Traditional financial operations are centralized, regulated and audited.
Blockchain technology and cryptocurrencies are, well, pretty much the opposite, relying instead on cryptographic algorithms and decentralized consensus mechanisms to secure transactions.
But despite the sector’s troubled youth, as the blockchain and digital asset space matures, major banks, asset managers and payment processors are exploring and adopting blockchain technology to enhance their services, increase transparency and reduce costs.
On Monday (July 15) BlackRock CEO Larry Fink told CNBC: “My opinion five years ago was wrong. Here’s my opinion today: I believe in the opportunity today. I believe bitcoin is legitimate.”
If the chief of the world’s largest asset manager is espousing those views, then it’s clear that the increasing integration of blockchain by traditional financial institutions may even suggest a growing acceptance that could lead to more robust and secure applications in the future.
Each week, PYMNTS rounds up the top crypto and Web3 news, updates and announcements for our readers, tracking the key data points along the crypto sector’s journey toward reshaping the future of finance, payments and digital commerce.
Here’s what you need to know.
Adding to the complexity of blockchain adoption is the evolving regulatory environment for the sector.
Governments and regulatory bodies worldwide are still grappling with how to effectively regulate this new asset class. Regulatory approaches vary significantly across jurisdictions, creating a patchwork of rules and guidelines that businesses must navigate. In some regions, stringent regulations aim to curb illicit activities and protect investors, while in others, more permissive approaches seek to foster innovation and growth.
Still, as PYMNTS reported, the Republican party is leaning on crypto as a policy pillar for the upcoming 2024 election — and Donald Trump’s pick for vice president, J.D. Vance, has maintained a positive view on the digital asset sector throughout his political career, and voted as a senator accordingly.
Elsewhere, the Supreme Court’s recent Chevron decision could have implications for the crypto space and the degree of power federal regulatory agencies, including the Securities Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), have to oversee it.
As PYMNTS reported Monday, Visa has teamed with WireX to promote the use of digital currencies in Europe and the U.K. The partnership includes the debut of Wirex Pay, a “modular Zero Knowledge (ZK)” payment chain, to simplify both traditional and cryptocurrency transactions, part of a broader project by Wirex and Visa to develop projects that integrate blockchain technology within traditional financial systems.
Last Thursday (July 11), cryptocurrency exchange Coinbase introduced a centralized hub for monitoring onchain activity. The Coinbase Wallet web app lets users explore, manage and engage with people, communities and businesses onchain, accessible on both desktop and mobile devices.
Also on Thursday, PYMNTS unpacked how the competition between instant payment systems and cryptocurrencies, particularly stablecoins, highlights a broader shift toward faster, more efficient financial transactions. Each offers a unique approach to solving the inefficiencies of traditional banking systems, but their coexistence raises questions about the future of financial transactions.
And in another announcement that same Thursday, Mastercard and Canadian FinTech Nuvei said they’ve teamed to help consumers turn digital assets into fiat currency.
“This new functionality provides a bridge between digital and traditional finance that can be spent via Mastercard’s global network,” the companies said in a news release. “This off-ramping solution is integrated directly into Nuvei’s modular payment platform, delivering a simple, secure user experience.”
According to the release, the off-ramping lets consumers convert a range of supported digital assets into fiat currency. From there, they can then transfer the funds to their eligible Mastercard in near real-time via Mastercard Move’s money movement capabilities, with no need to go through third-party exchanges or money service businesses.
Read more: Payments, Penalties and TradFi Adoption Define This Week in Web3
On Tuesday (July 16), it was announced that the crypto exchange Kraken is now soccer team Tottenham Hotspur’s first official crypto and Web3 partner, with the goal of boosting fan engagement and increasing awareness about cryptocurrency.
At the same time, PYMNTS covered Wednesday (July 17) how cryptocurrency miners are reportedly scrambling to boost their revenues by forging deals with AI (artificial intelligence) developers.
Crypto miners operate vast, powerful computing sites and have struggled to turn a profit due to high energy costs and reduced rewards for mining. AI firms need a lot of energy and computing infrastructure, both of which crypto miners can offer, along with a better proposition than AI firms building their own high-performance computing data centers.
And, as Reuters reported Tuesday, Craig Wright — an Australian computer scientist who has long claimed to be the anonymous inventor of bitcoin — is now facing a criminal investigation in Britain for alleged perjury after he was found to have repeatedly lied and forged documents to support his false claim.
