Take, for example, the recent troubles Circle-issued USD Coin (USDC) faced when it de-pegged from the US dollar following the collapse of Silicon Valley Bank. Two weeks later, Mastercard boldly integrated the stablecoin into its infrastructure in the Asia-Pacific region, allowing users to spend USDC through its network. It’s happening, friends!
And let’s not forget about Bitcoin (BTC): digital gold is still on the rise and decoupling from Wall Street, once again proving its value proposition and sparking calls for long-term hedge against equity markets.
This week’s Crypto Biz documents the latest developments in crypto adoption around the world and how fears from the banking system impact the crypto space.
Banking turmoil and regulatory crackdowns occurring around the world have not slowed the continued mix of traditional and decentralized finance (DeFi). The entrance ramps connecting the two sides seem even stronger despite the strong winds of change.
Mastercard to settle transactions for stablecoin wallet in APAC
Global payment provider Mastercard has made another move in the crypto space to allow retail customers in the Asia-Pacific region to spend stablecoins anywhere Mastercard is accepted. This move was made possible through a partnership with Stables, an Australian stablecoin platform. Users can spend and save USDC by converting it to fiat currency and establishing themselves on the Mastercard network. The wallet will accept deposits in various stablecoins, including Tether (USDT) and Binance USD (BUSD), with all deposits automatically converted to USDC.
We have partnered with @MasterCard and @circle allow people to spend $USDC anywhere Mastercard is accepted – that’s over 54 million locations worldwide! pic.twitter.com/KE8PS0bEOz
— Stables (@stables_money) March 21, 2023
MetaMask Allows Direct Crypto Purchases in Nigeria
On-ramps to digital assets are also increasing in Nigeria, as the MetaMask crypto wallet expanded direct transactions with local banks. MetaMask’s parent company, ConsenSys, has partnered with crypto-financial MoonPay, allowing users in the country to purchase crypto via instant bank transfers without the need for a credit or debit card. The integration is estimated to reduce the rate of decline of direct crypto purchases in Nigeria from 90% to 30%. Nigeria is an important market for MetaMask, ranking third in monthly active mobile users. Chainalysis ranks Nigeria as one of the top 20 countries for cryptocurrency adoption.
Naija takes care of things for MetaMask
Nigerians rank third among active mobile users worldwide and are among the top 10 countries they visit https://t.co/uH8OHwxe2D. E be like say crypto dey hot for this side ohhttps://t.co/VTeUzwhR4o
— MetaMask (@MetaMask) March 21, 2023
OKX will stop trading in Canada on June 22, 2023
In a “temporary goodbye,” crypto exchange OKX sent an email to Canadian users that the company will “no longer provide services or allow users to open new accounts in Canada as of March 24, 2023.” OKX cited “new regulations” behind the move, saying it is only temporary while it works with regulators. By June 22, OKX clients in the country must close open options, margin, perpetual and futures positions. Fiat or tokens must also be withdrawn before that date. In February, Canadian securities administrators published a notice requiring crypto exchanges to sign new legally binding commitments while they await registration with regulators.
Rising Bitcoin Banking Crisis Will “Attract More Institutions”: ARK’s Cathie Wood
With fears of a global banking crisis mounting, Bitcoin’s value proposition is on full display as its price continues to rise following the collapses of Silvergate, Silicon Valley Bank, and Signature Bank. ARK Invest CEO Cathie Wood believes that the current decoupling of BTC’s price from equity markets may attract more institutional investors to Bitcoin over time. As for the impact of institutional interest on the price of Bitcoin, Wood expects most companies to allocate between 2.5% and 6.5% of their investment portfolios to BTC by 2030, which would drive the price of the main cryptocurrency to $1-1.5 million.
ARK Investment Management CEO Cathie Wood says Bitcoin price action through the latest banking turmoil will attract more institutions and investors https://t.co/2d8cT7SX3n pic.twitter.com/Eaymh05lhq
—Bloomberg Crypto (@crypto) March 21, 2023
The Impact of the Credit Suisse Banking Crisis on the Crypto Market
How to analyze banks and avoid inaccurate market capitalization indicators, like Silicon Valley Bank’s $15.8 billion value? Cryptanalyst Marcel Pechman dig deeper into business value metrics and how it provides a better picture of the terms of a bank’s balance sheet by subtracting net debt from market capitalization. Of course, Pechman first explains the relationship between bank valuation and cryptocurrencies, specifically the spirit of Bitcoin.
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