Proof of integrity? Gold Industry Wants Blockchain To Solve Its Biggest Problems, March 25-31, 2022

As Bitcoin (BTC) continues to eat gold’s market share, the precious metals industry is looking to blockchain — the technology first made famous by BTC — to solve its most enduring challenges. How’s that for irony? Someone should check Peter Schiff.

Speaking of Bitcoin, a subsidiary of MicroStrategy confirmed this week that it plans to buy more “digital gold” through a crypto-backed loan. Terraform Labs CEO Do Kwon also ramped up his Bitcoin purchases to provide solid support for Terra’s UST stablecoin.

This week’s Crypto Biz takes a deep dive into the gold industry and the latest business developments surrounding Bitcoin.

Gold industry uses blockchain for supply chain management and fraud prevention

Blockchain has been identified as a potential game-changer for the gold industry, which continues to grapple with supply chain issues that have undermined the integrity of precious metal production. The London Bullion Market Association and the World Gold Council are developing an “international system of integrity, chain of custody and provenance of gold bars” based on blockchain technology. They even called this initiative the Gold Bar Integrity Programme. Some of the industry’s largest organizations have already joined the initiative, including CME Group, Barrick Gold, Brinks, Royal Canadian Mint, Perth Mint and Metalor. Even if you can find a legacy financier willing to risk their reputation by destroying Bitcoin, it will be difficult for them to ignore the value of the underlying technology. Oh, the irony!

Related: VanEck Says Bitcoin Could Hit $4.8 Million If It Becomes The Global Reserve Assets

MicroStrategy Subsidiary Will Buy Bitcoin After Taking Out $205 Million Crypto Collateral Loan

MicroStrategy’s recently formed subsidiary MacroStrategy has secured a $205 million loan from Silvergate to buy — you guessed it — more Bitcoin. To secure the loan, the subsidiary has pledged an undisclosed amount to BTC. MicroStrategy CEO Michael Saylor was as poetic as ever in revealing the new round of funding, claiming that his company has “effectively turned our Bitcoin into productive collateral, enabling us to further execute our business strategy.” If you’re surprised that Saylor is still buying after accumulating 125,051 BTC, don’t be: MicroStrategy has adopted Bitcoin as its primary treasury reserve asset. So it plans to buy more every time it generates excess dollars from its primary operations. While MicroStrategy buys BTC over-the-counter, crypto investors can expect a supply shortage as demand from other segments of the market increases.

Terra Smash-Buy $139 Million Bitcoin, Wallet Hits 31,000 BTC

Do Kwon is giving Michael Saylor a run for his money after Terra raised another $139 million in Bitcoin this week. Terra has now amassed nearly $1.5 billion in BTC as part of its pledge to back its algorithmic stablecoin, UST, with digital gold. It should be noted that the Bitcoin address used to purchase the crypto is owned by Luna Foundation Guard, a Singapore-based non-profit organization that primarily focuses on the Terra ecosystem. Bitcoin maxis: Even if you don’t like Terra or altcoins, it’s hard not to respect Kwon for using decent money to back its stablecoin offering.

11 Companies Form Canadian Web3 Council to Advocate for Comprehensive Crypto Strategy

A group of fintech companies have joined forces to form the Canadian Web3 Council, a non-profit organization designed to advance Canada’s position in the new cryptography-driven digital economy. The council, which includes household names such as Dapper Labs, Figment, Wealthsimple and WonderFi Technologies, wants to work with policymakers to ensure Canada is not left behind in the Web3 era. Canada is already showing surprising leadership in the crypto space after policymakers approved two mock Bitcoin ETFs in 2021. As a Canadian, I can tell you that the sky isn’t going down due to spot ETF approvals, nor is the investment landscape any less safe than it used to be. Maybe we should pass the message on to the US Securities and Exchange Commission?

Related: Grayscale Prepares For Legal Battle With SEC Over Bitcoin ETF

Before you go!

What is the best cryptocurrency to invest in for under $3? on The market report this week I sat down with fellow analysts Jordan Finneseth, Marcel Pechman and Benton Yaun to discuss this topic. I went with 1INCH and ENJ, Jordan chose MATIC and RON, and Benton advocated SUPER and NCASH. You can watch the replay below.

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