Episode Highlights

• Crypto does “present opportunities for the downright criminal” but those can be limited and law enforcement’s ability to tackle crypto crime has improved.
• In certain countries and among certain populations, crypto is an alternative to fiat––it is a store of value, used to conduct cross-border transfers, and serves as a medium of exchange.
• Most illicit crypto transactions involve centralized crypto entities or exchanges that lack strong know-your-customer (KYC) and anti-money laundering (AML) policies.
• The decentralized nature of the crypto space necessitates innovative approaches to combat illegal activities. However, its open nature could also limit criminal activity.

Helpful links

• https://decrypt.co/96822/bank-of-england-governor-bailey-sounds-alarm-on-crypto-scams
• https://www.reuters.com/markets/europe/deutsche-bank-263-mln-shareholder-settlement-over-epstein-russian-oligarch-ties-2022-09-23/
• https://beincrypto.com/tethers-2022-settlement-volume-flips-visa-and-mastercard/
• https://go.chainalysis.com/rs/503-FAP-074/images/Crypto-Crime-Report-2022.pdf
• https://www.bou.or.ug/bou/bouwebsite/bouwebsitecontent/MonetaryPolicy/Monetary_Policy_Statements/Monetary-Policy-Statement-for-February-2023.pdf
• https://www.reuters.com/business/argentinas-economic-crisis-whack-a-mole-goes-into-overdrive-2022-06-28/
• https://www.nytimes.com/2022/08/20/world/americas/argentina-cryptocurrency-value.html

Episode Highlights

Stable coins were created to provide stability to crypto assets by being pegged to a stable asset like the US dollar. 

Stable coins are integral to the crypto space, and transactions involving them accounted for $1 trillion in 2022.

The failure of SVB caused the value of USDC, the second largest stable coin, to drop to $0.82 on certain protocols, as $ 3 billion of Circle's cash reserves were held by SVB, and only $250,000 was insured. This led to panic among USDC holders, which led to USDC’s drop in value.

Stable coins are subject to the vagaries of human nature and counterparty risks, and their success is dependent on the confidence people have in them. 

There is a need for more robust stable coins, because their usage and adoption is based on their perceived stability.

Additional reading

• https://www.coindesk.com/learn/why-stablecoin-usdcs-unstable-weekend-matters/
• https://cointelegraph.com/news/usdc-depegged-but-it-s-not-going-to-default

Fiat-backed stable coins

• https://www.coindesk.com/learn/fiat-backed-stablecoins-what-you-need-to-know-about-tether-usd-coin-and-others/
• https://www.coindesk.com/learn/whats-the-point-of-stablecoins-understanding-why-they-exist/

Stable coin usage and adoption

• https://thedefiant.io/stablecoin-volume-hits-record-high-of-7-4t-in-2022
• https://www.bloomberg.com/news/articles/2022-05-29/moneygram-ceo-sees-a-future-in-stablecoin-remittances

Crypto-specific news websites

• Coinmarketcap: https://coinmarketcap.com
• Coindesk: https://www.coindesk.com
• Cointelegraph: https://cointelegraph.com
• The Block: https://www.theblock.co
• Decrypt: https://decrypt.co

Episode Highlights

Three US banks, Silvergate Bank, Signature Bank, and Silicon Valley Bank, failed days apart. Although all banks were crypto friendly,  crypto was not to blame for their collapse. Bank runs, dwindling deposits, and losses sustained following the sale of long-date government bonds contributed significantly to their failure. 

Other banks serving disparate customers have experienced similar headwinds. The number of banks willing to serve crypto banks has reduced.USDC and other stable coins lost their $1 peg following the collapse of SVB but have since recovered. 

Additional reading

Collapse of SVB, Signature, and Silvergate

• https://www.theguardian.com/business/2023/mar/13/silicon-valley-bank-why-did-it-collapse-and-is-this-the-start-of-a-banking-crisis
• https://www.investopedia.com/signature-ny-real-estatefor-real-estate-7367631
• https://cointelegraph.com/news/silvergate-silicon-valley-bank-collapses-represent-a-big-challenge-for-crypto
  https://www.reuters.com/technology/crypto-focused-bank-silvergate-plans-wind-down-operations-2023-03-08/

Stable coins depeg

• https://decrypt.co/123211/usdc-stablecoin-depegs-90-cents-circle-exposure-silicon-valley-bank
• https://www.coindesk.com/markets/2023/03/11/usdc-stablecoin-and-crypto-market-go-haywire-after-silicon-valley-bank-collapses/
• https://www.coindesk.com/business/2023/03/11/circle-confirms-33b-of-usdcs-cash-reserves-stuck-at-failed-silicon-valley-bank/
• https://www.coindesk.com/markets/2023/03/11/dai-depegs-as-stablecoin-rout-plagues-crypto/

Crypto-specific news websites

• Coinmarketcap: https://coinmarketcap.com
• Coindesk: https://www.coindesk.com
• Cointelegraph: https://cointelegraph.com
• The Block: https://www.theblock.co
• Decrypt: https://decrypt.co