Korea unveils detailed plan for retail CBDC transaction pilot with 100K participants

Ethereum Co-Founder Highlights User-Friendly Crypto Wallets at Ethcon Korea 2023Ethereum co-founder Vitalik Buterin delivered a keynote speech last Friday at Ethcon Korea 2023 — a hackathon and conference sponsored by Ethereum for the Korean Ethereum community in Seongsu-dong, Seoul — where he emphasized the importance of making crypto wallets user-friendly by striking a balance between user familiarity and decentralization.Photo by Nenad Novaković on UnsplashEnhancing security and convenienceParticipating in the event via video call, Buterin explained Ethereum’s ERC-4337 account abstraction upgrade during his speech, which was livestreamed on the Ethcon Korea YouTube channel. “The goal of account abstraction — a field that many wallets are currently working on developing — can be broadly categorized into two areas: security and convenience,” he said.Deployed on the Ethereum mainnet in March, the ERC-4337 is a standard that makes it possible to transact and create contracts in a single contract account, paving the way for more user-friendly crypto wallet designs. At its core are features such as easy account recovery, improved security, and customized services like auto-pay and bundled transactions. This provides a more convenient alternative to other crypto wallets, which mostly rely on private keys for account access, complicating setup and recovery procedures especially if a user loses their seed phrase.“Wallets must fundamentally be secure in a decentralized way, but there should also be ways to recover passwords as hardware wallets do,” Buterin stated. “However, many projects still rely on methods such as account recovery via email.”Simplifying transactionsAnother change introduced through the update is gas flexibility. Gas is a fundamental fee that users must pay to conduct transactions or execute a contract on Ethereum. Wallets backed by ERC-4337 can pay gas fees with any Ethereum utility tokens and more, including USD coins (USDC).From a convenience standpoint, Vitalik argued, it is very useful for first-time Ethereum users to be able to pay for gas with the USDC they already have. Sponsored transactions, where applications pay for fees, will be a great way to attract new users, especially for non-financial applications.He further elaborated that in order to transition from being user-friendly but centralized to more decentralized, a combination of a faster but precarious centralized approach with a slower but safer decentralized approach is required.He also stressed the importance of utilizing the various options available in modern technology concerning convenience, security, and decentralization, saying that it is essential to utilize these options effectively, continuously improve them, and take advantage of the benefits.Since 2019, Buterin has used Ethcon as a platform to announce Ethereum’s development roadmap and major technical updates.

SEC seeks summary judgment against Terraform LabsThe U.S. Securities and Exchange Commission (SEC) is making a strong push for a summary judgment in its ongoing legal battle against Singapore’s Terraform Labs and its co-founder Do Kwon. Such an outcome would spare the need for a protracted trial.According to a motion filed by the SEC on Thursday, the record shows that there is “no genuine dispute as to any material fact and that the moving party is entitled to judgment as a matter of law.”Photo by Caleb Fisher on UnsplashRelying on the Howey TestThe SEC’s filing underscores its central argument that Kwon and Terraform Labs were involved in the sale of securities. The document categorically states:“There is no dispute that purchasers made an investment of money, either through fiat currency or crypto assets, for each crypto asset — LUNA, wLUNA, MIR, and UST, thereby satisfying the first prong of Howey.” The Howey Test refers back to a U.S. Supreme Court case — SEC v. Howey — which took place in 1946. The case set a precedent and has subsequently become the cornerstone of determining what is or is not a security in the United States.This argument hinges on the idea that funds were pooled in a common enterprise with the expectation of profits primarily derived from the efforts of the promoters.Citing fraud as well as unregistered securitiesThe SEC’s assertion is two-fold, contending that not only did Terraform and Kwon engage in selling securities, but they also engaged in fraudulent activities and disseminated misleading information. The SEC reiterates these claims in its filing, emphasizing that the defendants committed fraud by duping investors about the stability of UST.They allegedly falsely attributed the algorithm for price stabilization while orchestrating clandestine third-party interventions. This purported deception made their claims regarding the algorithm’s effectiveness deceptive and involved the omission of crucial information. The fallout from Terra’s collapse in May of the previous year resulted in the destruction of substantial investor wealth, totaling billions of dollars.Similar defense team filingThe SEC’s move to seek summary judgment comes in the wake of a similar filing by Kwon’s defense team last Friday. Kwon is currently serving a sentence for document forgery in Montenegro, a situation stemming from his arrest at an airport with forged passports.Notably, Terraform’s co-founder, Daniel Shin, who is currently on trial in South Korea, has attributed the collapse of Terraform Labs to Kwon’s mismanagement. Shin has claimed his separation from the company and its activities occurred two years before its eventual collapse.In this legal battle that holds significant implications for the cryptocurrency and blockchain space, the SEC continues to emphasize its position, asserting that Kwon and Terraform Labs engaged in the sale of securities through deceptive means. The outcome of this case could have far-reaching consequences, setting precedents for future regulatory actions in the industry.

Ethiopian Investment Holdings, the largest sovereign wealth fund in Africa, has announced the signing of a memorandum of understanding (MoU), which is suspected to involve a deal on Bitcoin mining. Deal uncertaintyTaking to LinkedIn on Feb. 15, the sovereign wealth fund outlined details of a partnership with Data Center Service, a subsidiary of Hong Kong’s West Data Group. Separately, Kal Kassa, CEO of Ethiopian operations at Hashlabs Mining, posted on the X social media platform, outlining that it was a stakeholder in the project and that it involved Bitcoin mining. The matter lacks full confirmation however, given that Kassa subsequently deleted his post while the sovereign fund’s statement falls short of mentioning Bitcoin mining. Once verified, the project would signify a substantial investment of $250 million. It’s understood that the investment would be directed towards the establishment of state-of-the-art infrastructure tailored for data mining and artificial intelligence (AI) training operations within Ethiopia.Photo by Kelly on PexelsExploiting abundant energy resourcesA key component of this venture may involve the setup of Bitcoin mining operations utilizing Canaan Avalon miners. This initiative would align with Ethiopia's broader strategy to capitalize on its abundant energy resources to attract international investment and stimulate economic growth.Ethiopia has about 5,200 MW of installed generation capacity, 90% of it coming from hydropower and the remainder from wind and thermal sources. While the official confirmation from the government is pending, the ambitious project has sparked both excitement and skepticism within the industry. Concerns linger regarding the energy-intensive nature of Bitcoin mining and its potential strain on the local electricity supply, an issue of particular relevance in a nation where energy accessibility remains a pressing challenge for many. Bloomberg reportEarlier this month, a report from Bloomberg highlighted Ethiopia as being a new haven for Chinese crypto miners. Following the imposition of a mining ban in China in 2021, many operations were redeployed overseas. Kazakhstan in particular was a popular choice. The Eurasian country wasn’t prepared for the influx, leading to power blackouts.Hashlabs Mining co-founders Jaran Mellerud and Alen Makhmetov both featured in the article. Mellerud outlined the difficulty, stating:“Firstly, countries can run out of available electricity, leaving no room for miners to expand. Secondly, miners can suddenly be deemed unwelcome by the government and be forced to pack up and leave.”Makhmetov outlined that he had a 10 MW facility in Kazakhstan which still sits idle today as curbs and taxes enforced in Kazakhstan on miners “basically killed the industry.” Despite these difficulties in Kazakhstan and China's official ban on cryptocurrency trading, the legalization of Bitcoin mining in Ethiopia in 2022 has spurred a notable influx of Chinese miners seeking new investment avenues. Ethiopia will need to be mindful of the difficulties experienced in Kazakhstan. With that, the Ethiopian government's move towards regulating cryptographic products, including mining activities, reflects a measured yet optimistic approach towards harnessing the economic potential of Bitcoin mining. This regulatory framework aims to strike a balance between fostering sector growth and safeguarding the country's energy security and environmental commitments.