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The United States Treasury Department has published its financial risk assessment for nonfungible tokens (NFTs), providing regulators with crucial insights into potential risks and security concerns in the rapidly evolving NFT market. The Treasury identified several risks, including the possibility of terrorists financing operations through NFTs, state actors using NFTs to fund nuclear proliferation, money laundering, and threats to investors such as theft, rug pulls, and other fraudulent activities. However, the report repeatedly emphasized that most illicit activities occur through fiat transactions and are not unique to the digital asset space. "This risk assessment recognizes that most money laundering, terrorist financing, and proliferation financing by volume and value of transactions occurs in fiat currency or otherwise outside the digital asset ecosystem via more traditional methods," the report stressed. Despite the potential for abuse, the Treasury noted that many forms of...

PayPal has made a significant move in the cryptocurrency market by deploying its dollar-pegged stablecoin, PYUSD, on the Solana blockchain, introducing a new feature called "confidential transfers." This enhancement aims to provide greater privacy for users while ensuring regulatory transparency. On May 29, PayPal officially announced the deployment of PYUSD on Solana, expanding its availability beyond the Ethereum blockchain. The introduction of "confidential transfers" allows merchants to offer transactional confidentiality to their customers, concealing transaction amounts from public view while maintaining compliance with regulatory standards. Udi Wertheimer, a well-known Bitcoin advocate, noted the significance of this feature, highlighting that PayPal users would have access to a functionality similar to “confidential transactions,” a feature long discussed but not implemented by Bitcoin developers. "This sounds a lot like ‘confidential transactions,’ a feature Bitcoin devs...

El Salvador's Bitcoin landscape is set to experience a significant advancement with the launch of Chain Swaps by Boltz, an innovative product allowing seamless exchanges between Liquid Bitcoin (LBTC) and Bitcoin (BTC). This development marks another milestone in the country's leadership in Bitcoin innovation and development. The Bitcoin Office of El Salvador expressed enthusiasm over Boltz's latest "Bitcoin-fintech innovation," highlighting the country's pioneering role during the "Bitcoin era." Boltz, through its official Twitter account, announced Chain Swaps, a feature that provides a noncustodial solution for direct swaps between Bitcoin’s mainchain and the liquid sidechain. This innovation promises immediate refunds and lower fees compared to existing methods, presenting a more efficient and cost-effective way for users to manage their Bitcoin transactions. Boltz positions itself as a bridge between different Bitcoin layers, aiming to become the go-to platform for such swaps....

The Bank for International Settlements (BIS) sees significant potential for the widespread adoption of generative artificial intelligence (AI), an area of growing interest among central banks. In a recent survey of 32 central bank members, the BIS found that over two-thirds (71%) are already using generative AI tools, while 26% plan to incorporate them within the next one to two years. The BIS, an international financial institution comprising 63 central banks and monetary authorities, anticipates that all of its members will eventually adopt generative AI to bolster internal cybersecurity measures. Central banks that have already implemented these tools report enhanced effectiveness in detecting cyber threats compared to traditional methods. Generative AI has notably improved response times to cyberattacks and aided in identifying suspicious trends and anomalies. Despite these benefits, central banks are concerned about the costs associated with implementing generative AI tools. The...

Nick van Eck, CEO of the stablecoin issuer Agora, has criticized yield-bearing stablecoins, claiming they do not function as true stablecoins or money. Van Eck highlighted that stablecoins providing passive income to holders stray from their intended purpose, leading to decreased utility and acceptance in the market. Van Eck explained the evolution of stablecoins, starting with Stablecoin 1.0, which includes early centralized digital dollars like Tether’s USDT. He noted that while USDT remains a prime example of the first-generation stablecoins, many subsequent stablecoins have emerged following its model. He identified two major issues with yield-bearing stablecoins: reduced utility and acceptance, and a lack of margin for development. Van Eck pointed out that liquidity issues plague the yield-bearing stablecoin market, making them less effective as a financial tool. Additionally, these stablecoins are often deemed securities in jurisdictions like the United States, restricting...

French startup Ledger has begun shipping its highly anticipated Ledger Stax devices, nearly 18 months after their initial announcement. The new hardware wallet, designed in collaboration with Tony Fadell, one of the key figures behind the iPod, features a cutting-edge E-Ink display. The E-Ink technology, similar to that used in e-book readers like the Amazon Kindle, provides a clear display in daylight while consuming minimal power. After fulfilling all pre-orders, Ledger plans to list the Ledger Stax on its website once sufficient stock becomes available. The extended delay in shipping the Ledger Stax can be attributed to significant challenges in producing the curved E-Ink display at scale. This innovative display is larger and includes a secure touch screen that interacts directly with the device’s secure element, enhancing user-friendliness compared to the arrow buttons on other Ledger devices. While the Nano S Plus requires a USB-C cable, both the Nano X and the Stax include a...

Five-time Ballon d’Or winner Cristiano Ronaldo is set to delight fans with his fourth NFT collection on the Binance NFT Marketplace, despite facing a $1 billion class-action lawsuit for allegedly promoting unregistered securities. Ronaldo's latest NFT collection will launch on May 29, 2024, exclusively on Binance, celebrating the football star's legendary career by highlighting key moments and iconic goals. The collection aims to offer fans and NFT enthusiasts a unique opportunity to relive Ronaldo's remarkable journey digitally. In a blog post, Ronaldo shared his excitement, stating, “My football journey has seen me travel around the world, and I’ve been honored to play for some of the most prestigious clubs out there. Now it’s your turn to join me on that journey too.” While specific details such as the total number of NFTs remain undisclosed, the announcement confirmed that the price for each "normal NFT" will be uniform, with "Super Rare" and "Super Super Rare" NFTs varying in...

Hong Kong is witnessing a series of cryptocurrency platforms retreat from the city, despite its efforts to establish itself as a regional crypto hub. The latest to withdraw its application for a virtual-asset trading platform license (VATP) is OKX, following similar moves by Gate.HK and Huobi. Last week, OKX announced it would be pulling its application for a digital asset license. "After careful consideration of our business strategy, we've decided to withdraw OKX HK's VASP license application at this time," the exchange stated. OKX, the second-largest crypto exchange by volume, will cease providing centralized virtual asset trading in Hong Kong by May 31. Users will be able to withdraw their funds after this date. Similarly, Gate.HK, the Hong Kong arm of Gate.io, also announced the withdrawal of its VATP application. "We will be undergoing a major overhaul of our current platform, along with potential development of new services and products in the near future," Gate.HK said. The...

The CBDC Anti-Surveillance State Act passed the U.S. House of Representatives on May 23, following a largely partisan vote of 216-192. The bill, which seeks to amend the Federal Reserve Act of 1913, aims to prohibit Federal Reserve banks from offering certain products or services directly to individuals and using central bank digital currency (CBDC) for monetary policy. Republican supporters of the bill voiced concerns about the potential abuse of a CBDC, while Democrats focused on the importance of innovation, the international competitiveness of the dollar, and criticized the bill's drafting. Financial Services Committee Subcommittee on Digital Assets Chairman French Hill emphasized the risks of governmental overreach, stating, “We live in a world where the government can abuse the tools it has.” Representative Mike Flood challenged the audience to consider the dangers of political control over a CBDC, while Warren Davidson likened Project Hamilton to China’s digital yuan, calling...