Crypto 2.0
Crypto 2.0 refers to cryptographic technologies, processes, and protocols that comply with regulated banking and financial services and are designed to transact on digital currency cryptography with minimal to no reliance on the traditional banking and financial services systems.
The term was coined by Darrell Hubbard,[1] a founding member of the Digital Currency Monetary Authority,[2] in 2020 to distinguish Unicoin,[3] the first Crypto 2.0 platform,[4] from Bitcoin[5] and the other altcoins designed to operate outside of financial institutions.
The Digital Currency Monetary Authority (DCMA) introduces a global regulatory compliant framework for broader banking and financial services adoption of cryptocurrencies and digital assets.[6]
The DCMA realized “a new wave of cryptographic cash technology must develop to fulfill the needs of banks now that central banks are studying the use of cryptocurrencies and digital assets, as Bitcoin was not even intended to function inside of regulated financial institutions.”[7]
Crypto 2.0 balances the best practices of both decentralized and centralized governance. Core standards of Crypto 2.0 include:
- A trusted consensus protocol for financial transaction commitments.
- Cryptographic implementations of both forms of legal tender –
- Regulated electronic cash
- Hand-to-hand physical cash (digital cash)
- Banking and financial services compliance, including but not limited to –
- Privacy and Data Protection
- Know Your Customer (KYC) Onboarding
- Money Transfer Limits and Controls
- Anti-Money Laundering (AML) Protections
- Suspicious Activity Reporting (SARs)
- Sanctions Enforcement
Maintaining monetary sovereignty[8] is the most significant criterion for central banks in their adoption of cryptocurrency and digital assets within the banking system.
The term Crypto 2.0 is now being adopted by the banking sector to distinguish cryptocurrency and digital asset platforms intending to operate within financial institutions and those intending to disrupt and operate outside of financial institutions.
The DCMA, in conjunction with the Government Blockchain Association[9] (GBA), has introduced a Crypto 2.0 Course[10] and a Crypto 2.0 Roundtable[11] to educate banking executives and software developers on the standards for deploying Crypto 2.0 solutions.
References
- ↑ "North Carolina State University". ncsucsc.touchpros.com. Retrieved 27 June 2022.
- ↑ "Leading Digital Currency Solutions for governments and central banks". dcma.io. Retrieved 27 June 2022.
- ↑ "unicoin" (PDF). unicoin.dcma.io. Retrieved 27 June 2022.
- ↑ "UNICOIN WEB WALLET". unicoin.dcma.io. Retrieved 27 June 2022.
- ↑ "A Peer-to-Peer Electronic Cash System By Satoshi Nakamoto" (PDF). Bitcoin. Retrieved 27 June 2022.
- ↑ "The Digital Currency Monetary Authority Introduces a Global Digital Banking Framework for Crypto 2.0". finance.yahoo.com. Retrieved 27 June 2022.
- ↑ "Digital Currency Monetary Authority Unveils Global Compliance Framework". The Cryptocurrency Post. Retrieved 27 June 2022.
- ↑ "Monetary Policy and Central Banking". IMF. Retrieved 27 June 2022.
- ↑ "GBA Global | Government Blockchain Association". gbaglobal. Retrieved 27 June 2022.
- ↑ "Crypto 2.0 Course – GBA Global". gbaglobal. Retrieved 27 June 2022.
- ↑ "Crypto 2.0 Roundtable – GBA Global". gbaglobal. Retrieved 27 June 2022.
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