proof of integrity? The gold industry wants blockchain to solve its biggest problems March 25-31, 2022


As Bitcoin (BTC) continues to eat up gold’s market share, the bullion industry is looking to blockchain – the technology first made famous by BTC – to solve its most enduring challenges. How’s that for irony? Somebody should really check on Peter Schiff.

Speaking of bitcoin, a MicroStrategy subsidiary confirmed this week that it plans to buy more “digital gold” through a crypto-backed loan. Terraform Labs CEO Do Kwon also increased his Bitcoin purchases to provide solid support for Terra’s UST stablecoin.

This week’s Crypto Biz dives deep into the gold industry and the latest business developments surrounding Bitcoin.

The gold industry uses blockchain for supply chain management and fraud prevention

Blockchain has been identified as a potential game changer for the gold industry, which continues to struggle with supply chain issues that have eroded the integrity of bullion production. The London Bullion Market Association and World Gold Council are developing an “international system for the integrity, chain of custody and provenance of gold bullion” based on blockchain technology. They even dubbed this initiative the Bullion Integrity Program. Some of the industry’s largest organizations have already joined the initiative, including CME Group, Barrick Gold, Brinks, Royal Canadian Mint, Perth Mint and Metalor. Even if you find an old financier willing to risk his reputation by ruining Bitcoin, he will find it difficult to ignore the value of the underlying technology. Oh the irony!

Related: VanEck Says Bitcoin Could Hit $4.8 Million If It Becomes Global Reserve Asset

MicroStrategy’s subsidiary will buy Bitcoin after closing a $205 million crypto-backed loan

MicroStrategy’s recently formed subsidiary, MacroStrategy, has secured a $205 million loan from Silvergate to—you guessed it—buy more bitcoin. To secure the loan, the subsidiary provided an undisclosed amount of BTC as collateral. MicroStrategy CEO Michael Saylor was as poetic as ever in disclosing the new round of funding, claiming that his firm has “effectively turned our bitcoin into productive collateral that allows us to continue executing our business strategy.” If you’re surprised that Saylor is still buying after amassing 125,051 BTC, don’t be: MicroStrategy has adopted Bitcoin as its primary treasury reserve. Hence, it plans to buy more each time it generates excess dollars from its core business. Although MicroStrategy buys BTC over-the-counter, crypto investors can expect a tightening of supply if demand from other segments of the market increases.

Terra buys $139 million worth of Bitcoin, wallet reaches 31,000 BTC

Do Kwon gives Michael Saylor a fight for his money after Terra raised another $139 million worth of Bitcoin this week. Terra has now amassed nearly $1.5 billion worth of BTC as part of its promise to back its algorithmic stablecoin UST with digital gold. It should be noted that the Bitcoin address used to purchase the crypto belongs to the Luna Foundation Guard, a Singapore-based non-profit organization primarily focused on the Terra ecosystem. Bitcoin Maxis: Even if you don’t like Terra or altcoins, it’s hard not to respect Kwon for using solid money to back his stablecoin offering.

11 companies form the Canadian Web3 Council to advocate for a comprehensive crypto strategy

A group of fintech companies have formed the Canadian Web3 Council, a non-profit organization dedicated to advancing Canada’s position in the new, crypto-powered digital economy. The council, which includes household names such as Dapper Labs, Figment, Wealthsimple and WonderFi Technologies, aims to work with policymakers to ensure Canada is not a laggard in the Web3 era. Canada is already showing surprising leadership in crypto after policymakers approved two spot ETFs for Bitcoin in 2021. As a Canadian, I can tell you that spot ETF approvals aren’t making the sky fall, nor is the investment landscape any less safe than it was before. Perhaps we should forward the message to the United States Securities and Exchange Commission?

Related: Grayscale preparing for litigation with SEC over Bitcoin ETF

Before you go!

What is the best cryptocurrency to invest in under $3? At The market report This week I sat down with my fellow analysts Jordan Finneseth, Marcel Pechman and Benton Yaun to discuss this very issue. I chose 1INCH and ENJ, Jordan chose MATIC and RON and Benton chose SUPER and NCASH. You can watch the replay below.

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