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Cryptocurrencies could one day serve as a kind of electronic store of value, according to a report penned by the Bank of Singapore’s chief economist.

The report was written by chief economist Mansoor Mohi-uddin. The Bank of Singapore is a unit of Singapore’s second-largest bank OCBC.

Mohi-uddin writes that cryptocurrencies are most likely to become more widely accepted as stores of value. As Mohi-uddin notes: “Digital money may compete in future with gold as a potential safe-haven asset.”

Yet in the report, Mohi-uddin couches this contention by stating that bitcoin and other cryptocurrencies are unlikely to take on a major role as a medium of exchange, noting:

“Bitcoin’s staggering rally is on a par with the great investment booms of the last few decades including gold in the 1970s, Japanese equities in the 1980s, internet stocks in the 1990s, oil prices in the 2000s and technology companies in the 2010s. But cryptocurrencies are still very unlikely to replace national currencies as any economy’s principal medium of exchange. Instead, digital money over time may partially displace gold by offering an electronic – rather than physical – store of value.”

As Mohi-uddin’s argues, cryptocurrencies still need to overcome several hurdles, including trust, volatility, and regulatory acceptance in order to be perceived as a significant asset in investor portfolios.

Mohi-uddin also contends that recent changes in the U.S. regulatory sphere may also prove positive for cryptocurrency adoption. In terms of regulation, U.S. regulators may become more accepting of cryptocurrencies. The former head of the Commodity Futures Trading Commission (CFTC) Gary Gensler has been nominated to serve as the next chairman of the U.S. Securities and Exchange Commission (SEC).

According to the report, his expected appointment may result in the broader investment in cryptocurrencies as well as the approval of crypto-centric products like an exchange-traded fund (ETF) for bitcoin or another cryptocurrency.

“This would, offer a trustworthy, reliable investment vehicle, allow fresh participants to enter digital currencies, improve liquidity, lower volatility, and help deal with reputational risks,” the report states.

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Public lobbying records indicate that Coinbase spent $230,000 across 2020 to lobby the federal government on cryptocurrency policy issues.

The figure, first reported by Cointelegraph’s Kollen Post, is contained in four quarterly disclosure forms. Coinbase paid lobby firm Franklin Square Group $50,000 in the first quarter of 2020 and $60,000 in each of the subsequent quarters.

Data from OpenSecrets.org, which tracks information about lobbying efforts, shows that 2020’s figure represents a slight uptick from 2019, when Coinbase spent a reported $200,000. 

The records show that Coinbase’s lobby efforts cut across the legislative branch, focusing on both the House of Representatives and the Senate.

The specific issues cited differ from document to document. For example, the Q1 disclosure form cites “policy issues related to digital assets and financial technology; cybersecurity.” The Q2 form adds “Covid recover” and “margin trading” to the list, with “Covid recover” removed in the Q3 and Q4 forms. 

Coinbase was previously a member of the Blockchain Association, a D.C.-based trade and policy group. But it departed in August of last year, a move sources said at the time was connected to Binance.US’s entry into the organization. 

Franklin Square Group counts major tech companies like Alphabet and Dropbox among its clientele, per OpenSecrets. 

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

January has seen more than $230 billion in on-chain stablecoin volume since the start of the month, according to data collected by The Block.

That figure — $237.2 billion as of January 25 — represents the highest monthly amount of its kind, surpassing December’s total of $178.3 billion by 33%. 

USDT (Tether) had seen the majority of that volume at 62.9%, followed by USDC (USD Coin) with 21.0% and DAI with 9.1%.

Readers can find more data about stablecoins, as well as a wide array of crypto-related areas, by visiting The Block’s Data Dashboard. 

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.