The Bank for International Settlements (BIS) recently released an executive summary on global stablecoin guidelines. This article will delve into the key points of the summary, providing valuable insights into the world of stablecoins and their potential impact on the global financial system.

Understanding Stablecoins

Before we delve into the guidelines, it’s crucial to understand what stablecoins are. Stablecoins are a type of cryptocurrency designed to minimize volatility. They achieve this by pegging their value to a reserve of assets, typically a fiat currency like the US dollar or a commodity like gold. This stability has made them increasingly popular in the world of digital finance.

The Need for Global Stablecoin Guidelines

As stablecoins gain popularity, they also attract the attention of regulatory bodies. The BIS, often referred to as the central bank for central banks, has recognized the need for a global framework to regulate these digital assets. The aim is to ensure that stablecoins operate in a manner that promotes financial stability and protects consumers and investors.

Key Points from the BIS Executive Summary

The executive summary released by the BIS outlines several key points that form the basis of the proposed global stablecoin guidelines. These include:

• Ensuring that stablecoin operations are transparent and predictable.
• Implementing robust systems to manage and mitigate risks associated with stablecoins.
• Ensuring that stablecoin issuers meet all regulatory requirements.
• Establishing a clear legal framework for stablecoin transactions.

Implications of the Guidelines

The proposed guidelines have several implications for the stablecoin industry. For one, they could lead to increased scrutiny of stablecoin operations, potentially leading to more robust and reliable systems. Additionally, they could also result in increased consumer and investor confidence in stablecoins, as they would be subject to the same regulatory standards as traditional financial instruments.

Examples of Stablecoin Regulation

Several countries have already begun implementing regulations for stablecoins. For instance, the US Office of the Comptroller of the Currency (OCC) has issued guidance allowing national banks to hold stablecoin reserves. Similarly, the UK’s Financial Conduct Authority (FCA) has issued a statement clarifying that stablecoins used in a manner akin to payment services must meet the same regulatory standards as other payment services.

Statistics on Stablecoin Usage

According to a report by the Blockchain Association, the total market capitalization of stablecoins exceeded $100 billion in May 2021. This represents a significant increase from just $11 billion in May 2020. This rapid growth underscores the need for robust global stablecoin guidelines.

Conclusion

The release of the BIS executive summary on global stablecoin guidelines marks a significant step towards the regulation of this burgeoning industry. By establishing a clear framework for stablecoin operations, the BIS aims to ensure that these digital assets can contribute positively to the global financial system while protecting consumers and investors. As the stablecoin industry continues to grow, these guidelines will play a crucial role in shaping its future.

Key Takeaways

The BIS executive summary on global stablecoin guidelines highlights the need for a clear regulatory framework for stablecoins. The proposed guidelines aim to ensure transparency, risk management, and legal clarity in stablecoin operations. With the rapid growth of the stablecoin industry, these guidelines could play a crucial role in shaping its future.

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The final agreement between the Texas Blockchain Council & Riot Platforms, Inc., and the Energy Information Administration has just dropped, and it’s a good one.

In sum, the EIA will voluntarily terminate the illegal EIA-862 collection action they initiated, and they will commit to destroying all the information that they have received and may still receive under the EIA-862. Furthermore, they will also cancel and withdraw the February 9th, 2024 notice for collection, replacing it with a new Notice.

This new notice will run for a full 60 days from the date it is released in the Federal Register, and the EIA also has consented to ensure that any comments which have been received on the Feb. 9th notice will be incorporated and considered in the new notice.

So here’s the takeaway: the Government has to go back to the well and do it right. They can’t use a pretextual political “emergency” to ram this through, and fortunately the Mining industry, through the quick and decisive work of the Texas Blockchain Council & Riot, blocked that clear violation.

But the flight is not over, we have to file our comments on the new data collection notice as soon as it’s released. And you can see that the fight is going to be harder, as groups antagonistic to bitcoin mining are already jumping into the fray.

The Sierra Club attempted to file an amicus brief in this case. That brief, which did make it on the record (though it was opposed as improper and it’s moot now anyway), shows their arguments that they will likely elaborate on in a filing supporting the EIA’s new data collection. Those arguments are as weak as you might expect, but they will be out there and will need to be addressed and overcome.

Finally, as a lovely cherry on top, the Government will also reimburse the Texas Blockchain Council & Riot Platforms, Inc., for $2,199.45 of court costs and attorney’s fees. Clearly not enough to cover the expense, but still a sweet surprise. But let’s be clear, nothing in this agreement is “an admission of liability or wrongdoing… .” Sure, and “[s]omething is rotten in the state of Denmark,” which can be smelt all the way in Waco, Texas.

This is a guest post by Colin Crossman. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

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In a significant development for the Bitcoin Lightning Network, the Validating Lightning Signer (VLS) beta release has been announced, aiming to address the growing security concerns within the network. The VLS solution, an open-source Rust library and reference implementation, separates a user’s private keys from their Lightning node, providing an extra layer of protection against potential compromises and theft of funds. According to the announcement, VLS offers a level of security unmatched by other solutions in the ecosystem.

“We’re thrilled to announce the VLS beta release, a major step forward for Lightning network security, and we’re excited to share it with developers and companies in the Bitcoin ecosystem,” stated the VLS team. They encouraged developers and companies to try out the VLS Beta release, participate in the feedback process and test the software with sample CLN or LDK nodes to help enhance the security of the Bitcoin Lightning Network.

The VLS beta release introduces various features designed to safeguard against malicious nodes and enhance user protection. These features include working with CLN and LDK, encrypted cloud state backup, disaster recovery capabilities, a complete set of Layer 2 and Layer 1 validation rules, heartbeat generation and an allowlist for approved destinations. However, it’s important to note that while VLS is secure against common ways of stealing user funds, it may not cover all possible scenarios of fund loss. Therefore, the team advises running VLS in testnet or with limited funds until the production release.

VLS provides a unique approach to Lightning Network security by sequestering private keys and secrets in hardened policy signing devices. The reference implementation in Rust ensures that proposed transactions are safe to sign by applying a comprehensive set of validation rules. By incorporating UTXO Set Oracles to provide proofs of unspent UTXOs, VLS offers additional protection even in the case of a complete compromise of the node software.

Looking ahead, the VLS roadmap includes plans to run signers on platforms with limited resources, improve performance for embedded processors, and add features such as extended BOLT-12 support and VSS integration. Additionally, the team aims to enable the use of multiple signers using multi-sig with Lightning keys, pending the maturity of key protocols like Taproot, MuSig2 and FROST.

The VLS beta release represents a significant advancement in securing the Bitcoin Lightning Network and holds promise for developers, companies and users seeking enhanced protection for their funds within the network.

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Bitcoin Core version 25.0 has been released, bringing new features, bug fixes and performance improvements to the software. Users can download the latest version from the official Bitcoin Core website or update their existing installations. The release notes outline the changes and provide instructions on how to upgrade.

One notable change is the allowance of transactions of non-witness size 65 bytes and above, which opens up new use cases and enhances protections against vulnerabilities like CVE-2017-12842. Another addition is the scanblocks RPC, which allows for fast wallet rescans by returning relevant blockhashes from a set of descriptors.

In terms of RPC updates, all JSON-RPC methods now accept a new named parameter called “args” for passing positional parameter values conveniently. Additionally, the verifychain RPC will now return false if checks couldn’t be completed at the desired depth and level, providing more accurate feedback.

The release also includes changes to the build system, updated settings and new features. For instance, the shutdownnotify option allows users to specify a command to execute before Bitcoin Core begins its shutdown sequence. In the wallet section, new options like minconf and maxconf have been added to various RPCs, providing greater control over UTXO confirmations.

Bitcoin Core 25.0 introduces several improvements and optimizations, enhancing the user experience and security of the software. As with any release, users are encouraged to report any bugs they encounter to the official GitHub issue tracker.

Bitcoin Core is widely supported and tested on major operating systems such as Linux, macOS, and Windows. However, it is not recommended to use Bitcoin Core on unsupported systems. Users should ensure they are running a compatible operating system before upgrading to the latest version. In addition, users are encouraged to review the release notes for a detailed understanding of the improvements in this version if upgrading.

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