Crypto Scoop: Bitcoin Scales to $27,000 and Nigeria's Crypto Transactions Hits Over $56.7 Billion

Amid top cryptocurrencies recording price gains this week, we see exciting initiatives and milestones. In this edition of the crypto scoop, we will provide you with a detailed insight on the following:

• Price moves of top cryptocurrencies 
• CBDC Anti-Surveillance Act Gets a Thumb Up
• Nigeria's Crypto Transactions Hits Over $56.7 Billion 
• Solana Co-founder Asks The US Government To Regulate Crypto 
• Tether’s Stablecoin Lending Revived

Price moves of top cryptocurrencies 

This week, the price of Bitcoin crossed $27,000 but at the time of writing, bitcoin trades at $26,656, Ethereum $1,590, ADA $0.24, XRP $0.51, and SOL $19. 

According to data from CoinGecko, the market capitalization of altcoins hit over $587 billion on the 20th of September, the highest for the past seven days. 

Data by Mempool reveals that the Bitcoin Network is experiencing the longest block fullness with over 470,000 pending transactions, though this has shown no verified effect on the price of bitcoin.

Ripple has announced new changes to the XRP Ledger: an automated market maker (AMM) and a clawback feature. These two features are intended to improve the efficiency and security of the XRP Ledger (XRPL) network by allowing trust lines to act as liquidity pools, allowing for easier asset trading, while the clawback feature provides issuers with additional protection against fraudulent activities.

CBDC Anti-Surveillance Act Get A Thumbs Up

The CBDC Anti-Surveillance State Act recently made significant progress in the United States, as it passed through the Financial Services Committee on September 20th. This development, praised by Republican Senator Tom Emmer, marks a crucial step in the fight against the growing concerns surrounding government surveillance in the financial sector.

As the first anti-CBDC bill in the country, this legislation aims to counteract the Federal Reserve's efforts to create a central bank digital currency. The broad support for the act within the Financial Services Committee highlights the increasing recognition of digital privacy and the importance of safeguarding financial autonomy across the nation.

Emmer advocates for a currency akin to cash, maintaining privacy and preventing government transaction interference.

With backing from 60 members of Congress, Senator Emmer stresses the distinction between CBDCs and decentralised digital assets, the latter operating on independent digital ledgers. 

Senator Emmer concludes in the report that a CBDC without the qualities of an open, permissionless, and private nature akin to cash would merely serve as a surveillance tool, posing a threat to the American way of life. 

Nigeria's Crypto Transactions Hits Over $56.7 Billion 

The rate of crypto adoption is increasing in Nigeria after a new research report from Chainalysis shows the number of crypto transactions hits $56.7 billion. According to the report, the primary driving force behind Nigerian citizens moving towards crypto is the weakening currency and inflation. 

The research from Chainalysis shows that from July 2022 to June 2023, Nigeria witnessed a 9% year-over-year growth in the total value of crypto transactions. Moving across Africa, many other countries also see their crypto transaction volume increase. For instance, Uganda's crypto transaction volume increased by 245%, totalling $1.6 billion within the same period. 

Solana Co-founder Asks The US Government To Regulate Crypto 

The co-founder and CEO of Solana Labs, Anatoly Yakovenko, has called on the United States government to put some form of regulation over the crypto industry. In a recent interview covered by Fortune, he called on the US government to create new friendly regulations for the crypto industry. 

According to him, the lack of a clear regulatory framework is one of the reasons why many budding and promising crypto companies are leaving the country. He pointed out that around 42% of the world’s open-source blockchain developers resided in the United States in 2018. But the number has reduced to an abysmal 29% in 2022. While he is pushing for the regulation of the crypto industry, he is also calling on the government to learn how the industry works to help them create friendly laws. 

As a top stakeholder in the crypto ecosystem, this comes at the right time when 10 US senators pushed for a new crypto bill to regulate cryptocurrencies and other digital assets. According to the bill's content, they want the crypto industry to be as regulated as traditional finance (banks) to avoid bad actors hijacking the system without recourse. 

Tether’s Stablecoin Lending Revived

Tether Holdings has unexpectedly decided to resume its stablecoin lending operations, contrary to its previous plans to limit such activities. This change in strategy followed a brief period of inactivity that lasted less than a year.

As of June 30, the company's latest financial report revealed that the total value of Tether loans reached $5.5 billion, a slight increase from the previous quarter's $5.3 billion. 

The company's renewed commitment to lending its own stablecoin, USDT, to clients can be attributed to a significant increase in short-term loan demands from long-standing customers during the second quarter of 2023. 

Amidst some media criticisms, Tether has defended its decision to resume lending activities. The company stresses its dedication to ensuring the security and stability of its operations and criticises traditional financial institutions for being unable to satisfy customer needs effectively, negatively impacting the economy.

Boasting a surplus of $3.3 billion in excess reserves, Tether anticipates $4 billion in yearly profit.  The stablecoin issuer asserts that the combination of profitability and excess reserves balances secured loans, keeping the profits within its balance sheet.

Tether highlights the banking industry's challenges and positions itself as a true innovator, in contrast to financial systems struggling to keep up with evolving global markets.