Self-Proclaimed Satoshi Craig Wright Calls DeFi And Stablecoins “Complete Scams”
Self-Proclaimed Satoshi Craig Wright Calls DeFi And Stablecoins “Complete Scams”

Self-proclaimed Satoshi, Craig Wright, is back in the headlines, and this time, he’s taking a jab at the increasingly popular DeFi schemes and Stablecoins that have taken the crypto market by storm.

During the Reimagine 2020 virtual conference hosted by Patrick MacLain on Saturday, Craig had a few tough words to describe DeFi schemes and Stablecoins.

“Illegal, Unregistered, And Unlicensed”

Speaking to the host, Craig said DeFi schemes are complete scams run by people who only want to take other people’s money. He went on to say that the schemes are illegal, making them unregistered and therefore unlicensed. In a more apparent approach, Craig claimed that DeFi creators are basically con men. He even dared them to sue him.

The crypto market is currently experiencing a boom of DeFi schemes like Chainlink that seem to be doing great. Yearn Finance (YFI), another DeFi token, is currently trading at prices much higher than Bitcoin. At the time of this writing, YFI is valued at upwards of $38,600. 

“Where Is The Damn Backing?”

Going after Stablecoins, Craig went on to claim that the coins have no backing. However, this statement seems to put all Stablecoins in one basket, which shouldn’t be the case.

Stablecoins like the USD Coin have publicly shared audits of their reserves – unlike others like Tether (USDT) that haven’t. That makes Craig’s insinuated claim that all Stablecoins have no backing false.

No Decentralized Exchanges

Craig Wright is known for his numerous controversial issues in the crypto industry. Asked to share his thoughts about decentralized exchanges, he said they don’t exist since the exchanges are actually run by someone. 

Craig, who claims to be the real Satoshi Nakamoto, the creator of Bitcoin, has been in and out of the court of late as the court has demanded concrete proof of his claims. Notably, Craig Wright is yet to provide any tangible proof that he’s really the creator of Bitcoin.

Binance CEO CZ: ‘Bitcoin Moving Up So Slowly, Feels Like A Stablecoin’
Bitcoin Stable At $9.5K After Sharp Price Drop, Is $10K Still The Target?

Bitcoin has been in the headlines of late, and for good reasons. The top crypto has been showing serious signs of a gargantuan price spike. In fact, Bitcoin has already gained close to thrice its early-year value. In March 2020, the coin was trading at around $4,100. Today, it’s going for close to $12,000. However, one particular influential person thinks Bitcoin is moving up very slowly.

According to Binance CEO Changpeng Zhao (CZ), Bitcoin’s slow movement makes it appear like it’s a Stablecoin, although its returns for the year have been great. CZ made his sentiments known in a recent Twitter post.

Ultra-Bullish Sentiment

From a critical point of view, CZ’s statement comes off as super-bullish for Bitcoin. In his opinion, the coin’s new price when it moves up gets quickly normalized, giving off the vibe that the crypto’s value is expected to keep rising.

The Binance CEO isn’t the only person who thinks Bitcoin is headed to the moon. Numerous other big shots have shared their bullish sentiments in the recent past, with some expecting the crypto to one day be worth over a million dollars.

The US Needs A Digital Dollar To Maintain Its Financial Values, Says Ex-CFTC Chair Chris Giancarlo
The US Needs A Digital Dollar To Maintain Its Financial Values, Says Ex-CFTC Chair Chris Giancarlo

The world is staring at a financial evolution that should usher in a new age of government-backed financial systems built on the backbone of new technologies. The advent of cryptocurrencies like Bitcoin is a clear indication of the evolving monetary situation.

While many governments have sat on the fence over the years especially in regard to the legality and the potency of digital currencies, a lot of high-placed people are now speaking out in support of the new system – although there have been issues concerning regulatory frameworks.

According to Christopher Giancarlo, the United States government should be in the process of designing a viable digital dollar. Giancarlo is the former chairman of the CFTC, something that accords his opinion some heavyweights. Giancarlo is the founder of a nonprofit named Digital Dollar Foundation. The nonprofit has partnered with Accenture, a consulting firm, to release a white paper that drives the argument in favor of the digital dollar.

“What Is Money?”

According to the white paper, the global society is currently in the middle of a conversation, something that happens every few generations. Basically, the main topic of this conversation is based on a new outlook that seeks to redefine money. Admittedly, the rise of cryptos like Bitcoin has helped fuel this conversation.

Arguably, the new crypto technology has proven to be very beneficial especially at the current times when the world is dealing with a pandemic as well as humanitarian situations in various parts of the world. People can receive relief fast and conveniently by the use of digital currencies. The fact is that the current financial system (use of banks) doesn’t quite run with the presents.

Loss Of Influence

The US has for long been a global leader in observing widely accepted financial values. Pointing out this fact, the white paper argues that if the US doesn’t make efforts to design a suitable digital dollar to maintain this status, it risks losing its influence, and this could erode these values.

This takes into account that some countries like China don’t necessarily share the same values with the US. Some of these countries are already in the process of creating their own digital currencies, and that challenges the US since digital currencies have been known to be hard to control.

The Question Of Privacy

However, even as the US is coaxed into creating its digital dollar, it’s not lost on anyone that a viable and widely accepted currency of such design must address the issue of privacy. For one, it’s the quest for better privacy that has fueled the rise of cryptos.

A digital dollar should embrace this virtue in a way that is currently acceptable. Pointedly, Giacarlo’s white paper is more of a philosophical argument, although it does touch some of the design technicalities especially in regard to the use of blockchain technology.