This Week In Crypto | September 28 - 4 October

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Dacxi

Oct 6, 2021

5 MIN

TikTok Introduces Creator-Led NFT Collection

Jerome Powell Has No Intentions to Put a Blanket Ban on Bitcoin

DeFi TVL Grows 936% in One Year 

El Salvador Starts Incentivising the Use of BTC

Hong Kong is Considering the Use of CBDC

The use of digital assets and related technology is becoming widespread. While the social media giant TikTok has entered the domain of NFTs, Hong Kong is considering the introduction of a CBDC. El Salvadoran president has declared petrol price reduction when paid with Bitcoin, while the US Fed Reserve Chairman has denied the possibility of a blanket ban on crypto-assets.

 

TikTok Introduces Creator-Led NFT Collection

Players in the world of digital art, games, cyber gaming, and sports are foraying fast into the world of NFTs. The latest global player to hop into the TikTok bandwagon is TikTok. The social media platform is introducing an NFT collection, drawing inspiration from its trend-setting creators. 

TikTok Top Moments is the name of the program. Creators can leverage it to earn recognition and reward for their content. Immutable X, an exciting scaling solution for the layer-two NFT protocol, will power the NFT drops, and these drops will launch on Ethereum. 

The program will start with six TikTok videos, one each from TikTok’s most influential creators. These videos will celebrate the impact these creators have in converting TikTok to one of the largest social networks in the world. 

The coming together of TikTok and NFTs is significant owing to the volume they draw towards them - both in terms of participation and earnings. While TikTok has nearly 1 billion users, the total NFT sales in August 2021 was $4 billion. 

 

Jerome Powell Has No Intentions to Put a Blanket Ban on Bitcoin

Jerome Powell is the Chairman of the United States Federal Reserve. While responding to a question from Rep. Ted Budd, Powell clearly stated that while there is a need for regulation in the crypto market, the Federal Reserve was not considering a China-style blanket ban on digital assets. 

While speaking specifically about the stablecoins, Powell compared them to the money market funds and bank deposits, admitting that they were “to some extent, outside the regulatory perimeter.” Citing the principle of ‘same activity, same regulation’, Powell said it should only be fair for them to become regulated. 

There are also talks floating around about the Fed Reserve contemplating the implementation of a CBDC or Central Bank Digital Currency. But, as per reports, the authorities are yet to decide on whether to pursue the project. 

 

DeFi TVL Grows 936% in One Year 

The analytics platform Dappradar has released its report on the DeFi market. The report shows the total value locked in the DeFi protocols has grown by 936% over the past year. The current value of the total value locked is $114.8 billion. However, it is still below the all-time high of $195 billion that the TVL had reached on September 5th, registering a surge of 75%, considering the value of July 23rd as the base mark. 

Ethereum leads the chart by occupying 68% of the TVL volume alone. The second on the list is Binance Smart Chain, with $17.8 billion. The third-largest is Polygon, with $2.7 billion. However, according to another analytics website DeFi Llama, Solana should be the third with a TVL of $9.5 billion. However, DappRadar has not considered Solana on its list.

 

El Salvador Starts Incentivising the Use of BTC

According to Salvadoran President Nayib Bukule, consumers in the country will now see a reduction of $0.20 per gallon in petrol prices when paying through Chivo, the government-backed Bitcoin wallet. According to the President’s statement, Chivo has struck a deal with the largest gas station companies in El Salvador. 

In his consistent endorsement of the crypto-economy, President Bukule has said that one-third of the country’s population is already using Chivo. However, according to David Gerard, a crypto critic, and author, these numbers are under the shroud of skepticism as Gerard believes government officials are “feeding Bukele numbers that please him”. Showing his distrust of these numbers, Gerard also said that these would fall apart under the slightest examination.

 

Hong Kong is Considering the Use of CBDC

HKMA, the Hong Kong Monetary Authority, has officially admitted, with the release of a white paper, that it is exploring the possibilities and potential of a digital Hong Kong Dollar (e-HKD), a retail-focused CBDC. 

The feasibility test involves the HKMA seeking to understand the architecture and design options, along with the plausibility of creating a dual-tier system. Hong Kong started its investigation into CBDC in 2017 with the project Lion Rock.