This week’s top stories

Highlights: Historic Day for Cryptocurrencies as Ethereum to Proof-of-Stake Merger Takes Place

Ethereum’s long-awaited conversion to a proof-of-stake (PoS) consensus algorithm, dubbed “the Merger,” took place at 6:42:42 AM. UTC on September 15th. The move is a key part of an overall multi-year transition for the Ethereum blockchain. “It starts a chain reaction of change,” Eli Ben-Sasson, co-founder and president of StarkWare, told Cointelegraph about the merger. Merge will reportedly help the Ethereum blockchain reduce energy consumption by around 99%. During a preview party ahead of the network’s shift from proof-of-work (PoW) to PoS, Ethereum co-founder Vitalik Buterin said:[It] it was obviously a dream for the Ethereum ecosystem from the beginning. We started our proof-of-stake research with this January 2014 Slosher blog post. A party known as ETHW Core disagrees with the transition, however, aiming to maintain a PoW version of Ethereum via a fork within 24 hours of the merger. Multiple crypto exchanges are planning to list the related forked chain asset, ETHPoW (ETHW).

Abra Announces Plans for US Bank to Back Digital Assets

Digital asset trading platform Abra has announced that it is establishing two financial institutions: a United States bank and an international crypto business. Aimed to open in 2023, the US state-chartered bank will operate under the name Abra Bank and will be compatible with digital assets in a form similar to money in traditional banks, or so it seems. In plans beyond the US border, a branch known as Abra International is also in the plans. The company is looking to check all the right boxes for Abra Bank and Abra International in terms of regulation.

The Norwegian central bank is using Ethereum to create a national digital currency

Norway’s central bank, Norges Bank, is using the structure of the Ethereum blockchain to build its central bank digital currency (CBDC). The bank is still in the early stages of building its CBDC, but has released the open source code for the asset’s testnet through a sandbox. Many countries have expressed interest or started working on a CBDC, although the asset does not necessarily need to be built on the blockchain. The Bahamas and Nigeria already have live CBDCs.

The SEC will deal with the growing applications of cryptocurrency issuers with specialized offices

Over the remainder of 2022, the US Securities and Exchange Commission (SEC) will add a pair of new offices, one of which will aid in its regulatory pursuits of cryptocurrencies. The Office of Crypto Assets, housed under the Department of Economic Affairs’ Disclosure Review Program, will review digital asset filings. Such crypto issuer statements have increased, likely given the SEC’s increased activity in overwatching the crypto industry. This week, the US government also unveiled a cross-cutting crypto regulatory framework, with nine government departments involved in creating the framework.

China’s regulatory regime for cryptocurrencies remains unclear. “To date, crypto ownership in China has not been banned,” Lesperance & Associates founder David Lesperance told Cointelegraph. In fact, cryptocurrency holders in the country are protected by law for matters related to theft, embezzlement or breach of loan agreement. “It does not make it legal to trade this kind of property, as the government has specifically banned crypto exchanges in China,” he added.

Winners and Losers

At the end of the week, Bitcoin (BTC) is in $19,462Ether (ETH) in the $1,425 and XRP in the $0.33. The total market capitalization is at $949.92 billion, according to CoinMarketCap. Among the top 100 cryptocurrencies, the top three altcoin gainers of the week are Celsius (CEL) to 12.12%, Union (COMP) at 10.97% and Kyber Network Crystal v2 (KNC) to 4.31%. The top three altcoin losers of the week are Terra (MOON) at -49.07%, TerraClassicUSD (USTC) at -29.01% and Terra Classic (FAR AWAY) to -26.47%. For more information on crypto prices, be sure to read Cointelegraph’s market analysis.

The most memorable quotes

“I think the market, not just the crypto markets but the stock market, is clinging to a hope that someday the Federal Reserve will magically say, ‘Well, I think this is going to be the last rate hike or two.’ Marcel Pechmanmarket analyst and partner at Cointelegraph “Musical NFTs are an anti-genre. We’re seeing a lot more diversity and creative freedom in NFTs – as if artists are finally free to create for the sake of creating and not to fit the algorithms.” Adrian Sternco-founder and CEO of Reveel Technology “DeFi insurance is a sleeping giant. With less than 1% of all cryptocurrencies covered and less than 3% of DeFi, there is a huge market opportunity yet to be realized.” And Thomsonchief marketing officer for InsurAce “If enough people get behind a fork for whatever reason, we think the free market will decide what should live and what shouldn’t.” Bradley Dukeco-managing director of ETC Group “It will be an important sign of success when the first [Ethereum] The block is produced by proof of stake. But this is like completing the launch of a rocket – we still have the rest of the journey ahead of us, which will pose its own challenges.” Eli Ben-Sassonco-founder and chairman of StarkWare “Web3 seeks to safeguard the legitimate claims of individuals to be in full control of their data and to put privacy at the forefront of their online lives.” Úrsula O’Kuinghttonsdirector of communications and partnerships at the Web3 Foundation

Forecast of the week

Bitcoin Price Threatens $19.6K As Ray Dalio Predicts 30% Stock Crash

Bitcoin rose completely above $22,000 this week, but then fell back below the $20,000 mark in the following days, according to Cointelegraph’s BTC Price Index. Billionaire investor and hedge fund manager Ray Dalio expects traditional markets to face downward pressure due to rising inflation and rising interest rates. Crypto assets have traded alongside traditional markets recently. “I estimate that an increase in interest rates from where they are to around 4.5 percent will have about a 20 percent negative impact on stock prices (on average, though more for longer-dated assets and less for shorter-dated assets ) based on the discounted present value result and about a 10 percent negative impact from declining earnings,” Dalio said in a Sept. 13 blog post.

FUD of the week

Thailand’s SEC plans to ban cryptocurrency lending in the country

Thailand’s Securities and Exchange Commission wants to ban “digital asset entrepreneurs” from providing cryptocurrency lending and staking services to customers, according to a statement from the government agency on September 15. The notice seeks public comment on a possible ban, with October 17 as the deadline for consideration of the matter.

South Korea issues arrest warrant for Terra Do Kwon founder

Authorities in South Korea are reportedly on the lookout for six people, including Terraform Labs co-founder Do Kwon, although Kwon and the others are currently in Singapore. According to information, an arrest warrant has been issued for the six people by a court in Seoul. Kwon allegedly violated capital markets law in South Korea, according to the prosecutor. Terraform Labs leads the Luna crypto project, which suffered a dramatic collapse earlier in 2022. Further news saw prosecutors trying to revoke the passports of the six, who were all involved in the Luna crypto project. In addition, prosecutors are seeking an international arrest warrant for the six.

Stone Ridge board approves plan to ‘liquidate and dissolve’ Bitcoin fund

Stone Ridge’s Bitcoin Strategy Fund will close up shop after October 3rd, with liquidation expected around October 21st. On Sept. 9, Stone Ridge Trust’s board voted to terminate the fund, according to a US SEC filing this week. The fund, in part, uses futures products to give investors exposure to Bitcoin.

The best features of Cointelegraph

Ethereum Eats the World — ‘You Only Need an Internet’

“Is There a Need for More than One Internet? And we know the answer is “Hell no.”

Guide to Real-Life Crypto OGs You’d Meet at a Party (Part 2)

“I think the OGs are hard-core loyalists who went all-in when no one else was paying attention to the space.”

Boom and Bust: How Do Defi Protocols Handle the Bear Market?

A look at how DeFi protocols fared during the recent bear market and the importance of continuing to build during the market downturn.

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