THE COIN STREET JOURNAL
Market News - July 29th 2024
FERRARI TO BEGIN ACCEPTING CRYPTOCURRENCY PAYMENTS IN EUROPE
Ferrari, the iconic Italian car maker, has announced that it will begin accepting cryptocurrency payments in Europe by the end of this month. This decision follows the successful implementation of a similar program in the US market, which began in October 2023. The expansion into Europe marks another significant step in the mainstream adoption of cryptocurrencies by major global brands.
The company’s move to accept cryptocurrencies comes in response to evolving customer preferences and demands. By allowing crypto payments, Ferrari aims to cater to a growing segment of its clientele who have embraced digital currencies. In its official statement, Ferrari highlighted that it is partnering with companies specializing in cryptocurrency payment solutions to ensure secure transactions.
Ferrari emphasized that the new payment system would enable dealers to accept crypto without directly handling the digital currencies themselves. Instead, these cryptocurrencies will be instantly converted into traditional currency, minimizing the risks associated with crypto volatility. This system will be implemented in countries where digital assets are legally accepted.
The decision to expand crypto payments to Europe follows a successful trial in the US, where Ferrari began accepting Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC) last year. The program in the US saw significant uptake, driven by strong demand from both customers and dealerships.
Ferrari’s partnership with Bitpay in the US facilitated the smooth handling of cryptocurrency transactions. The company observed that many young, affluent customers, who have accumulated wealth through investments in digital currencies, were particularly eager to use their crypto holdings for high-end purchases such as luxury cars.
Despite the growing interest and adoption of cryptocurrencies, regulatory hurdles continue to pose challenges. Various countries have implemented stringent regulations, impacting the broader acceptance of digital currencies. For instance, China has imposed significant restrictions on cryptocurrency use, and the US also lacks clear regulatory guidelines.
In Europe, the Markets in Crypto-Assets (MICA) regulations are among the frameworks influencing the use and spread of cryptocurrencies. These regulations aim to create a harmonized approach to crypto assets across the European Union but also introduce compliance requirements that businesses must navigate.
Ferrari’s initiative to accept crypto payments aligns with a broader trend of increased cryptocurrency adoption by private entities and some governments. While regulatory environments vary, businesses like Ferrari are finding ways to leverage digital currencies to meet customer demands and stay ahead in a competitive market.
TRON NETWORK SURPASSES 8.1 BILLION TRANSACTIONS
The TRON network has achieved a significant milestone by surpassing 8.1 billion transactions, solidifying its status as a leader in decentralized Internet infrastructure. This accomplishment highlights the rapid growth and increasing adoption of TRON in the competitive crypto market, marking it as a formidable competitor among decentralized networks.
Since its inception, TRON has been dedicated to creating a strong infrastructure for a decentralized internet. This dedication is evident in the steady increase in transactions on its network. As of July 2024, TRON reached over 8 billion transactions, with the official count at 8,001,863,680. This impressive number reflects the global adoption and usage of the TRON network by crypto users.
A key driver of TRON’s growth is its support for the Tether (USDT) stablecoin. Users prefer transferring USDT on TRON due to the significantly lower fees compared to Ethereum. This preference has boosted TRON’s transaction volume, surpassing even that of Visa, with TRON processing around $53 billion in transactions daily compared to Visa’s $42 billion. Additionally, the number of accounts on TRON has surged, now exceeding 242 million.
The comparison between TRON and Ethereum is particularly striking. While TRON has recorded over 8.1 billion transactions, Ethereum has about 2.45 billion. This means TRON’s transactions exceed Ethereum’s by over 230%, highlighting TRON’s rapid growth and increasing utility among users.
TRON’s surpassing of 8.1 billion transactions signifies its growing adoption and the benefits it offers over Ethereum, particularly for stablecoin transfers. This milestone reflects the network’s solid infrastructure and expanding user base, positioning TRON as a crucial player in the decentralized internet’s future.
TRON’s impressive growth and transaction volume underscore its competitive edge in the crypto market. By offering lower fees and efficient transaction processing, TRON has become the preferred network for many users, further accelerating its adoption and usage.
The network’s ability to process a higher volume of transactions daily compared to traditional financial networks like Visa demonstrates TRON’s potential to revolutionize digital payments. This capability, coupled with its large user base, underscores TRON’s significant impact on the decentralized internet infrastructure.
In conclusion, TRON’s achievement of surpassing 8.1 billion transactions marks a major milestone in its journey. With its robust infrastructure, growing user base, and competitive advantages, TRON is well-positioned to lead the way in the future of decentralized internet and digital payments, continuing to outperform its crypto competitors.
CRYPTOCURRENCY MAKETS EXPERIENCE DECLINES COINCIDING WITH ETHER ETFs TRADING LAUNCH
Bitcoin and the broader cryptocurrency market experienced declines early last week coinciding with the first trading day for ether ETFs. The drop followed a week of significant gains for both bitcoin and ether. Analysts attributed the market movements to investors taking profits after bitcoin and ether surged by 22.85% and 12.75%, respectively, the previous week.
Bitcoin’s price decreased by 3% to $65,891.50, while ether saw a slight decline of less than 1% to $3,476.04, according to Coin Metrics. The downward trend was further influenced by network activity from the defunct exchange Mt. Gox, which moved about 5,000 bitcoins as part of its creditor repayment process.
Mt. Gox, which declared bankruptcy following a major hack a decade ago, is in the process of returning over 140,000 bitcoins to its creditors, a task it must complete by October. Despite the negative short-term impact, market sentiment remains optimistic due to the potential success of ether ETFs and the upcoming U.S. presidential election.
Devin Ryan, an analyst at JMP Securities, noted that the initial adoption of ether ETFs is expected to be slower compared to bitcoin ETFs, as the latter’s adoption is still in its early stages. Significant investment pools for bitcoin ETFs have yet to be activated, suggesting potential future growth.
However, the short-term outlook for ether remains uncertain. Nexo co-founder Antoni Trenchev highlighted the volatility seen during the launch of bitcoin ETFs in January, where bitcoin initially surged before experiencing a sharp decline and then recovering to new highs.
Ben Kurland, CEO of the crypto research platform DYOR, suggested that it would take time for inflows into the ether ETF to create a substantial market impact. Additionally, political developments in the U.S., particularly President Joe Biden’s decision to drop out of the presidential race, have introduced market uncertainty.
Investors are now closely monitoring Vice President Kamala Harris’s stance on cryptocurrency and her potential to gain traction in the polls. This political uncertainty is seen as a factor contributing to the recent fluctuations in the crypto market.
Trenchev further emphasized that bitcoin’s recent decline also reflects the unexpected entry of Kamala Harris into the presidential race, which has added an element of unpredictability to an election that seemed to favor Donald Trump and his pro-crypto stance.
PROPOSED NEW LEGISLATION SHOUD ELEVATE BITCOIN'S STATUS AS A MAINSTREAM FINANCIAL ASSET IN THE UNITED STATES
Senator Cynthia Lummis of Wyoming is set to propose new legislation that could significantly elevate Bitcoin’s status as a mainstream financial asset in the United States. This announcement is scheduled for the upcoming Bitcoin 2024 conference in Nashville, Tennessee, where former President Donald Trump is also expected to speak. Lummis’s proposed bill aims to mandate the Federal Reserve to hold Bitcoin as a strategic reserve asset, akin to gold and foreign currencies.
If the bill is enacted, it would represent a major shift in U.S. monetary policy by integrating Bitcoin into the country’s financial reserves. While the specifics of the bill are not yet public, insiders indicate that it would direct the Federal Reserve to include Bitcoin in its reserves to strengthen the U.S. dollar’s stability. Lummis has garnered support from her colleagues on the Senate Banking Committee and hopes for an endorsement from Trump.
Fox Business was the first to break the news about this potential legislation. The idea of the U.S. holding Bitcoin as a strategic reserve asset suggests leveraging the nation’s position as the largest state holder of Bitcoin. This aligns with Trump’s view that the remaining Bitcoin should be mined domestically.
Implementing a Bitcoin reserve would involve the U.S. Treasury holding substantial Bitcoin quantities within its reserve portfolio, similar to its holdings of gold and foreign currencies. Such a move would formally acknowledge Bitcoin’s legitimacy and potential future applications. It would also strategically position the U.S. against global competitors and expedite Bitcoin’s acceptance as a digital gold and a long-term savings option.
The proposal comes amidst a politically charged environment. Vice President Kamala Harris, the leading Democratic nominee, is being advised to soften the administration’s stance on cryptocurrencies. This advice suggests a growing recognition of the strategic importance of digital assets.
The U.S. already holds a significant amount of Bitcoin, and the potential legislation could ignite a global competition among nations to accumulate more Bitcoin. This race could underscore the asset’s growing importance in global finance.
If the United States adopts Bitcoin as a strategic reserve asset, it would signify a substantial policy shift and could enhance the nation’s influence in the global financial system. The move could serve as a catalyst for other nations to follow suit, further legitimizing Bitcoin on the international stage.
Overall, Senator Lummis’s upcoming announcement at the Bitcoin 2024 conference could mark a pivotal moment in the integration of digital currencies into national financial policies, potentially setting a precedent for other countries to adopt similar measures.