Will Bitcoin compete against the dollar as an international currency? Grayscale thinks so, driven by the functionalities that the Lightning Network solution adds to the market-leading cryptocurrency. This and more news in this practical daily summary so that you are always informed with the most recent events that occur within the crypto world.
Bitcoin's opportunity to become a global currency
📍In a recent report, Grayscale noted that through the Lightning Network, Bitcoin could compete with fiat currencies in parts of the global economy. Titled “Bitcoin's Purpose: Sizing the Addressable Markets,” the report discusses potential use cases for Bitcoin as a scarce digital commodity and as an investment alternative to gold.
Bitcoin is a cryptocurrency designed for the current digital age, he pointed Grayscale. However, the arrival of the Lightning Network solution, which significantly reduces the time and costs of transacting with BTC, has expanded the possibilities for the market-leading cryptocurrency far beyond its role as a potential substitute for gold.
Specifically, Grayscale highlighted that the Lightning Network is improving the use case prospects for BTC transactions. It noted that, thanks to the network's constant innovation, Bitcoin could compete with fiat currencies in parts of the global economy.
Bitcoin, a pillar for the development of tourism in El Salvador
📍Morena Valdez, Minister of Tourism of El Salvador, highlighted that Bitcoin continues to boost the tourism sector in the country. During the event celebrating the 2nd anniversary of Bitcoin Day, which commemorates the day the Bitcoin Law was approved in the country, Minister Valdez highlighted that companies in the tourism sector that accept payments with cryptocurrency have seen their income grow by between 20% and 25%, on average, so far this year.
Minister Valdez says that Bitcoin is among the top three reasons why foreign tourists, mainly from the United States and Canada, visit the country. “Many of these tourists tell us that the three reasons they come to the country are for security, surfing and Bitcoin,” she said.
El Salvador is also preparing to participate in the Plan B Forum, which will take place on October 20 and 21 in Lugano, Switzerland.
During the event, representatives of the Central American nation will announce all the achievements achieved by El Salvador since its adoption of Bitcoin as legal tender.
Cryptocurrencies are the “fuel” of asset managers
📍Asset managers are increasingly confident in the growth opportunities offered by cryptocurrencies, according to a report by Amberdata and Coalition Greenwich. Despite bearish conditions in the crypto market, cryptocurrencies and digital assets are increasingly attracting asset managers and hedge funds, who see in this digital asset class a new opportunity to offer a wide range of services to their investors, ranging from exchange-traded funds or ETFs to new digital asset securities. This is noted by market data analysis firms in their recent report report, titled “Digital Assets: Managers Fuel, Data Infrastructure Needs.”
Many asset managers are exploring cryptocurrencies to maximize the opportunities of traditional crypto use cases such as crypto trading and investing. However, there is another group of asset managers who are keen to experiment with other use cases such as decentralized finance (DeFi).
The report also notes that the US market could become a potential hub for cryptocurrency development over the next five years, despite the strong regulatory scrutiny crypto assets face in the country at present.
Vitalik Buterin was a victim of SIM swapping
📍On the decentralized social network Warpcast, Vitalik Buterin explained that the hack of his account on X (formerly Twitter) was due to a SIM swap attack. Vitalik explained that the hacker who ran a phishing scam from his X account last week managed to take control of the account via SIM swapping.
According to Vitalik, he doesn’t remember when exactly he added his phone number to his X account, but he said the attack taught him a great lesson about the social network. “A phone number is enough to reset a Twitter account password, even if it’s not used as 2FA,” Vitalik said. “I’d seen the advice ‘phone numbers are insecure, don’t authenticate with them’ before, but I didn’t realize this.”
Malicious links posted on Vitalik's profile on X, which has over 4,9 million followers, reportedly caused users who fell for the scam to lose around $700.000.
BIS unveils new CBDC platform
📍Sela is the new central bank digital currency platform through which the BIS seeks to promote the global adoption of CBDCs. As explained by the Bank for International Settlements (BIS), Sela is a platform focused on the viability of CBDCs digital currencies so that they can serve a wide range of use cases.
The BIS explained that the aim through Sela is to ensure that retail CBDCs preserve the desirable attributes of cash, so that they can be widely used as a means of payment and a secure store of value, in addition to providing instant settlements and guaranteeing a certain degree of privacy to users, among other features.
The Sela project is being developed in conjunction with other major central banks and regulatory agencies, such as the Bank of Israel and the Hong Kong Monetary Authority.
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