It is always a challenge to talk to you (I mean don’t be offended, I enjoy talking to you but…)
should I share the bad news or the good news first?
I think I am going to go with the good news first!
Or will I regret it?
Mmm… I’ll give it a go.
So, I have 2 good news and 1 bad news for you, starting with the good news…
Shopify and Blockchain: A Match Made in Digital Heaven!
We just witnessed: Mujhse dosti karoge 2.0
As the e-commerce giant Shopify teamed up with the mighty blockchain!
Is dosti ko kia naam don 2.0: “Our friendship is like a digital storm, electrifying every virtual space.”
Okay, now that’s too cheesy!
Anyhoo…
This cheesy friendship agenda is totally going to revolutionize how buyers shop on Shopify.
For suppose, a Shopify store owner is selling his digital product such as an e-book or a course, in the form of an NFT.
(I am assuming you know what an NFT is. In case you don’t,
NFTs, or non-fungible tokens, are a type of digital asset that are unique and cannot be replaced or exchanged for something else.)
Now suppose, you bought the E-book in the form of NFT.
This means, the ownership has been transferred to you, so now you as a former buyer, have become its owner, and with the rights of ownership, you can now enjoy any exclusive benefits or discounts that come with it.
How does that revolutionize the shopping experience, Zain?
Good that you asked, Hafsa.
The sellers selling their products in the form of NFTs and transferring proof of ownership, along with the benefits it carries is increasing the value of the product
Because this is engaging the audience to get involved in a unique shopping experience or the “NFT craze.”
It's a win-win situation!
But that's not all.
Shopify is also introducing a new feature called Sign-in With Ethereum.
So, basically you will be using your Ethereum wallets to authenticate your identity i.e. proving that you are the owner of the wallet.
without having to give up any personal information like Name, Number, or emails to third parties.
Do you know what this means?
Millions of people will get exposure to the blockchain and NFTs.
Because Shopify has over 450 Million buyers and in 2021 alone, its processed orders amounted to about $80 Billion
Exciting times are ahead for the world of e-commerce and blockchain.
And with Shopify leading the charge,
we can't wait to see what's next!
Dirham Goes Digital
So, UAE is all set to modernize its Financial System.
And in doing so it has planned to issue its new digital currency called central bank digital currency, or CBDC.
The digital dirham will be used locally as well as for cross border payments, making it easier and efficient to move the money around! It is promoting multiple things like:
It is clearly an Innovative solution to Payment Methods
It is making it easier for people to participate in the Financial System
And making payments more secure and efficient
By promoting a Cashless Society, eliminating the need to carry cash and the fear of getting robbed!
Other countries, like the UK, are also exploring the potential of CBDCs to improve their payments and banking systems.
Dubai recently published new rules to regulate the crypto industry, including a licensing regime for crypto companies and a ban on the issuance and activities related to anonymity-enhancing crypto.
It's clear that the UAE is serious about its digital future,
And we can't wait to see what's next in their quest for a cashless society.
Paxos Ordered to Stop Issuing Binance Stablecoin
Wait, what I am about to tell you carries the risk of making cryptocurrency as regulated as stocks and bonds.
The New York Department of Financial Services (NYDFS) recently told Paxos, a stablecoin issuer, to stop minting new Binance USD (BUSD) tokens.
But don't worry,
Existing BUSD remains fully backed and will be redeemable through February 2024.
Paxos has also cut ties with Binance, its partner for the BUSD stablecoin.
The US Securities and Exchange Commission (SEC) has issued a Wells notice to Paxos, informing the firm of potential violations and enforcement actions.
If you're wondering what a Wells notice is, it's a letter that tells companies the SEC is going to take action.
It's like when your mom tells you "I'm not mad, just disappointed."
The SEC plans to sue Paxos for allegedly violating investor protection laws, specifically for selling BUSD tokens as an unregistered security.
So now, with the risk of investigating stablecoins as being considered a security, it would mean it would be regulated like a security.
Regulated how? Regulated how they regulate stocks and bonds.
This would mean that stablecoin would lose its true operational value, resulting in a decline of demand of stablecoins among investors.
And why am I so sad?
Because if you consider it from a broader view, if stablecoins are being so closely investigated or regulated today, how will the other cryptocurrencies be regulated in the future?
I mean, wouldn’t it chop off the USP of crypto!?
Why on earth did I save the sad news for the end? Oopsie, regretting it!
Now, you and I have to sit-through this…
Anyway, let’s think positive, and keep exploring!
Until then,
Zain and Hafsa from Team Inspired Analyst - signing off!
Disclaimer: Please note that the information provided in this newsletter is for educational and informational purposes only and should not be construed as financial or investment advice. We recommend that you do your own research and consult with a licensed professional before making any financial decisions.