This Week in Crypto: Consumer Spending Resilience Redefines Economic Trends. Greener Pastures Ahead?

DeFi Updates, How Crypto Innovations and Consumer Behavior are Paving the Way for Sustainable Economic Growth, and the Latest News in Crypto

Recession imminent? Don’t be so sure, frens.

Amid increasing discussions of a potential recession, it’s important to recognize that this economic slowdown may not resemble previous downturns. Rather than being led by massive cutbacks in household spending, we’re observing a more atypical recession trajectory largely due to robust consumer finances and a healthy labor market.

This strength (or lack thereof) will undoubtedly impact crypto markets. If we can manage a soft landing, expect crypto markets to rally into the year-end. If not, another correction could be in the cards.

History shows us that prior to recessions in the mid-1970s, early-’80s, early-’90s, and late-2000s, a steep decline in personal consumption growth was evident. However, the current situation, despite falling from post-pandemic highs, exhibits an uptick, suggesting that recessionary impacts might be confined primarily to sectors like business investment and manufacturing output, while consumer spending remains resilient.

Quick Hitters

· Web browser Opera has integrated with metaverse blockchain MultiversX, enabling users to easily access dApps and NFTs directly through plugin.

· European finance ministers have approved the Markets in Crypto Assets (MiCA) regulations, which encompass cryptocurrency exchanges, wallet providers, utility tokens, asset-backed tokens, stablecoins, and anti-money laundering obligations.

· Ripple has launched a new CBDC platform that central banks, governments, and financial institutions can use to issue their own digital currency.

· Mattel creates ‘Fast & Furious’ NFTs.

· Twitter influencer Rev.Hodl installed Bitcoin mining equipment in his garden to help incubate his plants during the winter.

· Lido recently deployed its v2 upgrade, which notably now features staked ETH withdrawals.

· OKX has implemented new features enabling users to mint and trade Ordinals NFTs and BRC-20 tokens, utilizing their OKX wallets.

· Polygon co-founder Sandeep Nailwal has launched a new Web3 fellowship program that provides financial support for early-stage Web3 builders.

· LG Electronics is seeking to secure a patent for a television that also houses an NFT Marketplace.

· Curve Finance announces plans for $crvUSD.

 Breaking News

Tether To Continue Buying Bitcoin with Profits

Tether has announced its intention to continue purchasing Bitcoin with its profits. In a recent interview CTO Paolo Ardoino, emphasized Tether’s belief in the long-term potential of its flagship cryptocurrency (USDT). This decision comes amidst ongoing concerns about Tether’s reserves and transparency. Critics have questioned the company’s asset backing, as well as the extent to which it can guarantee the value of its USDT token. Despite these challenges, Tether remains undeterred and has continued to diversify its crypto asset war chest.

Chinese State-Owned Developer Greenland to Apply for Hong Kong Virtual Asset Trading License

A unit of the Chinese state-owned developer, Greenland, is gearing up to enter the domestic digital asset market by applying for a virtual asset trading license in Hong Kong. According to the company’s CEO, this move aims to diversify Greenland’s business beyond traditional property development. The decision comes at a time when Chinese authorities are intensifying their crackdown on cryptocurrency trading and mining activities. As a result, many businesses are looking for opportunities in more crypto-friendly jurisdictions like Hong Kong. A Chinese entity getting a VA License, where crypto is de facto banned, could have massive implications for Hong Kong’s role as the domestic crypto hub.

Endaoment Expands Web3 Charitable Fundraising Efforts with GlobalGiving Partnership

Web3-native nonprofit organization, Endaoment, has teamed up with GlobalGiving, a leading global crowdfunding platform for nonprofits. This partnership aims to facilitate crypto asset donations directly to various causes and organizations, making it easier for donors to contribute using digital currencies. By joining forces, Endaoment and GlobalGiving are bridging the gap between traditional philanthropy and the digital asset space. This collaboration paves the way for individuals and institutions to leverage cryptocurrencies for social impact, fostering a more inclusive and innovative approach to giving.

Why is Everyone Mad at Ledger?

This week, Ledger introduced Ledger Recover, a key recovery service designed to help users recover their funds if they lose their seed phrase or hardware device. The encrypted seed phrase is split and securely stored with Ledger and two partners. However, concerns arose after a Reddit post highlighted the latest firmware updates for Nano X devices. Users were surprised that this functionality was possible, as Ledger had previously claimed it wasn’t. Ledger’s defenders argue that using any hardware wallet implies a certain level of trust in the manufacturer, and every hardware wallet relies on software. Security is relative, and keeping your wallet on a hardware wallet is generally considered the safest bet.

NY Fed and MAS Unveil Results of Joint CBDC Project

The New York Federal Reserve and the Monetary Authority of Singapore (MAS) have recently published the results of their joint Central Bank Digital Currency (CBDC) project, named Project Hamilton. The study aimed to explore the potential benefits of CBDCs in enhancing cross-border transactions and reducing settlement times. Using a blockchain-based platform to simulate real-time gross settlement systems, the project successfully demonstrated improvements in payment efficiency, risk reduction, and increased transparency for cross-border transactions. Another sign that New York sees utility in blockchain as a fintech solution.

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