Kiffmeister’s #Fintech Daily Digest (20220511)

Bitcoin Moves in Lockstep With Stocks as ‘Digital Gold’ Case Collapses

According to data from Glassnode, an estimated 40% of Bitcoin holders are in the red, as its price plunged briefly below $30,000 this week, down more than 50% from its all-time high in 2021. Most strikingly for those who have championed Bitcoin as an asset uncorrelated with traditional investments, the crypto-asset has moved practically in tandem with the broader stock market sell-off. Bitcoin’s price has played follow-the-leader with growth stocks since at least January, but the correlation has tightened in recent weeks as the bear market has intensified. [Read more]

Terra’s stablecoin does its own 2008 crisis — UST crashes and takes Bitcoin with it

David Gerard has provided some excellent analysis of the continuing crash of the TerraUSD (UST) algorithmic stablecoin and the resulting fallout on broader crypto-asset markets. TerraUSD tumbled to as low as $0.30 on May 11, on fears of a “death spiral” in an asset that is supposed to be pegged to the U.S. dollar. Luna, the crypto-asset intimately tied to TerraUSD, was down almost 90% on the day as confidence in the network collapsed, and Bitcoin and Avalanche (AVAX) are also paying the price for being collateral assets that maintain TerraUSD’s peg. [Read more]

ASX delays Chess cutover to beyond April 2023

The Australian Securities Exchange (ASX) has confirmed a further delay to the cutover of its blockchain-based post-trade network, which was initially set for go-live in April 2021. The ASX has been working with DLT specialist Digital Asset since 2017 to replace its CHESS post-trade settlement system with a blockchain-based platform. The Exchange in March last year confirmed a one-year delay to the roll out of the system to April 2023, citing the impact of the COVID crisis on market volatility and user demands for more testing and additional functionality. ASX now confirms that April 2023 for go-live is no longer viable due to a delay to the remaining delivery of application software, which no longer gives ASX and CHESS users the time allocated to complete their testing and other readiness activities before April 2023. [Read more]

Kiwi company Wych develops QR code donation tech for The Salvation Army

Wych have designed a donation model based on QR code technology. With the public already using QR codes, it provided a sensible solution to make it easy for generous kiwis to scan and donate. The generation of Wych’s localized codes will allow 80 different areas around New Zealand to raise support through card based donations and the money will directly impact the community they are in. This is not an entirely new idea. I have seen it in operation by panhandlers in China on the AliPay and WeChat Pay platforms. [Read more]

Upcoming events I’m affiliated with:

Satoshi Capital Advisors is hosting a virtual workshop on wholesale CBDC, stablecoins and digital capital markets on May 24 (starting at 08:00 EST). [Register here with the passcode: CBDC]

The CBDC Think Tank is hosting a CBDC Papers Lecture Series on June 17 and 24, each session starting at 7am EST and running for 3 hours. [View list of papers and register here]