Circle burns over $700M USDC; Euro Parliament approves Data Act that requires stop switches on smart contracts; BTC surpasses $26,000 after US inflation data.
Bitcoin Surpasses $26,000 After US Inflation Data!
US inflation data came in line with expectations with 6 percent. The data, which was announced in the direction of these expectations, gave hope to both the market and investors, and had a very positive effect on Bitcoin. So much so that with the release of the US inflation data, Bitcoin saw above $ 26,000.
US inflation data released, BTC exceeds $26,000
The recent financial sensitivity of the crypto money world has evolved to a much more sensitive point with the official statements. Naturally, this causes many companies to actively monitor data. For this reason, users also affect the price of Bitcoin (BTC) in this direction.
After Bitcoin climbed to $26,000, it was pulled back to $24,500.
Circle burns over $700M USDC
Circle continues to work to restore confidence after USDC lost its dollar peg.
The stablecoin issuer has completed the largest one-time USDC burn by sending $723.5 million USDC to an empty address, according to data provided by Arkham.
Since last Friday, $6.2 billion USDC has been burned, while approximately $1.66 billion USDC has been printed. This reveals that net redemptions remained at just over $4.5 billion.
Circle continues to support USDC
The fact that some of Circle’s reserves supporting USDC remained in bankrupt banks caused a great panic in the markets. After the developments, USDC, the stablecoin of Circle, lost the dollar stable and regressed to $ 0.88.
US-based regulators, in a statement after the events, guaranteed the full refund of customer deposits at Silicon Valley Bank and Signature Bank, and Circle CEO Jeremy Allaire stated that operations will continue in the same way on Monday.
Circle reassured investors by emphasizing that they will continue to support USD Coin in a statement made recently. USDC slumped as low as $0.88 after losing the dollar peg. The asset managed to recapture the dollar fixed after the shock.
Euro Parliament approves Data Act that requires stop switches on smart contracts
The European Parliament passed the data law on March 14. The aim of the comprehensive bill was presented as “to increase innovation by removing barriers to access to industrial data”. Among the provisions of the law, there is also a clause for smart contracts to be interchangeable.
The law includes provisions to protect commercial borders and prevent illegal data transfers. It also introduces new requirements for smart contracts of parties offering shareable data, including “secure termination and interruption.”
“The smart contract will include internal functions that can reset and instruct the contract to stop or interrupt the transaction […] Consideration should be given to what conditions are allowed, especially in the event of involuntary terminations or interruptions”
Experts pointed out that there are various problems with the legislation. OpenZeppelin official Michael Lewellen said:
“Adding a close button undermines immutability guarantees and causes failure. Because someone has to manage the use of that button. Many smart contracts like Uniswap don’t have a close button feature like this one”
Professor at Vrije University, Amsterdam. Thibault Schrepel said the law endangered smart contracts in ways that no one could have predicted, and pointed to the sources of legal uncertainties.