Stay in the loop with our weekly crypto digest as we get you up to speed on the hottest trends and events in the crypto space.
Here’s what happened in crypto this week:
Ripple CEO Brad Garlinghouse On 60 Minutes
Ripple CEO Brad Garlinghouse appeared in an interview on 60 Minutes, which aired on December 8th, 2024. In the interview, he discussed the company’s ongoing legal fight with the US Securities and Exchange Commission (SEC).
Garlinghouse criticized the agency’s approach, stating that it was a key reason why Ripple and two other companies formed the industry super PAC, FairShake, to fight back against what he described as a “war on crypto.” He suggested that FairShake might not have existed if the SEC had a different chairman than Gary Gensler.
Telegram CEO Pavel Durov Appears In Paris Court For First Time
Telegram CEO Pavel Durov appeared before a Paris judge for his first formal questioning as part of a criminal investigation into the platform’s alleged facilitation of illegal activities. The French justice system is investigating whether Telegram is complicit in criminal activities due to its alleged failure to address the spread of illicit content.
In late August 2024, Durov was briefly detained and released after posting a $6 million bail. However, as the legal process continues, he has been barred from leaving France until at least March 2025. If convicted, Durov could face up to 10 years in prison and a fine of €500,000 ($550,000).
Amazon Shareholders Urge Board To Consider Adding Bitcoin To Its Treasury
A group of Amazon shareholders is pushing for the company to allocate a minimum of 5% of its assets to Bitcoin through a proposal submitted by the National Center for Public Policy Research (NCPPR), a free-market principles advocacy think tank.
The proposal, shared by Tim Kotzman, recommends adding Bitcoin to Amazon’s treasury as a hedge against inflation and asset diversification strategy. It cites Bitcoin’s superior performance compared to traditional assets like corporate bonds, pointing to existing Bitcoin investments by companies such as MicroStrategy and Tesla.
El Salvador To Adjust Bitcoin Policy For $1.3 Billion IMF Loan Agreement
According to Financial Times, El Salvador is expected to finalize a $1.3 billion loan agreement with the International Monetary Fund (IMF) in two to three weeks. This deal aims to support the country’s reforms regarding adopting Bitcoin as legal tender and reducing its fiscal deficit.
The agreement is anticipated to pave the way for additional financial support, with insiders suggesting that El Salvador could secure an additional $1 billion in loans from the World Bank and the Inter-American Development Bank over the coming years. This financial backing is crucial for the Central American nation as it navigates the economic challenges associated with its pioneering move to integrate Bitcoin into its financial system.
Ripple Secures NYDFS Approval For RLUSD Stablecoin
Ripple CEO Brad Garlinghouse announced the firm has secured approval from the New York State Department of Financial Services (NYDFS) to launch its Ripple USD (RLUSD) stablecoin.
Ripple introduced RLUSD in June 2024, a 1:1 US dollar-backed stablecoin aiming to provide transparency and stability on the XRP Ledger (XRPL) and Ethereum. The company plans to use RLUSD alongside XRP as part of its strategy to grow its global remittance business.
Microsoft Shareholders Vote Against Proposal To Invest In Bitcoin
Microsoft shareholders have voted down a proposal that would’ve seen the tech giant explore investing in Bitcoin to diversify its assets.
Billionaire Michael Saylor, who has invested heavily in Bitcoin through his firm MicroStrategy, endorsed the proposal and was a prominent advocate for it.
However, Microsoft’s board of directors publicly opposed the proposal, which it said was unnecessary because the company was already considering various investment options.
Tether’s USDT Recognized As Acceptable Virtual Asset In Abu Dhabi Global Market
Tether has announced that the Abu Dhabi Global Market has recognized USDT as an acceptable virtual asset.
This development is expected to enhance the adoption and utility of USDT further, providing users in the region with more options for digital transactions and financial activities. As stablecoins continue to gain traction, Tether’s recognition in key financial markets like Abu Dhabi highlights the increasing acceptance and legitimacy of digital currencies in mainstream finance.
Crypto And Quantum Computing FUD
Quantum computers could break the cryptographic algorithms that secure many cryptocurrencies. This can make people worried and uncertain about investing in crypto because they do not fully understand what’s happening.
Recently, Google announced its latest quantum computing chip, ‘Willow,’ and claims that the processor performed a standard benchmark computation in under five minutes, which would otherwise take 1025 years on a conventional supercomputer.
However, the biggest threat to cryptocurrencies like Bitcoin from quantum computing is still mostly theoretical. The Bitcoin development community remains vigilant, constantly working on new ways to protect the network against quantum challenges.
US CPI Inflation Rose To 2.7% In November, Within Expectations
Consumer price index data showed that progress in lowering core inflation remained stuck in November, increasing the chances of a hawkish shift at next week’s Federal Reserve meeting. Here are the numbers:
Data: 2.7% YoY, 0.3% MoM
Forecasted: 2.7% YoY, 0.3% MoM
Last Month: 2.6% YoY, 0.2% MoM
However, at the time of writing, markets were pricing in 97.7% odds of a quarter-point rate cut at the December 18th Federal Open Market Committee (FOMC) meeting. That would leave the Federal Reserve’s policy rate at 4.25% to 4.5%.
Markets have already been pricing lower odds for further rate cuts in 2025. Currently, markets are pricing in a 3.8% federal funds rate for the end of 2025. That implies a higher likelihood of two quarter-point rate cuts next year than three cuts.
Final Thoughts
So that’s it for this week!
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Have a fantastic week ahead!
