• Sberbank, the largest financial institution in Russia, plans to launch a decentralized finance (defi) platform in May.
• The platform will be based on Ethereum and will enable large-scale commercial operations.
• In June 2022, Sberbank conducted the first digital asset transfer on its platform with approval from the Bank of Russia.

Introduction to Sberbank

Sberbank is a state-owned financial services company based in Moscow. It is the largest financial institution in Russia, with $559 billion in assets under management (AUM) as of 2021. The banking giant is also the leader in card payments industry with more than 61% of market share. In January 2022, it launched Russia’s first blockchain exchange-traded fund (ETF). Sberbank and its executive members have been fans of blockchain technology since 2015.

Launch Of Decentralized Finance Platform

Konstantin Klimenko, product director of Sberbank’s blockchain laboratory recently revealed that open testing for the Defi platform will begin from March 1st. The platform will be based on Ethereum and work with Web3 wallet Metamask. According to Klimenko, “We have set ourselves a big goal — to make the Russian defi ecosystem number one.” It is expected that by end of April the publicly available version of this platform will be ready for use and it can enable large scale commercial operations through decentralized finance solutions.

First Digital Asset Transfer Executed On Sberbank Platform

In June 2022, Sberbank conducted it’s first digital asset transfer on its own Defi platform which was approved by Bank of Russia. This shows that government officials are supportive to such advanced technologies being used by leading institutions like Sberbank which marks an important milestone for adoption of cutting edge technologies within traditional banking system.

Non Fungible Tokens Minting Supported By Platform

In September 2020, Sberbanks announced that its Defi Platform was also going to support Non Fungible Token minting feature as well which makes this project even more attractive for customers who are interested in DeFi solutions but also want NFTs support at same time.

• The Argentine peso has fallen almost 12% against the U.S. dollar since the start of January and is predicted to continue losing value as inflation rises.
• The government has taken measures to inject dollars into the market and purchase its own external debt in an effort to stabilize the economy, however, this strategy has been largely unsuccessful.
• Private firms have estimated an inflation rate of over 5% for January, with analysts predicting that it could increase even further if the government does not take more drastic action soon.

Falling Argentine Peso

The Argentine peso has been losing value against the U.S. dollar since January 1st, dropping by almost 12% driving fears of a sharp rise in inflation rates similar to those seen in 2022.

Government Measures

In response to this devaluation, the government has implemented measures such as injecting dollars into the market and purchasing its own external debt in order to curb any further losses in value. However, these strategies have had little success so far and local analysts are concerned about how much money is left in reserves after these disbursements.

Rising Inflation

Private firms have calculated that there will be an inflation rate of 5% or higher for January with Salvador Di Stefano from economic counseling firm predicting that it could even get worse if no more drastic moves are made by the government soon.

Debt Purchase Operation

The recent debt purchase operation also raises some concerns as it may affect how much foreign currency is available for imports thus slowing down Argentina’s economy even further according to Di Stefano who believes that this could revert back to a similar situation faced during 2018 when President Macri was in control.

Impact on Citizens

This devaluation has already started having an impact on what citizens have to pay for goods and services despite various measures taken by the government designed at limiting price rises on certain products .

• Smart contract tokens and the decentralized finance economy have experienced a growth of $78 billion in market capitalization over the last 30 days.
• The total value locked in decentralized finance (defi) has grown by $5.39 billion in the same period.
• Leading tokens such as Oneledger, Harmony and Waves have experienced double-digit gains in the market.

The last month has been an exciting one for the smart contract token economy and the decentralized finance space. Over the past 30 days, the market capitalization of the smart contract platform token economy has grown by an impressive $78 billion, from $243 billion to $321 billion. This is a huge increase, and it highlights the potential of smart contract tokens and the power of the decentralized finance ecosystem.

In addition to this market capitalization increase, the total value locked in decentralized finance (defi) has also grown by $5.39 billion in the same period. This is an indication of the growing demand and trust in the defi space, and it is a sign that the sector is maturing and becoming more accessible to the average investor.

At the same time, some of the leading smart contract tokens have experienced double-digit gains in the market. Oneledger, Harmony and Waves have all experienced significant increases in their prices, and they are leading the charge in the smart contract token space. Other tokens such as Ethereum and Cardano have also seen their prices increase, although not as much as the aforementioned tokens.

The growth of the smart contract token economy and the decentralized finance sector is a positive sign for the crypto space, and it is an indication that the sector is maturing and becoming more attractive to investors. With the continued growth of these sectors, we can expect to see further increases in the market capitalization of the smart contract token economy and further growth in the value locked in decentralized finance. It is an exciting time for the crypto space, and we can expect to see further growth in the coming months.

• Bitcoin (BTC) rose to a three-week high on Jan. 9, surpassing the $17,000 mark.
• Ethereum (ETH) was also higher, surging to a multi-week high above the $1,300 level.
• This bullish momentum was attributed to traders’ anticipation of the upcoming U.S. inflation figures.

At the start of the week, Bitcoin (BTC) rose to a three-week high, climbing above the $17,000 mark. This bullish momentum came days ahead of the upcoming U.S. inflation figures, as traders continued to react to Friday’s nonfarm payrolls (NFP). As of writing, BTC/USD is trading at $17,283.72, its highest point since December 16, when price was at a high of $17,525.

Looking at BTC/USD’s daily chart, today’s high came as the 10-day (red) moving average finally crossed over its 25-day (blue) counterpart. In addition to this, the 14-day relative strength index (RSI) marginally moved past its recent resistance level at 60.00. As of writing, the index is tracking at 60.46, with the next visible ceiling at the 63.00 zone.

Ethereum (ETH) also rallied to a multiple-week high on Monday, with prices climbing above a recent ceiling at $1,300. ETH/USD raced to an intraday high of $1,324.01 earlier in today’s session, which comes less than 24 hours after trading at a low of $1,261.95. This surge pushed ethereum to its highest point since mid-December, when the coin was above $1,350.

When looking at ETH/USD’s daily chart, an upwards crossover of moving averages has occurred here, with the RSI gaining momentum as well. Currently, the index is tracking at 66.81, which is its strongest point since October 29, when ETH was trading upwards of $1,500.

The overall market sentiment appears to be positive, as traders remain optimistic that U.S. inflation figures will be supportive of further growth. As a result, it will be interesting to see if Bitcoin and Ethereum can maintain their current momentum and continue to rise in the coming days.

• Global cryptocurrency trade volumes have dropped significantly in December 2022, dropping from $54.78 billion two weeks earlier to $22.95 billion on Jan. 1, 2023.
• 71.63% of all trades on Jan. 1, 2023, were paired with the cryptocurrency economy’s stablecoins, with tether (USDT) commanding $12.45 billion.
• Cryptocurrency trade volumes have been declining since Jan. 2022, with monthly spikes in May, Sept., and Nov. 2022.

The cryptocurrency industry has seen a significant decline in trade volume during the month of December 2022. Statistics from Dec. 1, 2022 to Jan. 1, 2023, show that global cryptocurrency trade volumes have dropped from $54.78 billion to $22.95 billion. This represents a 58.48% decrease in trade volume, which is a significant decline for the industry.

Further, on Jan. 1, 2023, data shows that 71.63% of all trades were paired with the cryptocurrency economy’s stablecoins. In particular, tether (USDT) commands $12.45 billion, which equates to 71.63% of the aggregate on that day. This indicates that the vast majority of trades are being conducted with stablecoins, which could be indicative of a lack of investor confidence in the cryptocurrency markets.

It is important to note that cryptocurrency trade volumes have been declining since Jan. 2022. During the year, there have been monthly spikes in May, Sept., and Nov. 2022. The November spike occurred amid the chaos surrounding FTX’s insolvency, and there were significantly higher daily trade volumes at that time. However, Dec. 2022’s total volumes were 46% lower than the month prior.

The decline in trade volumes could be indicative of a lack of investor confidence in the cryptocurrency markets. It is also possible that investors are taking a wait-and-see approach to the industry and are holding onto their assets until there is more certainty about the future. Additionally, the fact that a majority of trades are being conducted with stablecoins suggests that investors are taking a more conservative approach with their investments.

In conclusion, the cryptocurrency industry saw a significant drop in trade volumes during the month of December 2022. This could be a sign of a lack of investor confidence in the markets, or it could be indicative of a wait-and-see attitude from investors. Regardless, it is clear that the industry is still in a state of flux, and it will be interesting to see how the trade volumes evolve in the coming months.

• Draft law introducing rules determining how the digital ruble will be issued has been filed with the State Duma.
• The purpose of the proposal is to develop payment infrastructure for the digital ruble.
• Bank of Russia is assigned to be the sole operator of the CBDC platform.

The Russian State Duma has recently submitted a draft law devoted to the digital ruble, the central bank digital currency (CBDC) minted by Russia’s monetary authority. The legislation, proposed by a group of lawmakers led by the Chairman of the Financial Market Committee Anatoly Aksakov, introduces rules determining how the new form of national fiat will be issued and amends a series of legal acts to facilitate its implementation.

The document suggests legislative changes meant to create the conditions for the introduction of the digital ruble. The main purpose is to develop the necessary payment infrastructure for the CBDC which would provide Russian citizens, businesses, and the state with access to fast, convenient, and low-cost money transfers. In particular, the proposal aims to amend several existing laws such as the law on “On the National Payment System” to which the members of Duma want to add definitions pertaining to the CBDC.

The proposed changes assign to the Bank of Russia the role of sole operator of the CBDC platform. They also establish the procedures for opening wallets for the digital ruble and accessing its platform. An amendment to the law “On Currency Regulation and Currency Control” secures the status of the digital ruble as a currency of the Russian Federation and defines CBDCs issued by the central banks of other nations as foreign currencies. Additionally, changes to the Federal Law “On Personal Data” allow Russia’s central bank to process personal information related to the digital ruble.

The CBDC project is seen as a part of Russia’s National Digital Economy Initiative, which aims to modernize the state’s economy and make it more competitive in the global market. The government is hopeful that the project will help to attract more investments and create new jobs. The digital ruble is expected to become an important tool in the country’s financial and technological landscape and could be a significant step towards achieving financial inclusion.

• Venezuelan banking watchdog Sudeban is looking to monitor crypto-related transactions to preserve the stability of the bolivar.
• The organization is designing a system to review banking transactions in real-time with the help of the national cryptocurrency regulator.
• Analysts have linked the recent cryptocurrency drought in peer-to-peer markets due to the collapse of FTX, to the sudden rise in the Venezuelan dollar-bolivar exchange rate.

The Venezuelan banking watchdog Sudeban is working to preserve the stability of the bolivar, the nation’s currency, by monitoring crypto-related transactions. In order to do this, the organization is designing a system to review banking transactions in real-time with the assistance of the national cryptocurrency regulator. This system is aimed at fighting “irregular practices that attack our currency and the stability of the exchange market.”

The move to monitor cryptocurrency transactions comes as analysts have linked the recent drop in the value of the bolivar to the situation in peer-to-peer (P2P) crypto markets. Particularly, the sudden rise in the Venezuelan dollar-bolivar exchange rate has been attributed to the collapse of FTX, one of the largest crypto exchanges in Venezuela. This, combined with the natural abundance of fiat currency in the market due to holiday-related payments, has resulted in a cryptocurrency drought in P2P markets.

In line with this initiative, more than 75 bank accounts have been blocked since the end of 2021 due to suspicious activity related to cryptocurrency transactions. These suspensions are part of the government’s efforts to protect the value of the bolivar and the stability of the exchange market.

Sudeban’s move to monitor crypto transactions is not the first attempt by the Venezuelan government to regulate the cryptocurrency ecosystem. In November 2020, President Nicolas Maduro introduced the Petro, a state-backed digital currency. While the Petro has had limited success, it does highlight the government’s commitment to using cryptocurrencies to help stabilize the economy.

The Venezuelan government’s efforts to regulate crypto transactions in the country could have a positive impact on the economy. While the immediate effects of the new system are yet to be seen, it could be an important step in stabilizing the country’s exchange rate and protecting the value of the bolivar.

• Ethereum has transitioned from a proof-of-work (PoW) blockchain to a proof-of-stake (PoS) network, and the number of Ethereum validators is set to surpass 500,000 in 2023.
• Ethereum’s current issuance rate of new coins per annum is 0.014%, compared to the simulated PoW inflation rate of 3.58% per year.
• Since the Aug. 5, 2021 London Hard Fork, 2,795,773 ether or $8.78 billion in U.S. dollar value has been burned by destroying ETH.

Since Ethereum transitioned from a proof-of-work (PoW) blockchain to a proof-of-stake (PoS) network on September 15th, 2022, the number of validators has increased rapidly and is expected to surpass 500,000 by 2023. This shift has led to a significantly lower issuance rate of new coins, with only 4,790.45 ether having been minted since The Merge, according to metrics from ultrasound.money. This represents a drastic decrease in inflation compared to the simulated PoW inflation rate of 3.58% per year.

In addition to the lower issuance rate, Ethereum has implemented a burn mechanism that is actively destroying a substantial portion of the ETH supply. According to data from Dune Analytics, since the Aug. 5, 2021 London Hard Fork, 2,795,773 ether or $8.78 billion in U.S. dollar value has been burned by destroying ETH. This is the largest amount of ETH burned since Ethereum’s transition to PoS consensus and has had a significant impact on the network’s inflation rate.

The Ethereum network has seen a dramatic shift in the issuance rate of new coins since the transition to PoS consensus. This has resulted in a significantly lower inflation rate and a substantial amount of ETH burned, demonstrating the effectiveness of the new consensus algorithm. Ethereum’s transition to PoS consensus is a milestone for the network and is expected to have a positive impact on the network’s long-term growth.

• Onchain sleuths discovered funds connected to Alameda Research and FTX were moved and swapped for other tokens on Dec. 27, 2022.
• The hacker known as the ‘FTX Accounts Drainer’ traded large sums of ERC20 tokens for digital assets like tether, ethereum, and bitcoin.
• Onchain researchers noticed funds were swept into an ethereum wallet and sent to Fixedfloat or Changenow.

On December 27, 2022, a number of onchain researchers noticed suspicious activity involving funds connected to Alameda Research and FTX. The funds had been moved and swapped for other tokens, leading many to believe that a hacker known as the ‘FTX Accounts Drainer’ had been trading large sums of ERC20 tokens for digital assets like tether, ethereum, and bitcoin.

The onchain sleuths noticed that Ethereum addresses connected to Alameda had been swapping ERC20s for ETH and USDT. The digital assets were then sent to instant exchangers such as Fixedfloat and Changenow. This prompted alarm bells from onchain researchers, with one of them, Ergo, tweeting, “Alameda ETH addresses are digging around in the sofa for spare change and swapping bits ERC20s for ETH/USDT.”

This was further confirmed by another onchain sleuth, Zachxbt, who tweeted that the funds were being swapped for Bitcoin. He shared four different BTC addresses that had been sent roughly 11.9 bitcoin worth close to $199K using today’s BTC exchange rates.

The funds were then swept into an ethereum wallet, as Ergo revealed, and sent to Fixedfloat or Changenow, as confirmed by Martin Lee of Nansen. Lee also noted that there had been “lots of activity going on among Alameda wallets in the past 6-7 hours” involving various tokens on Ethereum that had been consolidated into two main wallets.

The activities of the FTX Accounts Drainer remain unknown, but the mysterious fund movements have left many onchain sleuths scratching their heads and wondering what the hacker’s motives could be. The fund movements are still being monitored and analyzed in an effort to determine the hacker’s identity and intent.