO laws should be established in a way that are similar to limited liability company laws.
The fact that the party that controls the Japanese government is calling for crypt-friendly initiatives in a formal white paper is incredibly constructive. While the paper does not have any teeth to it, we are moving in the right direction in terms of major countries around the world embracing the asset class.
Pheu Thai Party plans to give residents $300 worth of crypto
The LDP is not the only political party in east Asia looking to embrace crypto. The opposition party in Thailand, Pheu Thai, announced at an April 5th campaign event that they planned to give out money via blockchain technology through digital wallets.
I think many politicians around the world will propose a UBI/cash distribution system directly to constituents in the coming years. Crypto makes the execution of such a policy far easier.
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