Hey there, PoI readers! 🌟 

Mochi here, your trusty tech and web3 navigator, ready to guide you through the latest developments in the wild world of digital assets. From the Bitcoin network's skyrocketing transaction fees and the U.S. president's newfound power over digital assets to the potential impact of the 2024 U.S. elections on altcoin ETFs and the invitation for private firms to join the global central bank CBDC project, we've got a jam-packed newsletter for you today! So, grab your favorite beverage, get comfy, and let's dive in! 📰

INTEL BRIEF

🟧 The Bitcoin network is experiencing a temporary surge in transaction fees due to over 300,000 unconfirmed transactions, with fees reaching nearly $52 per transaction.

🟧 A new U.S. law grants the president unprecedented authority to block access to digital assets, raising concerns about its broad implications and potential impact on users.

🟧 Project mBridge, a multi-central bank digital currency initiative, is inviting private sector firms to propose new solutions and use cases as it enters its minimum viable product (MVP) phase.

🟧 The approval of another altcoin exchange-traded fund (ETF) in the United States could depend on political changes following the 2024 U.S. presidential election, with Solana emerging as a top contender.

Bitcoin Network Congestion Leads to Skyrocketing Transaction Fees

The Bitcoin network is currently facing a significant increase in transaction fees, with over 332,000 unconfirmed transactions waiting to be processed as of June 7. The congestion has caused fees for high-priority transactions to soar to around 514 sats ($50-$52) and low-priority transactions to 513 sats.

According to blockchain reporter Colin Wu, the unconfirmed transactions are speculated to be the result of centralized exchange OKX collecting and sorting through wallets, although this hasn't been confirmed yet. The surge in fees has brought attention to the challenges Bitcoin miners face post-halving.

Since the latest halving event in April, which reduced the block reward from 6.25 Bitcoin to 3.125 BTC, miner profitability has been significantly impacted. Bitfarms, a Bitcoin mining company, reported a 42% drop in mining revenue for May, with only 156 BTC earned compared to 269 BTC in April. Additionally, unusually low temperatures in Argentina caused Bitfarms' Rio Cuarto facility to shut down for eight days, further contributing to the decline in mined Bitcoin.

The energy consumption of Bitcoin mining in the U.S. has also come under scrutiny. Analyst Paul Hoffman revealed that since the start of 2024, Bitcoin miners in the U.S. have consumed 20,822.62 GWh of electric power, which could power 1.5% of U.S. households for an entire year. The cost to mine a single Bitcoin has more than doubled from $52,000 in April to an average of $110,000 following the halving event.

The Bitcoin network is experiencing a temporary surge in transaction fees due to over 300,000 unconfirmed transactions.

The recent halving event has significantly impacted miner profitability, with the cost to mine a single Bitcoin more than doubling.

New U.S. Law Empowers President to Block Digital Asset Access, Sparking Concerns

A newly enacted U.S. law has granted the president sweeping powers to block access to digital assets, leading to significant concerns among experts in the field. Scott Johnsson, a prominent voice in the digital assets space, criticized the law's broad scope on June 6, stating that it appears to be intended as a user-level ban power by the President on any protocol or smart contract deemed by the Treasury Secretary to be "controlled, operated, or [made] available" by a foreign sanctions violator.

The new law, which was reportedly introduced through a strategic legislative maneuver by Senator Mark Warner, broadly defines "digital assets" to include any digital representation of value recorded on cryptographically secured distributed ledgers, communication protocols, smart contracts, or other software deployed through distributed ledger or similar technology.

Under this law, the president has the authority to block transactions between U.S. persons and foreign entities identified as supporting terrorist organizations. This includes imposing strict conditions on foreign financial institutions maintaining accounts in the U.S. if they are found facilitating such transactions.

Johnsson's analysis suggests that the law's broad applicability could compel users to join Know Your Customer (KYC)-compliant and permissioned blockchain networks, ultimately limiting them to regulated blockchains. He warns that this move could be seen as an effort to exert control over digital assets under the guise of combating terrorism.

The elements allegedly added by Senator Warner that enable this presidential empowerment are borrowed from the Terrorism Financing Prevention Act, which was introduced in a December 2023 announcement, allowing the U.S. Treasury Department to go after "emerging threats involving digital assets."

A new U.S. law grants the president sweeping powers to block access to digital assets, raising concerns about its broad scope and potential impact on users.

The law could compel users to join KYC-compliant and permissioned blockchains, limiting them to regulated networks.

The elements enabling this presidential empowerment are borrowed from the Terrorism Financing Prevention Act.

Private Sector Firms Invited to Contribute to Global Central Bank CBDC Project

Project mBridge, a multi-central bank digital currency (multi-CBDC) initiative led by the Bank for International Settlements (BIS), is seeking private sector participation to further develop its prototype into a minimum viable product (MVP). The project, which began in 2021, aims to create a "universally accessible" multi-CBDC infrastructure to address inefficiencies in cross-border fiat payments, such as high costs, low speed, and operational complexities.

Initially started by the BIS Innovation Hub in collaboration with the central banks of Thailand and the United Arab Emirates, as well as Chinese and Hong Kong authorities, Project mBridge was later joined by the Saudi Arabian central bank and 26 observing members. The core participants have developed a prototype platform, the mBridge blockchain, which enables real-time, peer-to-peer, cross-border payments and foreign exchange transactions.

As Project mBridge enters the MVP stage, private sector firms are being invited to propose new solutions and use cases to help develop the platform and showcase its full potential. The plan to launch the mBridge MVP was first revealed by Hong Kong Monetary Authority CEO Eddie Yue in September 2023, who stated that tests had shown mBridge to provide faster, cheaper, and more transparent cross-border payments.

The mBridge MVP is technically capable of handling real-world transactions and is compatible with the Ethereum Virtual Machine. While the BIS initially had no plans to include private sector firms, the decision to invite their participation marks a significant step towards the gradual commercialization of mBridge.

In a separate development, a recent BIS report suggested that all central banks globally will soon adopt generative artificial intelligence (AI) tools for cybersecurity. The report found that over two-thirds (71%) of respondents are already using generative AI, and 26% plan to incorporate such tools into their operations within the next one to two years. However, the most common concern for central banks remains the costs associated with implementing generative AI tools.

Project mBridge, a multi-CBDC initiative, is inviting private sector firms to propose new solutions and use cases as it enters its MVP phase.

The project aims to create a "universally accessible" multi-CBDC infrastructure to address inefficiencies in cross-border fiat payments.

The mBridge MVP is capable of handling real-world transactions and is compatible with the Ethereum Virtual Machine.

U.S. Elections Crucial for Solana ETF Approval, Says Experts

The recent approval of spot Ether ETFs by the U.S. Securities and Exchange Commission (SEC) has sparked speculation about the next potential altcoin ETF, with Solana emerging as a top contender. However, experts caution that expectations for new altcoin ETFs shouldn't be too high, as the SEC has not shown signs of embracing other cryptocurrencies for future ETFs.

Ophelia Snyder, co-founder and president of 21.co, noted that despite the significant interest in their Solana exchange-traded product (ETP) on European exchanges, with nearly $990 million in assets under management, the SEC follows a specific timeline for approving ETFs and may take years to green-light another altcoin ETF.

However, the upcoming U.S. elections on Nov. 5, 2024, could be critical for the future of altcoin ETFs. Bloomberg ETF analyst Eric Balchunas believes that if Donald Trump, who has introduced himself as a pro-crypto candidate, wins the election, "we could see other coins as ETFs." Conversely, if Democrats maintain power, Balchunas believes an altcoin ETF is unlikely, even if President Joe Biden removes current SEC Chair Gary Gensler.

Aside from the election results, altcoin ETFs must meet specific requirements, such as healthy levels of liquidity, decentralization, and resistance to price manipulation. The current altcoin market is prone to market manipulation due to its nascent stage, and lower liquidity compared to Bitcoin and Ether could lead to premiums and discounts in ETF prices.

Experts suggest that a basket of altcoins could be an option for ETFs with smaller markets and lower liquidity metrics. However, investors seem to favor single-asset trackers over altcoin baskets.

Solana, despite its high market capitalization, faces issues with centralization and has suffered several outages in the past. The SEC has also directly labeled Solana as a security, making it unlikely for a spot ETF to be approved until regulatory clarity arises.

The approval of a Solana ETF in the U.S. could depend on the outcome of the 2024 presidential election.

Solana faces issues with centralization and has suffered several outages in the past, which must be addressed before an ETF can be considered.

Well, folks, that's all for this edition of Proof of Intel! I hope you found our journey through the crypto landscape both informative and entertaining. Remember, the world of digital assets is constantly evolving, and it's up to us to stay informed and adapt to the changes. Keep your eyes peeled for more exciting developments, and don't forget to share your thoughts and questions with the PoI community. After all, we're all in this together! 🤝💙 

Until next time, this is Mochi, your faithful crypto companion, signing off with a virtual fist bump! 👊 Stay curious, stay informed, and keep on exploring the fascinating world of web3! 🧐🔍

🍨📰 Catch you in the next issue! 📰🍨