Headlines
▌The Federal Reserve cut interest rates by 50 basis points, starting a cycle of interest rate cuts
Golden Finance reported that the Federal Reserve started a cycle of interest rate cuts, lowering the federal funds rate by 50 basis points to 4.75%-5.00%, the first rate cut since March 2020.
▌Vitalik: Encryption is not a technology of "efficiency" but a technology for building digital castles
At Token2049 held on September 18, Ethereum founder Vitalik delivered a keynote speech titled "What Excites Me About the Next Decade". In his speech, Vitalik said that encryption is not a technology about "efficiency", but digital concrete. Blockchain and crypto-punk technologies such as mixnet, Tor, and BitTorrent have the same origin, but blockchain is also different. Blockchain creates an extremely stable and lasting structure, which enables the Internet to not only bypass the weak links in the old structure, but also effectively build better alternatives. This digital concrete is to build a digital castle in the sky.
Quotes
As of press time, according to Coingecko data:
BTC’s latest transaction price is $60,964.86, with a daily change of +1.5%;
ETH's most recent trading price is $2,351.76, with a daily change of +0.8%;
BNB's latest transaction price is $557.06, with a daily change of +2.3%;
SOL's latest trading price is $132.18, with a daily change of +0.7%;
DOGE’s latest trading price is $0.102, with a daily change of +1.9%;
XPR recently traded at $0.5833, with a daily change of -0.2%.
policy
Louisiana State Government Now Accepts Bitcoin Payments
According to Bitcoin Magazine, the Louisiana state government in the United States now accepts Bitcoin payments.
▌Silvergate Capital files for Chapter 11 bankruptcy protection in Delaware Bankruptcy Court
Silvergate Capital, the parent company of crypto-friendly bank Silvergate, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court of Delaware, with assets estimated at between $100 million and $500 million and liabilities between $10 million and $50 million. The bankruptcy stems from the severe damage to the reputation of its subsidiary Silvergate Bank after liquidity problems and the collapse of crypto exchange FTX. Silvergate previously had close ties with the crypto industry, but the company faced major challenges due to regulatory scrutiny sparked by the FTX scandal. The U.S. Securities and Exchange Commission (SEC) accused Silvergate of assisting FTX in fraudulent transactions and imposed heavy fines and restraining orders on its former executives. Silvergate has agreed to pay $63 million to settle charges with the SEC, the Federal Reserve and California regulators.
▌US SEC Chairman: Cryptocurrency "so-called" exchanges must follow the rules
U.S. Securities and Exchange Commission (SEC) Chairman Gensler said that "so-called" exchanges of cryptocurrencies must follow the rules.
Blockchain Applications
▌Mizuho Bank and Fujitsu collaborate to use blockchain to simplify carbon credit issuance
Golden Finance reported that Mizuho Bank, Fujitsu and heavy industry company IHI have reached a cooperation to use blockchain technology to simplify the issuance process of Japanese carbon credits (J-Credits). The issuance of carbon credits requires the government to certify the greenhouse gas emission reduction, which is a complicated and time-consuming process, and the issuer may face the risk of not being able to find a buyer. Mizuho Bank will acquire J-Credits as a "preferred buyer" and resell them to customers. The bank is also a market maker for J-Credits on the Tokyo Stock Exchange. The cooperation is expected to start supporting solar power generation in the first half of 2025. Fujitsu's blockchain solution will be used to monitor, report and verify carbon emission reduction data to ensure the credibility of the data.
▌MANTRA: MANTRA Chain mainnet is planned to be launched in October
On September 18, MANTRA announced on the X platform that the MANTRA Chain mainnet is scheduled to be launched in October, aiming to promote the on-chain of real-world assets. The MANTRA Chain mainnet will include the following key features: - Verifiable network security and stability to reduce counterparty risk; - Trusted platform for deploying institutional capital on the chain.
Cryptocurrency
▌Informed sources: Revolut plans to issue its own stablecoin
Fintech giant Revolut intends to issue its own stablecoin, according to people familiar with the matter. The company, which received a UK banking license in July and was valued at $45 billion earlier this year, is said to have made considerable progress in creating a stablecoin. When asked about its stablecoin plans, a Revolut spokesperson said the company hopes to expand its cryptocurrency products and take a compliance-first approach.
▌JP Morgan, UBS and others join the Bank for International Settlements' blockchain-based cross-border payment reform plan
The Bank for International Settlements has teamed up with some of the world’s largest banks and credit card companies on a blockchain-based project that aims to revolutionize global cross-border payments. JPMorgan Chase & Co., Deutsche Bank AG, UBS Group AG and Visa Inc. and Mastercard Inc. have all joined the Agora project, which launched in May. The full list of private sector participants includes 41 companies, which will participate along with seven central banks in regions including the U.S., eurozone, Japan and the U.K. The BIS is exploring the creation of an international platform through Agora (Greek for market) where tokenized assets can be bought and sold using digital currencies backed by participating central banks, which issue the world’s most important reserve currencies. On this unified ledger, investors can use central bank money to conduct cross-border transactions with virtually no risk. Currently, the only relatively safe currency is cash, which does not exist in digital form.
▌Standard Chartered Bank executives: Stablecoins can alleviate the negative impact of the Fed’s rate cuts on Treasury bonds and money market tokens
Alexander Deschatres, head of sponsor responsibility for Asia at Standard Chartered Bank, said stablecoins could mitigate the negative impact of the Fed's rate cuts on Treasury bonds and money market tokens. "The $170 billion stablecoin supply is equivalent to a sum of money that can be converted into money market tokens and Treasury tokens, which has the potential to provide a buffer against the negative impact of the Fed's rate cuts," said Alexander Deschatres. He believes that based on federal funds futures, the market currently expects a 100 basis point rate cut this year, which means that the benchmark borrowing cost will fall to 4.5% by the end of the year. However, this is an attractive yield compared to passively holding stablecoins.
Important economic developments
▌Fed Chairman Powell: The U.S. economy is generally strong, and the labor market has cooled down from its previous overheated state
Federal Reserve Chairman Powell said that the Fed remains firmly focused on its dual mandate goals; the U.S. economy is generally strong; the labor market has cooled from its previous overheated state; our decision today reflects growing confidence that the strength of the labor market can be sustained; the Federal Reserve is committed to maintaining a strong economy; the unemployment rate has risen, but remains low; the labor market environment continues to cool; the labor market is not a source of high inflationary pressure; and downside risks to employment have increased.
▌“Fed Mouthpiece”: The Fed is actually making up for lost time
Nick Timiraos, the "Federal Reserve mouthpiece," wrote in his latest article that the Federal Reserve voted today to cut interest rates by 0.5 percentage points, the first rate cut since 2020, and it also chose a bolder start. Powell's decision to cut interest rates by more than most analysts expected a few days ago has allowed the Fed to unwaveringly enter a new phase of the fight against inflation: the Fed is now trying to prevent previous rate hikes from further weakening the U.S. labor market. "We are committed to maintaining our economic strength," Powell said at a press conference. "This decision reflects our growing confidence that we can maintain the strength of the labor market by appropriately adjusting our policy stance." While some Fed officials have argued in recent weeks that the economy is not weak enough to require a 50 basis point rate cut, others have concluded that the cooling of the labor market this summer justifies further rate cuts because the Fed is actually making up for lost time.
Golden Encyclopedia
What is the Ethereum Prague-Electra (Pectra) upgrade?
Ethereum’s Pectra upgrade combines two separate upgrades: the Prague upgrade and the Electra upgrade. The Prague upgrade focused on changes to the network’s execution layer, while the Electra upgrade affects the consensus layer. These upgrades are collectively referred to as the “Pectra” upgrade when combined. The Pectra upgrade will follow “Dencun,” a merger of the Deneb and Cancun upgrades in March 2024. Technically, Dencun is an Ethereum hard fork designed to reduce transaction fees for Layer 2 solutions. Pectra is a new milestone on the Ethereum development roadmap and is scheduled to go live in Q1 2025. This timeline allows for the inclusion of additional features to improve the Ethereum user experience (UX).
Disclaimer: As a blockchain information platform, Golden Finance publishes articles for information reference only and is not intended as actual investment advice. Please establish a correct investment philosophy and be sure to raise your risk awareness.
