Summary of key crypto industry concepts in 2021

With the support of various industry macroeconomic catalysts outside and the cooperation of large companies and organizations from various industries, the crypto industry has spent the year 2021 focusing on the world.

In this section4 includedsense, separated as follows:

Ej Public Action: Lawmakers, including mid-sized banks and leaders in some countries, continue to use digital in a variety of ways. Since 2020, many countries have started researching and experimenting with digital financial instruments (CBDCs), but by 2021, we might also see some countries / regions start to join cryptocurrencies.

Itution Institutional sawing: Financial and industrial companies have become more involved in the crypto industry. By 2021, some banks have upgraded the capacity of their crypto storage services. While bitcoin spot ETFs still go unrecognized in the United States, investors now have access to commodities such as bitcoin futures ETFs. Also in 2021, it will become more common for businesses to accept Bitcoin and other cryptocurrencies as payment channels and keep Bitcoin on their balance sheets.

Observation Evolution: Regulators have done well this year, with some countries banning cryptocurrencies, while others have increasingly paid for stablecoins by regulators and austerity measures.

Met The Different Meta-worlds: This year the meta-world, with NFT and blockchain as its primary focus, is seeking new interest in the crypto industry, and large international companies are holding the meta-world by discovering technology and the capital. NFTs are also experiencing a wave of “out of the loop”, dizzying NFT auctions to major brands using NFTs to attract new audiences.

public activities

ChinaCBDC,but all over the worldTo slow down

With increasing research data and publications, 2020 will be the year when CDBC launches a well-discussed panel by scientists and blockchain enthusiasts for practice in many countries. However, it seems that it will take many years for CBDCs to develop in many countries.

The Bank for International Settlements (BIS) consolidated its role as an organization to lead and support the CBDC's global experience in 2021. In June, the BIS Innovation Center was established in Northern Europe and in London, and plans to expand to five regions of the future. In addition, CBDC's cross-border activities organized by BIS, such as mCBDC Bridge and Project Dunbar, also reported research results.

In 2021, the CBDC USD issuance is uncertain. Fed Chairman Jerome Powell concluded in a March statement that the Fed will keep its gains whenever it leaves the CBDC given the importance of the US dollar to the world. But that doesn't mean the Fed is ignoring the issue, and U.S. lawmakers have started discussing the importance of CBDCs.

In Europe, European Central Bank (ECB) President Christine Lagarde said earlier this year that CBDCs would still be available in the eurozone, but growth could take up to four years. The European Central Bank has since announced the Digital Euro project.

At the same time, China is trying to experiment with the digital yuan to differentiate itself from other big countries. The Joint Venture Corporation (PBOC) added the states for the China lawsuit in April. In the same month, the Company acquired the mCBDC bridge from the International Settlement Bank to measure exchange rates in China, Singapore, Hong Kong and Thailand.

Finally, CBDCs have also started to be used and tested in smaller countries, with Kazakhstan announcing CBDC development in April, Tajikistan launching CBDC growth in September, and Nigeria launching “eNaira” in October.

El Salvador doubles up on Bitcoin

In a video sent to [Miami Bitcoin Conference], Salvadoran President Nayves Bukele announced a new law to make Bitcoin better value, after which it was approved and enacted on June 9. Buqueler called El Salvador's low interest rate the driving force behind the decision, but the World Bank rejected El Salvador's decision to use bitcoin as its currency. The International Monetary Fund (IMA) also called the move “El Salvador's macroeconomic outlook,” he suggested. and the law ".

On September 7, El Salvador announced Chivo Wallet the same day the law came into effect. Users will receive a $ 30 Bitcoin airdrop upon registration, but there are redemption issues on the day the wallet is announced. In no time, some citizens took to the streets to complain about the restrictions on their wallets, while others opposed the right to make Bitcoin a lucrative business.

However, a few months ago, major banks and merchants in El Salvador were using Chivo Wallet to increase acceptance of Bitcoin payments and credit transactions. Cibo wallet ATMs have also been extended in some US cities to facilitate remittances between the United States and El Salvador.

At the same time, El Salvador continued to buy bitcoin, and Buckler often announced on Twitter that he had bought bitcoin. El Salvador has also started experimenting with mining Bitcoin using electronic energy.

Miami allowedfirst cityjet, thenNew York

The adoption of the crypto industry in 2021 is inevitable for the new industry in Miami and New York. In August, Miami member Francis Suarez announced the cryptocurrency "MiamiCoin" created by cryptocurrency startup CityCoins. Residents hold and exchange tokens that represent the city participants. By running a single node, residents can mine tokens, and a portion of the tokens will be distributed to 70% of residents and 30% of cities. As of this writing, the city has raised $ 21 million in MiamiCoin. At the same time, Member Suarez urged Miami-based crypto companies to simplify their operations.

In an interview shortly after Eric Adams was elected mayor of New York in November, Adams supported Suarez's move to Miami. After Adams took office, CityCoins announced that "NYCCoin" would be the next city token to be launched and that excavation would begin in November. At the same time, Adams owns the cryptocurrency, promising to pay his first three installments in Bitcoin.

adoption

Some companies want to add Bitcoin to their balance sheets in the first half of 2021

After Bitcoin hit all-time highs in the last few weeks of 2020, many companies have started to budge. Marathon Group, a mining company listed on the Nasdaq, will buy Bitcoin for $ 150 million. Shortly after, famous entrepreneur Ray Dalio announced his support for Bitcoin on the show. However, Elon Musk stole the show a day later and added #bitcoin to his Twitter profile, which caused a stir across the financial world. Musk and his company Tesla have tried to establish cryptocurrency connections throughout 2021. Tesla added Bitcoin to its balance sheet in February and began accepting Bitcoin as a payment method from Tesla in the third month. However, concerns about electronics over Musk's decision to accept Bitcoin as a payment method in May.

In addition to Tesla, many companies first bought Bitcoin in the first half of 2021. I can say that no company uses it better than Michael Saylor's Microstrategy company. Microstrategy, a 30-year-old information software company, first bought Bitcoin in August 2020 and then steadily bought more Bitcoin in mid-2021. To encourage other companies to follow suit, Microstrategy hosted a "Bitcoin Enterprise" conference in February with the aim of educating and encouraging business leaders to buy bitcoin.

Many well-known companies have bought Bitcoin, including Square, which distributes around 5% of its assets to Bitcoin throughout the year. WeWork, Substack, and insurance giant AXA have also started accepting Bitcoin payments.

Banking sector, crypto storage and market research

2021 is a big turning point for banks to recognize and partner with cryptocurrencies. Banks have explored blockchain technology, but primarily for internal use or integration. By 2021, banks will start using cryptocurrencies directly.

First, financial companies and design providers have taken a big step forward. After a massive payment, PayPal acquired cryptocurrency agent Curv in March, adding the ability for users to buy, sell, and hold cryptos through the Venmo app. About a week later, the world's largest fiat bank, Bank of New York Mellon (around $ 25 trillion in fiat assets) invested in Fireblocks, another crypto-key trustee, to meet the needs of the crypto trust services company. . In late June, State Street, the world's second-largest fiat bank, announced the formation of a new digital finance division and partnered with crypto agent firm Lukka to provide crypto services to private equity people. Fiserv, a leading financial services provider, partnered with crypto services firm NYDIG to develop a third-party crypto storage service for banks in May.

At the same time, Goldman Sachs, aware of the publicity and the rapid shutdown of its cryptocurrency business in 2018, resumed cryptocurrency business in its global division split into the third month. Since then, the board has continued to expand and complete the first Bitcoin derivatives market in May. Less than a week after Goldman Sachs broke the news, Morgan Stanley announced our bitcoin savvy client offering. At the end of June, the Spanish bank BBVA started operating encrypted and supervised services for users of Swiss private banks.

The rise of encrypted devices in the United States

Eight years after Winklevoss Twins' first application for Bitcoin ETFs, the United States Securities and Exchange Commission (SEC) approved three Bitcoin Futures ETFs in 2021, but has yet to approve Bitcoin Spot ETFs. .

The ProShares Bitcoin Strategy ETF was announced on October 19 and on day one announced around $ 1 billion in volume, the second highest in ETF history. Valkyrie's Bitcoin ETF (BTF) was also launched in mid-November, and the price is 30bp lower than ProShares or Valkyrie products.

EvolutionencryptionTo the right

Stablecoins will be tested.

Stable coins are a key target for regulators in 2021. The rapid growth in consumption and in circulation market value from 2020 to 2021 make stablecoins an important tool in finance.

First, the Office of the Treasury Department (OCC) issued a letter authorizing the Bank of America to use fixed coins for payment transactions, allowing banks to participate in the analysis of stable results. This move gives more visibility to banks that view fixed income securities as a settlement advantage for their businesses.

In February, the “fight” for Tether, the USDT's biggest winner, and the administration came to an end. The company has entered into a contract with the New York attorney general's office regarding the financial research of the company. As part of the settlement, Tether agreed to a fine of $ 18.5 million and to cease operations in New York City. In October, Tether agreed to pay Commodity Futures Trading (CFTC) $ 41 million in fines for the USDT complaints.

In November, the US Federal Reserve task force, along with the OCC and the Federal Bureau of Insurance Insurance (FDIC), released a report announcing the recommended statement for stablecoins. The report recognized that fixed coins can have a positive impact on payments, but raised concerns about the risks associated with the management of fixed funds and the opacity of reserves. .

Some countries have taken steps to restrict cryptocurrencies and other activities.

Authorities in some countries have taken steps to limit interference with cryptocurrencies. Among them, China is expected in 2021. Due to concerns over environmental issues and financial risks in the cryptocurrency market, the cryptocurrency industry was banned in September after being cut from the ban. of cryptocurrency mining in May.

However, China is not the only country to ban the introduction of cryptocurrency in 2021. In February, the Nigerian bank announced a ban on trading in financial companies and cryptocurrencies. The Central Bank of Turkey banned the use of cryptocurrency payments in April, citing the risk of default. In May, Iran announced a four-month ban on trading in cryptocurrencies over concerns over its use of electricity in the event of a power outage. Although the ban has been lifted, it highlights concerns from China and other countries about the cost of electricity and the environmental impact of cryptocurrency mining. At the same time, India has been scrutinizing cryptocurrency stocks for a year, but the details are unclear.

Regulators are taking action to tighten crypto taxes and fight money laundering.

Most regulators will legitimize and implement the cryptocurrency tax base by 2021 and redouble their efforts to counter the financial crisis. In March, the U.S. Internal Revenue Service established a well-trained team to strengthen crypto regulation and monitor the crypto industry to identify missing sources of tax revenue.

In addition to strengthening the rule of law, the administration began announcing a new tax law for 2021. In August, the US Senate passed the trillion-dollar budget - doors that will pay too much tax on the government. crypto industry. Despite the "protest speeches" that have started in the cryptocurrency community, the bill was signed in November, giving the responsibility to enforce the US Treasury.

As part of its efforts to combat cryptocurrency money laundering, the US Treasury Department in September condemned the Russian cryptocurrency exchange Suex, which supported ransomware money laundering activities and fraudulent groups. In October, the Office of Financial Supervision (FATF), an agency involved with the government responsible for formulating monetary policy, announced the final guidelines for crypto-regulation. In its guidelines, the FATF provides specific information on crypto asset service providers (VASPs), encouraging VASPs to adhere to the same standards as traditional financial firms, including collecting data from all participants in the cryptocurrency industry (VA). While the practice of the Terms is broad, they also give each country greater freedom to establish its own laws. It should be noted that the FATF does not include the DeFi protocol in its review. This suggests that the DeFi protocol may meet the requirements to become a VASP in some cases.

Create a framework for digital heritage

In 2021, regulators will continue to crack down on unregistered patents in the crypto industry. At the Aspen Security Forum in August, SEC Chairman Gary Gensler announced that the crypto industry may face a number of unregistered security concerns, stressing the need to include security measures in place under surveillance. Gensler spoke about applying existing laws to crypto assets, calling for new legislation to tackle risks in the crypto, lending and DeFi industries.

As the basis for the continued management of crypto assets, regulators have already taken action in some cases that do not materialize. In September, cryptocurrency exchange Coinbase announced that it had been threatened by the SEC and would remove "low" items that would allow consumers to qualify for cryptocurrency loans. In October, the New York attorney general's office and the SEC decided not to comply with bank loans and ordered Nexo Financial and Celsius Network to shut down state operations.

It is worth noting that the actions of the regulators will force companies in the cryptocurrency sector to play a more active role in the new strategic rules for the economy of commerce. In October, Coinbase announced a new specialist position for the management of crypto assets and a call to action to establish a new regulator with specific trading responsibilities. These activities indicate that the dialogue between regulators and crypto industry stakeholders will continue as the regulatory environment changes.

the whole world is broken

metagalaxiafromClé - NFT

Over the past year, NFT has grown rapidly. NFTs were once considered a small part of the overall cryptocurrency market, but now they have become "external" and are becoming so important that many people seek to resolve the concept of recognition of digital assets by insufficiency. token.

For many companies that have purchased popular NFTs or developed their own NFTs, NFTs have become a cultural guide. Taco Bell released 25 Taco-themed NFTs in early March, with the proceeds going to Live Más exchanges. McDonald's isn't the only fast food brand to have tried NFT.

Big Payment Visa has not released its own NFT, but will buy CryptoPunk NFT in August for $ 150,000. CryptoPunks is one of the first NFT series to develop and represent the fundamental cultures of the crypto community. Visa has also published a free brochure on the interactions between NFTs and traditional businesses. Companies like Visa have publicly announced their support for NFTs, a historic time when traditional businesses and the crypto industry first joined forces.

However, some companies have announced that the world's largest retailer, Steam, will directly restrict all games containing 'blockchain technology' and NFTs from the platform. The problems affecting the environmental damage caused by the NFT were echoed by supporters and protesters.

NFT brings the world of "TradArt" to life.

Developed by NFT Wave, digital graphics will transform the entertainment industry in 2021.

Digital artist Beeple was a longtime developer with similar accomplishments throughout his career, but his fortunes changed when he entered the NFT. He auctioned off his first 5,000 NFT collage titled "Everyday - The First 5000 Days" at Christie's, which ultimately sold for $ 69.4 million. A month later, Sotheby's auctioned off a series of works by artist NFT Pak for nearly $ 17 million, adding the cryptocurrency as a player like ETH. In November, Sotheby's hosted the landmark debate in which the first U.S. legislature sold for $ 43.7 million, the highest ever auction for all-time records. ConstitutionDAO raised over $ 40 million to purchase the document, but unfortunately it ultimately failed.

After carefully overseeing the successful integration of NFT companies such as OpenSea and traditional stores such as Sotheby's and Christie's, some of the largest cryptocurrency exchanges quickly established their own NFT industries. Earlier this month, FTX announced that it was launching an NFT business, and one of its biggest competitors, Coinbase, announced that it would start trading NFT at the end of the years.

metagalaxiaAlways availablea little intelligencebusinessdevelopmentplays an important role in

“Metaverse is a huge real-time interactive 3D virtual world,” said Matthew Ball, analyst at Metaverse. “An unlimited number of users can access it simultaneously and continuously, because the data is stored continuously. communication and payment.

2021 is “the first year of transition,” and many large companies have announced that they will conduct in-depth R&D in the metaverse region. One business that has never been transformed is Meta, formerly known as Facebook. CEO Mark Zuckerberg sees it not only as the next chapter for the company, but also as the “next chapter of the Internet”.

At a quarterly earnings conference from Meta (Facebook), Mark told business owners he would spend $ 10 billion on Metaverse-related research in 2021 alone. The company is still hopeful retain this position for many years. The meta, where large sums of money have been invested in recycling and developing the metaverse, represents the desire to make the concept of the metaverse a reality.

Other companies such as TikTok, Twitter, Microsoft, and Disney recently announced plans for the integration of crypto, NFT, and metaglobal markets. Our facility will become an important means of interpreting technological developments over the next ten years as demand increases.