Japan is the backing XRP needed

Japan’s regulatory body, FSA, has pointed out that under Japanese law XRP is not considered a security, unlike in the United States,

Japan’s top securities watchdog, the FSA, claims XRP is not a security given that the token does not meet the definition of a security under Japanese law. XRP finally wins one?

DeFi market capitalisation beats XRP
XRP is not a security!
It is worth remembering that the US SEC sued Ripple, the crypto firm behind XRP. The regulator noted that the company “engaged in this illegal securities offering from 2013 to the present” in which it “was able to raise at least $1.38 billion by selling XRP” without being registered.

Accordingly, the US SEC notes that XRP is a security and therefore must be registered under that category, something Ripple did not do.

But unlike US regulators, Japan ruled that XRP does not meet the definition of a security under Japanese law.

“The FSA considers XRP as a cryptocurrency based on the definitions of the Payment Services Law,” the Japanese regulator told The Block.

However, the fact that Japan considers XRP to be a cryptocurrency and not a security has nothing to do with the allegation by the SEC against Ripple. Likewise, the US classification of XRP is unlikely to affect how Japan views the crypto.

New lawsuit! Ripple’s (XRP) ship is doing nothing but sinking.
What will happen to Ripple?
So, although many would like it to be different, Japan’s categorisation of XRP does not eliminate Ripple’s problems. Clearly in a different scenario where Japan also considered crypto as a security, the problem would be much greater.

Thus, Ripple’s future is quite uncertain. As we have previously reported, many crypto exchanges have stopped trading XRP.

However, over the years, Ripple has managed to build a loyal XRP user base. Still, demand has managed to raise concerns.

According to CoinDesk, Okurisan, a Japanese XRP investor, said that “many people are sad about the SEC problem these days… I am very worried”. But, nevertheless, the Japanese investor believes that the crypto will be able to recover.

Japan has become a key country for Ripple and XRP, so much so that it is among the countries Ripple has considered moving to.

Translated with www.DeepL.com/Translator (free version)

The connection between Bitcoin and digital yuan

There is a connection between Bitcoin and digital yuan. Both are non-physical currencies, digital in fact, and both are attracting attention for multiple reasons.

Bitcoin in the last month has seen its price soar, peaking at $34,000 (at the time of this writing). The question is, will the digital yuan be able to compete with Bitcoin? The answer, based on what little is known about digital yuan today is: no.

Nevertheless, there seems to be a more direct link between yuan (the physical one) and Bitcoin. In fact, China’s official currency has been increasingly depreciating. This may have prompted many investors to seek refuge in Bitcoin Legacy which has since risen in value. According to an old report by Bloomberg, this was also helped by a ruling by a Chinese court that admitted that Bitcoin has a legal value, linked to its being a scarce commodity.

Will the digital version of the yuan be able to affect the price of Bitcoin? The two entities are very different in reality to compete with each other. Chandler Guo, a Bitcoin mining pioneer in China, explained his point of view to the BBC: China’s digital currency, also known as DCEP, will be hugely successful because it can also be used by 39 million Chinese living outside of China. If 39 million people outside China start using the digital yuan anyway, it is bound to become a global currency. And a global currency will compete with the dollar and all those electronic payment systems that point towards the cross-border sector.

What digital yuan and Bitcoin have in common

But what do these two currencies have in common anyway? The blockchain technology, which is the basis of both. And here the similarities can be stopped.

In fact, the Chinese DCEP cannot even be considered a real cryptocurrency because the core of cryptocurrencies is decentralization. Instead, the DCEP will be issued by the most centralized entity there is: the state, and to be precise a state that has 2 billion inhabitants. This makes it potentially stronger than Bitcoin and any other state digital currency, because it will certainly have a more widespread diffusion. Unlike Bitcoin it will be a real currency and not also a store of value, as BTC is becoming. Moreover, it won’t suffer from the volatility typical of the queen of the cryptos, being in value completely analogous to its paper version.

It will be a coincidence that just as the tests for the digital yuan are underway, Bitcoin is growing in price. Some theses argue that the advent of a highly centralized currency is another reason that is convincing the Chinese to migrate to Bitcoin, to shelter (to the extent possible) their transactions from the government’s eye and at the same time create a source of investment other than the national currency.

It won’t take long for this hypothesis to be confirmed. 2021 will likely be the year when the digital yuan sees the light of day. Only then will it be possible to see its reflection on the price and use of Bitcoin in China. Last but not least, the launch of China’s digital currency will probably definitively trigger the rush to digital state currencies by the world’s other strong economies as well, with the United States and Europe leading the way.

City in Spain launched its own digital currency

The Spanish city of Lebrija in the province of Seville launched a digital currency Elio to stimulate the economy during the COVID-19 pandemic, writes Diario de Sevilla.

The virtual asset is pegged to the euro at a ratio of 1:1. Under the program, an amount of €20 to €200 in Elio will be received by 593 residents of Lebrija, and €400 each by small and medium-sized businesses.

The digital asset will only be accepted in local stores. Elio can be used to pay for half the cost of a product or service and the rest in fiat. Recipients must use the funds by March 31, 2021.

In January 2020, the Turkish city of Konya began developing its own Crypto Wealth prototype as part of the City Coin project.

Recall that in August, the Bolivarian Council of Mayors of Venezuela allowed citizens to pay taxes in the national digital currency El Petro.

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Verpackte Bitcoin erreicht 1 Milliarde Dollar nach einem 900%igen Wachstum in zwei Monaten

In den letzten zwei Monaten hat die Manie von DeFi dazu geführt, dass BTC im Rahmen des Wrapped-Bitcoin-Protokolls für 900 Millionen Dollar als Alibi für BTC verwendet wurde.

Der jüngste Aufwärtstrend in der DeFi-Branche hat den Gesamtwert (TVL) von Wrapped Bitcoin (WBTC), dem populären Bitcoin-Tokenisierungsprotokoll (BTC), um 900% auf über 1 Milliarde Dollar ansteigen lassen.

Der Meilenstein kommt vier Wochen nachdem die TVL aller Bitcoin, die auf Ethereum (ETH) tokenisiert wurden, zum ersten Mal $1 Milliarde überschritten hat. Die aktuelle LTVL von in Tokens konvertierten Bitcoin beträgt fast 1,5 Milliarden Dollar, wovon der WBTC etwa ein Drittel ausmacht.

Wrapped Bitcoin ist heute das fünftgrößte DeFi-Protokoll in Bezug auf TVL und macht fast 10% des gesamten gebundenen Kapitals in der Branche aus. Die TVL des WBTC überschritt um den 8. Juli zum ersten Mal 100 Millionen Dollar.

12-Monats-Chart von Wrapped Bitcoin’s TVL

Wrapped Bitcoin ermöglicht es Anwendern, BTC im Tausch gegen WBTC zu blockieren, ein in Bitcoin verankertes ERC-20-Token, mit dem BTC-Eigentümer auf das vielfältige Ökosystem der dezentralen Finanzierung (DeFi) auf der Basis von Ethereum zugreifen können, indem sie den Vermögenswert als Sicherheit verwenden.

In der ersten Hälfte des Jahres 2020 stieg der LTV des WBTC von 4 Millionen USD auf 36 Millionen USD, was den extremen Nachfrageschub innerhalb des DeFi-Sektors im dritten Quartal widerspiegelt.

Die DeFi-Blase half auch anderen Bitcoin-Tokenisierungsprotokollen. Seit ihrer Einführung Ende Mai hat die VM (REM) von Ren mehr als 300 Millionen Dollar in BTC gebunden.
Im gleichen Zeitraum stieg der Preis für REN um rund 180%, wobei der Anstieg in den 24 Stunden nach der Notierung auf Coinbase 14% betrug.

Allerdings waren nicht alle Protokolle zur Alimentierung ein dauerhafter Erfolg. Kürzlich kehrte der LTV von PieDAO nach einem kurzen Höhepunkt im Juli im Mai wieder auf ein Niveau unter 1 Million Dollar zurück.

Keep Network, ein von A16z unterstütztes Projekt, versäumte es ebenfalls, die jüngste DeFi-Welle auszunutzen. In den letzten Tagen wurde das diskutierte tBTC-Protokoll kritisiert, weil es die Liquidierung von Ether aller Benutzer einer Gruppe vorsieht, wenn nur einer der Unterzeichner offline geht.