The conversion of Ethereum to a proof-of-stake (PoS) consensus algorithm known as “the Merge” occurred on Sept. 15 at 6:42:42 am UTC. This transition is a crucial step in the ongoing multi-year transformation of the Ethereum blockchain. Eli Ben-Sasson, co-founder of StarkWare, mentioned that the Merge would initiate a series of changes. The Merge is expected to significantly reduce Ethereum’s energy consumption by approximately 99%.
Before the network switched from proof-of-work (PoW) to PoS, Ethereum co-founder Vitalik Buterin expressed his excitement, stating that moving to PoS had been a longstanding goal for the Ethereum ecosystem. Despite this, a group called ETHW Core plans to maintain a PoW version of Ethereum through a fork post-Merge, creating a new asset called ETHPoW (ETHW).
Abra reveals plans for a US bank that supports digital assets
Abra, a digital asset trading platform, announced its establishment of two financial institutions: a US-based bank named Abra Bank and an international crypto business. The US state-chartered bank, scheduled to launch in 2023, will operate similarly to traditional banks in terms of offering services for digital assets. Additionally, Abra International, stationed outside the US, is also in the works, intending to comply with relevant regulations.
Norwegian central bank utilizing Ethereum for national digital currency
The central bank of Norway, Norges Bank, is leveraging the Ethereum blockchain to develop its central bank digital currency (CBDC). While the CBDC project is still in the early stages, Norges Bank has shared the open-source code for the asset’s testnet via a sandbox. Several countries have shown interest in or begun working on their CBDC initiatives, although CBDCs do not necessarily have to be built on a blockchain. The Bahamas and Nigeria are examples of countries with operational CBDCs.
SEC addressing increasing crypto issuer filings with specialized offices
The US Securities and Exchange Commission (SEC) plans to establish two new offices by the end of 2022, one of which will focus on regulating crypto activities. The Office of Crypto Assets, under the Division of Corporation Finance’s Disclosure Review Program, will review digital asset filings. The rise in crypto issuer filings coincides with the SEC’s heightened involvement in overseeing the crypto industry. Recently, the US government unveiled a comprehensive crypto regulatory framework involving nine government departments.
Possession of Bitcoin remains legal in China despite the ban, according to a lawyer
Crypto regulations in China still lack clarity. David Lesperance, founder of Lesperance & Associates, clarified that the possession of cryptocurrencies in China is not prohibited by law. Cryptocurrency holders in the country are safeguarded by laws regarding theft, misappropriation, or loan agreement breaches. However, commercial trading of cryptocurrencies is illegal as the Chinese government has explicitly banned crypto exchanges.
Winners and Losers
At the end of the week, Bitcoin (BTC) stands at $19,462, Ether (ETH) at $1,425, and XRP at $0.33, with a total market capitalization of $949.92 billion, as per CoinMarketCap data.
Among the top 100 cryptocurrencies, the leading gainers of the week include Celsius (CEL) with a 12.12% increase, Compound (COMP) with a rise of 10.97%, and Kyber Network Crystal v2 (KNC) with a 4.31% surge.
Conversely, the biggest losers of the week are Terra (LUNA) with a decrease of -49.07%, TerraClassicUSD (USTC) down by -29.01%, and Terra Classic (LUNC) with a decline of -26.47%.
For more detailed cryptocurrency price analysis, refer to Cointelegraph’s market reports.
