Weekly review calendar week 31 - 2021

What has been happening around Blockchain Technology and Cryptocurrencies this week? The most relevant local and international developments as well as appealing background reports in a pointed and compact weekly review.

The merging of the old and new financial worlds is becoming increasingly visible. Established service providers are integrating digital assets into existing structures. Traditional exchange operators are also represented in the field. The Stuttgart Stock Exchange (BSDEX) already has a fully regulated trading venue for crypto assets. In an interview with CVJ.CH, Managing Director Sebastian Warnke goes into more detail about the strategy of Germany's second-largest securities exchange. According to Warnke, digital assets will inevitably find their way into the traditional financial system. For the exchange's CEO, it is obvious that established players will position themselves accordingly.

Former Federal Councillor Johann Schneider-Ammann once proclaimed that Switzerland had the potential to become the leading international "crypto nation". The local ecosystem around blockchain technology has indeed developed strongly. Quite a few specialists are working in the emerging field on a daily basis. To nurture specialist talent, education company TIE International has partnered with two Crypto Valley companies to launch Switzerland's first blockchain apprenticeship. Apprentices will be trained on the basis of computer science, with an expanded focus on blockchain technology. The first apprenticeship starts this month and lasts 4 years.

The increasing adoption of cryptocurrencies in developed nations is mainly present in the field of investment, speculation, inflation hedging and portfolio diversification. However, the properties of crypto-currencies go much further than the aforementioned use cases suggest. A decentralized, permissionless network like Bitcoin opens new doors, especially in developing countries with non-existent or inaccessible financial infrastructure. An estimated two billion people still do not have access to a bank account and cannot complete financial transactions. This is often aggravated by a rapidly depreciating local currency. For quite a few parts of the developing world, Bitcoin is a tangible alternative out of this dilemma. Nigeria and El Salvador are two prominent examples of different adoption as it happens in the developing world. El Salvador is the first country to introduce Bitcoin as an official means of payment in only a month's time.

This week, the long-awaited "London Upgrade" was implemented in the Ethereum blockchain. Included in this is the protocol improvement proposal "EIP-1559". By revamping the fee structure, the user experience should be improved and the underlying cryptocurrency Ether will get a new economic structure. As a portion of the transaction fees are burned, a high usage of the network can result in a deflationary effect. Investors therefore are hoping for a change from a transaction token to an attractive capital investment.

In addition: In July, the crypto markets were able to recover for the first time after a three-month correction period. Rumors that Amazon might soon implement Bitcoin as a payment option were partly attributed to the trend reversal. Tesla CEO Elon Musk also debunked his previously voiced harsh words towards the cryptocurrency. On the other hand, regulatory pressure continued. Broader adoption by institutional players is accompanied by an increased number of measures regarding investor protection and money laundering prevention. This primarily affects crypto exchanges and direct service providers dealing with digital assets.