Here are the top stories freshly collected from the web, related to Money, Bitcoin and how the world of cryptocurrencies is disrupting the traditional banking system. Decentralized Finance is once again a big topic this week. Now we find that the amount of DAI cryptocurrency held in the Compound Defi platform is greater than the amount of DAI in existence. Austrian FinTech firm Salamantex has integrated its crypto payment software into the A1 Payment platform, which will allow 2,500 locations to accept Bitcoin, Ether and Dash.
There’s More DAI in Compound Than There is DAI
The growth of DeFi platforms in terms of the amount of money locked in them has exploded in the past several weeks. Compound’s website reported a supply of 401 million DAI despite the fact that there is only a supply of 148 million DAI in the world. Electric Capital’s Ken Deeter says that banks do the same thing when money is lent out. The vast difference between these two figures seems to be the result of a massive transfer of liquidity between assets, as the rules have been changed for how the platform’s governance token, COMP, is earned. Read more.
Austrian Firm Salamantex Enabling A1 Payment to Accept Crypto
Details are sketchy so far, but it seems that Salamantex’s software and the A1 Payment platform stand as intermediaries between the user and the merchant in the cryptocurrency transaction. This design centralizes the control over your payments in the two companies, which runs against the design philosophy of many cryptos and also proved to be dangerous as with the recent scandal surrounding payment card company Wirecard. Read more.
If you like this News Byte, check out a previous in-house article, “What is Yield Farming?” by Census Open Finance.
Time for a Serious Conversation: Wallets are the New Banks
Cryptocurrency and its decentralized design reduce concentrations of power that allow middlemen to become involved. With cryptocurrency, there is only a buyer and a seller. No other parts are essential and, therefore, they are not required. The Census Note has a role to play in this new financial model.
When banks are no longer needed, wallets become the new banks. And when credit cards are not needed, the Census Note becomes the new credit card. The payment processors and proprietary software that crypto credit cards rely upon are middlemen who can undermine your privacy and threaten the security of your funds. Read more.
Pomp Podcast #325: Michael Arrington On the Future of Crypto
This is Episode #325 of the Pomp Podcast with its host, Anthony “Pomp” Pompliano. In this episode, his guest is Michael Arrington, founder of Arrington XRP Capital. They discuss the future of cryptocurrency.