Research Summary
The report discusses a range of topics including JPMorgan Chase CEO Jamie Dimon’s criticism of Bitcoin, the launch of a euro-backed stablecoin by Société Générale’s crypto subsidiary, the nationwide rollout of Helium Mobile’s affordable phone plan, and the rise in Bitcoin transaction fees. It also covers the regulatory landscape for cryptocurrencies in the U.S. and Europe, the growth of the Helium Network, and the increasing popularity of Bitcoin Ordinals NFTs.
Key Takeaways
Banking CEOs’ Views on Cryptocurrency Regulation
- Dimon’s Opposition to Bitcoin: During a hearing held by the Committee on Banking, Housing, and Urban Affairs, JPMorgan Chase CEO Jamie Dimon expressed his deep opposition to Bitcoin and cryptocurrencies, suggesting the government should “close down” Bitcoin. However, he acknowledged the “real value” of blockchain technologies.
- Warren’s Call for Equal Regulatory Standards: Senator Elizabeth Warren called for crypto companies to adhere to the same anti-money laundering (AML) and know your customer (KYC) regulations as banks. The report clarifies that American crypto companies are already subject to AML/KYC regulations.
Launch of Euro-Backed Stablecoin
- Société Générale’s Crypto Subsidiary’s Initiative: SocGen Forge launched EUR CoinVertible (EURCV), a euro-backed stablecoin, on the Ethereum blockchain. EURCV is the first EUR stablecoin issued by a regulated global bank subsidiary, marking a significant step towards mainstream crypto adoption.
- Compliance with Upcoming EU Regulations: The design of EURCV is tailored to be compliant with upcoming EU regulations under the Market in Cryptoassets (MiCA) bill, effective in 2024.
Helium Mobile’s Nationwide Rollout
- Disrupting the Telecom Industry: Helium Mobile introduced a $20/month unlimited data, talk, and text phone plan nationwide, aiming to disrupt the telecom industry. The Helium Network rewards individuals operating Helium hotspots with network fees from data usage.
- Network Growth and Challenges: The Helium Network boasts approximately 11k Mobile Hotspots and nearly 1m IoT Hotspots globally. However, growing the demand-side of the network remains a challenge.
Bitcoin Transaction Fees and Inscriptions
- Year-to-Date Highs: Bitcoin transaction fees have hit year-to-date highs, with the 30-day moving average reaching $11 on December 7, and raw mean fees peaking at $28 on December 6.
- Record Number of New Inscriptions: Over 1.43 million new Bitcoin inscriptions were recorded in a 7-day period ending December 7, with December 3 seeing the second-highest daily inscriptions ever at 483,000.
Actionable Insights
- Understanding Regulatory Landscape: Stakeholders should familiarize themselves with the regulatory landscape for cryptocurrencies in the U.S. and Europe, as it can significantly impact the growth and adoption of cryptocurrencies.
- Exploring Stablecoin Opportunities: The launch of EURCV by SocGen Forge presents an opportunity to explore the potential of euro-backed stablecoins and their role in bridging traditional fiat and cryptocurrencies.
- Assessing the Potential of Decentralized Networks: The success of the Helium Network’s nationwide rollout indicates the potential of decentralized networks in disrupting traditional industries. Stakeholders should assess the potential of such networks and their growth strategies.
- Monitoring Bitcoin Transaction Fees: The rise in Bitcoin transaction fees could impact the cost-effectiveness of Bitcoin transactions. Stakeholders should monitor these fees and their potential implications.
