Florida Governor Ron DeSantis has introduced new legislation to protect residents from a national CBDC (Central Bank Digital Currency) in accordance with the new Uniform Commercial Code.

The bill, if passed, would also protect Floridians from a global digital currency issued by a foreign central bank. Florida, according to DeSantis, will not support the deterioration of financial freedom.

Governor DeSantis has also urged other governors to fight surveillance and control from the federal government by enacting similar legislation under their commercial codes.

Tarren Bragdon from The Foundation for Government Accountability stated that he supported the bill and was opposed to a government bureaucracy which was clearly out of control.

Elsewhere, The Federal Reserve of the United States recently announced that its FedNow payments system would go live in July 2023.

FedNow, widely regarded as a forerunner to a programmable CBDC, will aspire to settle payments quickly between merchants, consumers, and banks. It is worth noting that blockchain technology is not used in the settlements.

Fed Vice Chair Lael Brainard stated in May of last year that FedNow serves nearly the same purpose as a CBDC. A CBDC, on the other hand, would be legal tender instead of a real-time payment system.

Arbitrum has finally announced its plans of getting a token. According to the Arbitrum Foundation, ARB will be the official name of the new token, and it shall reportedly be airdropped to community members on March 23rd, 2023.

As per the Arbitrum Foundation, ARB will therefore mark the official transition of Arbirtrum into a DAO (Decentralized Autonomous Organization), which means that ARB holders shall be allowed to vote on key decisions governing Arbitrum One and Arbitrum Nova. Both of these are networks which enable users to transact on the Ethereum blockchain at faster and relatively lower fees.

Important details

Arbitrum DAO will be given the authority to regulate key decisions at the core protocol level, such as from how the core technology is updated to how revenue can be used to support the ecosystem. Moreover, while the Arbitrum Foundation intends to distribute a relatively large number of tokens (44%), Offchain Labs claims that the ARB token would make the Arbitrum ecosystem much more decentralized than alternative scaling chains.

The most exciting part however is certainly the decentralization aspect, in the sense that Offchain Labs would no longer have any control over the future of this chain, according to Offchain Labs CEO Steven Goldfeder. Arbitrum collaborated with Nansen, a crypto analytics firm, in February to monitor user activity in order to determine who can qualify for ARB tokens.

Additionally, users of Arbitrum can check their eligibility for the airdrop and also claim tokens if they qualify. They are advised to exercise caution when claiming their tokens though as scammers often rely on airdrops to phish people through spoof websites and other schemes.

Time is of the essence

Arbitrum has nearly $3.7 billion invested in its Ethereum rollup network, Aribtrum One, making it the undisputed market leader in a crowded field of rival chains. Arbitrum also controls 55% of the Ethereum Layer 2 market, according to an analytics website called L2 Beat. Since the network went live in 2021, anticipation for an Arbitrum token has been at an all-time high as the project is one of the most noteworthy crypto projects without a token.

Optimism, the main competitor to Arbitrum in the Ethereum scaling space, also launched its own token nearly a year ago when it transitioned to DAO governance. Arbitrum One and Optimism are both examples of optimistic rollup networks. They are blockchains that run alongside Ethereum, group together large numbers of transactions, and then write those transactions to the Ethereum ledger in bulk, reducing the fees required to execute those transactions individually.

Microsoft is reportedly working on an Ethereum crypto wallet built into its Edge browser, allowing users to send and receive crypto and NFTs without the need for additional extensions. The wallet is currently in limited testing and is a non-custodial solution, providing users complete control over their funds.

According to BleepingComputer, this experimental Edge browser feature was discovered by the pseudonymous software documenter Albacore. Microsoft, in collaboration with Consensys, shall also provide a built-in crypto swap feature between $ETH, $DAI, $UNI, $USDC, and $USDT.

Moreover, the public keys of the Edge Crypto Wallet enable users to receive payments and they must also keep secret private keys in order to authorize transactions. The wallet appears to be in its early stages for now, with access granted only to Microsoft Edge Dev Channel users.

Also, Microsoft emphasized that during the onboarding process, it would not have access to passwords or recovery keys. To secure and recover their crypto wallet, testers must create a password and a 12-word recovery phrase.

When the onboarding process is finished, the wallet generates an Ethereum address for receiving funds, and multiple Ethereum accounts are also supported by the Edge Crypto Wallet. Users can also connect to dApps and read the latest crypto news. Lastly, there are some indications that support for a Bitcoin wallet may be added in the future.

Uniswap, the biggest decentralized exchange protocol by trade volume, has launched on BNB Chain, a decentralized EVM-compatible smart contract blockchain founded by Binance. The move follows a successful governance proposal to deploy on BNB Chain in February, as well as contentious governance deliberations to determine a bridge solution for the deployment.

With this expansion, Uniswap Protocol users will be able to trade and swap tokens across the network by taking advantage of the comparatively low transaction fees of BNB Chain.

Also, with the flourishing and devoted community of BNB Chain, as well as its scalability and accessibility, it has quickly become a launchpad for all things Web3, where protocols looking to reach a larger audience can grow, says Alvin Kan, the Director of Growth for BNB Chain.

He said that the team is encouraged by the continued dedication of Uniswap to providing value to its users and laying the groundwork for the future of decentralization.

With the SVB debacle, and with the recent signs of an apparent bull run on the horizon, it is now possible to conclude that crypto has resolved many of its previous issues, whereas fiat has not.

As a result, crypto may indeed be a safer option at this point, which both depositors and investors should consider as they are reminded yet again that their deposits belong to the bank, and that the bank can do whatever it wants with that money, including investing in crashing bonds which result in depositor losses.

Moreover, despite the fact that the largest US banks are making over $100 billion in profits per quarter, if they are indeed gambling in the bond or stock markets, even huge profits may not be enough. This was the case of SVB, which collapsed with tens of billions in deposits and, crucially, no one really knows why this happened with absolute certainty.

In contrast, not only is everyone in crypto in charge of their own assets but the community also quickly identifies what is and is not affected in these types of situations, as well as how far it might all reverberate. Crypto is thus now arguably safer, whereas in fiat we do not yet know the full effects of the rapid increases in debt costs, which have most likely not yet fully cleared through the system either.

The March 10th collapse of Silicon Valley Bank (SVB) sparked FUD (Fear, Uncertainty, and Doubt) throughout the crypto community, prompting many to return to crypto roots, namely, reviving the Bitcoin (BTC) white paper published just weeks after the 2008 Lehman Brothers meltdown.

There is an entire generation of builders who only know about Lehman and the financial crisis and dismiss Bitcoin. Now though, their eyes are wide open, said Messari Founder and CEO Ryan Selkis.

Some attribute this disaster to rising interest rates within the U.S. Over the last year, the Federal Reserve raised its benchmark rate to more than 4.5%, the highest level since 2007. In the United States, the inflation rate was 6.4% in January.

The failure of Silicon Valley Bank has also impacted numerous crypto and tech companies. SVB was actually about to close its doors when Circle, the issuer of USD Coin (USDC), initiated a wire transfer to withdraw its funds.

However, Circle revealed that it was unable to withdraw $3.3 billion of its $40 billion in SVB reserves, resulting in a sell-off and the price of the stablecoin falling below its $1 peg. Other stablecoins such as BUSD and USDT have maintained their 1:1 peg with the U.S Dollar, for the time being at least.

Following a favorable bankruptcy court ruling, Binance US is reportedly proceeding with its intentions of obtaining the $1.3 billion assets of the downtrodden crypto lender Voyager. Judge Michael Wiles will therefore sign a court order authorizing the sale and the associated $20 million payout plan to Voyager customers.

What happened?

Judge Wiles overruled the eleventh-hour objection from the SEC that parts of the $1.3 billion deal might violate securities laws. The Judge was unwilling to place the entire case on indefinite hold while regulators determine whether they believe there are indeed issues with the transaction and plan or not.

Moreover, instead of proceeding with the sale, Voyager may choose to liquidate on its own and distribute the proceeds to customers, according to Brian Tichenor, the lead investment banker for the company. The United States will also reportedly give customers an additional $100 million.

In a court filing in January, the embattled crypto lender Voyager estimated that customers would receive approximately half of the amount owed, but during a court hearing on March 2nd, Voyager attorney Christine A. Okike stated that customers would receive approximately 73% based on recent crypto asset prices.

Elsewhere, in the initial appeal hearing for Grayscale and its Bitcoin spot ETF, judges expressed concerns about the reasoning provided by the SEC, claiming that the agency had failed to explain why Grayscale was in the wrong here. They also questioned why futures-based Bitcoin ETFs were permitted while spot-based ETFs were not.

The SEC losing its touch?

The United States SEC has taken a number of actions against crypto companies and individuals over the years, which has understandably sparked outrage among many in the community. Subpoenas, fines, and lawsuits have been issued against numerous companies and individuals who have been charged with promoting unregistered securities, the most famous example of which would be the still ongoing legal battle with Ripple.

Due to this, many in the crypto community have begun to view the SEC as overly aggressive and hostile to the industry. Some have even accused the SEC of overreaching and interfering with innovation, while others believe the agency is simply attempting to protect traditional financial institutions from any and all kinds of disruptive forces.

In any case, plenty of investors have started leaving the United States in favor of more crypto-friendly countries like the UAE which has only contributed to the brain drain of the country, and this will continue unless the SEC changes its stance towards crypto going forward.

Silvergate Capital Corporation, the holding company for Silvergate Bank, has officially announced that it will cease operations entirely. The bank stated that it would be voluntarily liquidated in an orderly fashion and in accordance with applicable regulatory procedures.

The bank further indicated that all customer deposits shall be fully repaid, and that it was currently determining how to resolve claims while maintaining the value of its assets.

Silvergate informed the SEC at the start of the month that it was possibly less than well-capitalized and that it was reassessing its business. Moreover, the bank also admitted that it was unsure of its ability to continue operations going forward.

Needless to say, the news has sent shockwaves through the cryptocurrency industry, with major firms like Coinbase, Circle, CBOE, Paxos, and Galaxy Digital all quickly announcing that they were halting transactions to and from Silvergate.

Not long afterwards, Silvergate also announced the closure of the Silvergate Exchange Network (SEN), which previously allowed users to exchange government-issued currencies for crypto.

According to the Wall Street Journal, Tether reportedly falsified documents which were provided to its banking partners. The Department of Justice (DoJ) is also apparently investigating the stablecoin company for bank fraud.

In a Whalepool call shortly after Wells Fargo cut them off in 2017, Phil Potter, then CSO of both Bitfinex and Tether, described how much back and forth there is in this entire ordeal. He mentioned that when they discovered they were dealing with Bitcoin, their correspondent banks would often refuse to respond.

Stephen Moore, one of the reported shareholders for Tether Holdings Limited, was allegedly responsible for signing a series of fake invoices and contracts which were utilized to conceal the fact that these were Tether deposits and withdrawals. He reportedly did not want to argue any of this in a potential fraud or money laundering case.

Additionally, following this conversation, one essential Tether trader and shareholder based in China, Zhao Dong of RenrenBit, was found to be guilty of money laundering in the country.

Furthermore, previous reporting has also revealed that around the same time, Stuart Hoegner, General Counsel for Bitfinex and Tether, had Tether funds in his Bank of Montreal account. According to previous DoJ comments, the exchanges involved were completely cooperative.

Polygon, an Ethereum Layer-2 scaling protocol, has finally released a Zero Knowledge (ZK) decentralized identity solution to the public almost a year after first announcing its development. Put simply, the Polygon ID service employs ZK proofs, which utilize cryptographic techniques to enable users to verify their identity online without their sensitive information being passed on to or potentially stored with any third party.

Polygon ID is also being integrated into various other Web3 projects, including popular metaverse platform The Sandbox and blockchain builder community Guild.xyz, just to name a few.

Important details

Polygon ID was made public by Polygon Labs on March 1st, nearly a year after it was first announced via a closed-source environment. According to the Polygon team, Polygon ID was created to resolve the issue of digital trust. What distinguishes Polygon ID when compared to most other decentralized ID frameworks, as the team believes, is its use of ZK technology, which allows users to verify their identities or other credentials without revealing sensitive information.

The public release therefore adds four new tools to the Polygon ID toolkit, namely Verifier SDK, Issuer Node, Wallet SDK, and Wallet App, allowing Polygon developers to successfully integrate decentralized identities into their applications. Users will be able to interact with smart contracts and validate information on-chain by producing ZK proofs using off-chain credentials like a passport, national ID, or even education credentials like a diploma or degree.

A new age of digital identity?

It is no secret that the world is becoming increasingly digitized, so it would make all the sense in the world for Polygon to introduce this new initiative. Polygon claims it is also the first ZK-based digital ID tool that makes it possible to store credentials locally on handheld devices like smartphones, eliminating the need for passwords.

In a recent tweet, Polygon ID co-founder David Schwartz stated that the product was constructed using the latest decentralized identity standards, which will have a significant effect in terms of helping safeguard developers and users as their information will never be shared with any third party or intermediary.

The pinnacle of digital ID adoption is providing a means of identifying oneself that the average consumer could regularly use, David explained. Several projects, including Web3 infrastructure provider Kaleido, ID verification solution Fractal, and Web3 community management system Collab.Land, have already committed to integrating Polygon ID upon launch.

According to Polygon, they have a combined user base of over 4 million, a number that is expected to grow drastically over time.

People familiar with the matter said that U.S. payment giants Visa and Mastercard are putting a halt to plans to form new partnerships with crypto firms following a string of high-profile failures last year.

The crypto sector experienced a stunning turnaround in 2022, as the bankruptcies of industry titans FTX and BlockFi, as well as the controversial Terra disaster, shook investors and increased regulatory scrutiny by a significant margin.

According to Visa, previous notable failures in the crypto industry serve as a crucial reminder that this kind of technology has a long way to go before it can become an integral part of mainstream payments and financial services. However, the crypto strategy and focus for the company shall remain unchanged, even if there is a temporary pause.

For its part, Mastercard indicated that efforts to continue focusing on blockchain technology alongside the extraction and analysis of useful data pertaining to the implemenation of said technology is still very much the focus going forward, even with the temporary setback.

In April 2022, Mastercard collaborated with crypto lender Nexo to launch a crypto-backed payment card. Later on in the year, just a month after announcing an expanded partnership with the exchange, Visa terminated its global credit card agreements with FTX.

The move comes after the US Securities and Exchange Commission announced earlier this month that it was looking into the stablecoin as a possible unregistered security.

Coinbase determined that BUSD no longer met their listing standards after reviewing it. The exchange manages token listings via its Digital Asset Listings Group, a committee reviewing assets which excludes its CEO Brian Armstrong and board members.

It is worth noting that users shall still be able to access and withdraw their BUSD following the suspension, according to a tweet from Coinbase. As of this writing, BUSD is currently the third biggest stablecoin, with a market capitalization of US$10.6 billion.

Coinbase previously stated that stablecoins backed by US dollars are not securities. The NYDFS ordered Paxos, which owns and operates BUSD, to halt the issuance of the Ethereum-based stablecoin on February 21st, 2023. Paxos has stated that the stablecoin will be supported until at least February 2024.

Paxos also received a Wells notice from the US SEC earlier this month, which threatened potential enforcement action because the stablecoin was deemed an unregistered financial security.

Paxos issued a statement claiming that BUSD is not a security and that it is in constructive discussions with the SEC. Binance stated earlier this month that it only licenses its brand to Paxos for use with BUSD.