Mon 02/27

Good Morning. India makes moves on crypto rules, Alchemy releases a futuristic web3 dApp, and IMF is against making crypto a legal tender! Happy Monday Samajis!

⚖️ A FSB and IMF Synthesis Paper Will Outline The Global Crypto Rules, Says India Says After G20 Meetings: On Saturday, during an announcement in Bangalore, it was revealed that the IMF and the Financial Stability Board (FSB) would jointly produce a new synthesis paper that will serve as the basis for global cryptocurrency regulations. The announcement came after a three-day meeting of the G20, which consists of the world's 20 largest economies, in India, where developing a global regulatory framework for cryptocurrency was a top priority. The G20 Finance Ministers and Central Bank Governors held discussions that were expected to outline a plan for globally coordinated crypto regulations. The US and IMF both supported India's efforts to establish regulations for cryptocurrencies. U.S. Treasury Secretary Janet Yellen, speaking to Reuters during the G20 meeting in Bengaluru, emphasized the need to establish a robust regulatory framework.

🤝 India Is The 7th Biggest Nation Ready To Adopt Crypto In 2023, US 2nd: Based on research by HedgewithCrypto, Australia is expected to be the leading country in cryptocurrency adoption in 2023, with a score of 7.37 out of 10. The country has legalized and regulated the sale of digital assets and cryptocurrencies. In contrast, India is ranked seventh in terms of its readiness to adopt cryptocurrency in 2023. The US is expected to be the second-largest country in crypto adoption with a score of 7.07 out of 10, and it currently has 33,630 crypto ATMs. Brazil ranks third with a score of 6.81/10 and has seen a significant increase in monthly searches for crypto by 355%. Additionally, a new bill that legalizes cryptocurrency throughout Brazil was signed in December 2022.

👌🏻 Alchemy Launches A 4-Minute Dapp Builder For Web3 Developers: Alchemy is launching a new platform called Create Web3 Dapp (CW3D) with the aim of attracting more people to decentralized technologies. Elan Halpern, a product manager at Alchemy, explained in an interview with Decrypt that the company's ultimate goal is to introduce blockchain or Web3 to a billion people, and they believe this can be achieved by empowering developers. Halpern noted that the time it takes to create a dApp can vary depending on factors such as connectivity, but he believes the CW3D tool will significantly reduce the time required by providing essential tools needed to create a decentralized application. The platform includes only the necessary packages and libraries to start a dApp, making it lightweight and efficient. According to Halpern, the CW3D tool is designed to be user-friendly and accessible for developers of all levels.

🔨 Crypto Should Not Be Given Official Currency, Legal Tender Status – IMF: IMF has cautioned against granting cryptocurrencies the status of legal tender or official currency, warning that it could negatively impact a nation's monetary sovereignty and stability. According to a paper titled "Elements of Effective Policies for Crypto Assets" published on February 23, the IMF considers this to be the first of nine elements necessary for effective policies on crypto assets. The IMF also pointed out that giving cryptocurrencies legal tender status could lead to financial stability issues, as traditional financial institutions would be exposed to the volatile nature of these assets. Additionally, the IMF warned that state-owned enterprises should not handle crypto operations, as government revenues could be significantly impacted by fluctuations in crypto prices.

What Is Layer 2 : Layer 2 refers to any off-chain network, system, or technology built on top of a blockchain (commonly known as a layer-1 network) that helps extend the capabilities of the underlying base layer network. Layer-2 networks can support any blockchain to introduce enhancements such as higher transaction throughputs.