Crypto Analyst Who Called Bitcoin Bottom Predicts Major Ethereum Surge, Says Binance Coin Set for New All-Time High

A leading cryptocurrency analyst and trader is predicting that two of the largest crypto assets by market cap are primed for a rally.

The pseudonymous analyst known as Smart Contracter tells his 180,200 Twitter followers that leading smart contract platform Ethereum is set to break out against Bitcoin (ETH/BTC).

“ETH/BTC when, not if.”

Source: Smart Contracter/Twitter

According to Smart Contracter’s chart, the pair could take out its diagonal resistance and rally to above 0.14 BTC ($8,913), a level last reached during the final leg for the 2017 bull cycle.

Ethereum is trading at around $4,650 while Bitcoin is exchanging at around $64,185 at time of writing.

Late last month, the popular crypto analyst predicted Ethereum would reach a price of $10,000, saying the ETH/BTC pair had broken out of a large inverse head and shoulders formation (IHS), a technical pattern indicating the start of an uptrend.

“ETH/BTC is still huge IHS [inverse head and shoulders pattern] breakout after a three-year base.

It may have been somewhat boring the last few months but make no mistake about it, this is re-accumulation in a monster uptrend.

$10,000 ETH isn’t a meme.”

In the case of Binance Coin (BNB), Smart Contracter says the utility token of global crypto exchange Binance is still on track to record a fresh all-time high (ATH) above $800.

“BNB still looks amazing, ATH still 100% on the table imo (in my opinion).”

Source: Smart Contracter/Twitter

In June 2018, when Bitcoin was trading at over $5,500, Smart Contracter predicted that the flagship cryptocurrency would bottom out at around $3,200. Bitcoin went on to reach a low of around $3,150 six months later.

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ADALend: Announcing Imminent Cross-Platform Development

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ADALend, currently in the process of developing a decentralized financing (DeFi) project, has just announced its plans to start the development of its cross-platform integrations very soon.

ADALend aims to influence the flexibility of digital finance markets by providing a basis for immediate access to loans and collaterals

The cross-platform integrations will simplify and allow access to decentralized financial services by a larger segment of users around the globe.

ADALend’s GM, Javed Khattak, has earlier announced that ADALend will work on its UI and the platform’s user experience and simplicity to provide less barriers of entry for traditional users to get involved with decentralized financing.

ADALend is a decentralized lending protocol governed by the Cardano system. Within this Cardano system, ADALend has the objective to influence the flexibility of digital finance markets by providing a basis for immediate access to loans and collaterals, resulting in sustained liquidity of the blockchain assets of the lender.

Permissionless Lending On Any Pairing Guarantees the users will always be granted the best offers available secured by multiple layers of oracles removing the need for permissions on any pairings.

Incentivised Liquidity The idea behind incentivizing deposits will keep ADALends’ pools highly liquid, securing low-interest rates and the availability of assets for borrowers.

Community Governance Governance proposals issued by the ADALend or the community will have to reach a consensus by the token holders through a system of voting. Guarantee that the project will always be propelled in the best interest of the user and the ADALend community.

Ecosystem Foundation Layer The ADALend project will host a layer of financial products aimed at developing the entire project as its own financial solutions platform providing users with a complete independent ecosystem to replace traditional and non-traditional financial solutions.

ADALend encourages all to read its published whitepaper and get familiar with all the amazing features and protocols that the project encompasses.

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Elon Musk dumps $1.1B in Tesla stock, NYCCoin launches with mayor’s blessing and Mastercard pushes crypto-linked cards in Asia: Hodler’s Digest, Nov. 7-13

Coming every Saturday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — a week on Cointelegraph in one link.

Top Stories This Week

Crypto markets tag $3T combined market cap for first time

At the start of this week, the combined cryptocurrency market cap broke $3 trillion for the first time. The market has fluctuated heavily this year, previously topping out at $2.62 trillion during the height of the bull run in May, before crashing down to as low as $1.24 trillion in mid-July. 

CoinGecko’s data tracks 10,418 digital assets across 518 cryptocurrency exchanges, and the surging momentum in the latter half of 2021 comes on the back of Bitcoin (BTC), Ether (ETH), Polkadot (DOT) and Solana (SOL) all pushing past new all-time highs.

Bitcoin still remains the dominant force in crypto, with its $1.21 trillion market cap being more than double that of second-ranked Ethereum at $550 billion. Meanwhile, the combined capitalization of all other crypto assets sits at roughly 40%, or $1.24 trillion.

BREAKING: Mastercard launches crypto-linked cards across Asia-Pacific

On Tuesday, Mastercard announced that it will be launching crypto-linked payment cards across the Asia-Pacific region that will enable users to instantly convert their digital assets into fiat currency. 

The cards are being launched in collaboration with three crypto service providers: Amber Group and Bitkub in Thailand, and CoinJar in Australia. Mastercard hasn’t outlined what crypto assets will be supported at this stage but did hint that Bitcoin and Ether would be at the top of the list. 

“Rather than directly transferring cryptocurrencies to a merchant, cardholders will now be able to instantly convert their cryptocurrencies into traditional fiat currency which can be spent everywhere Mastercard is accepted around the world, both online and offline,” Mastercard said.

NewYorkCityCoin launching this week with Mayor-elect Eric Adams’ blessing

NewYorkCityCoin (NYCCoin) launched on Thursday, with Mayor-elect Eric Adams giving the coin’s issuers, CityCoins, a public endorsement ahead of the rollout. Adams stated last week that he wanted to have a CityCoin for NYC that mirrors Miami’s MiamiCoin.  

While Adams welcomed the project to New York this week, CityCoins has yet to officially partner with the local government. It may want to do so soon, however, as the NYCCoin project will divert 30% of its mining rewards to a custodied reserve wallet that the local government can use to support whatever initiatives it chooses.  

“We’re glad to welcome you to the global home of Web3! We’re counting on tech and innovation to help drive our city forward,” Adams said.

Elon Musk offloads $1.1B in Tesla stock

According to filings with the U.S. Securities and Exchange Commission, erratic billionaire and Tesla CEO Elon Musk offloaded more than 934,000 Tesla shares worth around $1.1 billion on Thursday. 

Musk made around a 180% gain on his sold shares with an average sale price of around $1,170, marking his largest fire sale of Tesla stock to date. The CEO had teased a potential sale over the weekend after polling his 63 million Twitter followers about whether he should sell 10% of his Tesla stock. The poll was in response to public pushback against billionaires who may or may not have paid their fair share of tax. 

This sale only accounted for 1% of Musk’s holdings, and the filings show that he planned to sell the stock as part of his tax obligations back in September. The world now awaits if he will sell another 9% to appease the 58% of respondents who voted “yes” to his poll.

Zimbabwe may be the next country to embrace Bitcoin as legal tender

Zimbabwe’s government was rumored to be looking at utilizing Bitcoin as a legal tender to meet growing demand in the country, according to local news outlets. 

The news, reported on Nov. 7, suggested that discussions with local businesses are already underway. Retired Brigadier Colonel Charles Wekwete, permanent secretary and head of the e-government technology unit in the office of the president and cabinet, was confirmed as the source of the speculation. 

A couple of days later, however, news also surfaced that Zimbabwe was not looking to adopt Bitcoin whatsoever, and was instead exploring central bank digital currencies (CBDCs). Zimbabwe’s minister of information, Monica Mutsvangwa, had the unfortunate job of quashing the rumors and providing a major buzzkill for Bitcoin maxis.

Winners and Losers

At the end of the week, Bitcoin (BTC) is at $63,185, Ether (ETH) at $4,577 and XRP at $1.17. The total market cap is at $2.75 trillion, according to CoinMarketCap. 

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Loopring (LRC) at 100.64%, Kadena (KDA) at 99.70% and Livepeer (LPT) at 80.35%. 

The top three altcoin losers of the week are OMG Network (OMG) at -25.57%, Arweave (AR) at -16.86% and Cosmos (ATOM) at -15.68%.

For more info on crypto prices, make sure to read Cointelegraph’s market analysis.

Most Memorable Quotations

“For the second time in five months, we announced the seizure of digital proceeds of ransomware deployed by a transnational criminal group. This will not be the last time — the U.S. government will continue to aggressively pursue the entire ransomware ecosystem and increase our nation’s resilience to cyber threats.”

Merrick Garland, U.S. attorney general

“If Apple were to add support for #Bitcoin to the iPhone and convert their treasury to a Bitcoin Standard, it would be worth at least a trillion dollars to their shareholders.”

Michael Saylor, CEO of MicroStrategy

“The crypto community is ambitious, daring and full of potential. Innovation is about synergy. It’s beyond technology and about people. It’s about us.”

Kristina Cornèr, editor-in-chief at Cointelegraph

“I believe that in the next three to five years, the DeFi industry will grow massively. It’s already growing rapidly, but the advantages of peer-to-peer technologies can and will be more widely experienced.”

Anton Bukov, co-founder of 1inch Network

“If the results of this ‘development’ phase conclude that the case for CBDC is made, and that it is operationally and technologically robust, then the earliest date for launch of a U.K. CBDC would be in the second half of the decade.”

The Bank of England

“We are taking a high degree of focus on issues surrounding the security of personal information and the digital yuan and have made relevant regulatory and technological adjustments to meet this objective. We have adopted a principle of anonymity for small transactions regarding the digital yuan and will only step in to regulate under the law for large transactions. When it comes to collecting personal data, we seek only to collect what is necessary and the minimum of what is legally required, which is far less than electronic payment apps of today.”

Yi Gang, People’s Bank of China governor

“It is not reasonable to build a financial system that demands investors also be sophisticated interpreters of complex code.”

Caroline Crenshaw, U.S. Securities and Exchange Commission commissioner 

“Crypto is becoming cultural, it’s becoming cool. […] It used to be that if you were investing in crypto, you were kind of weird.”

Cuy Sheffield, head of crypto at Visa

Prediction of the Week 

Bitcoin to hit $250K in January 2022 but ‘invalidate’ S2FX BTC price model — New prediction

Digital currency analyst Matthew Hyland recently tweeted his thoughts about Bitcoin’s potential upcoming price action. In short, his multi-tweet write-up essentially explained his prediction that BTC will surpass $100,000 on its way to $250,000, validating one popular price model and invalidating another. 

The Stock-to-Flow (S2F) and Stock-to-Flow Cross-Asset (S2FX) price models, built by PlanB, a pseudonymous Twitter personality known for his Bitcoin analysis, each have price targets of upcoming relevancy. December 2021 should tap into a BTC price of at least $100,000 per coin, according to the S2F model. The S2FX model notes a price expectancy of around $288,000 per BTC before the next halving, which should occur in 2024. 

The price models are based around Bitcoin’s block reward halving cycles. Bitcoin halvings occur every 210,000 blocks — which takes about four years. The time in between is the halving cycles.  

Essentially, Hyland thinks BTC will keep pace with the S2F model in hitting $100,000, but the asset will only reach about $250,000 during the present halving cycle (concluding in 2024) — the result of big players selling early before $288,000. Big players will likely get retail investors hyped for BTC after $100,000 is reached in line with the S2F model, according to Hyland, leading those mainstream folks to look next toward the $288,000 price target of the S2FX model. 

This week produced notable excitement in the Bitcoin price category. The asset turned in a new all-time high just below $69,000 before dropping slightly below $63,000, all on Wednesday, according to Cointelegraph’s BTC price index.

FUD of the Week 

Nigeria’s central bank reportedly freezes crypto traders’ accounts

The Central Bank of Nigeria (CBN) was reportedly laying on the FUD this week after it ordered local commercial banks to freeze accounts tied to at least two crypto traders. The CBN banned banks from servicing local crypto exchanges over concerns of volatility, money laundering and terrorism financing.   

Local media outlet Peoples Gazette reported the news on Nov. 7, stating that CBN’s director of banking supervision, J.Y. Mammanand, laid down the law, directing his bank to shut down the naughty crypto traders’ accounts and move their funds to “suspense accounts.”

The crackdown is reportedly part of a broader move from banking regulators to immediately close the accounts of Nigerian residents or companies “transacting in or operating cryptocurrency exchanges” using local banks, as CBN execs think that the majority of these transactions are nefarious.

Coinbase shares to open lower after 75% drop in net income in Q3

Coinbase (COIN) shares promptly dipped around 13.1% in after-hours trading following the release of underwhelming third-quarter financial results on Thursday. The firm posted $1.235 billion worth of revenue in Q3, falling well below FactSet’s estimates of $1.614 billion. 

The firm’s profits equated to $406 million, which marked a 74.7% decrease compared to the second quarter but did beat analysts’ expectations of $380 million. Coinbase also reported earnings of $1.62 per share, which came in 10% short of the consensus estimate. The firm appeared to be unfazed by the results, and the report highlighted that Coinbase is focused on the long term. 

“Coinbase is not a quarter-to-quarter investment, but rather a long-term investment in the growth of the crypto economy and our ability to serve users through our products and services. We encourage our investors to take this point of view,” the report read.

Beeple’s Discord compromised, timed to coincide with Christie’s auction

An admin account for Beeple’s official Discord channel was hacked on Wednesday, resulting in a fake NFT drop being promoted to the group that saw users duped out of an estimated 38 ETH. 

An admin account with the handle “Multi” confirmed to the group on Wednesday that their account had been compromised despite having two-factor authentication settings switched on. The hacker went on to impersonate an admin and the Beeple Announcements Bot, and promote a fake and “cheap” NFT drop from Beeple on Nifty Gateway. 

The members of the group were expecting a cheap NFT drop to be released on the back of Beeple’s most recent $29 million auction, as the artist has done such a thing before to cater to all audiences. However, not only did the members partake in a fake drop, they didn’t even receive any NFTs for their trouble.

Best Cointelegraph Features

Meme tokens and dogcoins flood the market as price wars heat up

Latinx communities are driving forward adoption, as crypto is proven to meet their diverse needs in a way that traditional finance cannot.

Blockchain metaverse startups: Unparalleled investment potential

Think of how essential the internet is to everyday life now — that’s what the Metaverse could become in a lot less time than the internet did.

Crypto kids fight Facebook for the soul of the Metaverse

“The Metaverse doesn’t start in virtual reality — it starts with ownership of assets, [the] ability for anyone to create and trade value.”


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60% of Video Game Developers Are Already Using Blockchain: Research

A survey conducted by the software firm – Stratis – revealed that 58% of American and British video game developers had incorporated blockchain technology into their endeavors. 47% have integrated non-fungible tokens in their games.

Blockchain Is The Future for Video Games

The poll surveyed 197 video game developers in the USA and the UK. Apart from those who already use blockchain and NFT technologies, the rest of the participants are also optimistic since 72% said they would consider employing them to develop new games. 56% intend to do so in the next year.

Asked whether they believe blockchain technology will become prevalent in video gaming within the following 24 months, 64% of the participants answered with “yes.”

According to 61% of the developers, blockchain allows for innovative and more interesting gameplay. 55% said it secures value for players by keeping money in the game, while rewarding gamers with real-word value collected 54% of the vote.

It is worth noting that 46% of the developers’ interest in blockchain focuses on the Play-to-Earn trending business model. On that note, Jean-Philippe Vergne, Associate Professor at UCL School of Management – commented:


“Blockchain is rapidly becoming a core building block for online games. What blockchain enables is incredibly compelling — players can now earn cryptocurrency while playing and trade digital goods both within and across games.”

Also on the same matter, Chris Trew – Chief Executive Officer at Stratis – predicted that most of the early growth in play-to-earn gaming will come from emerging economies, “where earning a few dollars a day through gaming can send them to the middle class.” At a later stage, this wealth transfer could transform the global economy, he concluded.

What Is Play-to-Earn?

Play-to-Earn is a business model where users get to play a game and earn appreciating in-game assets while doing it.

The key component in this model is to give gamers ownership over those assets and enable them to increase their value by playing the game actively. Usually, in the crypto world, defining the ownership is possible through the use of non-fungible tokens (NFTs).

The main idea of Play-to-Earn is to reward players for putting their time and effort into the game. By participating in a specific game, players create value for other gamers in the ecosystem and the developers. In turn – they receive a reward in the form of potentially appreciating in-game assets, which can be a certain type of cryptocurrency.

Some of the most famous examples of such games include Axie Infinity, Decentraland, and The Sandbox.


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Here’s Why Bitcoin Is Just Now Entering the Main Phase of the Bull Market, Says On-Chain Analyst Will Clemente

Popular on-chain analyst Will Clemente thinks certain metrics indicate Bitcoin (BTC) is just now entering the main phase of the bull market.

Clemente tells his 393,900 Twitter followers that “long-term holders buy BTC into weakness and sell into strength.” The analyst notes that long-term holders have just begun to sell more than they buy for the first time in six months.

Explains Clemente in his weekly Blockware Intelligence Newsletter,

“This week we have seen our first red prints in long-term holder net position change. This looks at the 30-day net change in long-term holder supply… This is representative of long-term holders starting to sell into strength.

As we have discussed many times: long-term holders buy into weakness (don’t perfectly buy the bottom) and then sell into strength (don’t perfectly sell the top).

This is natural bull market behavior; as you can see in 2020 this distribution began in October and peaked out in January of this year.”

Source: Blockchain Intelligence

Clemente also notes that Bitcoin’s average transaction fees appear to be launching on an uptrend, similar to previous bullish price rallies.

Source: Blockchain Intelligence

Looking at the balance of Bitcoin on exchanges, Clemente highlights that investors continue to take out BTC from crypto exchanges at a high rate.

“Exchange balances are currently in heavy outflows. Zooming out you can see the clear change in market dynamics following March 2020, as outflows dominated.”

Source: Blockchain Intelligence

Bitcoin is trading at $64,066.68 at time of writing and is down nearly 2.3% in the past 24 hours.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Bitcoin ATM Stolen During Raid In Barcelona

Crypto-related crimes have been on the rise in Spain in recent times. The most recent incident is the case of a stolen Bitcoin ATM in Barcelona.

Related Reading | Data Shows Crypto Hacks And Fraud In 2021 Are On Track For A New Record

Bitcoin ATMs are kiosks that allow a person to purchase Bitcoin and other cryptocurrencies by using cash or debit card. According to this website, Spain has the highest number of crypto ATMs in Europe. With 185 ATMs, it is also the fourth highest in the world.

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Bitcoin ATM Theft

Local news reported on Friday that the Spanish police are investigating the theft of a Bitcoin ATM. The thieves stole the machine in a raid on a cryptocurrency exchange outlet in a wealthy Barcelona neighborhood.

The police force of Catalonia, Mossos d’Esquadra, said that the ATM theft happened around 3 a.m. They however did not provide any further information on the case to avoid hindering the investigation.

According to the news agency, police sources said thieves took the ATM from a shop on Beethoven street in the Sarria area. The area houses a branch of Grayscale Bitcoin Trust (GBTC). GBTC reportedly declined to comment, and the police also refused to confirm the exact location of the robbery.

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An unverified video that surfaced showed an SUV crashing into the GBTC storefront. Afterward, some hooded people from another car made away with the ATM.

This incident is just the most recent of the bitcoin-related crimes in Spain. A few days ago, a Spanish techpreneur reported that he had been robbed. Zaryn Dentzel, the victim, is the co-founder of Tuenti, a Spanish social network-turned communications firm owned by Telefónica telecommunications company.

He claimed that four or five hooded people robbed him of millions of Euros worth of crypto from his house in Madrid. They blindfolded him, covered his home’s security cameras, and beat him up. He was then forced to give up the password to an online account containing his cryptocurrencies which held tens of millions of euros in Bitcoin. However, the thieves were unsuccessful in stealing any of his cryptos.

Crypto Crime On The Rise

Crypto attacks are hardly rare. They occur more frequently than most people think, mostly through hacks, phishing scams, ransom attacks, and fake advertisements.

A couple of the most popular attacks this year are the $600 million Poly Network attack and the Colonial Pipeline ransomware attack.

Related Reading | Over $5 Billion In BTC Paid In Top 10 Ransomware Variants, Says U.S. Treasury

According to the U.S. Treasury Department, the total value of suspected ransomware payments during the first half of 2021 was $590 million. Also, roughly $5.2 billion in outgoing BTC payments were tied to the top 10 ransomware variants over the past three years.

Many Bitcoin crimes have also been recorded in the U.K., Hong Kong, Australia, and New Zealand, to name a few.

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The stablecoin boom won’t continue without decentralized interoperability

Stablecoins are the cornerstone of the digital asset marketplace with a market cap of over $100 billion. Governments are already putting considerable resources in being up to speed with the trends. A November 2021 report published by the United States President’s Working Group on Financial Markets details the various measures to ensure stablecoin regulation is implemented within government guidelines. A global central bank survey by the Bank for International Settlements (BIS) shows 86% of central banks are now actively engaged in some way with central bank digital currencies (CBDCs), a government-backed form of a stablecoin. Of this cohort of central banks, seven have now officially launched CBDCs, while 17 more are in the pilot phase, according to the Atlantic Council CBDC tracker.

Like all cryptocurrencies, stablecoins rely on blockchain technology to support peer-to-peer (P2P) digital transactions, giving them the bearer-instrument and final-settlement properties of cash. This underlying decentralized infrastructure holds promises such as faster transactions, lower settlement costs, enhanced transparency and increased control for end-users.

Multiple different market actors, both public and private, have developed multiple fragmented blockchain networks. To achieve their full utility, stablecoins must operate across many of them. Today, developers of innovative stablecoins like Dai (DAI), TerraUSD (UST) and USD Coin (USDC) face undue costs and security risks in building one-off bridges to make this happen. For the market to grow and innovate further, a universal interoperability network that securely connects all blockchain networks is needed. These universal interoperability solutions will also help CBDC and stablecoin developers overcome the costs and security risks associated with one-off builds.

The need for blockchain interoperability

Digital assets can’t reach their potential by operating on siloed networks and stablecoins are no different. Interoperable design solutions will allow stable assets to play a critical role in the economic transformation of many countries by improving the costs, time and administration associated with cross-border transactions, remittances and even supply chain management. Interoperability solutions can facilitate the deployment of digital assets, both across blockchain networks and between specific CBDCs.

USDC, one of the most dominant stablecoins in the market, gives us a good example of the need for interoperability across blockchains. After USDC was initially deployed on Ethereum, the Centre consortium, the developers of USDC, had to rebuild the USDC stack on other blockchain networks such as Solana and Algorand, among others to respond to the rising market demand for applications on these networks. In building these stacks, USDC developers were addressing real problems and shortcomings: Different technology stacks fragment the liquidity of their stablecoin.

A single network of interoperability between different blockchains could make these decentralized applications (DApps) and assets available to the entire blockchain ecosystem without redeploying software stacks on each new blockchain network. This would help to reduce the demand pressure on developer resources at protocol and application levels.

Blockchain interoperability would mean stablecoin transactions including payment transfers and staking could be executed between stablecoin issuers and holders of different blockchain networks. This kind of solution would greatly boost liquidity and ensure greater composability within the $100-billion-plus stablecoin market. It would also negate the need for stablecoin issuers to go through the cumbersome processes of listing their stablecoin separately on each blockchain network, as they currently do.

Related: Regulators are coming for stablecoins, but what should they start with?

CBDCs also require interoperability. A July 2021 BIS report highlights both the need for multilateral collaboration and the necessity of network interoperability between CBDCs. Although some governments will want to exert protectionist policies, interoperability will benefit those that take a more open approach, facilitating international transactions involving CBDCs including cross-border trade flows, international remittances and cross-border transactions. These benefits are perhaps part of the reason why the Banque de France partnered with Banque Centrale de Tunisie for France’s seventh CBDC experiment. Upon the launch of Nigeria’s eNaira digital currency, the Nigerian Central Bank Governor espoused the benefits of its newly launched digital currency working within an interoperable framework.

Security and decentralization core for interoperable designs

The efforts of developers, outlined above, on the largest stablecoins in the world illustrate the need for interoperability. They also underscore the risks and costs of building ad-hoc solutions in a world that has yet to have a universal interoperability protocol. Due to the complex requirements of connecting different blockchain networks, cross-chain interoperability adds additional security considerations. Being exposed to multiple blockchains opens up these networks up to more potential attack vectors. The world witnessed a devastating example of this in August when an attacker drained cryptocurrency valued at more than $600 million from Poly Network, an interoperability bridge used in decentralized finance (DeFi) applications.

Any blockchain network aiming to deploy interoperability solutions should be built to ensure the highest safety standards in the industry, but at the same time not compromise its liveness, efficiency, or decentralization. Multi-party cryptography and decentralized consensus are the key components that allow developers to build robust and scalable interoperable systems. Combining these primitives allows building decentralized interoperability protocols that can safely guard cross-chain transactions and remain secure in the presence of multiple malicious participants.

Blockchain interoperability will open new economic opportunities

As the roll-out of CBDC pilot projects gathers pace and the growth in stablecoins continues, world-trade bodies, technologists, blockchain developers and payment providers will be tracking the development and success of these CBDC programs and stablecoin projects. They are looking for ways these innovations can introduce new processes into the domestic and international payments landscape. The benefits of a universal interoperability framework for stablecoins will increase scalability for international payment transactions between countries, thereby facilitating more efficient and improved cross-border trade flows, faster settlement for international remittances and more financial inclusion through digital devices such as smartphones. The digital economic developments derived from such a system will thereby help boost economic GDP in many countries.

Related: The stablecoin scourge: Regulatory hesitancy may hinder adoption

For societies and economies to reap the full benefits of CBDCs, universal interoperability will be needed to underpin integration and function over the international payments system. Similarly, stablecoins issued on different blockchain networks can only successfully facilitate digital payments if they can universally be accepted across various blockchain networks. A universal interoperability network over which CBDCs and stablecoins can effectively operate will open up more economic and trade benefits to end-users, businesses and governments alike.

This article was co-authored by Sergey Gorbunov and Tai Panich.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Sergey Gorbunov is the co-founder and CEO of Axelar, the decentralized interoperability network that connects blockchain ecosystems. He received a Ph.D. from MIT, where he was a Microsoft Ph.D. fellow. Sergey is a co-author of many cryptographic protocols, standards and systems. He was also on the founding team of Algorand, where he worked on the core platform design and development and led the cryptography group.

Tai Panich is chief venture and Investment Officer at SCB 10X, the digital technology investment arm of Siam Commercial Bank, the largest and oldest bank in Thailand. She has over 20 years of experience working in the technology investment sector in Silicon Valley, New York and Singapore. Her expertise is investing in technology companies (both private and public), especially in fintech, blockchain and DeFi, deep tech (AI, robotics, semiconductor, enterprise software and hardware, and internet/media). Prior to this role, Tai was a portfolio manager at Pictet Asset Management, where she invests in publicly-listed technology companies globally with focus on Asia.