The International Monetary Fund (IMF) has taken a seemingly tough stance toward growing cryptocurrency adoption, with a set of recommendations and a call for a “coordinated response.”

Nasdaq-listed cryptocurrency exchange Coinbase has announced the testnet launch of Base, a layer-2 network built using Optimism’s OP Stack, which offers “a secure,low-cost, developer-friendly way for anyone, anywhere, to build decentralized apps or “dapps” onchain.”

Block’s Cash App  generated $7.11 billion of Bitcoin-related revenue throughout the full year of 2022, down 29% from the previous year. That revenue generated $156 million in gross profit, down 28% from the previous year.

 Top stories in the Crypto Roundup today:

• IMF Calls for ‘Coordinated Response’ to Crypto
• Coinbase Launches Layer-2 Network Base
• Block’s Bitcoin Revenue Dropped 28% Last Year
• CryptoCompare's Digital Asset Summit, CCDAS, Returns!

IMF Calls for ‘Coordinated Response’ to Crypto

The International Monetary Fund (IMF) has taken a seemingly tough stance toward growing cryptocurrency adoption, with a set of recommendations and a call for a “coordinated response.”

In a statement, the IMF wrote that the “widespread adoption of crypto assets could undermine the effectiveness of monetary policy, circumvent capital flow management measures, and exacerbate fiscal risks.”

The organization argued crypto should not be granted official currency or legal tender status, noting that directors “generally observed that while the supposed potential benefits from crypto assets have yet to materialize, significant risks have emerged.” The IMF said “strict bans are not the first-best options,” adding that a few directors “thought that outright banks should not be ruled out.”

The IMF expressed concerns regarding the effects of crypto on financial stability, legal risks, financial integrity, consumer protection, and market integrity. In order to address these concerns, it discussed a set of nine elements that member countries could use to create a thorough, coherent, and unified policy response.

The recommendations include implementing a clear tax treatment policy for crypto assets. Earlier this month, the IMF said that the risks of El Salvador’s Bitcoin adoption “have not materialized” over the country’s “limited” use.

Coinbase Launches Layer-2 Network Base

Nasdaq-listed cryptocurrency exchange Coinbase has announced the testnet launch of Base, a layer-2 network built using Optimism’s OP Stack, which offers “a secure, low-cost, developer-friendly way for anyone, anywhere, to build decentralized apps or “dapps” onchain.”

According to Coinbase, its goal with Base is to make on-chain the “next online and onboard 1B+ users into the cryptoeconomy.” The network is set to serve as Coinbase’s on-chain home while being an open ecosystem.

The exchange has said it’s joining Optimism as a core developer for the open-source OP Stack, which is a developer toolkit for the Optimism network. Base isn’t set to be limited to Ethereum, but will also provide easy and secure access to other networks like Solana, and to layer-2s like Optimism.

Base leverages the underlying security of the Ethereum network and features seamless integrations with Coinbase’s products, easy fiat onramps, and “powerful acquisition tools enable developers to serve the 110M+ verified users and to access $80B assets on platform in the Coinbase ecosystem.”

Coinbase also said that the network features full Ethereum Virtual Machine equivalence “at a fraction of the cost.”

Block’s Bitcoin Revenue Dropped 28% Last Year

Block’s Cash App has generated $7.11 billion of Bitcoin-related revenue throughout the full year of 2022, down 29% from the previous year. That revenue generated $156 million in gross profit, down 28% from the previous year.

The company recorded an impairment charge of $9 million on its BTC investment during the fourth quarter, compared to $2 million in the third quarter. For the full year of 2022, it recognized an impairment loss of $47 million on its Bitcoin holdings.

As of December 31st, the fair value of Block's Bitcoin investment was $133 million, determined by "observable market prices." This amount was $30 million higher than the investment's carrying value after factoring in impairment charges.

CryptoCompare's Digital Asset Summit, CCDAS, Returns!

CCDAS, Europe's flagship institutional summit for digital assets, is returning to London for a two day event on October 2-3, 2023 with a curated VIP day followed by the main conference.

This year's event will include even more valuable content and roundtables featuring industry-leading speakers, curated networking opportunities, discussions and more.

Super early bird tickets are now available below at a special discounted price for the next 14 days. Interested in partnership opportunities for the event? Check out the summit website for more information or feel free to contact events@cryptocompare.com with any inquiries!

State of the Crypto by Top Tier Exchange Volume

Build your project with CoinDesk Data

Terms | Privacy

13 Charles II St, SW1Y 4QU

London, UK

This email may include advertisements by third parties. None of the advertised or promoted products and services have been verified or approved by us and this email is not any endorsement by us of the third party or of their products or services.