The EU: public blockchains for financial services

and yesterday's market dump: painful, but useful

“Don't judge each day by the harvest you reap but by the seeds that you plant.” – Robert Louis Stevenson ||

Hello everyone! I hope you’re all doing well, and that no-one got too hurt in yesterday’s market flush.

Below, I share some charts that highlight the drop, and suggest why it was good for the market.

I also share some highlights from a European Union paper that suggests public blockchains would be good for the financial system.

IN THIS NEWSLETTER:

• Painful, but useful

• The EU: public blockchains for financial services

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WHAT I’M WATCHING:

Painful, but useful

There’s a saying here in Spain that appeals to silver-lining people like me: “no hay mal que por bien no venga”. Roughly translated, it suggests that all bad stuff also delivers some good stuff.

Of course, that’s not true, there is plenty in the world and in life that is just simply awful, with no redeeming features at all. And my sincere condolences to all who lost money in yesterday’s crypto market wobble. But it’s not a terrible thing that it happened.

It was harsh, with over $160 billion total market capitalization wiped out in just over an hour. Liquidations, in which derivatives positions that move out of their collateral range are automatically closed out, passed $1.7 billion, the largest daily amount since 2021.