Hey there, PoI readers! 🌟 

It's your favorite newsletter writer, Mochi, back with another scoop of delightful tech and web3 news. From Vitalik Buterin's verdict on celebrity memecoins and Switzerland's tech-neutral approach to AI regulation to the Ethereum ecosystem's explosive growth and the UAE's stablecoin licensing system, we've got a smorgasbord of fascinating topics to explore. So, grab your favorite beverage, get comfy, and let's dive into the exciting world of digital innovation! 🌿🌐

INTEL BRIEF

🟧 Vitalik Buterin criticizes celebrity memecoins, emphasizing the importance of sustainable value creation and long-term benefits for participants.

🟧 Switzerland adopts a "tech-neutral" approach to AI regulation, focusing on sector-specific use cases and collaborating with international organizations to shape global AI policy.

🟧 The Ethereum ecosystem has seen a significant increase in daily active users since 2020, with VanEck analysts predicting Ether to reach $22,000 by 2030.

🟧 The Central Bank of the UAE has approved a new system for licensing and overseeing stablecoins as part of its financial infrastructure transformation program.

Vitalik Buterin's Verdict on Celebrity Memecoins: Substance Over Hype

In a recent X post, Vitalik Buterin expressed his dissatisfaction with the current wave of celebrity memecoin releases. He believes that projects should aim to provide lasting value and satisfaction to participants, even if the tokens eventually lose their worth. According to Buterin, financialization is only justified when it serves a purpose that benefits society, such as improving healthcare, supporting open-source software, or promoting art and creativity.

Buterin's comments came in response to a post about Iggy Azalea's Mother Iggy (MOTHER) token, which some speculate could lead the celebrity crypto trend towards sustainable value creation. However, Buterin remains skeptical and has even provided a checklist of features that would earn his respect for a celebrity crypto project.

To meet Buterin's "worthy" criteria, a project must have a clear public benefit goal beyond simply enriching the celebrity and early investors. He also prefers projects with longevity, ideally lasting over a decade, rather than short-lived trends that fade into obscurity after a few months. Additionally, Buterin believes that celebrity tokens should include engaging features beyond simple trading, such as token-voting decentralized autonomous organizations (DAOs) that provide activities and a sense of community for participants.

In a hilarious comparison, Buterin stated that Ashton Kutcher and Mila Kunis' Stoner Cats project was far more respectable than anything seen from the 2024 celebrity memecoin trend, as it at least funded an actual show, whereas many memecoins lack substance and purpose.

As the celebrity memecoin craze continues, with the likes of Caitlyn Jenner, Soul Ja Boy, Rich The Kid, and others jumping on the bandwagon, it remains to be seen whether any of these projects will meet Buterin's high standards. Some celebrities have even complained of being scammed by entrepreneur Sahil Arora, who denies any wrongdoing in the token launches.

Vitalik Buterin criticizes celebrity memecoins, emphasizing the need for sustainable value creation and long-term benefits for participants. 

He provides a checklist of features that would earn his respect, including clear public benefit goals, longevity, and engaging features beyond simple trading.

Switzerland's Tech-Neutral Approach to AI Regulation: Balancing Innovation and Collaboration

While countries worldwide are scrambling to develop and regulate high-level AI systems, the Swiss are taking a unique "tech-neutral" approach that's worth exploring.

Switzerland, known for its tech-forward stance in blockchain and cryptocurrency, is home to one of the world's top-tier AI research institutions, ETH Zurich. However, as a non-EU member, Switzerland is not subject to the EU AI Act in the same way as its neighboring countries. So, what's the Swiss secret sauce for regulating this controversial technology?

According to Ayisha Piotti, head of Switzerland's Annual AI Policy Summit, and Alexander Brunner, an adviser to AI, blockchain, and Web3 companies in Switzerland, the country's approach is rooted in its stable, direct democracy, outstanding academic institutions, and a culture of inclusiveness and transparent dialogue. Piotti emphasizes that dialogue is crucial for AI adoption and legislation in Switzerland, as the country cannot simply make laws without ensuring public understanding and support.

Switzerland's AI research competence, particularly at ETH Zurich, has been praised by leading figures in the field, such as Yann LeCun, the "godfather of AI" and head of AI at Meta. Brunner highlights that Switzerland's dedication to innovation and research has placed it at the top of the UN Intellectual Property Organization for 13 consecutive years.

The Swiss approach to AI governance is described as "tech-neutral," focusing on sector-specific use cases rather than implementing technology-specific regulations. Piotti explains that Switzerland aims to fill gaps in existing legislation based on AI's application in specific sectors, rather than creating a comprehensive, horizontal AI Act like the EU.

Switzerland's neutrality also plays a significant role in its approach to international collaboration on AI policy. Brunner emphasizes that Switzerland is regarded as a "trusted moderator" and takes this responsibility seriously. Despite its small size, Switzerland actively participates in international forums to shape AI policy, leveraging its position as a neutral entity and its long-standing tradition of collaboration with international organizations.

While not an EU member, Switzerland recognizes the importance of the EU AI Act, as Swiss businesses operating within the EU must comply with its regulations. Piotti notes that there is often a "Brussels effect," where EU legislation, such as GDPR, is adopted by other parts of the world.

As the world navigates the complexities of AI regulation, Switzerland's unique perspective and role as a trusted moderator may prove invaluable in shaping the future of this transformative technology.

Switzerland adopts a "tech-neutral" approach to AI regulation

Focuses on sector-specific use cases and collaborates with international organizations.

Actively collaborates with international organizations to shape global AI policy while balancing innovation and regulation.

Ethereum Ecosystem Booms: 9X User Growth and $22K ETH Price Prediction by 2030

According to data compiled by crypto ETF issuer Bitwise, the number of daily active users in the Ethereum ecosystem, including its scaling solutions Arbitrum, Polygon, Optimism, Base, and zkSync, has skyrocketed from around 250,000 in Q1 2020 to a whopping 2.25 million in Q1 2024. That's right, a mind-boggling 9X increase in just four years!

While Ethereum mainnet now accounts for a smaller portion of active daily users due to the rise of layer-2 networks, this is all part of the grand plan. Ethereum co-founder Vitalik Buterin has been focusing on using L2s to scale the main blockchain, arguing that they're similar to the sharding concept of the old Eth 2 plan and may help foster growth in various "subcultures" within the Ethereum ecosystem.

But wait, there's more! Crypto ETF issuer VanEck has raised its price target for Ethereum, expecting the cryptocurrency to hit a staggering $22,000 by 2030. This is a significant increase from their previous prediction of $11,800 last year. VanEck's head of digital assets research, Matthew Sigel, and his colleagues believe that Ethereum's revenue per user exceeds most Web2 businesses and is set to grow in popularity among traditional financial market participants and Big Tech.

The analysts also anticipate the approval of spot Ether ETFs on U.S. stock exchanges, which would allow financial advisors and institutional investors to hold this unique asset and benefit from the pricing and liquidity advantages characteristic of ETFs. They project ETH's 2030 valuation based on a forecast of $66B in free cash flows generated by Ethereum and accruing to the ETH token.

Despite lower user numbers compared to the top layer-2 networks and Solana, the Ethereum blockchain still generates three times more in fees, which Bankless co-founder Ryan Sean Adams refers to as a "modern miracle." The L2s pay Ethereum fees to settle transactions on the main chain and benefit from its security.

As of writing, Ether is priced at $3,862, up 1.3% over the last 24 hours. Many expect the launch of spot Ether ETFs to push the price of Ether to new all-time highs, although some warn that inflows into the new crypto ETFs may be significantly lower than the Bitcoin ETFs.

Ethereum ecosystem has experienced a 9X increase in daily active users since 2020, reaching 2.25 million in Q1 2024

VanEck analysts predict Ether to reach $22,000 by 2030.

Ethereum's revenue per user exceeds most Web2 businesses.

UAE Central Bank Greenlights Stablecoin Licensing System: A Boost for Digital Economy

UAE’s Central bank's board of directors has just approved a new system to oversee and license stablecoins, and it's a big deal for the country's digital economy.

During a meeting in Abu Dhabi, chaired by UAE vice president and CBUAE chairman Sheikh Mansour bin Zayed Al Nahyan, the board discussed projects under the government's financial infrastructure transformation (FIT) program. This initiative aims to boost digital transactions, advance the country's digital economy, and foster innovation.

According to Kokila Alagh, founder of KARM Legal Consultants, the new regulations clarify the issuance, licensing, and supervision of dirham-backed payment tokens. These tokens must be backed by UAE dirhams and cannot be linked to other currencies, digital assets, or algorithms. Moreover, merchants and service providers can only accept dirham-backed tokens and no other virtual assets.

While the specifics of the meeting have not been disclosed, the topics reportedly included key projects under the FIT program. In fact, on Feb. 13, the CBUAE announced plans to issue a central bank digital currency (CBDC) under the FIT initiative. The issuance of a CBDC aims to address cross-border payment inefficiencies and drive domestic payment innovation, helping the UAE remain competitive as a financial and digital payments hub.

In related news, one of UAE's financial regulators, the Dubai Financial Services Authority (DFSA), recently updated its rules for stablecoin recognition. As of June 3, the DFSA introduced additional criteria for recognizing stablecoins. Currently, the regulator only recognizes a limited number of crypto tokens, including Bitcoin and Toncoin (TON). This means funds under the DIFC cannot invest in other tokens apart from the five recognized crypto assets. However, with the revised token regime, the regulator now allows investing in unrecognized crypto tokens, as long as the investment does not exceed 10% of the funds' gross asset value.

The UAE's proactive approach to stablecoin regulation and its focus on transforming its financial infrastructure demonstrates the country's commitment to fostering a thriving digital economy. As the world continues to embrace digital assets and innovative financial solutions, the UAE appears well-positioned to capitalize on these trends and maintain its status as a leading financial and digital payments hub.

Central Bank of the UAE has approved a new system for licensing and overseeing stablecoins.

Aims to boost digital transactions and advance the country's digital economy.

And there you have it, my brilliant PoI readers! 💡 I hope this edition of our newsletter has left you feeling inspired, informed, and maybe even a little bit wiser about the ever-evolving landscape of tech and web3. Remember to stay curious, keep an open mind, and never stop learning. Until next time, this is Mochi, signing off with a virtual fist bump! 🤜🤛

P.S. We love hearing from you! Share your thoughts, questions, and favorite moments from this edition with us. And don't forget to spread the love by sharing our newsletter with your friends and colleagues who share your passion for all things tech and web3. Together, we can make the world a little bit smarter and a whole lot more fun! 🌍😄

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