Headlines
▌The Central Bank of Russia and the Ministry of Finance Have Reached an Agreement to Allow the Use of Cryptocurrencies for Cross-Border Settlements
Russian Deputy Finance Minister Alexei Moiseev said on Sept. 22 that the government department and the central bank “generally” agreed on a rule that would allow residents to use cryptocurrencies for cross-border payments. The proposed policy change is reportedly aimed at allowing Russian nationals to use digital wallets. In 2020, the country passed legislation banning the use of cryptocurrencies, including Bitcoin (BTC), for payments. President Vladimir Putin also signed a bill in July banning digital financial assets as a means of payment. In May, Trade Minister Denis Manturov suggested that Russia legalize crypto payments “as soon as possible.”
Cryptocurrency
▌Payment Giant Stripe Now Supports Paying USDC for Freelancers
According to the announcement, payment giant Stripe has enabled Circle’s USDC stablecoin payment function for freelancers. Stripe estimates that roughly 4.4 billion people now have the potential to receive payments using USDC. Circle co-founder Jeremy Allaire claims that the USDC token represents a more inclusive way to send money to people around the world.
▌Wintermute Warns Hackers to Return Funds or Face Legal Action
Wintermute, which left an on-chain message for the hacker who stole $160 million worth of cryptocurrency from the company, urged it to accept a $16 million “white hat” bounty and return the remaining nearly $144 million to Wintermute. If the person complies with the request, no legal action will be taken. At the time of writing, hackers have 12 hours to accept the bounty. On the other hand, if the assets are not returned, the team will take action with "appropriate institutions and channels".
▌Liverpool Expands Partnership with NFT Fantasy Sports Startup Sorare
Liverpool football club announced that the club has expanded its cooperation with the French blockchain-based sports startup Sorare. Liverpool FC teamed up with Sorare for the first time last year, launching digital cards for first-tier players including Trent Alexander-Arnold and Virgil van Dijk on Sorare's platform. The two parties will carry out in-depth cooperation on multimedia fan content.
Key Economic Events
▌The Leading Indicator of the US Economy Drops for Sixth Month in a Row, Potentially “Signaling a Recession”
Ataman Ozyildirim, senior director of economics at The Conference Board,: said the leading indicator of the U.S. economy fell for the sixth consecutive month, possibly signaling a recession. “Among the index’s components, only initial unemployment claims and the yield spread contributed positively over the last six months—and the contribution of the yield spread has narrowed recently,” said Ozyildirim. “Furthermore, labor market strength is expected to continue moderating in the months ahead. Indeed, the average workweek in manufacturing contracted in four of the last six months—a notable sign, as firms reduce hours before reducing their workforce. Economic activity will continue slowing more broadly throughout the US economy and is likely to contract. A major driver of this slowdown has been the Federal Reserve’s rapid tightening of monetary policy to counter inflationary pressures. The Conference Board projects a recession in the coming quarters.”
▌ING: The Bank of England May Not Be Able to Meet Market Expectations for Interest Rate Hikes, and the Monetary Policy Committee Is Increasingly Divided
ING said that the Bank of England is increasingly divided on interest rate decisions, indicating that market expectations are unlikely to be met. The Bank of England raised its benchmark interest rate by 50 basis points to 2.25%. Five MPC members favoured 50 basis points, 3 argued for 75 basis points and one argued for 25. Analysts at ING said in a note that the Bank of England has experienced a tripartite split for the first time since the financial crisis. For investors, this increasing divide should be seen as a sign that market expectations are unlikely to be met. Swap markets are now pricing a peak for the Bank Rate close to 5% next year.