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BlackRock CEO Calls Bitcoin ‘Legit’
Traditional financial transactions are centralized, regulated and audited.
Blockchain technology and cryptocurrencies are, in effect, the opposite, as they rely on cryptographic algorithms and decentralized consensus mechanisms to secure transactions.
But despite the industry’s troubled youth, as blockchain and digital assets mature, major banks, asset managers, and payment processors are exploring and adopting blockchain technology to improve their services, increase transparency, and reduce costs.
Monday (July 15) Black rock CEO Larry Fink said CNBC: “My view five years ago was wrong. Here’s my view today: I believe in the opportunity today. I believe bitcoin is legitimate.”
If the chairman of the world’s largest asset manager espouses these views, then it’s clear that the growing integration of blockchain by traditional financial institutions could even hint at a growing acceptance that could lead to more robust and secure applications in the future.
Each week, PYMNTS summarizes top cryptocurrency and Web3 news, updates and announcements for our readers, tracking key data points along the cryptocurrency industry’s path to redefining the future of digital finance, payments and commerce.
Here’s what you need to know.
The regulatory landscape surrounding cryptocurrencies is changing
Adding to the complexity of blockchain adoption is the evolving regulatory environment for the industry.
Governments and regulators around the world are still trying to figure out how to effectively regulate this new asset class. Regulatory approaches vary widely across jurisdictions, creating a patchwork of rules and guidelines that companies must follow. In some regions, strict regulations aim to curb illicit activity and protect investors, while in others, more permissive approaches seek to foster innovation and growth.
However, as PYMNTS reportedRepublican Party leans on cryptocurrencies as political pillar for the upcoming 2024 election, and Donald Trump’s choice for vice president, J.D. Vance, has maintained a positive view of the digital asset sector throughout his political career and voted accordingly as a senator.
Elsewhere, the recent Supreme Court ruling Chevron Decision could have implications for the crypto space and the degree of power of federal regulatory agencies, including Stock Exchange Commission (If there is Commodity Futures Trading Commission (CFTC), they have to supervise it.
Cryptocurrency on-ramps continue to make institutional progress
As PYMNTS reported Monday, Visa collaborated with FiloX to promote the use of digital currencies in Europe and the UK The partnership includes the debut of Wirex Pay, a modular “Zero Knowledge (ZK)” payment chain to simplify traditional and cryptocurrency transactions, part of a broader effort by Wirex and Visa to develop projects that integrate blockchain technology into traditional financial systems.
Last Thursday (July 11), cryptocurrency exchange Monetary base introduced a centralized hub to monitor onchain activity. The Coinbase Wallet The web application allows users to explore, manage and interact with people, communities and businesses onchain, and is accessible on both desktop and mobile devices.
Also Thursday, PYMNTS unpacked as the competition between instant payment systems and cryptocurrencies, particularly stablecoins, highlights a broader shift toward faster, more efficient financial transactions. Each offers a unique approach to solving the inefficiencies of traditional banking systems, but their coexistence raises questions about the future of financial transactions.
And in another announcement that same Thursday, MasterCard and Canadian FinTech Clouds They said they have joined forces to help consumers convert digital assets into fiat currency.
“This new functionality provides a bridge between digital and traditional finance that can be spent across Mastercard’s global network,” the companies said in a statement. Press release“This off-ramping solution is directly integrated into Nuvei’s modular payment platform, offering a simple and secure user experience.”
According to the release, off-ramping allows consumers to convert a range of supported digital assets into fiat currency. From there, they can transfer the funds to their eligible Mastercard in near real time via Mastercard Move’s money movement capabilities, without having to go through third-party exchanges or money services companies.
to know more: Payments, sanctions and TradFi adoption define this week in Web3
Various market movements
Tuesday (July 16) was announced that the cryptocurrency exchange The Kraken it’s now a football team Tottenham Hotspurthe first official cryptocurrency and Web3 partner, aiming to increase fan engagement and raise awareness about cryptocurrencies.
At the same time, PYMNTS covered On Wednesday (July 17), we’ll talk about how cryptocurrency miners are scrambling to boost their revenue by partnering with artificial intelligence (AI) developers.
Cryptocurrency miners operate large, powerful processing sites and have struggled to turn a profit due to high energy costs and low mining rewards. AI companies require a lot of energy and processing infrastructure, both of which cryptocurrency miners provide, along with a better proposition than AI companies building their own high-performance computing data centers.
And, as Reuters says reported On Tuesday, Craig Wright, an Australian computer scientist who has long claimed to be the anonymous inventor of bitcoin, was investigated in Britain for alleged perjury after it was discovered that he repeatedly lied and falsified documents to support his false claims.
See more in: Bitcoin, Black rock, Blockchain, monetary base, Cryptocurrency Regulations, cryptocurrency, decentralized finance, digital goods, The Kraken, Larry Fink, legal, MasterCard, News, Clouds, PYMNTS News, regulations, Visa, Web3, FiloX