DeFi DeBrief #2 | Interest rates trend up 🔺

TL;DR:

• Fed to keep raising interest rates
• Mastercard and Binance launch crypto card
• Tether shows assets exceed liabilities

Onwards 👇

Interest rate hikes ahead 📈

The U.S. Federal Reserve once again suggested interest rates will rise until inflation is under control. The latest hike was 0.75% as inflation hit a four-decade high, and the Fed is expected to announce a similar move in September. 

Interestingly enough, Bitcoin and other major digital assets barely flinched at the news. That said — the minutes said the Fed would likely “maintain that level for some time to ensure that inflation was firmly on a path back to 2%.”

Why should you care?

Rising interest rates typically don’t favour risky assets, meaning crypto could continue to trade sideways until the Fed eases its stance. Given this will not happen until inflation falls substantially, crypto winter could last some time yet.

Mastercard brings crypto to 90m stores 💳

Mastercard CEO Michael Miebach announced his company is working with Binance to let people spend crypto at 90 million stores.

The payments provider will launch its prepaid crypto card in Argentina, with users able to spend their crypto in every store that accepts Mastercard. Following the launch, Mastercard will roll the service out in more markets.

IN THE HEADLINES

Tether boosts transparency 🔎

Tether, the issuer of the world’s largest stablecoin, USDT, has announced that BDO Italia will take over its regular attestation reports, confirming it plans to publish the results every month (rather than once a quarter).

The monthly assurance reports will boost the stablecoin’s transparency by detailing the assets that back up the $67 billion USDT in circulation. Critics have long questioned if Tether was fully backed by its reserves.

The latest attestation shows its assets exceed its liabilities.

Five short reads catching our eye this week:

1. FTX could buy BlockFi for just $15m
2. Can we avoid the censorship of Ethereum?
3. Nike, Gucci, and other iconic brands make $260m from NFTs
4. Stablecoins hold more U.S. debt than Berkshire Hathaway
5. Do Kwon gives first interview since Terra’s collapse

• BTC: $21,362.74 (12.36%, 7 days)
• ETH: $1,639.00 (15.91%, 7 days)
• TVL in DeFi: $61.69bn
• Fear & Greed: 25 (extreme fear)

*Data last updated at 08:00 on 24th August.

Good crypto investing isn’t a skill.

It’s a temperament.

— RYAN SΞAN ADAMS – rsa.eth 🦇🔊 (@RyanSAdams) August 22, 2022