ALBAWABA- In this news recap, Brazil is poised to introduce a groundbreaking blockchain-based digital identity system for over 214 million citizens. Meanwhile, investment firms Valkyrie and VanEck are pioneering the introduction of Ether futures through innovative ETFs. However, not all is smooth sailing in the crypto world, as the co-founders of the now-bankrupt hedge fund Three Arrows Capital face legal troubles in Singapore amid an ongoing investigation. These diverse developments highlight the dynamic nature of the financial landscape, where innovation meets regulatory challenges, so let's dig in!
Brazil to Implement Blockchain-Based National ID System for Enhanced Security and Efficiency
The Brazilian government has announced plans to utilize blockchain technology to provide digital identity to over 214 million citizens. Initially launching in Rio de Janeiro, Goiás, and Paraná, this initiative will utilize a private blockchain developed by Serpro, Brazil's national data processing service, with the goal of enabling the entire country to issue blockchain-based identity documents by November 6.
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According to Alexandre Amorim, president of Serpro, blockchain's immutability and decentralization enhance security and reliability in the National Identity Card project. This move is expected to streamline administrative processes, improve data security, and combat organized crime. Additionally, Brazil is also preparing for the introduction of its central bank digital currency, Drex, aimed at expanding access to capital.
Valkyrie and VanEck Announce Ether Futures ETFs Amid U.S. Government Shutdown Uncertainty
Investment firm Valkyrie is set to introduce exposure to Ether futures within days, with its Bitcoin Strategy ETF providing investors access to both Ether and Bitcoin futures in a single investment vehicle, becoming one of the pioneers in this space amidst pending applications with the U.S. Securities and Exchange Commission (SEC).
Effective from October 3, the fund will be rebranded as the Valkyrie Bitcoin and Ether Strategy ETF. Simultaneously, asset manager VanEck has revealed its forthcoming Ethereum Strategy ETF, slated for listing on the Chicago Board Options Exchange shortly. Analysts speculate that the launch of Ether futures ETFs may have been expedited due to concerns over a potential U.S. government shutdown.
Three Arrows Capital Co-Founder Su Zhu Detained in Singapore Amid Ongoing Hedge Fund Investigation
Su Zhu, co-founder of Three Arrows Capital (3AC), has been detained at Changi Airport in Singapore while attempting to depart. Teneo, the joint liquidator of the now-defunct hedge fund, revealed that Zhu's arrest was a result of a committal order issued by Singapore Courts, a measure employed for contempt of court cases. Teneo obtained this order on September 25, alleging Zhu's non-compliance with a court directive. Zhu's detention is a part of the ongoing effort to recover funds for 3AC's creditors, following the $10 billion hedge fund's collapse in 2022 due to the Terra ecosystem's breakdown. A similar committal order has been issued against Kyle Davies, another 3AC co-founder, with his whereabouts currently unknown.
