Mediaboss Marketing

Bitcoin's risehas been one of the most significant financial events in the last decade.Bitcoin has grown from its humble beginnings as a decentralized, peer-to-peerpayment system to a global phenomenon, with a market capitalization of morethan $1 trillion as of March 2023.

However, asBitcoin has grown in popularity, it has also grown in institutionalization,with large financial institutions and corporations investing in Bitcoin andother cryptocurrencies. In this article, we will look at how institutionalizationaffects the price and adoption of Bitcoin.

The process bywhich a new financial asset or technology is adopted by mainstream financialinstitutions such as banks, hedge funds, and pension funds is referred to asinstitutionalization. Increased liquidity, price stability, and broaderadoption of the asset or technology can result from institutionalization.

Institutionalizationhas taken various forms in the case of Bitcoin. Large financial institutions,such as JPMorgan and Goldman Sachs, have begun to offer their clientsBitcoin-related investment products.

Keep Reading

Bitcoin hasbeen used as a store of value by major corporations such as Tesla andMicroStrategy. Furthermore, regulatory bodies such as the United StatesSecurities and Exchange Commission (SEC) have begun to provide guidance on theregulation of cryptocurrencies.

Bitcoin's pricehas been significantly influenced by its institutionalization. Bitcoin's pricewas highly volatile in its early days, with large price swings occurring on aregular basis. However, as more institutional investors have entered the market, theprice has stabilized.

A variety offactors have contributed to this increased stability. For starters,institutional investors are typically long-term investors who prioritizeportfolio diversification and risk management.

This means theyare less likely to sell their Bitcoin holdings during market volatility, whichcan help to limit price swings.

Furthermore,institutional investors frequently invest large sums of money in Bitcoin, whichcan help to keep the price stable. For example, when Tesla announced inFebruary 2021 that it had invested $1.5 billion in Bitcoin, the price of Bitcoinincreased by more than 10% in a single day.

Bitcoin'sincreased stability has also made it a more appealing investment fortraditional investors like pension funds and endowments. These investorstypically have strict investment policies that require them to invest inlow-volatility assets. As Bitcoin becomes more stable, these investors are morelikely to consider adding it to their portfolios.

Bitcoin'sinstitutionalization has also had a significant impact on its adoption. In theearly days of Bitcoin, it was primarily used for peer-to-peer transactions byindividuals and small businesses. However, as more institutions have enteredthe market, Bitcoin has begun to gain acceptance as a form of payment.

PayPal, forexample, began allowing its users to buy, hold, and sell Bitcoin in late 2020.This move was interpreted as a significant endorsement of Bitcoin by amainstream financial institution, and it aided in increasing adoption by makingit easier for people to buy and sell Bitcoin.

Furthermore,Bitcoin's institutionalization has helped to improve its reputation and buildtrust among mainstream investors. Bitcoin was initially associated with illegalactivities, such as money laundering and drug trafficking.

However, asmore institutions have invested in Bitcoin and regulatory authorities haveissued guidance on its use, it has gained acceptance as a legitimate asset.

While Bitcoinhas benefited greatly from institutionalization, it has also presented somechallenges. One of the most significant challenges is the possibility of marketmanipulation by large institutional investors.

If a smallgroup of investors controls a significant portion of the Bitcoin market, theymay be able to manipulate the price by purchasing or selling large amounts ofBitcoin.

Furthermore,the increased regulatory scrutiny that comes with institutionalization may posedifficulties for Bitcoin. Regulatory authorities may impose restrictions on theuse of cryptocurrencies or impose strict reporting requirements oninstitutions. Institutions that invest in Bitcoin may incur additional costsand administrative burdens as a result of this.

Finally,Bitcoin's increasing centralization may raise concerns about thedecentralization that was one of its founding principles. As more institutionsbecome involved in Bitcoin, the risk of it becoming more centralized andcontrolled by a small group of investors or institutions increases.

Bitcoin hasbeen the topic of many debates since its inception in 2009. As Bitcoin hasgained more attention and popularity, the possibility of itsinstitutionalization has become a growing concern among its supporters.

Theinstitutionalization of Bitcoin refers to the process of large financialinstitutions such as banks, hedge funds, and investment firms incorporatingBitcoin into their business models. While some argue that this would increase the adoption and legitimacy of the cryptocurrency, others believe that it wouldultimately lead to the end of Bitcoin.

One of thereasons why the institutionalization of Bitcoin could lead to its demise isbecause it goes against the core principles of the cryptocurrency. Bitcoin wascreated as an alternative to the traditional financial system, which isdominated by large institutions that control the flow of money. By allowingthese institutions to incorporate Bitcoin into their business models, it couldlead to a concentration of power and influence in the hands of a few players,which would defeat the purpose of decentralization.

Another reasonwhy the institutionalization of Bitcoin could lead to its downfall is thepotential for increased regulation. As Bitcoin becomes more mainstream andwidely used, governments may feel compelled to regulate it more heavily. Thiscould lead to restrictions on the use of Bitcoin and make it less attractive toindividuals who value its anonymity and lack of government oversight.

Furthermore,the institutionalization of Bitcoin would also likely correlate with increasedvolatility in the cryptocurrency market. Large financial institutions have asignificant amount of power and influence in the financial world, and theirparticipation in the Bitcoin market could lead to rapid fluctuations in itsvalue. This could make it difficult for individuals and businesses to useBitcoin as a stable store of value or medium of exchange.

Lastly, theprocess could likely lead to the creation of alternative cryptocurrencies thatbetter align with the principles of decentralization. As Bitcoin becomes moremainstream, some individuals may become disillusioned with itsinstitutionalization and seek out alternative cryptocurrencies that are more inline with their values. This could lead to a fragmentation of thecryptocurrency market, which could ultimately weaken Bitcoin's position as thedominant cryptocurrency.

Bitcoin's priceand adoption have been significantly influenced by its institutionalization.Institutional investors have helped to stabilize the market and improveBitcoin's reputation among mainstream investors.

As a result,Bitcoin has grown in popularity and is increasingly being used as a form ofpayment.

However,institutionalization has brought with it new challenges, such as thepossibility of market manipulation and increased regulatory scrutiny.

It is criticalfor the Bitcoin community to prioritize decentralization and ensure that thebenefits of institutionalization do not come at the expense of the fundamentalprinciples that distinguish Bitcoin.

It will beinteresting to see how institutionalization shapes Bitcoin's development as itevolves and matures. It is clear that institutionalization has had asignificant impact on Bitcoin in recent years, but how this will play out inthe future remains to be seen.

Bitcoin's risehas been one of the most significant financial events in the last decade.Bitcoin has grown from its humble beginnings as a decentralized, peer-to-peerpayment system to a global phenomenon, with a market capitalization of morethan $1 trillion as of March 2023.

However, asBitcoin has grown in popularity, it has also grown in institutionalization,with large financial institutions and corporations investing in Bitcoin andother cryptocurrencies. In this article, we will look at how institutionalizationaffects the price and adoption of Bitcoin.

The process bywhich a new financial asset or technology is adopted by mainstream financialinstitutions such as banks, hedge funds, and pension funds is referred to asinstitutionalization. Increased liquidity, price stability, and broaderadoption of the asset or technology can result from institutionalization.

Institutionalizationhas taken various forms in the case of Bitcoin. Large financial institutions,such as JPMorgan and Goldman Sachs, have begun to offer their clientsBitcoin-related investment products.

Keep Reading

Bitcoin hasbeen used as a store of value by major corporations such as Tesla andMicroStrategy. Furthermore, regulatory bodies such as the United StatesSecurities and Exchange Commission (SEC) have begun to provide guidance on theregulation of cryptocurrencies.

Bitcoin's pricehas been significantly influenced by its institutionalization. Bitcoin's pricewas highly volatile in its early days, with large price swings occurring on aregular basis. However, as more institutional investors have entered the market, theprice has stabilized.

A variety offactors have contributed to this increased stability. For starters,institutional investors are typically long-term investors who prioritizeportfolio diversification and risk management.

This means theyare less likely to sell their Bitcoin holdings during market volatility, whichcan help to limit price swings.

Furthermore,institutional investors frequently invest large sums of money in Bitcoin, whichcan help to keep the price stable. For example, when Tesla announced inFebruary 2021 that it had invested $1.5 billion in Bitcoin, the price of Bitcoinincreased by more than 10% in a single day.

Bitcoin'sincreased stability has also made it a more appealing investment fortraditional investors like pension funds and endowments. These investorstypically have strict investment policies that require them to invest inlow-volatility assets. As Bitcoin becomes more stable, these investors are morelikely to consider adding it to their portfolios.

Bitcoin'sinstitutionalization has also had a significant impact on its adoption. In theearly days of Bitcoin, it was primarily used for peer-to-peer transactions byindividuals and small businesses. However, as more institutions have enteredthe market, Bitcoin has begun to gain acceptance as a form of payment.

PayPal, forexample, began allowing its users to buy, hold, and sell Bitcoin in late 2020.This move was interpreted as a significant endorsement of Bitcoin by amainstream financial institution, and it aided in increasing adoption by makingit easier for people to buy and sell Bitcoin.

Furthermore,Bitcoin's institutionalization has helped to improve its reputation and buildtrust among mainstream investors. Bitcoin was initially associated with illegalactivities, such as money laundering and drug trafficking.

However, asmore institutions have invested in Bitcoin and regulatory authorities haveissued guidance on its use, it has gained acceptance as a legitimate asset.

While Bitcoinhas benefited greatly from institutionalization, it has also presented somechallenges. One of the most significant challenges is the possibility of marketmanipulation by large institutional investors.

If a smallgroup of investors controls a significant portion of the Bitcoin market, theymay be able to manipulate the price by purchasing or selling large amounts ofBitcoin.

Furthermore,the increased regulatory scrutiny that comes with institutionalization may posedifficulties for Bitcoin. Regulatory authorities may impose restrictions on theuse of cryptocurrencies or impose strict reporting requirements oninstitutions. Institutions that invest in Bitcoin may incur additional costsand administrative burdens as a result of this.

Finally,Bitcoin's increasing centralization may raise concerns about thedecentralization that was one of its founding principles. As more institutionsbecome involved in Bitcoin, the risk of it becoming more centralized andcontrolled by a small group of investors or institutions increases.

Bitcoin hasbeen the topic of many debates since its inception in 2009. As Bitcoin hasgained more attention and popularity, the possibility of itsinstitutionalization has become a growing concern among its supporters.

Theinstitutionalization of Bitcoin refers to the process of large financialinstitutions such as banks, hedge funds, and investment firms incorporatingBitcoin into their business models. While some argue that this would increase the adoption and legitimacy of the cryptocurrency, others believe that it wouldultimately lead to the end of Bitcoin.

One of thereasons why the institutionalization of Bitcoin could lead to its demise isbecause it goes against the core principles of the cryptocurrency. Bitcoin wascreated as an alternative to the traditional financial system, which isdominated by large institutions that control the flow of money. By allowingthese institutions to incorporate Bitcoin into their business models, it couldlead to a concentration of power and influence in the hands of a few players,which would defeat the purpose of decentralization.

Another reasonwhy the institutionalization of Bitcoin could lead to its downfall is thepotential for increased regulation. As Bitcoin becomes more mainstream andwidely used, governments may feel compelled to regulate it more heavily. Thiscould lead to restrictions on the use of Bitcoin and make it less attractive toindividuals who value its anonymity and lack of government oversight.

Furthermore,the institutionalization of Bitcoin would also likely correlate with increasedvolatility in the cryptocurrency market. Large financial institutions have asignificant amount of power and influence in the financial world, and theirparticipation in the Bitcoin market could lead to rapid fluctuations in itsvalue. This could make it difficult for individuals and businesses to useBitcoin as a stable store of value or medium of exchange.

Lastly, theprocess could likely lead to the creation of alternative cryptocurrencies thatbetter align with the principles of decentralization. As Bitcoin becomes moremainstream, some individuals may become disillusioned with itsinstitutionalization and seek out alternative cryptocurrencies that are more inline with their values. This could lead to a fragmentation of thecryptocurrency market, which could ultimately weaken Bitcoin's position as thedominant cryptocurrency.

Bitcoin's priceand adoption have been significantly influenced by its institutionalization.Institutional investors have helped to stabilize the market and improveBitcoin's reputation among mainstream investors.

As a result,Bitcoin has grown in popularity and is increasingly being used as a form ofpayment.

However,institutionalization has brought with it new challenges, such as thepossibility of market manipulation and increased regulatory scrutiny.

It is criticalfor the Bitcoin community to prioritize decentralization and ensure that thebenefits of institutionalization do not come at the expense of the fundamentalprinciples that distinguish Bitcoin.

It will beinteresting to see how institutionalization shapes Bitcoin's development as itevolves and matures. It is clear that institutionalization has had asignificant impact on Bitcoin in recent years, but how this will play out inthe future remains to be seen.

Continued here:

The Institutionalization of Bitcoin: Effects on Price and Adoption - Finance Magnates

WASHINGTON, D.C. U.S. Sen. Ted Cruz (R-Texas), Ranking Member of the Senate Committee on Commerce, Science, and Transportation, today introduced legislationto prohibit the Federal Reserve from developing a direct-to-consumer central bank digital currency which could be used as a financial surveillance tool by the federal government. Sen. Cruzs bill was cosponsored by Sens. Braun (R-Ind.) and Grassley (R-Iowa).

As countries like China develop CBDCs that omit the benefits and protections of cash, as well as the control and security of many existing digital cryptocurrencies, it is more important than ever to ensure the United States digital currency policy protects financial privacy, maintains the dollars dominance, and cultivates innovation.CBDCs that fail to adhere to these three basic principles could enable an entity like the Federal Reserve to mobilize itself into a retail bank, collect personally identifiable information on users, and track their transactions indefinitely. It is important to note that while the Fed does not, and should not, have the authority to offer retail bank accounts, it is already looking into what establishing a digital currency would look like.

Unlike decentralized digital currencies like Bitcoin, CBDCs are issued and backed by a government entity and transact on a centralized, permissioned blockchain. Not only would this CBDC model centralize Americans financial information, leaving it vulnerable to attack, it could be used as direct surveillance tool into the private transactions of Americans.

Upon introducing the legislation, Sen. Cruz said:

The federal government has no authority to unilaterally establish a central bank currency. This bill goes a long way in making sure big government doesnt attempt to centralize or control cryptocurrency and instead, allows it to thrive in the United States. We should be empowering entrepreneurs, enabling innovation, and increasing individual freedomnot stifling it.

Sen. Braun said:

"Allowing the government to centralize Americans financial information and increase surveillance of Americans financial activity is simply a bad idea. The federal government should not have even more control over your own money. I support this legislation to allow entrepreneurship to prosper and keep the federal government from further encroaching on your privacy rights."

Sen. Grassley said:

The American people ought to be able to spend their money how they choose without the possibility that every transaction could be tracked by the government. Policy this impactful should be made by Congress, not government bureaucrats, and our bill would ensure that no one is snooping on the finances of hardworking Americans. Every American deserves that peace of mind.

Adam Brandon, president and CEO of FreedomWorks, said:

"The Federal Reserves exploration into Central Bank Digital Currency raises serious questions regarding the continued development of the digital economy, consumer privacy, and the eventual transition to a cashless system of payments. One of the most significant features that draw people to digital assets is decentralization, and there is no central authority that manages the supply and value of most digital assets. The United States must not follow countries like China down the path of digital authoritarianism but instead preserve a payment system that promotes consumer privacy and security."

Sen. Cruz previously introduced this bill in2022.

###

See the rest here:

Sen. Cruz Introduces Legislation to Prohibit the Fed From ... - Senator Ted Cruz

Company Logo

Belgian Data Center Market

Belgian Data Center Market

Dublin, March 23, 2023 (GLOBE NEWSWIRE) -- The "Belgium Data Center Market - Investment Analysis & Growth Opportunities 2023-2028" report has been added to ResearchAndMarkets.com's offering.

The Belgium data center market size will witness investments of USD 2.81 billion by 2028, growing at a CAGR of 5.31%. from 2022-2028

This report analyses the Belgium data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments.

Belgium is one of the emerging destinations in Western Europe for data center development. The country offers a geographical advantage as it is situated in the middle of the FLAP market and continuously attracts foreign investments. The capital Brussels hosts the maximum number of data centers in the country. The city has around 82% of Belgium's total existing data center space. The capital provides great connectivity, a highly digital economy, and a hub for innovation, research, and development.

Organizations across the country are migrating their workloads to the cloud and contributing towards meeting the digitalization goals of the country, driving the need for colocation data centers and decreasing the share of enterprise data centers. Steps are being taken to create a model for energy decentralization, while data center operators nationwide plan to be carbon-neutral in their operations. KevlinX, EdgeConneX, and LCL Datacenters are a part of the Carbon Neutral Data Central Pact.

The country is connected to other parts of the world with submarine cables. It has a presence of four operational submarine cables, such as SeaMeWe-3, Concerto, Pan European Crossing, and Tangerine, while one submarine cable is in the pipeline.

WHY SHOULD YOU BUY THIS RESEARCH?

Market size available in the investment, area, power capacity, and Belgium colocation market revenue.

An assessment of the data center investment in Belgium by colocation and enterprise operators.

Investments in the area (square feet) and power capacity (MW) across the locations in the country.

A detailed study of the existing Belgium data center industry landscape, an in-depth industry analysis, and insightful predictions about industry size during the forecast period.

Snapshot of existing and upcoming third-party data center facilities in Belgium

a) Facilities Covered (Existing): 25

b) Facilities Identified (Upcoming): 04

c) Coverage: 11+ Locations

d) Existing vs. Upcoming (Area)

e) Existing vs. Upcoming (IT Load Capacity)

Data center colocation market in Belgium

a) Colocation Market Revenue & Forecast (2022-2028)

b) Wholesale vs. Retail Colocation Revenue (2022-2028)

c) Retail Colocation Pricing

d) Wholesale Colocation Pricing

Belgium market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.

A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.

Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.

A transparent research methodology and the analysis of the demand and supply aspects of the industry.

Story continues

EXISTING VS. UPCOMING DATA CENTERS

Key Attributes:

Report Attribute

Details

No. of Pages

52

Forecast Period

2022 - 2028

Estimated Market Value (USD) in 2022

$2060 Million

Forecasted Market Value (USD) by 2028

$2810 Million

Compound Annual Growth Rate

5.3%

Regions Covered

Belgium

VENDOR LANDSCAPE

IT Infrastructure Providers

Data Center Construction Contractors & Sub-Contractors

AECOM

Artelia

Lascent

Logi-tek

ISG

Mercury

M-J Wood Group Kft

Perseusz

PM Group

RKD

Support Infrastructure Providers

Data Center Investors

AtlasEdge

Digital Realty

Datacenter United

Etix Everywhere

Google

LCL Datacenters

Microsoft

Proximus

New Entrants

REPORT COVERAGE:

IT Infrastructure

Network Infrastructure

Electrical Infrastructure

Mechanical Infrastructure

Cooling Systems

CRAC & CRAH Units

Chiller Units

Cooling Towers, Condensers & Dry Coolers

Economizers & Evaporative Coolers

Other Cooling Units

General Construction

Core & Shell Development

Installation & commissioning Services

Engineering & Building Design

Fire Detection & Suppression Systems

Physical Security

DCIM

Tier Standard

Tier I & Tier II

Tier III

Tier IV

Geography

For more information about this report visit https://www.researchandmarkets.com/r/v8z8x4

About ResearchAndMarkets.comResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

Attachment

Excerpt from:

Belgium Data Center Market Investment Analysis Report 2023-2028 Featuring Key DC Investors - AtlasEdge, Digital Realty, Datacenter United, Etix...

What are the main findings of the Rapid Damage and Needs Assessment 2

The second Rapid Damage and Needs Assessment (RDNA2) carried out by the World Bank in coordination with the EU and the Ukrainian Government covers a full year of the unprovoked and unjustified aggression by Russia against Ukraine, from 24 February 2022 until 24 February 2023. It finds that thepriority needs for 2023 amount to around USD 14 billionandfocus on restoration of energy, housing, critical and social infrastructure, basic services for the most vulnerable, explosive hazard management, and private sector development. It is estimated that the Ukraine's budget already covers up to USD 3 billion of USD14 billion and the funding gap of Government of Ukraine is assessed to be approximately USD 6 billion.

Looking at a 10-year perspective for the reconstruction efforts, as set out by the report, the direct damage in Ukraine has reached overUSD135billion, with housing, transport, energy, and commerce and industry identified as the most affected sectors. Damage is concentrated in the frontline oblasts, particularly Donetska, Kharkivska, Luhanska, Zaporizka, as well as those brought back under government control, such as Kyivska and Khersonska.

Disruptions to economic flows and production losses amount to aroundUSD290 billion. Ukraine's gross domestic product (GDP) shrank by 30.4 percent in 2022, and poverty is expected to have increased from 5.5 percent to 24.2 percent in 2022.

As of February 24, 2023, for the next decade, reconstruction and recovery needs are estimated at aboutUSD411 billion. These needs include critical steps toward becoming a modern, low-carbon, disaster- and climate-resilient country that is aligned with European Union policies and standards, and where the country's vulnerabilities are addressed.

The full report of the RDNA2 will be officially published on the 4thof April 2023.

What are the priority needs for 2023 of theRDNA2?

The priority needs for 2023 take into account strategic priorities set out by the Ukrainian government as well as existing financing and implementation capacity of Ukraine. The five key recovery and reconstruction priorities are:

Critical and social infrastructure(USD 5.7 billion), and basic service delivery to vulnerable populations. This will include renewal of housing utilities, repair and reconstruction of transport infrastructure and repair and reconstruction of schools, health facilities, and other social and administrative infrastructure.

Energy infrastructure(USD3.3 billion ), including restoration and repair of transmission and distribution lines and generation capacity, development of renewables and protecting the power grid.

Housing(USD1.9 billion), including quick repairs and capital reconstruction.

Private sector development(USD 2.7 billion), including grants, credit lines, and risk facilities to support small and medium enterprises (SMEs), microenterprises, the agriculture sector and exports.

Humanitarian demining(USD 0.4 billion)- focusing on building the strategic and operational capacity for demining operations.

What is the EU doing to address the priority needs in Ukraine?

In 2022, EU provided substantial support to Ukraine's short-term recovery. This included EUR 7.2 billion MFA and more than EUR 660 million budget support. EUR 330 million of our emergency support package in grants also largely focused on emergency support for damaged infrastructure needs EU has allocated for instance EUR 100 million for the construction of new social housing for IDPsin Western Ukraine as well as EUR 50 million support to liberated cities for emergency repairs and reconstruction of social and municipal buildings in Kyiv region. In addition, EUR 100 million have also been mobilised to rehabilitate schools damaged by Russia's brutal attacks against Ukraine's education system. EU has also reoriented projects funded with IFIs, including NEF and IFC, to support refurbishment of municipal buildings and provide medium - to long-term housing for IDPs in Western Ukraine.

In 2023, the EU's priority is to support Ukraine to ensure its immediate financial needs, the rehabilitation of critical infrastructure and initial support towards sustainable post-war reconstruction, through the EUR 18 billion MFA+ package. First two instalments in the value of EUR 4.5 billion have already been made and EUR 1.5 billion monthly payments will follow until the end of the year. In addition, in 2023 as part ofthe announcement of President von der Leyen and Commissioner Varhelyi during the College to Government meeting and the EU-Ukraine Summit in Kyiv in February 2023, EUR 1 billion will be mobilisedfrom the NDICI grants and EIB loans for Ukraine's fast recovery. It will contribute to the priority needs including for example in the area of energy, as well as critical and social infrastructure. The updated RDNA will inform the ongoing discussions with Ukraine on what priority sectors this funding will support.

What assistance has the EU already been providing to Ukraine, since the beginning of the war, to support recovery and reconstruction?

In response to Russia's war of aggression, the EU's economic, humanitarian and military support pledged to Ukraine and the EU Member States supporting Ukraine is around67 billion. It is composed of 50 billion that have been made available by the EU, Member States and the European Financial Institutions as well as 17 billion that have been made available from the EU budget for Members States, which are hosting around 4 million people under temporary protection. The 50 million package includes among other 18 billion macro-financial support package for 2023 (MFA+), accompanied by reforms, to keep the Ukrainian state afloat; 12 billion of military support(3.6 billion via the European Peace Facility and EU Member States bilateral contributions) and an additional 17 billion have been made available to help cater for the needs of Ukrainians forced to flee the war in Member States.

Regardingenergy, the EU is providing vital support to Ukraine's energy sector damaged by Russia's continuous strikes on civilian infrastructure. This includes an additional 2.400 generators on top of 3.000 already delivered; EUR 157,5 million from the Energy Support Fund, as well as a total of 35 million LED light bulbs already contracted (15 million delivered) to help Ukraine significantly reduce energy consumption). Upon the invitation of the EU, Ukraine will take part in the Jointgas purchasing platformof the EU set up in April 2022 to secure gas supplies for the coming winter. In addition, the European and Ukrainian electricity grids have been synchronized in March 2022, allowing for electricity trade. The EU is committed to increase electricity exports to Ukraine to two GW (from 700 MW all hours currently).

EU also supports building back better in line with EU standards and core principles, in order to facilitate progressive integration of Ukraine into the EU single market.

What are the overall principles to guide the recovery and reconstruction process in Ukraine?

The key principles to guide the recovery and reconstruction process in Ukraine as set out by both RDNAs are:

Balancing urgent needs and medium- to long-term goals -strategic prioritization of reconstruction across all sectors and locally driven reconstruction efforts

Differentiated approaches that prioritize impact and needs and that promote decentralization. Investments should reflect the specific needs of communities, oblasts, regions, and stakeholders.

Resilience and building back better for amore sustainable future.Investments should be made to avoid stranded assets and to reduce depletion of natural resources, cut emissions and waste, and protect people and the environment. They should go hand in hand with reforms that will allow Ukraine to support harmonization of its legislation and policies with EU law and to meet European Union standards and theacquis communautaire.

Durable solutions for return of refugees and integration of displaced people, prioritizing their needs for housing, access to basic services, social protection, and livelihoods.These could include housing, access to basic services, social protection, mental health and psychosocial support, livelihoods and business financing and facilitation of return and integration of refugees and IDPs.

Continuous data collectionas it's important to receive feedback and data on damage, loss and impacts of the war as well on ongoing, completed and planned repairs and reconstruction efforts to help identify needs for future years.

These main principles build on and complement the existing principles, outlined in many documents, including the July 2022 Lugano Declaration for the Reconstruction of Ukraine and the Government's Recovery Plan. The first document includes the principle of partnership, reform focus, transparency, accountability, and rule of law; democratic participation; multi-stakeholder engagement; gender equality and inclusion; and sustainability. The latter reflect the need to start now and ramp up gradually; grow prosperity in an equitable way; integrate into the EU and be consistent with and supportive of the accession path; build back better for the future; and enable private investment and entrepreneurship.

Is it possible to start reconstruction while the war is ongoing?

The reconstruction process of Ukraine needs to commence now, to help restarting the country's economy and help the people of Ukraine. It will build on the five priority areas: critical and social infrastructure, energy infrastructure, housing, support to private sector and humanitarian demining.

The EU and other key Ukraine's international partners are already helping to both keep the country running and support Ukrainian economy, while preparing for rebuilding the country. To address Ukraine's most urgent needs, the EU is providing regular and predictable financing under the new macro-financial assistance plus (MFA+) programme.

The EU is also providing emergency and humanitarian support, focusing its economic assistance on rapid rehabilitation and recovery. The main focus is on housing solutions and measures for integration of Internally Displaced Persons, support to the host communities, rehabilitation of some critical infrastructure, including energy, social infrastructure (schools, kindergartens, and hospitals), cybersecurity and media. This fast recovery measures are already being implemented, including in liberated areas. The EU is working with partners such as the G7, international financial institutions and in close coordination with Ukraine itself.

The Multi-agency Donor Coordination Platform for Ukraine launched on 26 January coordinates the support for Ukraine's immediate financing needs and future economic recovery and reconstruction. Its Steering Committee is co-chaired by the European Commission, the United States and Ukraine. The Platform can help channel the effort of supporting Ukraine in addressing its immediate financing needs, including the 2023 priority needs, and those of the future economic recovery and reconstruction, as identified by the WB RDNA in collaboration with Ukraine.

How does Ukraine's reconstruction relate to the EU enlargement process?

Ukraine was granted the status of an EU candidate country in June 2022. This is a recognition of Ukraine's reform efforts over many years. At the same time, as a candidate country, Ukraine needs to pursue further significant reforms on its EU path. This will likely work as an essential leverage for Ukraine to attract support and investments for its reconstruction It will also ensure that investments do not create stranded assets but are converging towards climate, environmental and digital EU policies and standards, which will help Ukraine emerge stronger and more resilient from the devastation of the Russian invasion.

The reconstruction of Ukraine is to be guided and framed by the EU enlargement process. This means investments need to go hand in hand with the reforms supporting Ukraine in pursuing its European path. They should also be implemented in line with the EU rules including rule of law reforms and fight against corruption as well as core standards and principles, based on the European Green Deal and supporting digital transformation.

Scope of the Rapid Damage and Needs Assessment

The first Rapid Damage and Needs Assessment, launched by the World Bank together with the Government of Ukraine and the European Commission was published in September 2022 The It assessed the war damage sustained between February 24, 2022 and June 1, 2022, analysing short, medium and long-term reconstruction and recovery needs of Ukraine and covered the following sectors: social, productive, infrastructure and cross cutting. It was prepared jointly by the Government of Ukraine, the World Bank, the European Commission, and the United Nations and supported by other partners including Kyiv School of Economics, civil society organizations, and the private sector.

RDNA follows a methodology jointly developed by the European Commission, the World Bank and the United Nations based on the globally accepted UN standard Damage and Loss Assessment (DaLA) that is tailored to the war in Ukraine. The (DaLA) methodology was initially developed by the UN Economic Commission for Latin America and the Caribbean in 1972. It was used so far in many countries like Croatia, Bosnia and Herzegovina, Serbia, and Albania. Following this methodology, RDNA 2 quantifies and validates physical damage to infrastructure, buildings as well as losses such as disrupted services and economic impacts, clearance of debris, mines and support to Internally Displaced People. It will also identify and quantify corresponding recovery and reconstruction needs: overall, by sector, and by oblast, based on the damage and losses.

The goals and scope of RDNA2

RDNA 2 was prepared in a similar way and with similar goals in mind to the first RDNA but with a much longer time span as it takes stock of Ukraine's damage and losses borne over one year until 24 February 2023. It assesses the scale of damage, losses and economic and social needs for Ukraine's survival during the war and after. RDNA2 report is divided into following sectors: 1. social including housing, education, health; 2. productive including agriculture, irrigation, commerce and industry; 3.infrastructure - including energy transport, digital and 4. cross-cutting including environment, emergency response, justice and public administration. Complementary to the standard methodology used for the first report and the estimation of short- and long-term needs, this RDNA 2 report also includes priorities for recovery and reconstruction investments for 2023. The RDNA 2 is based on the same set of concepts and their definitions as the first RDNA, namely:

Damagesare defined as direct costs of destroyed or damaged physical assets and infrastructure valued in monetary terms with costs estimated based on replacing or repairing physical assets and infrastructure, considering the replacement price prevailing before the war.

Lossesreflect changes in economic flows resulting from the war; valued in monetary terms, for example increased operating cost or loss of revenue for authorities/private sector.

Needscorrespond with value associated with the resumption of pre - war normality through activities such as repair and restoration, including a surcharge linked to building back better principles (e.g. improved energy efficiency, modernization efforts and sustainability standards), as well as factors such as global inflation and higher insurance. Needs are expressed in monetary value according to market prices prevailing as of February 24, 2023. Needs do not equal the sum of damage and losses.

Comparison of results between RDNA and RDNA 2

The RDNA2 assesses the impact between damage and losses borne over one year until 24th of February 2023. In doing so, it builds on the foundations and analytics provided during RDNA1 which covered a slightly shorter period, namely the period between February 24 and June 1, 2022, which estimated USD 97 billion in direct damage, USD252 billion in losses, and USD 349 billion for Ukraine's recovery and reconstruction needs.

Follow this link:

Questions and Answers: Main findings of 'Rapid Damage and ... - Language selection

The launch of the DAO Governance marks a significant milestone in the decentralization of the Arbitrum One and Arbitrum Nova networks, becoming the first EVM rollup technology to achieve Stage 1 decentralization

NEW YORK, March 16, 2023 /PRNewswire/ -- The Arbitrum Foundation today announced the launch of DAO governance for the Arbitrum One and Arbitrum Nova networks, a massive leap forward in the decentralization of the two networks. Alongside the DAO governance structure, The Arbitrum Foundation also announced an upcoming drop of $ARB to users of the Arbitrum ecosystem on Thursday, March 23.

Late last year, Vitalik Buterin proposed a 3 stage schema for decentralizing rollups, and with today's announcement Arbitrum has now become the first EVM rollup ever to achieve Stage 1. The milestone signifies an important achievement for both Arbitrum networks and for the state of Ethereum scaling more broadly.

The $ARB token will facilitate the decentralization of the Arbirum network, and the $ARB airdrop will place the governance token in the hands of the users who are actively participating in the Arbitrum ecosystem. Users can visit gov.arbitrum.foundation and follow the prompts for eligibility details and to claim their share in governance. The majority of the $ARB supply will be under the control of the Arbitrum community via The Arbitrum Foundation, accelerating growth of the ecosystem organically. $ARB token holders will govern The Arbitrum Foundation through the Arbitrum DAO.

Steven Goldfeder, CEO and Co-Founder of Offchain Labscommented: "We are extraordinarily excited for the official launch of The Arbitrum Foundation and DAO governance and to see Arbitrum One become the first EVM rollup to advance to Stage 1 decentralization, a tremendous milestone for both Arbitrum and Ethereum. Through the community airdrop, the delegation process, and the introduction of the Security Council, community participation and control is at the forefront of today's announcement, and the requirements for receiving a share of Arbitrum governance have been crafted meticulously, optimizing for the longevity of the ecosystem and community. Looking ahead, we're moving closer and closer toward a decentralized financial system, with the Arbitrum technology at the very forefront of that.."

To facilitate effective community governance, users will be able to delegate voting power to individuals they view as effective stewards of their values. Delegates will be expected to vote on proposals that pass through the Arbitrum DAO in a way that represents the token-holders who have assigned their voting power to them. The Arbitrum DAO will have the power to control key decisions at the core protocol level, from how the chain's technology is upgraded to how the revenue from the chain can be used to support the ecosystem. Those interested in becoming a delegate are encouraged to visit the governance forum and apply.

Crucially, Arbitrum's governance will be self-executing, meaning that the DAO's votes will directly have the power to effect and execute its on-chain decisions, and not rely on an intermediary to carry out those decisions. Self-executing governance is a critical milestone for decentralization and giving the community the power to govern the chain, and Arbitrum is leading the way as the first L2 to launch self-executing governance.

The Arbitrum Foundation also announced the creation of the Arbitrum Security Council, a 12-member multisig of highly regarded community members designed to ensure the security of the chains and be able to act quickly in the event of a security vulnerability. The decision-making powers of the Security Council are determined by a smart contract that will require multiple secure signatures by its members in order to implement any changes to the protocol. In case of emergency, the Arbitrum Security Council will be able to act quickly but this will require participation from 9 of the 12 members. The Arbitrum DAO will be the ultimate governing body over the Arbitrum Security Council, with elections for the Council being held twice annually.

The introduction further reinforces Arbitrum's focus on decentralization by giving the community the ability to play a more active role in Arbitrum governance and have a say over what occurs within the ecosystem.

Arbitrum is the leading Layer 2 (L2) scaling solution for Ethereum, boasting the highest Total Value Locked (TVL) across all L2 networks with approximately $3.61B, 55% market share across all rollups, and the Arbitrum One network recently surpassed Ethereum daily transactions on two occasions.

For more information, please visit the Arbitrum blog: http://arbitrumfoundation.medium.com/

About Offchain LabsOffchain Labs is a venture-backed and Princeton-founded company that was the initial developers of Arbitrum, a suite of secure scaling solutions for Ethereum. Arbitrum's technologies instantly scale dApps, significantly reducing costs and increasing speed, without sacrificing Ethereum's security. Porting contracts to Arbitrum requires no code changes or downloads as Arbitrum is fully EVM compatible. Offchain Labs also maintains Prsym, the leading Ethereum consensus client.

About The Arbitrum FoundationThe Arbitrum Foundation has a mission to help support and grow the Arbitrum network and its community while remaining at the forefront of blockchain adoption. The Foundation oversees the $ARB token and governance structure as well as the Arbitrum Security Council, a 12-member multisig of well regarded community members designed to ensure the security of the chains.

Media contact: Dillon Arace, [emailprotected]

SOURCE Arbitrum Foundation

Read the original here:

The Arbitrum Foundation Announces DAO Governance for the ... - PR Newswire