BlockchainReporter Weekly News Review: Major Developments in the Crypto World This Week

This week has seen significant movements and announcements across the cryptocurrency landscape, with notable actions taken by government bodies, regulatory agencies, and key industry players. From the German government's complete liquidation of its Bitcoin holdings to strategic partnerships and innovations in blockchain technology, these developments are poised to have far-reaching implications. If you weren’t able to follow up on these stories, we have compiled the top news from this week for you. Here’s a detailed look at the major highlights.

German Government Completes Transfers of All Bitcoin Stash

The German government now holds just $1 worth of Bitcoin. Over the past three weeks, they transferred their entire balance of 49,860 BTC to exchanges and market makers. The total value of these Bitcoins was $2.90 billion. This significant move has caught the attention of the crypto community and financial analysts in the market. Two hours after completing their final Bitcoin transfer, the government received a small amount of 0.0000321 BTC from an unknown source. This nominal amount represents slightly less than two dollars, leaving Germany with very little Bitcoin.

Starting in the middle of this year, the German government began actively moving Bitcoin around and finally depleted all the stash this week. These large transfers brought a noticeable dip in the market, as the large volume of Bitcoin previously held by the government was sold, negatively affecting its price. The German government has been selling Bitcoin consistently and in high volume. This represents a shift in their attitude towards crypto assets and might influence other trading behaviors. This aggressive Bitcoin liquidation raises questions about the reasons behind it and the potential consequences for the crypto market.

SEC Clears Paxos in BUSD Stablecoin Investigation

Paxos achieved a significant legal victory this week. The US Securities & Exchange Commission (SEC) has concluded its ongoing investigation into Paxos Trust Company regarding the Binance USD (BUSD) without recommending any enforcement action. In February 2023, Paxos received a Wells Notice, which it argued was unjustified. Following the SEC’s decision, Paxos emphasized its compliance with federal securities laws and its commitment to the safety and stability of its stablecoins. They also stopped minting $BUSD.

Paxos reiterated that its USD-backed stablecoins are not securities under federal law and expressed pride in its advocacy for stable-value digital assets. The SEC's decision not to pursue enforcement action is seen as a positive outcome that could boost stablecoin adoption globally. With the SEC’s clearance, Paxos is poised to lead in stablecoin innovation and adoption, aiming to create a more inclusive and efficient financial future.

Tron Breaks Ground with Gas-Free Crypto Stablecoin Transfers

Tron founder Justin Sun announced a groundbreaking solution allowing gas-free stablecoin transfers. This innovation aims to enhance the utility and adoption of stablecoins, especially benefiting large enterprises. Sun shared on Twitter that his team is developing a way for users to transfer stablecoins without paying gas fees, which will be covered by the stablecoins themselves. This feature will first be available on the Tron blockchain, with plans to extend it to Ethereum and all EVM-compatible chains by the fourth quarter of this year.

Gas fees, typically paid in the native token of the blockchain, have been a significant barrier in the crypto space. Sun’s solution eliminates this requirement, potentially using a portion of the transferred stablecoin amount to cover transaction costs. By implementing gas-free stablecoin transfers, Tron aims to attract more transactions to its network, increasing liquidity and enhancing its ecosystem. This service will later support Ethereum, despite its high gas fees, and other EVM-compatible chains, potentially reducing costs and increasing transaction speeds.

Alchemy Pay Partners with Mastercard to Enhance Account Security

Alchemy Pay, a leading fiat-crypto payment gateway, has partnered with Mastercard to enhance account security and streamline user registration. This collaboration integrates Mastercard’s identity verification solutions to ensure user authenticity and prevent fraud. Alchemy Pay will integrate Mastercard’s enhanced account opening API to improve user identification and strengthen risk management. This integration leverages machine learning algorithms and risk analysis to flag fraudulent activities from the initial account creation stage.

Mastercard’s technology will be incorporated into Alchemy Pay’s various products, including On & Off-ramp, NFT Checkout, and Crypto Card Solution. These measures aim to increase security against identity theft and malicious activities, supporting Alchemy Pay’s global payment services.

Celo Foundation Announces Launch of Dango Layer-2 Testnet

The Celo Foundation has launched the Dango Layer-2 testnet this week. This is a key step in integrating Celo's blockchain with Ethereum. Developers have been invited to test the updated code on this new fork of the Alfajores testnet. First proposed at EthCC 2023, the Dango testnet enables fast and low-cost global payments, preserving all historical data from Alfajores. Built on Optimism's OP Stack, Dango combines Celo’s Layer 1 benefits with a scalable, interoperable blockchain framework.

Supported by the Eigen Foundation and the community, Dango uses EigenDA for data availability to keep transaction fees low. It enhances throughput by 50%, reducing block time from 5 seconds to 2 seconds. Key features include bridging of WETH and ERC-20 tokens for transfers between Ethereum and Celo and 1-block finality for secure transactions. Moreover, the upgrade will allow low gas fees for greater accessibility. Infrastructure providers are now upgrading their Layer-2 node code. Once complete, Alfajores will be upgraded without a new fork, allowing developers to test end-user dApps seamlessly.

This week's developments highlight the dynamic nature of the crypto world, with significant moves by governments, regulatory approvals, innovative blockchain solutions, and strategic partnerships shaping the future of digital finance. These stories underscore the growing influence and evolving landscape of cryptocurrencies and blockchain technology. Stay tuned for more updates as the industry continues to progress.