Our weekly crypto newsletter is here! Learn more about the possible implications of the MiCA settlement and what Deloitte’s findings on the future of crypto usage are. On top of that, read about our impression of Consensus 2022 and learn the difference between hot and cold wallets!
Markets in Crypto Assets (Mica): Agreement expected at end of June
In the past, we have reported many times on recent developments in MiCA regulation, and now it appears that an agreement is on the horizon for the end of June. According to Bloomberg, the planned meeting on June 30 will also deal with NFTs, stablecoins and new guidelines for crypto service providers, among other topics. Especially after the Terra Luna crash, the European Parliament has shown an increased interest in protecting investors and defining tighter rules. The European Parliament will also take a closer look at the future handling of NFTs, because in the past, NFTs were all too often suspected of promoting money laundering. With the help of compliance processes, countermeasures will probably be taken to prevent money laundering and possible restrictions on the use of this emerging segment.
Environmental aspect of cryptocurrencies still part of the discussion
A proposed ban on Bitcoin due to energy-intensive generation has led to some discussion in the past. Although the proposal was rejected in parliament, it is not entirely off the table yet. As BTC-ECHO reported, one of the proposals is that for the assets offered, environmental and climate impacts be prominently displayed on trading platforms. Whether this means that there will soon be energy efficiency classes for cryptocurrencies, as with refrigerators?! Exciting times are ahead and we’ll keep you up to date.
Deloitte is bullish on Crypto Payments
In collaboration with PayPal, major accounting firm Deloitte conducted a survey that showed almost 85% of various retail companies expect digital currency payments to be adopted and widespread within five years. The survey, which polled senior executives, covered a variety of organizations in sectors such as fashion, food, hospitality, cosmetics, and transportation.
It’s worth noting that the survey addressed digital currencies, which is a term that covers both cryptocurrencies and CBDCs (central bank digital currencies). However, 85% of participants said they are prioritizing crypto, with three-quarters of them looking to accept it within the next two years. The results also showed that 54% of the larger retailers (whose revenue is over $500 million) have already invested over $1 million in integrating digital currency payments into their company.
News of crypto adoption within retail could be a trend we start to see more and more of. Fashion giants Gucci recently announced they would accept crypto payments alongside SpaceX and luxury brand Balenciaga, who also recently made similar announcements.
Accointers at Consensus 2022
Consensus gave us a brief overview of the current state of the market and what crypto holds for the future. When it came to many crypto projects, it felt like deja-vu: new projects trying to fix the same problems that past projects have already tried to and failed. In terms of regulations, it seems like everyone is pulling in different, sometimes even opposite, directions instead of trying to align on a scalable solution. Blockchain organizations need to align in their work with regulators so they can be successful. If not, we will hardly see a solution for the antagonism between our industry and the IRS. With the current market conditions and the need for bigger industries, we do see a lot of consolidations taking place, and the previously highly segmented industry now is becoming significantly more condensed, and it is shifting to a more corporate approach. Crypto is a teenager with a huge potential trying to find its path. It’s up to the community and governments to help find it.
Crypto 101: The difference between hot and cold wallets
This year will be a special one in the history of cryptocurrencies because Ethereum will finally be switching to the proof-of-stake consensus mechanism. Criticism of the biggest smart contracts platform is often aimed at the vast energy consumption needed to keep the Ethereum blockchain running. Proof-of-work is the current mechanism used by Ethereum but that’s all about to change by the end of 2022.
But what’s the difference between proof-of-work and proof-of-stake, aside from their levels of energy consumption? Both use validators to secure transactions on the blockchain, and both have pros and cons. More importantly, there are fundamental differences between both consensus mechanisms that can have a decisive impact on their future. Learn more about the differences between the two mechanisms and much more in our Cryptocurrency 101 Beginner’s Guide. It’s the best way to kickstart your crypto research.