Jun 05, 2020 (Investorideas.com via COMTEX) -- Point Roberts, WA and Delta, BC - June 5, 2019 (Investorideas.com Newswire) Investorideas.com, a leader in crypto and blockchain investing news brings you today's edition of the Crypto Corner podcast and commentary on what's driving the cryptocurrency market.
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A report published by the Federal Reserve Bank of Philadelphia, titled: Central Bank Digital Currency: Central Banking for All , finds that the introduction of a CBDC may lead to a monopoly for central banks at the expense of private options. The report's Abstract reads:
The introduction of a central bank digital currency (CBDC) allows the central bank to engage in large-scale intermediation by competing with private financial interme-diaries for deposits. Yet, since a central bank is not an investment expert, it cannot invest in long-term projects itself, but relies on investment banks to do so. We derive an equivalence result that shows that absent a banking panic, the set of allocations achieved with private financial intermediation will also be achieved with a CBDC. Dur-ing a panic, however, we show that the rigidity of the central bank's contract with the investment banks has the capacity to deter runs. Thus, the central bank is more stable than the commercial banking sector. Depositors internalize this feature ex-ante, andthe central bank arises as a deposit monopolist, attracting all deposits away from the commercial banking sector. This monopoly might endanger maturity transformation.Keywords: central bank digital currency, central banking, intermediation, maturity transformation, bank runs, lender of last resort.
Riot Blockchain, Inc. ( NasdaqGS:RIOT ) has purchased an additional 1,000 Bitmain S19 Pro Antminers for $2.3 million from BitmainTech, according to a recent press release . The company now anticipates its aggregate operating hash rate to reach 567 petahash per second by Q4 2020, given the deployment of all its 7,040 next-generation miners. An excerpt from the press release reads:
By advancing on these goals with the most energy efficient miners available, Riot has established a more strategically advantageous position relative to less efficient competition. Coupled with the unique ability to efficiently access the capital markets as a Nasdaq-listed company, Riot is positioned to operate more effectively post-halving and create value for its shareholders.
Tencent Cloud, the cloud computing subsidiary of Tencent ( OTC:TCEHY ), announced the launch of the Industry Blockchain League, according to outlet China Banking News . The League "hopes to expand to at least 100 members in 2020," comprising "enterprise, industry associations, industry media, investment organisations, tertiary institutions and think tanks." According to the article, the purpose of the League is "to jointly advance industry blockchain standards, as well as research and development into core blockchain technologies and industry implementation."
Cointelegraph reports that South Korean internet giant Kakao's ( KSE:035720 ) chat app, KakaoTalk, witnessed a surge of new users following integration of its "Klip" crypto wallet service on June 3. Specifically, the company "announced that its new crypto wallet function surpassed 100,000 users in less than a day." In Klip's official announcement, Jason Han, CEO of Kakao blockchain subsidiary Ground X, said:
"Klip enables people to experience digital assets, which are the core elements of the next internet paradigm, on the mobile platform that they feel the most comfortable with. We have focused on developing a digital wallet that is easy and convenient enough to be used by those who have no previous experience with blockchain technology."
Sam Mowers, Investorideas
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