Global Blockchain Business Council (GBBC)’s Post

Navigating the Future: Charting a Course for Integrity in the Crypto Ecosystem https://lnkd.in/gK_A-Hxc Experts from the blockchain and cryptocurrency industry, including innovators, regulators, and stakeholders, convened to address the multifaceted challenges and opportunities within the digital asset landscape. This session was a mission to ensure a secure, transparent, and consumer-friendly future for crypto. Key Takeaways: Self-Regulation and Industry Standards: The need for the crypto industry to adopt self-regulatory practices and standards was clear. By establishing shared standards, the community can safeguard the ecosystem’s integrity while nurturing innovation. Consumer Education: Empowering consumers with the knowledge to safely navigate the crypto space is crucial. Exchanges and platforms play a key role in providing educational resources and alerting users to potential risks. Regulatory Collaboration: A symbiotic relationship between the industry and regulators is essential for crafting adaptable, effective regulatory frameworks that support innovation alongside consumer protection. Trust and Market Integrity: Recent events have underscored the importance of trust and market integrity. Regulatory actions and industry initiatives aimed at enhancing market integrity are vital for building consumer confidence. At this crossroads, collective resolve and optimism offer a beacon of hope. The path forward is complex but attainable through dialogue, collaboration, and a commitment to integrity and innovation. The proposed actions—enhancing self-regulation, boosting consumer education, fostering regulatory collaboration, and building trust—are steps towards our shared vision of a safer, more transparent crypto ecosystem. I’ll be hosting the IKP Working group this week on Thursday; Let’s continue this crucial conversation and work towards actionable strategies for a brighter future. please come as we continue the discussion at the Blockchain Governance Initiative Network

Many thanks to DMCC Crypto Centre for hosting the first No Pitch Tech Round Table where we met as individuals, without representing our companies, to discuss the major trends happening in the industry. The conversation continues this Friday from 2 to 4 PM. Limited seats available. Eventbrite event will be published soon. Discussion Points from last Friday: 1. Global Adoption: - Noted rise in adoption in South America. - Brazil's government has started issuing crypto licenses. - Rankings based on adoption and holdings:   • Nigeria and Turkey are #1 in terms of adoption rate.   • Brazil ranks within the top 10 for percentage holdings.   • In the UAE, 30% of the population holds cryptocurrency. 2. Trading: - Mention of robot trading through BitGap. - Binance has started flagging certain accounts, requiring a source of funds to avoid scams. - 80% of traders exit the trading scene within their first two years. 3. Services & Platforms: - Interaction with Tornado cash has been banned across several platforms. - Machine Learning can predict market behaviors with an accuracy of 85% or more. - The potential of the ERC6960 in turning illiquid assets like collectible cars into liquid assets. 4. Corporate Involvement & Data: - There's an initial excitement from corporations about storing data on the blockchain, but it wanes once the implications are understood. - The question of transparency vs. privacy in terms of adoption was raised. 5. Gaming & Web3: - Gaming could act as the "Trojan Horse" for web3 adoption. - There's a concern about new audiences who are primarily interested in monetization, as it could go against the gaming spirit. - It was highlighted that monetization exists even in Web2 games, such as gold trading in World of War Craft. 6. Web Integration & Evolution: - Debated on whether Web3 needs to replace Web2 or if Web2 can simply incorporate Web3 features to enhance its efficiency. - Smart wallets were discussed as a means to simplify blockchain complexities. 7. Practical Applications & Innovations: - Potential applications of blockchain in areas like medical records and licenses. - Off-chain tokens could shield these records. - RWA (Real World Assets) that do not need government approval may lead the path. However, a gap exists between potential and implementation, especially in areas where private firms can move faster. 8. Environment & Carbon Offsetting: - Blockchain could potentially solve the double accounting issue in carbon offsetting. - Mention of a Netflix documentary focusing on this double accounting problem. 9. AI & Blockchain Synergy: - The potential of AI in detecting patterns, aiding decisions, and generating smart contract code was acknowledged. - The combination could have predicted and saved users, for instance, if FTX was being monitored. - The question "What can blockchain do for AI?" was found particularly intriguing due to its potential in biometric recognition.  

Navigating the dynamic landscape of the blockchain ecosystem is a challenge we're embracing head-on at PhotoChromic. Our strategy is centered around three core areas: supporting regulatory development, fostering DeFi innovation, and positioning ourselves as a "Web2.5" player to bridge the gap between Web2 and Web3. The active efforts by the UK and European governments to establish regulatory frameworks for crypto assets underscore the importance of these areas. These frameworks are designed to balance the support for innovation with consumer protection and financial stability. As these regulations take shape, the potential of DeFi to revolutionize industries becomes increasingly apparent. Chainlink is a crucial ally in unlocking DeFi's full potential. By expanding its data platform to bring more data on-chain, Chainlink is paving the way for a new wave of disruption. At PhotoChromic, we're thrilled to be developing privacy-focused solutions with Chainlink DECO, a privacy-preserving oracle protocol. In addition, we're involved in multiple initiatives aimed at supporting regulatory-friendly blockchain adoption and promoting DeFi use cases. These include partnerships with a token research and trading business, a Web3 creator platform, and a CBDC issuer. Our focus on regulatory development, DeFi innovation, and strategic partnerships positions PhotoChromic to not only survive but thrive in the rapidly evolving blockchain ecosystem. Watch this space for more updates on our journey! https://lnkd.in/dQUjY3Yy

Beyond the Hype: How Governance Makes or Breaks Blockchain for Real-World Assets On June 20, 2024, law expert Professor Hilary Allen warned in the Financial Times about the 👻 "dark side of tokenization." 👻 [1] She specifically highlighted the governance problems that plague permissionless public blockchains, making them unsuitable for tokenizing real-world assets (RWAs). Professor Allen argues that while tokenization offers benefits like increased liquidity in good times, inflexible smart contracts could cause harm during economic downturns. Coincidentally, on the same day, McKinsey & Company published an article titled "What is blockchain," highlighting blockchain's core function: ⚓ secure information sharing ⚓ [2]. They emphasize the technology's potential to reduce risks, lower compliance costs, and streamline transactions through smart contracts. Despite blockchain's technical merits, both articles underscore the crucial role 🤷♀️ humans 🤷♂️ play. No matter how secure the technology itself is, a blockchain is ultimately influenced by the people using it and the data they input. This aligns with a point I made in an article[3] last year regarding the necessity of ➡ strong governance ⬅. The effectiveness of a blockchain-based business hinges on accurately reflecting real-world processes on the blockchain. A key takeaway from company failures in 2022 is that a blockchain venture is, first and foremost, a business. Just like any business, strong corporate governance is essential. Weak governance can cripple a blockchain-based system. The more a company's mission, vision, culture, and internal frameworks prioritize ➡ good governance ⬅, the more reliable its implementation on the blockchain becomes. This principle applies equally to tokenization, regardless of market conditions. In my previous article, I suggested using ✴ public permissioned blockchains ✴ as an alternative to private/permissioned or public/permissionless blockchains. Public permissioned blockchains offer a good balance between transparency, security, decentralization, and some level of control over participants. This balance is crucial for RWAs, where trust and regulatory compliance are paramount. Looking ahead, 🚀 advancements in scalability solutions and evolving regulatory frameworks 🚀 might further enhance the suitability of public blockchains for tokenizing real-world assets. Financial Times, McKinsey & Company, FIBREE #Governance #CorporateGovernance #BusinessEthics #Riskmanagement #InternalAuditIdeas #artificialintelligence #Assetmanagement #realestate [1] https://lnkd.in/eTyx8QhX [2] https://lnkd.in/e_Z7EBKF [3] https://lnkd.in/eVaRZ2cf

I still see a great business case in the use of blockchain and real estate. Blockchain is the technology that creates trust when many interact with many in a business context. 

Native USDC is deploying on Celo to further everyday adoption of digital currencies & assets!

As we have been investing for several years in numerous initiatives, today’s focus is about the blockchain technologies. While they set the stage for automation, they also shorten the terms of payment, simplify market infrastructure, and enhance security. On the cutting edge of emerging technologies’ tracking and detection, we believe that blockchain is now mature enough since its first appearance in 2008 with the creation of Bitcoin. For several years, the Group has been involved in numerous initiatives using distributed ledger technologies to issue, exchange and retain digital assets relevant to its activities — in particular stablecoins, a means of exchange with a stable value, and security tokens, which are financial security tokens. With a visionary and innovative mindset, crypto assets and blockchain have been identified by the Group as a real opportunity for transformation, and the creation of new business models. Since 2019, our regulated digital asset subsidiary, Societe Generale - FORGE, has structured several native security token issuances deployed on public blockchain, such as the €100M digital bond issued by the European Investment Bank (EIB) in 2021. With more than fifteen transactions completed, SG-FORGE is the world leader in the sector. After the launch of “CoinVertible” — the first institutional stablecoin deployed on a public blockchain — last April, Societe Generale - Forge initiated the second edition of the CAST Challenge, which was held last July in Paris. Started by a collective body of financial and technological institutions, this open-source hackathon brought together international players of reputable names such as banks, public authorities and companies, to advance the construction of the “CAST” security token interoperability standard (Compliant Architecture for Security Tokens).

When the blockchain fails to gain traction, blame the regulators. The Financial Times reports: "When Blythe Masters, a former top JPMorgan Chase executive and one of the most prominent financiers on Wall Street, was appointed chief executive of blockchain company Digital Asset Holdings in 2015, many saw it as a sign that the technology — for building secure transaction networks — would upend financial services. ... Eight years later, blockchain start-ups, such as Digital Assets, have yet to make much of an inroad into the world of finance beyond the realm of cryptocurrencies, which is where the technology started. Masters left Digital Assets three years after she joined." The report fails to mention that Digital Assets was behind the ASX blockchain fiasco: https://lnkd.in/gYzs7WX8. One reason for the lack of traction? "Following crypto’s spectacular blow-ups last year, the question of how seriously the financial services industry should take blockchain seems even more up in the air than it was eight years ago. Late last year, in the wake of the collapse of cryptocurrency exchange FTX, several high-profile blockchain projects, including one by the Australian stock exchange, were put on hold." That's absurd. The failure of the ASX blockchain project had nothing to do with FTX. It just didn't work! "Finance experts, though, say the promise of blockchain technology and the potential for it to change Wall Street and beyond remains. A major reason for that has to do with what a blockchain is." 🙄 "[W]hile anyone can view blockchains, they are almost impossible to hack. Not that you don’t hear about blockchain or crypto hacks — there are lots of them. But most hacks involve gaining access to key codes, which are stored off the blockchain." You do realise that's also the case with centralised ledgers right (https://lnkd.in/eEhkKXfW)? As Bruce Schneier so eloquently summed up, "Only amateurs attack machines; professionals target people." So a shift to blockchains improves systemic security (as opposed to ledger side security) by exactly zero. I hope he also realises that 51% attacks are real: https://lnkd.in/gimYzxE. And "smart" contract tokenomics can be gamed: #mev. But supposedly: "The fact that blockchains make markets more transparent is a significant benefit for the technology, says David Treat, a senior managing director at consultancy Accenture who specialises in technology and capital markets." How does David Treat explain the cryptoverse then? A natively decentralised market where the vast majority of people use intermediaries? And no, you cannot ensure that "[e]veryone gets the exact same information at the exact same time" all the time either. Unless you've developed some way of preventing hardware failure and forks. "So, what is holding up the move to blockchain? In large part, it is about regulation, says Treat." Right, blame the regulators. 🤦🏻 https://on.ft.com/45MHkIW

2023 already proved the crypto and blockchain industry has a bright future. But it also showed how volatile and dynamic this space can be. Bitcoin’s price skyrocketed 150%, driven in part by the anticipation of ETF trading. This reflected a broader market recovery, with the total crypto market capitalization rising 114% to $1.8 trillion. The regulatory environment has also seen significant shifts. With FTX's founder Sam Bankman-Fried awaiting sentencing and Binance's Changpeng Zhao stepping down amid legal troubles, the industry is facing a crucial turning point. This transition is a testament to the importance of robust regulatory compliance and governance. As we look forward, the focus must be on building a resilient and compliant ecosystem. Key players like Chainalysis, Fireblocks, and Gauntlet are leading the way. Chainalysis, for instance, has been instrumental in tracing illicit crypto transactions and collaborating with law enforcement globally, reflecting a significant push towards transparency and security. In 2023 alone, they partnered with the IRS to train Ukrainian law enforcement and assisted Israel's National Bureau for Counter-Terror Planning in seizing cryptocurrency from Hezbollah. Fireblocks, on the other hand, has been at the forefront of tokenization, turning traditional financial assets into digital tokens to enhance transaction efficiency. Their work in tokenizing the $15 billion Israeli government debt market is a prime example of how blockchain can revolutionize finance. Moreover, Fireblocks' collaboration with banks to support stablecoin businesses and their ambitious prediction of $1 trillion in bond assets on the blockchain by 2028 highlight the technology's transformative potential. However, these advancements come with regulatory challenges. The crypto industry must navigate complex legal frameworks while ensuring security and compliance. This involves continuous dialogue with regulators, adopting best practices in cybersecurity, and fostering a culture of transparency. The industry needs to: 1. Proactively participate in regulatory discussions to shape policies that support innovation while ensuring compliance. 2. Implement robust security measures to protect digital assets and build trust among users and investors. 3. Ensure transparency in operations and transactions to build credibility and prevent illicit activities. 4. Provide education and resources to stakeholders about the benefits and risks associated with crypto and blockchain technologies. The future of crypto and blockchain is promising, but it hinges on our ability to adapt to regulatory changes and build a secure, transparent, and compliant ecosystem. What do you think?

The Celo Foundation is excited to welcome Circle to the ecosystem! Native USDC is deploying on Celo to further the everyday adoption of digital currency and assets. With a market cap of over $135 billion (source: DeFi Llama), stablecoins’ rise in popularity as a dominant real-world asset allows for greater financial access and inclusion. Stablecoins such as USDC enable easy, permissionless, and borderless transfers of assets onchain. USDC also joins the Celo ecosystem’s diverse range of stablecoin use cases, such as remittances, savings, lending, peer-to-peer, and cross-border payments, including access to local currencies such as Mento Labs’ cREAL and eXOF, which track the Brazilian Real and CFA Franc (used by 14 countries throughout sub-Saharan Africa), respectively.  Furthermore, integrating USDC on Celo enables businesses and developers worldwide to provide faster, more secure, and efficient payments. The introduction of on- and off-ramps like Circle Mint will also be available for institutional and enterprise customers, facilitating greater onchain activity and swapping. “As a leader in driving real-world adoption of crypto, the Celo ecosystem is excited to bring more RWAs onchain through our partnership with Circle and the launch of USDC on Celo. We want to be the best ecosystem for stablecoins, which has proven to be among the industry’s prevailing use cases, as institutional investors come into Web3,” says Isha Varshney, Head of Strategy and Innovation at the Celo Foundation. “Circle is proud to join the mission-driven Celo ecosystem as a blockchain that’s known for providing fast, low-cost payments worldwide, ”said Shamus Noonan, Senior Manager, Business Development at Circle. “This partnership will help broaden access for USDC and leverage Celo’s mobile-first user base in regions where blockchain adoption is highest.” Still to come, cLabs is developing a governance proposal to allow Celo users to pay network gas fees using USDC to simplify their payment experience. If passed, USDC will join a wide range of ERC-20 tokens that can be used for Celo’s sub-cent transaction fees. To learn more, visit our blog post below!  https://bit.ly/42j9Ly4