Daily Digest - 15 December 2022

Headlines

▌Germany Calls for Global Regulation of the Encryption Industry

Germany’s top regulator this week called for global regulation of the cryptocurrency industry to protect consumers, prevent money laundering and maintain financial stability. Mark Branson, chairman of Germany's financial markets watchdog, said a laissez-faire approach "only allows the industry to develop into a playground for adults".

Policy

▌U.S. Senator Warren Will Introduce a Bipartisan Bill on Cryptocurrency Money Laundering

U.S. Senator Elizabeth Warren is trying to promote bipartisan cooperation in Congress to combat money laundering in the cryptocurrency industry. Warren's office said Warren was working with Kansas Republican Sen. Roger Marshall to introduce new legislation on Wednesday. The new bill, the Digital Asset Anti-Money Laundering Act, will combat money laundering by attempting to bring the digital asset ecosystem into line with existing AML systems in the global financial system. The bill would direct the Financial Crimes Enforcement Network (FinCEN) to designate digital asset wallet providers, miners, validators, and others as money services businesses. This in turn would extend the application of the Bank Secrecy Act to the crypto industry, including KYC requirements.

Cryptocurrency

▌Forbes Magazine Will Launch Metaverse on the Sandbox

The Sandbox issued an article stating that it has reached a cooperation with Forbes magazine. The latter will launch a metaverse developed in cooperation with Polygonal Mind Creative Studio on The Sandbox, where users can learn about the history of Forbes and founder Malcolm Forbes and learn about 30 Under 30 Gallery and more. When users purchase the Forbes-exclusive wearable device, they can get a unique accessory. The Metaverse will be open from 23:00 on December 14th to 23:00 on December 28th, Beijing time, and will provide a total of 50,000 SAND rewards.

▌MetaMask Developer ConsenSys Reached a Cooperation With PayPal

MetaMask developer ConsenSys has reached a cooperation with the well-known payment company PayPal. PayPal will be seamlessly integrated into the MetaMask wallet to provide customers with a simple and convenient way to purchase Ethereum with PayPal. The new feature is available to select US users starting today and rolling out to all eligible US customers in the coming weeks.

▌Curve Will Be Deployed on zkSync Mainnet in 2023

Curve Finance, a decentralized stablecoin exchange, will be deployed on zkSync’s mainnet in 2023, marking its first deployment of a new Ethereum scaling and privacy technology called ZK-rollup. Michael Egorov, CEO of Curve, said, "ZkSync has solved the problem of Ethereum scaling through their EVM compatible L2 solution. In addition to Curve's liquidity incentive advantages, this deployment can open the door for builders to let them create more lower cost and user-friendly applications on zkSync. Curve will start building on zkSync in its Fair Onboarding Alpha phase."

▌SushiSwap DAO's 2023 Financial Budget Is $5.2 Million, of Which 82% Is Used to Pay Salaries

SushiSwap CEO Jared Gray disclosed a snapshot of the business’s 2023 budget. According to the snapshot, more than $5.2 million will be used to maintain Sushi operations in the next year, and more than 80% of this fund will be used to pay 15 salaries, including Jared Gray's annual salary of $500,000 in USDC, the average income per team member is approximately $286,500. The other budget is about $919,000, which will be used for SushiSwap’s operational management expenses, such as legal fees, subscription fees, freelance contributor compensation, and social media management costs. The salary budget for an undisclosed freelancer is $12,000 per month.

Key Economic Development

▌The U.S. Federal Reserve Raised Interest Rates by 50bps, and the Interest Rate Level Is a New High Since 2007

The Federal Reserve on Wednesday raised its benchmark interest rate to the highest level in 15 years, indicating the fight against inflation is not over despite some promising signs lately. Keeping with expectations, the rate-setting Federal Open Market Committee voted to boost the overnight borrowing rate half a percentage point, taking it to a targeted range between 4.25% and 4.5%. The increase broke a string of four straight three-quarter point hikes, the most aggressive policy moves since the early 1980s.