______________________________________________________
(Note: If you’re looking for more news regarding cryptocurrency, please visit our website Bitcoin Commando. All crypto news will be posted there. ~ Dinar Chronicles)
Seeds of Wisdom
HAS ECB CRACKED THE CODE FOR DIGITAL EURO CBDC ADOPTION?
Two economists at the European Central Bank have modelled how to get consumers to adopt a central bank digital currency (CBDC) and the digital euro in particular.
They distinguish between adoption and usage. While consumers may decide to include a new payment method, they won’t necessarily use it that often.
To create their model, the economists used the 2022 ECB Study on Payment Attitudes of Consumers in the EU (SPACE). Given it was post C***D, it showed changes in payment behaviors such as an increase in usage of mobile payments for person-to-person payments which rose from 3% in 2019 to 10% in 2022.
Unsurprisingly, they found consumers prefer to stick to familiar methods, such as cards and cash. Switching incurs a significant adoption cost, in terms of money, time and effort.
Three steps to make adoption worthwhile
One avenue to make the switching costs worthwhile is to design the CBDC to combine the relative advantages of both cards (usability) and cash (controlling usage and privacy). The model showed this could increase adoption by 80% and usage by 140%.
A second strategy is to communicate these benefits effectively. While this had some benefit, the impact was smaller compared to the design choices.
Advertisement
______________________________________________________
Thirdly, the economists highlight the importance of surfing network effects. We believe this implies there could be different strategies for different jurisdictions. In some regions P2P payments might be more popular, so this could be the area to push. In other jurisdictions there may be more potential for Point of Sale payments (PoS). For example, the SPACE survey showed usage of mobile payments at PoS at 10% in the Netherlands versus 1% in Slovenia.
They argue that regions more eager to adopt new payment technologies will be more open to CBDC. That makes sense. However, we see a counterargument that if users adopt new payment technologies they could perceive less need for a CBDC.
The economists also highlight the role of legislation in ensuring distribution, such as obliging banks, and requiring merchants to accept the digital euro at PoS.
Other digital euro reports
Meanwhile, in other digital euro news, during August an NEBR paper explored the impact of a potential digital euro on banks, European payment providers and US payment providers
It found upbeat press mentions of a digital euro coincided with positive stock price movements for European payment firms and negative ones for American firms. There was no impact on banks.
Another report was published by the Veblen Institute and Positive Money, two organizations that are critical of banks. They highlight that there’s an option for the ECB and national central banks to sidestep private payment providers and go direct to consumers.
We confirm that legally the central banks and governments are also ‘payment service providers’ (PSPs), and it is PSPs that will provide wallet services for the digital euro, per draft legislation.
Advertisement
______________________________________________________
The IMF recently published a report on CBDCs exploring how to encourage adoption by consumers and merchants.
@ Newshounds News™
Source: Ledger Insights
~~~~~~~~~
COULD ROBINHOOD AND REVOLUT FIND STABLECOIN SUCCESS WHERE PAYPAL STUMBLED?
If Robinhood and Revolut do make a run at launching a stablecoin, as reported, can they each avoid the same fate as PayPal’s PYUSD?
Fintech heavyweights Robinhood, a U.S. investing app, and Revolut, a crypto-friendly neobank based in London, are considering launching their own stablecoins, unnamed sources told Bloomberg this week.
The giants are eyeing the stablecoin market at a time when Tether (USDT), with its $119 billion market capitalization, accounts for roughly 68% of the $173.5 billion category.
With Europe offering clearer regulatory frameworks, the fintech giants could bring a new wave of competition. However, the question remains: Can they break through Tether’s dominance, or will they struggle like other giants before them?
Although neither company has officially confirmed their plans, both companies are considering stablecoin issuance, according to a report on September 26.
Fred Schebesta, founder of Finder.com, sees the potential for Robinhood and Revolut but acknowledged the challenge.
“Revolut and Robinhood definitely have a s**t at making a dent in USDT’s dominance, but it’s going to take a lot of integration to get there,” he said. “USDT has a deep-rooted presence in the market, and people, for some reason, still place an unusual amount of trust in it.”
He said PayPal’s stablecoin demonstrates that “even big players aren’t gaining much traction yet,” but added that Robinhood and Revolut have a chance to try a different approach.
Advertisement
______________________________________________________
“Their platforms are more integrated with retail investors,” Schebesta said, “and if they can leverage those ecosystems properly, they might find an edge that PayPal hasn’t tapped into yet.”
Pav Hundal, a market analyst at Australian crypto exchange Swyftx, agrees that scale will be crucial.
“Stablecoins are a game of scale, or relative scale if you have a niche offering,” he told Decrypt. “Robinhood and Revolut possess scale in abundance and clearly have some level of conviction that they can leverage their huge global networks to take a slice of Tether’s market.”
The two companies also have one major advantage, he added: Both companies are already regulated in many jurisdictions around the world. “But for now, Tether exists on an entirely different plane of existence to its competitor,” Hundal said.
PayPal isn’t alone in its struggles with PYUSD. Even giants like JPMorgan Chase, Meta (Facebook), and Binance have attempted to conquer the stablecoin world—each meeting their own unique challenges and limitations.
JPM Coin found its place within internal banking but failed to penetrate wider retail or DeFi markets. Meta’s Diem, once heralded as the “future of money,” crumbled under regulatory pressures, never seeing the light of day.
Binance’s BUSD has grown, but even it remains a distant competitor to Tether, unable to topple the giant.
Tether’s entrenched position as the crypto exchanges’ primary trading pair sets a high bar for liquidity that new entrants must match. The stablecoin market’s deep liquidity pools, network effects, and established trust create high barriers for new entrants.
@ Newshounds News™
Source: Decrypt
~~~~~~~~~
XRP LEDGER IMPLEMENTS TWO MAJOR UPDATES TO BOOST ECOSYSTEM FUNCTIONALITY
▪️XRP Ledger announces two updates that enhance its functionality.
▪️Ripple’s stablecoin RLUSD may benefit from these new updates.
▪️Continued blockchain advancements support Ripple’s ecosystem growth.
Advertisement
______________________________________________________
The XRP Ledger (XRPL) has announced two significant updates following a recent modification.
These developments have attracted attention, particularly due to rising expectations surrounding the potential launch of Ripple’s stablecoin, RLUSD. Consequently, there is curiosity about how these updates will impact the stablecoin’s functionality and the overall ecosystem.
XRP Ledger Executes Two Major Updates
According to an XRPScan report, the XRP Ledger implemented two important updates named “fixEmptyDID” and “fixPreviousTxnID” last Friday. Both updates received support from 31 validators, surpassing the 28/35 threshold.
The first update aims to prevent the creation of empty DID ledger entries that previously occupied unnecessary space. With this change, any transaction attempting to create such entries will result in an error. This endeavor is expected to enhance ledger efficiency without interfering with existing processes.
Will Ripple’s Stablecoin RLUSD Be Affected?
Ripple $0.620272 has begun beta testing its stablecoin on both the XRPL and Ethereum $2,675 networks. Recently, Ripple released two batches of the RLUSD stablecoin, each containing 485 RLUSD. These developments have intensified speculation regarding how the recent updates on XRPL will influence the operation of the stablecoin.
Ripple President Monica Long confirmed that RLUSD would be launched this year if it receives U.S. approval.
Long expressed expectations that the stablecoin would serve broader areas compared to Ripple’s native cryptocurrency, XRP. She also noted that decentralized exchanges (DEX) on the XRPL could benefit from the stablecoin’s efficiency, while XRP would be utilized for smaller cryptocurrency transactions.
These statements suggest that the recent XRPL updates could empower both RLUSD and the XRP ecosystem, offering more functionality and flexibility across multiple applications.
In a period marked by continuous advancements in blockchain technology, such technical updates within the XRP Ledger may contribute to strengthening the Ripple ecosystem and enhancing investor confidence.
@ Newshounds News™
Source: CoinTurk
~~~~~~~~~
Advertisement
______________________________________________________
IS THE US DEBT CLOCK ACCURATE? LET’S PEEK | YouTube
@ Newshounds News™
Source: Seeds of Wisdom Team Currency Facts
~~~~~~~~~
Source: Dinar Recaps
=======================================
RIPPLE ADVANCES STABLECOIN INITIATIVE, ISSUES ANOTHER 350K RLUSD
Ripple mints 350,000 RLUSD to enhance testing on XRP Ledger and Ethereum, aiming for regulatory approval and improved ecosystem integration.
▪️Ripple mints 350,000 RLUSD stablecoins in 24 hours on XRPL and Ethereum.
▪️RLUSD stablecoin undergoes private beta testing for security and efficiency.
▪️XRP Ledger enhancements improve RLUSD’s security and efficiency in beta testing.
Ripple has expanded its stablecoin operations by minting an additional 350,000 units of its RLUSD stablecoin within a span of 24 hours. This activity was carried out in two separate transactions, one consisting of 300,000 RLUSD and the other 50,000 RLUSD. The process was monitored by the Ripple stablecoin tracker, a community-driven XRP Ledger account that tracks the issuance and redemption of these stablecoins.
Ripple Sets Pace with Massive 350K RLUSD Stablecoin Mint
According to the Ripple stablecoin tracker, the recent minting marks a significant step in the testing phase for RLUSD. The issuance occurred through two separate transactions, one for 300,000 RLUSD and another for 50,000 RLUSD. This testing phase is crucial for ensuring the RLUSD meets the highest standards of security, efficiency, and reliability before its full-scale launch.
The minting demonstrates Ripple’s commitment to advancing its stablecoin offerings and enhances the liquidity and functionality of the RLUSD. Most recently, the XRP company reported issuing a record 485 RLUSD stablecoins, its largest single batch yet.
The private beta testing of the RLUSD aims to streamline the integration process across different blockchain platforms. This phase is vital for gaining regulatory approvals and for ensuring that the RLUSD can operate across various blockchain environments.
Advertisement
______________________________________________________
XRPL Upgrades Enhance Stablecoin Efficacy
The recent enhancements in the XRP Ledger are also pivotal to the optimal functioning of the RLUSD. Two major amendments, fixEmptyDID and fixPreviousTxnID, were activated on the XRPL mainnet, improving the ledger’s efficiency.
These updates will boost the stability and reliability of Ripple’s stablecoin operations. Concurrently, these will impact RLUSD’s performance and its integration within the broader ecosystem.
These technical upgrades facilitate a more robust framework for Ripple’s stablecoin initiatives. This will make the infrastructure supporting RLUSD align with the latest blockchain innovations.
In addition, the legal environment surrounding digital currencies remains a significant aspect of Ripple’s operational strategy. Recent developments in the Ripple vs. SEC case have brought to light the challenges faced by blockchain enterprises.
Insights from legal experts suggest that the SEC’s potential appeal against a favorable ruling for Ripple in the XRP lawsuit may have limited success.
XRP price reacted positively to the recent mint of RLUSD, surging to $0.622. The increase reflects a 5.44% gain over the last 24 hours, accompanied by a 60% rise in trading volume. However, recent CoinGape analysis have hinted at a potential 25% crash on on XRP price if SEC appeals before the October 7 deadline.
@ Newshounds News™
Source: CoinGape
~~~~~~~~~
NEW HOME SALES DECLINE IN AUGUST, YET YEAR-OVER-YEAR GROWTH REMAINS STRONG
▪️U.S. new home sales hit 716,000 in August 2024, exceeding the forecast of 699,000 but marking a 4.7% drop from July’s figures.
▪️Year-over-year, new home sales jumped 9.8% compared to August 2023, signaling sustained housing market strength.
▪️August inventory climbed to 467,000 units, representing a 7.8-month supply, hinting at potential downward pressure on prices.
▪️Despite year-over-year gains, rising inventory and slower sales indicate a slightly bearish short-term housing outlook.
New Home Sales Fall in August, But Year-Over-Year Growth Persists
New residential home sales in the U.S. declined in August 2024, coming in below both the previous month’s figures and market expectations. However, despite this monthly dip, year-over-year data reveals a significant rise in activity.
Sales of New Homes Exceed Expectations in August
New single-family home sales in August 2024 came in at a seasonally adjusted annual rate of 716,000 units. This is a 4.7% decrease from the revised July figure of 751,000.
Advertisement
______________________________________________________
However, it exceeded economists’ forecast of 699,000 units, suggesting demand remains robust despite the monthly drop. Additionally, August 2024 sales showed a significant 9.8% increase compared to August 2023’s 652,000 units, highlighting continued year-over-year growth.
Home Prices Show Mixed Trends
The data also revealed mixed signals in home prices. The median sales price for new homes in August was $4*0,600. While this figure suggests the majority of home sales were occurring at relatively high price points, the average sales price jumped significantly higher, reaching $492,700. The gap between median and average prices highlights that a portion of the market consists of high-end sales, skewing the average price upward.
Inventory and Supply
At the end of August 2024, there were approximately 467,000 new homes on the market, representing a 7.8-month supply at the current sales pace. This indicates a relatively balanced market in terms of supply and demand, as a six-month supply is generally considered healthy. However, with sales slowing from the prior month, it suggests a potential buildup of inventory that could pressure future pricing if demand doesn’t rebound.
Market Forecast: Slightly Bearish Outlook
Given the month-over-month decline and higher-than-expected inventory levels, the outlook for the new home sales market leans bearish in the short term. The 4.7% drop from July, coupled with the rising inventory, suggests some cooling off in demand, which could impact pricing and sales volume in the coming months. However, the solid year-over-year growth hints that the market’s longer-term trend remains positive.
@ Newshounds News™
Source: FX Empire
~~~~~~~~~
$1,100,000,000,000 POURS INTO US BANKS AMID HIGH INTEREST RATES AS JPMORGAN CHASE, BANK OF AMERICA PAY PITTANCE TO DEPOSITORS: REPORT
US banks have reportedly raked in more than $1 trillion after two and a half years of the Fed’s “higher for longer” interest rate policy.
Data from the Federal Deposit Insurance Corporation (FDIC) shows the high interest rate regime allowed thousands of US banks to reap higher yields on their deposits at the Fed, reports the Financial Times.
And although a number of analysts and market observers thought the banks would pass on a significant portion of the higher interest rates to their customers, that didn’t happen.
In the second quarter of 2024 when the Fed was paying banks 5.5% in interest on deposits, savers were getting an average annual rate of 2.2%, according to regulatory data that includes accounts that do not pay any interest.
At JPMorgan Chase, savers received an annual interest rate of just 1.5% while Bank of America depositors collected 1.7% in interest per year.
Advertisement
______________________________________________________
With low interest for depositors, banks gained $1.1 trillion in additional revenue, about 66.67% of what the Fed paid in interest during the last two and a half years. Meanwhile, savers received only $600 billion.
When the Fed lowered interest rates this month, some banking giants were quick to further reduce the interest paid to wealthy depositors, with JPMorgan and Citi announcing 50 bps cuts in line with the Fed’s own actions.
@ Newshounds News™
Source: DailyHodl
~~~~~~~~~
ETHENA ANNOUNCES USTB STABLECOIN BACKED BY BLACKROCK’S BUIDL
Reserves for UStb will be invested in BUIDL, which in turn holds U.S. dollars, U.S. Treasury bills, and repurchase agreements.
▪️Ethena has announced a new stablecoin that invests its reserves in Blackrock’s real-world asset fund called BUIDL.
▪️The team said UStb can support its synthetic stablecoin USDe during tough market conditions by allowing Ethena’s governance to close USDe hedging positions and reallocate assets to UStb.
Ethena announced today that it’s developing a new stablecoin called UStb, which invests its reserves in BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL).
Its the second stablecoin from Ethena, as earlier this year it launched USDe, a synthetic stablecoin that derives its value from the cash-and-carry trade, an arbitrage strategy between an asset and its derivative to maintain its $1 peg.
In a blog post, the team explained that UStb will be a “wholly independent product” with a different risk profile compared to USDe.
The team also wrote that UStb helps USDe manage risk during tough markets by allowing Ethena’s governance to reallocate backing assets to UStb when needed.
USDe has brought about some concern from industry stakeholders who say that while the trade is safe, volatility in the markets – which crypto is known for – can quickly cause it to unwind.
In a thread on X, the team addressed some of these concerns, pointing out that while USDe has remained stable despite recent bearish conditions, it can dynamically adjust its backing between basis positions and liquid stable products and may incorporate UStb during periods of weak funding rates if needed.
Ethena said in the post that UStb will be listed on centralized exchanges like Bybit, Bitget, and any future exchanges that Ethena partners with, where USDe is already used as margin collateral.
More details on UStb will be available in the coming weeks, Ethena said.
@ Newshounds News™
Source: CoinDesk
~~~~~~~~~
JIM SAID WHAT? ROCKS IN HEAD OR FACTS? | YouTube
Jim discusses historical information on our Constitution and rights and how we got to where we are today. Must hear this information.
@ Newshounds News™
Source: Seeds of Wisdom Team RV Currency Facts
~~~~~~~~~
Source: Dinar Recaps
______________________________________________________
If you wish to contact the author of a post, you can send us an email at voyagesoflight@gmail.com and we’ll forward your request to the author (if available). If you have any questions about a post or the website, you may also forward your questions and concerns to the same email address.
______________________________________________________
All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.
Dinar Chronicles is an informational news aggregator. All content, including third-party reports and community commentary, is provided for educational purposes only. We do not provide financial, legal, or tax advice. We do not recommend the purchase or sale of any currency or investment. Please consult with a licensed professional before making any financial decisions.
Copyright © Dinar Chronicles
______________________________________________________
