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Summer Reading List: Future of Money Edition

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Summer Reading List: Future of Money Edition

Econography

August 12, 2022 • 3:08 p.m. ET

Summer Reading List: Future of Money Edition

By
Ananya Kumar

These are our top picks for your summer reading list on the future of money: everything from trying to better understand the news to the future in the world of innovation.

On central bank digital currencies

The European Central Bank has done something newthis explained to the public why they are interested in a CBDC. If and when it issues a digital euro, awareness will pay off.

This speech by Agustín Carsten is one of the best in recent memory on the potential impact of a CBDC and the fundamentals of trust that power all fiat currencies.

Our CBDC tracking captures the global development of CBDCs for over 100 countries. This is a living document that is updated periodically as developments occur.

On stablecoins

This year, stablecoin markets have seen immense volatility, market crashes, and an industry-wide reckoning to get back to basics.what is a stablecoin, and exactly how stable is it?

I find this blog post by Neha Narula of the Digital Currency Initiative at the Massachusetts Institute of Technology, very insightful on the technology choices available for stablecoin issuers and how it all fits together.

“On the Economic Design of Stablecoins” by Christian Catalini and Alonso de Gortari is a first look at stablecoin risks, and it assesses how risky a stablecoin is based on the reference assets underlying the algorithm.

We’ve seen Catalini and Gortari’s predictions come to fruition this year as TerraUSD and Lunatwo algorithmic “stable” coins issued by Terrahave considerably lost their peg to the dollar. Coindesk provides a detailed timeline of the team and vision behind Terra and the days leading up to its collapse.

On the crypto crash

Terra Collapse Triggered Crypto Crash This Summerwhile the market capitalization of the industry fell by 70%. What happened and how are industry, consumers and regulators reacting to the crash?

Want to understand the crash? here is a explanatory on the major market trends that preceded the crash.

As tokens crashed, companies liquidated, and exchanges halted trading, individual investors lost billions, sometimes overnight, in the crypto markets. Sirin Kale wrote about these investors for The Guardian.

On the regulations

The crypto crash has created a regulatory emergency to protect the interests of consumers and investors. These principles were set out earlier this year in President Biden’s Executive Order on Digital Assets. Here is our explainer above.

On the US side, there is quite a bit of debate about how to classify digital assets and which agencies will have regulatory jurisdiction over them. Gilad Edelman for WIRED explains these changes.

Meanwhile, the European Union (EU) passed the Crypto-Asset Markets Act, which had been under deliberation for some time, in part due to its mining impact clause. ‘environment. here is The EU view on the proof of work clause.

On national security

As the US Treasury Department’s Office of Foreign Assets Control (OFAC) designates cryptocurrency entities such as Tornado Cash, SUEX and others, all eyes are on financial crime and the potential for evasion cryptocurrency sanctions.

Cryptocurrency Analysis Group Elliptical published its annual report on financial crime in crypto. The report outlines the different types of malicious actors in the crypto ecosystem and the techniques they use to funnel money into and out of tokens and exchanges.

Jason Bartlett from CNAS published a report on a group of North Korean hackersthe Lazarus Group, which were the source of more than $600 million in leaks on various exchanges in 2018-2020.

And on the future:

What does the future of crypto and Web 3.0 look like? An overview of some innovative applications of DLTs, as well as the opportunities and challenges they could generate.

In a unique use case in the public sector, a Chinese bank issued loans using the Chinese CBDC, the e-CNY. Loans appear in e-CNY denominations in users’ wallets and can also be repaid using the wallet. More details on this will be forthcoming, but this is a new crossover of DeFi lending protocols in the public sector.

As cities like Miami, Austin, and New York begin to offer their own city-based token offerings, Adam Willems for WIRED look at these CityCoinsand whether they could reshape tax laws in the United States.

I really appreciated this article about game developers in the crypto industry. It is an interesting meditation on the existing tensions between art and science, as well as new and old ways of working and working culture.

Here is an old piece on the thriving crypto channels in Lebanon, a country affected by persistent economic crises. It’s a touching look at how humans adapt technology in times of adversity.

Are you a beginner looking to understand the world of crypto, CBDCs, stablecoins and more? by Sara Harrison A Normie’s Guide to Becoming a Crypto Person and the New York Times series The Latecomer’s Guide to Crypto are where you should start.


Ananya Kumar is Deputy Director for Digital Currencies at the GeoEconomics Center.

At the crossroads of economics, finance and foreign policy, the Geoeconomics Center is a translation center whose goal is to help shape a better global economic future.

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