Voyager Digital, the crypto execution broker, has just filed for bankruptcy.
Add this failure to the list of cascading failures in the digital space.
Unfortunately, with no regulation and capital buffers, more dominoes will fall, and with little recourse for the other players.
A systemic effect is currently unfolding in the digital space. Stable coins have been hit, then coins, then lenders, then hedge funds and now crypto exchanges. Unfortunately, the lack of regulation, of regulator, of risk constraint, or even capital buffer will make the fall even more painful.
Why isn’t Bitcoin/Blockchain Russia’s salvation from sanctions?
Many people are posting that Bitcoin and blockchain are somehow a solution for sanctions.
Below are reasons for why that line of thinking is not realistic.
An interesting British documentary about how money mules are recruited by larger money launderers, and how easy it is to lure young people into crime for a few grands.
Nigeria had banned cryptocurrencies earlier this year (to little effect). It has now introduced its CBDC, the eNaira. Currency and government stability are the likely reasons. Other countries will follow.
There are structural issues in both the crypto and regulated worlds. But how deep and how frequent are they? Here is a review of Cryptos’ pros and cons.
A few interesting comments from Fed officials about the likelihood of a US CBDC (a Central Bank Digital Currency would be fungible into our daily US dollar).
You remember our cryptocrook? Quant WizKid, market-neutral hedge fund, Cryptocurrency arbitrage great returns, $90m AUM… Except that it was a Ponzi.
His sentence just came out: 7½ years of jail. Here are the explanation & the context.
Not all central bankers and diplomats have a good opinion of cryptocurrencies.
They are assessing their costs & benefits through articles in prime newspapers.
One diplomat/economist just called for their outright ban.
Central Bank Digital Currencies are very different from cryptocurrencies. Cryptos will be used by unsavory countries. CBDCs will be used by democracies and bad actors alike.
Here are examples of both types, as well as the challenges the Federal Reserve faces in creating a digital dollar.
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