How Bitcoin is giving birth to central bank digital currencies

Bitcoin, the king of cryptocurrencies, is the reason behind the rise of central bank digital currencies. Yes, the pioneer of decentralized finance is prompting many central banks to start researching on cryptocurrencies and bring an element of centralization to the digital currencies.

Many banks across the world, both private and government, have either launched or are in the process of launching their very own digital currencies. From Chinese digital Yuan to Facebook’s Libra, the rise of centralized digital currencies is threatening the very ethos of decentralized finance. As per a new report, Bitcoin is the foremost reason why many banks are taking the cryptocurrency route.

Bitcoin is prompting research into CBDCs

Most central bank digital currencies are currently in muddy waters. Their jurisdiction, legality, practical-use cases, and implications are unclear. So far, these are just attempts by central banks to enter the decentralized realm, albeit in a centralized manner. For example, Facebook’s Libra is merely trying to project itself as a global currency that is borderless and helps access financial services via Facebook. No wonder it carries behind it the power of Facebook.

Compared to digital currencies, Bitcoin is far ahead in terms of acceptance and real-world implications. It is not only rising in terms of value but also as a mainstream financial tool. BTC has the largest market cap among cryptocurrencies. Now, many investors compare Bitcoin with a long-term store of value, especially considering its performance during COVID-19 market mayhem.

Central banks and governments are worried that Bitcoin can become a reserve asset or safe-haven asset that may challenge fiat currencies. BTC is emerging as a tool to ward off the ills surrounding fiat currencies. Thus, they are building their very own central bank digital currencies.

Central bank digital currencies are still a thought

MIT Digital Currency Initiative report states that financial realm has a chance to build a truly digital asset with inherent value. Bitcoin started a trend which many banks today follow. Bitcoin accelerated the concept of digital currency.

Now, governments have the opportunity to shape a new cryptocurrency in their own imagination. Of course, central banks and governments can bring in many stakeholders to back their initiative.

Whiteblock and Splunk join hands for Ethereum data analytics

Whiteblock and Splunk have partnered to deliver Ethereum data analytics in real-time. Whiteblock Genesis is a Web3 space development platform, and Splunk is a machine learning firm specializing in data analytics. The collaboration will see them working together to churn out innovative Ethereum-based data analysis to benefit the decentralized community.

The integration will provide Genesis users with much more profound insights. They will be able to extract in-depth insights of Ethereum data on their Genesis testnet and explore their Splunk data extensively.

Whiteblock and Splunk to churn out innovative data analytics

San Francisco based Splunk is a well-known name in the machine learning industry. It delivers innovative data analytics solutions for extensive volume data processing. Their ‘Data to Everything’ platform is renowned to provide bulk data processing solutions to the general masses. The real-time data insights are ideal for organizations of any size and scope.

The ‘Splunk Connect for Ethereum’ will be integrated with the Whiteblock Genesis platform. The resultant platform will help deliver Web3 space solutions for shared vision insights and goals. Users can create and operate output connections and blockchain nodes using a command-line interface in Splunk ethlogger. The same module can be used for granular control management and environment variables. Furthermore, users are given simple ethlogger configuration controls identical to Whiteblock’s Genesis.

Whiteblock and Splunk collaboration to also help expand the user base

Whiteblock and Splunk have joined hands to not only boost technical progress. They also want to expand their user base by delivering a coherent solution that benefits users of both these platforms. Genesis users can now access their Splunk data from within the Genesis platform and get more meaningful insights.

Realm time data testing can be done quickly using both Genesis and Splunk platforms. Whiteblock team is also working towards generating Splunk data logs within the Genesis platform itself. Both teams are actively promoting the newfound partnership solution to expand their user base.

Circle USDC stablecoin collateral support to solve Maker liquidity crunch

Newly added Circle USDC stablecoin collateral support aims to bring some relief to the flailing Maker Protocol. Maker team said USDC stablecoin will now act as a collateral asset for borrowing purposes on the protocol. The move is been seen as a means to boost liquidity amidst the ongoing crypto market turmoil.

As per the official blog post, the decision has been taken by voting amongst MKR token holders. The voters overwhelmingly voted in favor of the USDC stablecoin. Now, users can create DAI stablecoin and also operate Maker Vaults using the newly added coin. Maker Platform uses two other coins for the same purpose, namely Ether and the ‘Basic Attention Token’ of Brave.

Circle USDC stablecoin collateral support will deliver much-needed relief

The Maker community voters were given complete information about the stablecoin, including the advantages and disadvantages. The coin is centralized in nature since it is regulated by a centralized authority and subject to anti-money laundering regulations and ‘Know-your-Customer’ guidelines. Furthermore, the participants held deliberate discussions on the impact of introducing a stablecoin  to the Maker ecosystem. They discussed its effects on individual users beside the entire DeFi community.

The current liquidity crisis and stability concerns affecting the Maker Protocol were also taken into due consideration. The Circle USDC stablecoin collateral support aims to solve a much deeper crisis as well. Miners using Circle USDC to get DAI will be subject to a 20 percent annual stability fee. Also, a 13 percent liquidation penalty and a 125 percent collateralization ratio are also applicable to these miners.

By adding Circle USDC stablecoin collateral support, MakerDAO
protocol will look to expand its DAI loan market. Recently, both ETH and BAT
experienced extreme volatility, which led to the failure of collateral sale and
ultimately flooded the market with DAI. Subsequently, the $4 million surpluses
had to be mopped up via an MKR auction. The Maker team effectively avoided a shut
down by conducting the auction.