The growth of cryptocurrencies has been major over the past decade. Since they exist for around 9 years, we can see that cryptocurrencies have had their ups and downs. The latest cryptocurrency news, however, bring a new innovation coming in the form of cryptocurrency insurance.
Knowing that the cryptocurrency market has grown to its current capitalization of more than $200 billion in a relatively short time, the demand for cryptocurrency insurance has always been in place. Already, we can see some big-time insurers emerging as major players in the market.
These include the names of Lloyd’s of London, a centuries-old insurer that is valued at $45 billion, which last year partnered with Coinbase in order to provide a $255 million policy in April this year. Aside from Coinbase, many other custodians adopted a form of cryptocurrency insurance – and some of the examples include Gemini, Kingdom Trust and Anchorage.
Despite the remarkable technology warkehich is backing cryptocurrencies, recent reports show that cybersecurity is still one of the biggest threats to the industry. According to a recent security research report from the firm CipherTrace, more than $4 billion worth of crypto funds was lost through theft and fraud in 2019.
All of this is happening while the BTC news show that the most dominant cryptocurrency is trapped below $8,000. However, cryptocurrency insurance is a sector that is not dependent on Bitcoin.
Last year, for example, Binance announced that it had discovered “a large scale security breach” that resulted in hackers stealing 7,000 Bitcoins worth a whopping $40 million. The exchange noted that the hackers used phishing and viruses to access the hot wallets in the company which contained about 2% of the company’s BTC holdings. In cases like these, cryptocurrency insurance is definitely something that exchanges of Binance’s caliber should have in mind.
All of this suggests that cyber attacks are common in the crypto space and that cryptocurrency insurance may be a good way to deal with them. According to experts such as Hartej Sawhney who is the co-founder of the cybersecurity agency Zokyo Labs:
“There’s an array of low hanging fruits for hackers. You don’t need military training to conduct cybercrime on today’s centralized exchanges.”
Privacy-Focused Zcash Demands Access To Ethereum’s DeFi Ecosystem
“Connecting to other chains doesn’t seem to be an Ethereum developer’s priority, but other chains seem to want to connect to Ethereum.”The developers all over the world have been working on interoperability solutions just so they can enable different networks and to be able to interact more efficiently in an attempt to eradicate the existing issues in regard to scalability and speed. Related to this matter, the VP of marketing and business development at Electric Coin Company Josh Swihart, explained that the Zcash community will develop a wrapped ZEC token that can be used on the Ethereum blockchain network by saying:
“If you want to do lending, if you want to do DAOs [decentralized autonomous organizations], all of that stuff could be done with Zcash as well … Ultimately, we want Zcash shielded [addresses] to be usable in Ethereum smart contracts.”The ZCash Foundation board member Ian Miers explained the issue of why decentralized app creators might want to protect their addresses and smart contracts. However, as previously reported in the blockchain news, the South Korean cryptocurrency exchange UpBit stopped the trading support for six cryptocurrencies including Zcash. The exchange decided to delist these six privacy coins in order to block the possibility of money laundering and the influx of external networks. Also, a few days ago, the OKEx crypto exchange confirmed that they will also stop the trading of Zcash and other privacy-oriented digital assets. the exchange made clear that all of the coins fall short on the new guidelines that were set out by the intergovernmental body which is the Financial Action Taskforce.
Russia Sees No Benefit In Launching National Crypto Assets
“Not only for technological reasons but also because it is [difficult] to really estimate what advantages will the national digital currency give, for example, in comparison with existing electronic non-cash payments. There are many risks, and the advantages may not be obvious enough.”Nabiullina previously stated that although there is an incentive to go crypto, the society will not be open to give up cash for digital alternatives. However, there are some signs of cash going obsolete such as in China but there are also signs of heavy reliance on physical cash in places of the world where privacy is valued or where there isn’t a good internet connection. While Russia’s central bank does not see the benefits by launching a CBDC, there is one potential benefit that might please the financial incumbents. The New York professor and economist Nouriel Roubini last year stated the central bank digital currencies:
“CBDCs [are] likely [going to] replace all private digital payment systems. By allowing any individual to make transactions through the central bank. CBDCs would upend this arrangement, alleviating the need for cash, traditional bank accounts, and even digital payment services.”As per the latest crypto news, some crypto banks are acknowledging his point and the Finance Minister of Germany and France already believe that the European Union should launch their own cryptocurrency as a response to Facebook’s Libra.
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