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1. El Salvador issues Bitcoin Bond

The Facts:

  • President Nayib Bukele announced plans to issue a $1 bn Bitcoin Bond with a 10-year maturity.
  • The bond will be offering a 6.5% coupon with the Bitcoins being locked up for 5 years.
  • The current 10-year yield benchmark for El Salvador’s outstanding government bonds is around 13%.

Why it’s important:

  • Adding half of the proceeds from the debt sale to Bitcoin is intended to attract more interest from investors at a lover yield than the conventional outstanding bonds.
  • It will be interesting to see if the bitcoin-linked bond ends up being riskier than the outstanding government bonds.

 

2. Crypto Regulations in full motion

The Facts:

  • Two proposals for digital asset regulations were adopted by the Council of the European Union on Wednesday.
  • The intention is to create unified rules and provide a framework where innovation is promoted, while protecting investors.
  • Meanwhile the Indian government is considering a bill on a potential CBDC and the simultaneous ban of certain cryptocurrencies.

Why it’s important:

  • Clear regulations are essential to establish a productive environment for ventures to grow. Regulators have a lot of catching up to do.
  • Clear rules that can be implemented by different nations can accelerate the process and lead to faster adoption and acceptance of the new technology.
  • What looks like a very interesting and somewhat exotic effort (…) has the potential for undermining currencies, for undermining the role of the dollar as the reserve currency, for destabilizing nations.
    Hillary Clinton on cryptocurrencies at the New Economy Forum, Singapore

3. Virtual Real-Estate

The Facts:

  • Earlier this week a genesis land plot on Axie Infinity sold for 550 ETH.
  • Genesis land plots are considered the rarest Terra of their kind. Terra represents tokenized plots of land in the world of Lunacia on Axie Infinity.
  • The popular play-to-earn NFT game is benefiting from the rising popularity of virtual land, as the metaverse is expanding.

Why it’s important:

  • With virtual galleries and museums as a way to display NFT collection in the virtual roam, virtual real-estate brings a new option for advertising and in game functions.
  • The question of scarcity and value of the lot will be answered over time.
  • Number of the week
    1 Million
    Burned ETH as a result of EIP-1559

4. Turkish Lira continues to hit record lows

The Facts:

  • A historic 15% crash following President Erdogan’s defense regarding recent rate cuts, has seen the Lira shed 42% against the Dollar this year.
  • The accelerated currency depreciation and the soaring inflation nearing 20%, should apparently be countered by aggressive interest cuts of the central bank under the pressure of the Turkish President.
  • The economical experiment is in full swing.

Why it’s important:

  • The country is acting against common economical principles and has received backlash from internal and external opinion leaders.
  • The economic and political situation is getting heated and thus it will be seen how long the experiment will last and what the long-term effects will bring for the Turkish people.
TRY_USD
Source: Yahoo Finance

In other news

  • Moonbeam wins second parachain auction on Polkadot. (via info)
  • Adidas partners with Coinbase and purchased land in The Sandbox. (via cryptobriefing)

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