Tripling of Bitcoin Millionaire Wallets in 2023: A Deep Dive into the Crypto Wealth Explosion

Unprecedented Accumulation of Wealth Caused by Bitcoin

In the year 2023, there was a significant shift that took place in the landscape of Bitcoin riches. The number of Bitcoin wallets that store more than $1 million has skyrocketed from 23,795 on January 1 to 81,925 at the end of the year, according to data provided by BitInfoCharts. This is an astounding growth of 237%. This spike is not simply a reflection of the desire of ordinary investors, but it also signals a fundamental change in the attitude that financial institutions have towards Bitcoin. These organizations, who were previously skeptical about cryptocurrencies, are now actively engaged in this industry because they see Bitcoin’s ability to serve as both a medium for the storage of wealth and an investment opportunity that offers significant returns.

The historical setting and the current state of the market

The rise in the number of Bitcoin wallets owned by millionaires is not a unique phenomena. It is a reflection of a larger trend in the market for cryptocurrencies. Comparative data from Glassnode shows that the number of addresses holding more than $1 million in Bitcoin hit its all-time high of 112,573 on November 9, 2021. This figure coincides with the last bull market’s apex, which occurred when Bitcoin achieved its all-time high of $69,000. Additionally, the number of wallets containing at least one Bitcoin, increased by a relatively modest 4% to reach 1,018,015 addresses, up from 978,197 at the beginning of the year. This number represents an increase from the previous year’s total of 978,197.

A Look at the Factors That Are Driving the Increase

The increase in the number of Bitcoin millionaire wallets in 2023 was caused by a number of different variables. One of the most important factors was the general excitement of the market for Bitcoin, which was fueled by an almost 40% gain in its trading price in the previous month. The price of bitcoin went up and down between $36,800 and $37,050, indicating that investors are feeling confident and optimistic. This confidence was further encouraged by the expected acceptance of Bitcoin spot exchange-traded funds (ETFs), with experts from Bloomberg estimating a high possibility of approval. Moreover, this optimism was further fueled by the approval of Bitcoin spot exchange-traded funds (ETFs). This possible change, together with projections of a major growth in Bitcoin demand, provided a fertile ground inside the Bitcoin ecosystem for the creation of wealth.

The Prognosis for the Future

The fact that the number of Bitcoin millionaire wallets will triple in 2023 is indicative of a developing cryptocurrency industry, one in which Bitcoin is becoming more widely seen as a legitimate investment option by both people and institutions. This development may mark the beginning of a new age in the landscape of digital currency, one that is distinguished by more involvement from institutions and an investing climate that is more stable. As the market continues to change, it will be very important to keep track of these patterns and the consequences they have for the larger financial environment.

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BIS Conference Addresses Cybersecurity in Central Bank Digital Currencies (CBDC)

The BIS Innovation Hub and the Cyber Resilience Coordination Centre (CRCC) hosted a conference on November 8, 2023, focused on “Securing the future monetary system: cyber security for central bank digital currencies“. General Manager Agustín Carstens opened the event with a clear message: the advent of CBDCs is inevitable, and their security is paramount to the future financial system.

As the financial landscape is on the verge of substantial change, Carstens pointed out that central banks are tasked with not only keeping up with the digital evolution but leading the way. This leadership is embodied in the development of CBDCs, which are poised to be at the heart of the financial system. Whether they take on a wholesale or retail form, their design needs to be versatile and their legal frameworks robust to gain public trust.

The integrity of central bank money is a cornerstone of the public’s confidence in the financial system. CBDCs introduce new levels of security challenges, with cyber risks being a significant concern. Carstens cited the vulnerabilities exposed in the crypto universe as a cautionary tale for CBDCs, which carry much higher stakes. Addressing these risks is critical, necessitating a flexible design that can adapt to future technological advancements, including the potential impact of quantum computing and generative AI.

While focusing on security, Carstens didn’t overlook the importance of privacy in CBDC design, considering it essential for public acceptance, especially for retail CBDCs.

The BIS is firmly committed to aiding central banks in their journey towards a digital future. The Innovation Hub has been at the forefront, exploring solutions for secure and functional retail CBDCs, integrating quantum-resistant cryptography, and ensuring offline cyber resilience. Concurrently, the CRCC is enhancing collaboration and operational readiness among central banks through tools and exercises.

Carstens also recognized the vital role of the private sector, particularly in customer-facing services, and stressed the importance of shared cybersecurity and resilience as public goods among connected institutions.

The conference sets the stage for critical discussions on cybersecurity strategies for CBDCs, governance, risk management, and technical challenges, including the quantum computing threat. Carstens concluded with anticipation for the insights that the conference’s discussions will yield, reflecting the BIS’s readiness to guide and support central banks in securing the monetary system’s future.

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NY Fed’s digital currency Test Reveals Feasibility

The Innovation Center of the Federal Reserve Bank of New York (NYIC) has successfully completed its proof-of-concept of a regulated liability network (RLN), which was carried out in collaboration with nine significant financial institutions and the Swift network.

Using distributed ledger technology and a simulated central bank digital currency (CBDC) in the United States, the project developed a theoretical infrastructure for exchanging and settling commercial bank deposit tokens and central bank liabilities. This infrastructure was constructed by the project.

At the moment, transactions involving assets are completed by sending messages back and forth between the various parties involved.

Tony McLaughlin, head of emerging payments and business development at Citi Treasury and Trade Solutions, said in a webcast that introduced the study findings that although messaging happens virtually quickly, settlement does not.

The project decided to remove trustlessness and anonymity from its blockchain, in addition to other aspects, in order to develop a system that stored value in the ledger rather than resolving disputes via messaging.

According to McLaughlin, the simulated RLN was capable of functioning around the clock and had multi-asset settlement in addition to programmability.

According to what McLaughlin claimed, the simulated RLN maintained complete anti-money laundering and Know Your Customer safeguards for the United States in foreign settlements.

He referred to the RLN as “a game changer for international users of the dollar” and predicted that it will enable the dollar continue to play the role as the preferred international currency.

In addition, the findings of the research were compiled into distinct papers that focused on business, law, and technology respectively.

The initiative only considered regulated assets, therefore cryptocurrencies and stablecoins were excluded from consideration.

In November, it was revealed that the initiative will be a pilot for a period of twelve weeks.

In addition to the New York Investment Company (NYIC), this endeavor entails working in conjunction with a number of top financial institutions and payment firms. These companies include Wells Fargo, BNY Mellon, Citi, HSBC, Mastercard, PNC Bank, TD Bank, Truist, and Truist. This initiative’s technology is supported by Amazon Web Services and is provided by SETL in partnership with Digital Asset.


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Massive Online Transition for Tax and Fee Business in China, Digital Yuan Payment in Pilot Use

Shen Xinguo, Director of the Taxpayer Services Division of the State Administration of Taxation, announced that 96% of tax matters and 99% of tax declarations in China can now be handled online, marking a significant move towards digitalization in the country’s financial sector. This impressive transition indicates a steadfast commitment towards digitalization and providing more efficient and accessible services for taxpayers.

Furthermore, the proportion of social security payments handled online or via mobile applications has exceeded 95% nationwide. This seamless integration of technology into the daily operations of taxpayers has allowed for a more streamlined and efficient process.

In addition to these measures, a pilot program for tax and fee payments using digital yuan – the Chinese version of Central Bank Digital Currency (CBDC) – has been implemented. This year alone, there were 12,000 transactions totalling 25.9 billion yuan made using the digital currency.

In terms of innovation in interactive tax collection and payment services, the Division is leading the way. With the use of intelligent responses and three-way video calls, they have been able to assist taxpayers in resolving issues related to online tax filing and payment. To date, these interactive services have been provided 1.48 million times this year.

This transition to digital platforms for tax-related matters underscores China’s push for digital transformation and enhanced user experience for taxpayers. By leveraging technology, the country is moving towards a more streamlined and efficient tax system. The implementation of the digital yuan for tax payments in a pilot program also signals China’s continued exploration and utilization of digital currencies, particularly CBDCs, in its financial ecosystem.


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Canadians Consulted on Digital Currency

The Bank of Canada (BoC) has launched a public consultation to seek input from Canadians on the possible creation of a digital Canadian dollar. The consultation will run from May 8 until June 19, and the bank has emphasized it is not currently developing a central bank digital currency (CBDC) nor looking to replace cash. Rather, it is exploring the idea of a digital Canadian dollar as the world becomes increasingly digital. Senior Deputy Governor of the BoC, Carolyn Rogers, stated that the bank is seeking to hear from Canadians what they value most in the design of a digital dollar. The input will help the bank make decisions relating to the security and reliability of a potential digital currency, as well as ensuring it meets the needs of Canadians.

The BoC highlighted that it is important to consider the possibility of a digital Canadian dollar as cash usage declines, potentially excluding many Canadians from the economy. The bank also acknowledged the potential risks posed by the use of foreign CBDCs or cryptocurrencies, which could threaten the stability of the Canadian financial system.

The consultation’s questionnaire covers a wide range of topics, including payment methods used in the last month, how often the respondent would potentially use a Canadian CBDC, and what design features they would like to see. It also asks whether the respondent currently holds or uses cryptocurrencies and features demographic questions about age, gender, education, and income.

If a CBDC was issued, physical notes would still be provided “for those who want them,” according to the bank. The BoC said it will publish a report summarizing the consultation later this year.

While the consultation does not necessarily mean that a digital Canadian dollar will be created, it is a significant step towards exploring the possibility. Canada is not the only country considering a CBDC, with many central banks worldwide exploring the potential of digital currencies. The BoC’s consultation seeks to ensure that the bank makes an informed decision on the matter, taking into account the needs and desires of Canadians.


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Texas lawmakers propose gold-backed state digital currency

Two Texas lawmakers, Senator Bryan Hughes and Representative Mark Dorazio, have introduced identical bills proposing the creation of a state-based digital currency backed by gold. Each unit of the proposed digital currency would represent a fractional equivalent amount of physical gold held in trust.

The bills, Senate Bill 2334 and House Bill 4903, outline the process for purchasing the proposed digital currency. Once a person purchases a certain amount of digital currency, the comptroller would use the money received to buy an equivalent amount of gold. The purchaser would then receive digital currency equal to the amount of gold purchased by the comptroller. The value of a unit of digital currency must be equal to the value of the appropriate fraction of a troy ounce of gold at the time of the transaction.

According to the bills, the trustee shall maintain enough gold to provide for the redemption in gold of all units of the digital currency that have been issued and are not yet redeemed for money or gold. The bills also state that a fee might be established “at any rate necessary” to cover the costs of administering this chapter.

While the bills have yet to be passed or presented for a vote, they are set to take effect on September 1, 2023. This move comes despite objections from several U.S. lawmakers who are against the introduction of a central bank digital currency (CBDC).

Florida Governor Ron DeSantis recently expressed concerns about CBDCs, stating that they would grant “more power” to the government and provide them “with a direct view of all consumer activities.” Similarly, Republican Senator Ted Cruz introduced a bill to block the Fed from launching a “direct-to-consumer” CBDC, arguing that it is “more important than ever” to ensure U.S. policy on digital currencies protects financial privacy, maintains the dollar’s dominance, and cultivates innovation.

The idea of a state-backed digital currency is not new, with countries such as China and Sweden already testing their own versions of CBDCs. However, the introduction of a gold-backed digital currency by a U.S. state is a unique move. It is unclear how the proposed digital currency would be regulated or how it would affect the current financial system in Texas.

Gold has historically been considered a safe-haven asset and a store of value during times of economic uncertainty. The proposed gold-backed digital currency could provide Texans with an alternative to traditional fiat currencies and may appeal to those who are skeptical of the government’s ability to manage the monetary system. However, it remains to be seen whether the proposed digital currency will gain widespread adoption and whether other states will follow Texas’ lead in introducing their own digital currencies backed by precious metals or other assets.


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Thai Political Party Proposes $300 Digital Currency Stimulus

The Pheu Thai Party, Thailand’s political opposition, has announced a proposal to give every citizen of the country nearly $300 in digital currency should the party win the upcoming election. The plan was announced at a campaign event on April 5, where one of the party’s candidates for prime minister, Srettha Thavisin, described the initiative as a blockchain-based stimulus project aimed at boosting the local economy. The proposed stipend of 10,000 Thai baht, or roughly $292 at the time of publication, would be given to every Thai resident who is 16 years or older.

Thailand’s next general election will take place on May 14, with all 500 seats in the country’s House of Representatives up for election. Current Prime Minister Prayut Chan-o-cha, a member of the United Thai Nation Party, is eligible to hold his position until 2025 if selected, following a decision from Thailand’s Constitutional Court regarding his term limit.

The proposed crypto project could potentially cost the government between $14 billion to $18 billion, given that Thailand’s population is over 70 million, with around 50-60 million people over 16 years old. While cryptocurrency exchanges and trading are generally allowed in Thailand, the country’s Securities and Exchange Commission has been considering a ban on staking and lending services and has established stricter rules for crypto custody providers. Additionally, the country’s central bank has warned crypto investors about stablecoins pegged to the baht.

Thavisin’s proposal to distribute funds equally to residents is similar to the universal basic income initiative proposed by United States presidential candidate Andrew Yang in the 2020 elections. Yang’s proposal involved giving all eligible people in the United States $1,000 every month.

If the Pheu Thai Party wins the upcoming election and follows through with its proposal, it could potentially have significant impacts on Thailand’s economy and the adoption of blockchain-based digital currencies in the country. However, the proposal also raises questions about the feasibility of such a large-scale distribution of digital currency, as well as the potential risks and challenges that may arise in the implementation process.


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Thai Political Party Proposes Digital Currency Stimulus

The Pheu Thai Party, a major political party in opposition to the current prime minister’s party, has proposed a significant stimulus project using blockchain technology in Thailand. At an April 5 campaign event, the party announced plans to provide all Thai residents over the age of 16 with a stipend of 10,000 Thai baht, or roughly $300, in digital currency. The party’s candidate for prime minister, Srettha Thavisin, touted the initiative as a way to help the local economy, and said that blockchain technology would be used to facilitate the distribution of funds.

The plan is similar to the universal basic income initiative proposed by U.S. presidential candidate Andrew Yang in the 2020 elections, which aimed to provide eligible people in the United States with $1,000 every month. The Pheu Thai Party’s initiative would provide a one-time payment of $300 to roughly 50-60 million Thai residents over the age of 16, which could cost the government between $14 billion and $18 billion.

Thailand’s Securities and Exchange Commission has been considering a ban on staking and lending services, and has established stricter rules for crypto custody providers, despite crypto exchanges and trading generally being permissible in the country. Additionally, the country’s central bank has warned investors about stablecoins pegged to the baht. However, the Pheu Thai Party’s digital currency stimulus project has the potential to boost adoption of cryptocurrencies in Thailand, and could pave the way for further developments in the country’s blockchain industry.

Thailand’s next general election is scheduled for May 14, with all 500 seats in the country’s House of Representatives up for grabs. Current Prime Minister Prayut Chan-o-cha is eligible to hold his position until 2025, following a decision from Thailand’s Constitutional Court regarding his term limit. The Pheu Thai Party’s proposal could have a significant impact on the election, and could influence voters to support the party’s pro-crypto stance.


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NanoLabs sues Coinbase over Nano trademark infringement

NanoLabs, the company behind digital currency Nano, has filed a legal complaint against Coinbase, a leading crypto exchange, for alleged trademark infringement. According to the complaint filed on February 24, 2023, in the California Northern District Court, NanoLabs has accused Coinbase’s Nano Bitcoin futures contract and Nano Ether futures contract products of infringing on its trademark rights.

NanoLabs claims that Coinbase’s offerings are “derivative products” based on Bitcoin (BTC) and Ether (ETH), which are “identical or highly similar” to Nano. It also alleges that Coinbase targets the same type of consumers as NanoLabs, and the trademarks for Coinbase’s products are “identical, and confusingly similar,” to NanoLabs. Additionally, NanoLabs claims that Coinbase had full knowledge of the Nano digital currency before launching its products, as evidenced by correspondence between the two companies in 2018.

NanoLabs argues that Coinbase should have known that offering Nano Bitcoin on the Coinbase Derivates Exchange would further consumer confusion, especially since the Nano Digital Currency is not listed on the Coinbase Exchange, and Coinbase provides no disclaimer, distinction, or education to consumers to this point.

The complaint states that Coinbase’s infringement has caused NanoLabs economic detriment and weakened its brand identity, resulting in “actual damage and irreparable harm.” NanoLabs is seeking at least $5 million in damages, corrective advertising from Coinbase, destruction of all materials infringing on the Nano trademark, and forfeiture of all profits Coinbase made using Nano trademarks. NanoLabs has requested a jury trial.

Colin LeMahieu founded the Nano digital currency in 2014 under the name RaiBlocks, and it was later rebranded to Nano on Jan. 31, 2018. Coinbase launched its Nano-branded offerings years later, introducing the Nano Bitcoin futures contract in June and the Nano Ether futures contract in August.

This lawsuit could have significant implications for Coinbase and the broader cryptocurrency industry, as it raises questions about the use of similar or identical trademarks for different digital currencies. It also highlights the importance of intellectual property rights in the rapidly evolving and highly competitive crypto industry.


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Digital Asset Protection Firm Coincover Secures $30 Million in Funding Round

The digital asset security business Coincover, which has its headquarters in London, raised a total of $30 million in funding in a round that was headed by Foundation Capital and included a follow-on investment from CMT Digital. Foundation Capital also led the fundraising round.

According to the release that was issued by Coincover, the money will be utilized to assist increase the overall security of the cryptocurrency ecosystem by scaling the operations of the firm, driving recruiting, developing new products, and forming collaborations with other organizations. Coincover will be able to provide an even more comprehensive level of security to people and organizations who are holders of digital assets as a result of this.

In the year 2018, Coincover was founded, and the following year, it was released into the market with the objective of generating a degree of trust within the digital asset industry. Already, the company works with more than 300 different businesses, some of which include wallets, exchanges, hedge funds, family offices, and banks, in addition to a number of digital asset custodians.

Coincover’s mission is to provide the digital asset market with a defense not just against hacker assaults but also against the mistakes that may be made by human operators. In this way, Coincover hopes to solve the security issues that have been plaguing the industry as a whole. Coincover’s goal is to make the cryptocurrency business more reputable and established by reducing the number of frauds and other fraudulent activities that are taking place. It is said that the organization’s services not only reduce the risks associated with transferring and storing bitcoin but also change people’s perceptions of digital assets and encourage improved levels of trust within the industry. This is because the services change people’s perceptions of the risks associated with digital assets.


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