April 8 – 14, 2019 | Canadian Central Bank Digital Currency, Litecoin Hashrate & More Crypto News

North iQ Weekly Newsletter is curated to provide insights on digital asset industry developments, market announcements, and performance analysis.

Should the Bank of Canada Issue a Central Bank Digital Currency?

April 9 – John D. Murray, a former deputy governor for the Bank of Canada, said in a C.D. Howe Institute commentary on April 9 that “policymaking circles and central banks around the world are now giving serious consideration to the pros and cons of making central bank digital currencies (CBDCs) available to the general public”. Murray noted that digital tokens that are issued by central banks could potentially serve as legal tender, and could operate similarly to how debit cards work with bank accounts. “While the consensus view remains that such a move would be premature, opinion appears to be shifting. Indeed, developments in a number of advanced and emerging economies indicate that the CBDC model is receiving more serious consideration than it has in the past.” However, Murray believes that central banks should be aware that the demise of cash could be interpreted by the public as a threat to privacy, as “it could give the government access to vast amounts of personal data and increase the likelihood of slipping into a Big Brother world. The risk of political interference might also be much greater.”

Read the full press release here.

China Plans to Ban Cryptocurrency Mining, and Miners are Moving to Canada

April 9 – The National Development Reform Commission, China’s most powerful economic planner, has listed crypto mining as one of the industries it plans to eliminate due to its wasted resources and negative environmental impacts. The economic planner is currently gauging public opinion on its guidelines and noted that the ban could begin once its consultation is complete. At one point, China was responsible for upwards of 70% of all Bitcoin mining; however, authorities have since clamped-down through a series of campaigns to shrink its crypto industry, citing issues around fraud and wasteful energy consumption. China had “banned” initial coin offerings (ICOs) back in 2017, and had also made efforts to halt cryptocurrency trading altogether. Interestingly, many market-leading mining companies and pools that operate in China, such as Bitmain or BTC.Top, have now established operations in Canada, potentially due to favorable energy costs and clear regulatory landscape.

Read the full press release here.

Litecoin Hashrate Hits a New All-Time High

April 12 – The hashrate of the Litecoin network has now reached a new all-time high. The price of litecoin has increased substantially over the past few months to mark around a 300% gain off its 2018 lows. As with most crypto networks, an increase in hash rate and market capitalization enhance the security and stability of the network, as attempts to attack the network will be more expensive with increasing participation. “The network’s hashrate has historically followed price movements somewhat closely, behaving in a similar fashion to a moving average as it takes time for miners to setup and acquire new machines,” said Franklyn Richards, an early Litecoin team member. “It’s reasonable to assume that there is still greater potential for room to the upside as hashrate has only roughly doubled whilst the Litecoin price has more than quadrupled”.

Read the full article here.

Initial Exchange Offerings (IEOs) Could be the New (ICOs)

April 10 – While initial coin offerings (ICOs) have been declared “dead” due to regulatory advances and shifting public opinion, new crypto projects are starting to raise money through similar methods, dubbed “initial exchange offerings” (IEOs). This new method of raising money for a crypto project leverage crypto exchange relationships by making them lead underwriters in the projects. The exchanges review the projects and offer the tokens only to select customers, meaning that crypto projects will no longer have to market their coins directly to the public as the exchange itself will find potential investors from their customer base. Some critics argue that this new form of crypto project financing could lead to regulatory intervention. Initial exchange offerings (IEOs) “take everything from an ICO and make it worse,” said Zach Fallon, a securities lawyer experienced in ICO cases with the U.S. Securities and Exchange Commission. Exchanges who have been granted a “BitLicense” through the New York Department of Financial Services (NYDFS), such as Bitstamp, expressed caution and noted that they do not offer IEOs. “We need to walk before we can run,” said Nejc Kofric of Bitstamp. “The industry needs to be better regulated before we step into this market. Of course there are exchanges that still enter this space, and I think that’s short-sighted.”

Read the full article here.

New Bitcoin Core Release Will Connect Hardware Wallets to Full Nodes

April 8 – The upcoming release of the new Bitcoin Core code will introduce an important feature that should significantly benefit the interoperability of the Bitcoin network. Bitcoin Core is the free and open-source software that has acted as a “default” wallet and node for Bitcoin users. Its new release will allow users with hardware wallets, such as a Trezor or Ledger wallets, to be able to connect to full nodes. While this may sound technical, it’s a big step forward for the security and interoperability of the Bitcoin network. Bitcoin full nodes around the world verify that transactions actually took place, and hardware wallets (sometimes known as cold wallets) are seen as one of the most secure ways for people to store bitcoin. The new release should also increase privacy for hardware wallet users. “The wallet software that normally comes with hardware wallets reveals your addresses to a third-party server,” said Sjors Provoost, a Bitcoin Core contributor. “The full node would replace this wallet software, giving users privacy again”.

Read the full article here.

3iQ Global Cryptoasset Fund: Price as at April 12, 2019

3iQ is the first regulator approved multi-cryptoasset portfolio manager in Canada, providing accredited investors with exposure to bitcoin, ether, and litecoin through its 3iQ Global Cryptoasset Fund.

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This Weekly Cryptoasset Newsletter is for informational purposes only and does not constitute, either explicitly or implicitly, any provision of services or products by 3iQ Corp (“3iQ”). Investors should determine for themselves whether a particular service or product is suitable for their investment needs or should seek such professional advice for their particular situation.3iQ Corp. makes no representation or warranty to any investor regarding the legality of any investment, the income or tax consequences, or the suitability of an investment for such investor. All content is original and has been researched and produced by 3iQ unless otherwise stated therein. No part of the content may be reproduced in any form, or referred to in any other publication, without the express written permission of 3iQ. All statements made regarding companies, securities or other financial information contained in the content or articles relating to 3iQ are strictly beliefs and points of view held by 3iQ and are not endorsements of any company or security or recommendations to buy or sell any security. No securities regulatory authority has expressed an opinion about these securities and it is an offence to claim otherwise. By visiting and/or otherwise using the 3iQ website in any way, you indicate that you understand and accept the terms of use as set forth on the website and agree to be bound by them. If you do not agree to the terms of use of the website, please do no access the website or any pages thereof. Any descriptions of, references to, or links to other products, publications or services does not constitute an endorsement, authorization, sponsorship by or affiliation with 3iQ with respect to any linked site or its sponsor, unless expressly stated by 3iQ. Any such information, products or sites have not necessarily been reviewed by 3iQ and are provided or maintained by third parties over whom 3iQ exercises no control. 3iQ expressly disclaims any responsibility for the content, the accuracy of the information, and/or quality of products or services provided by or advertised on these third-party sites. The information contained herein, while obtained from sources believed to be reliable, is not guaranteed as to its accuracy or completeness and confers no right on purchasers. Past performance of cryptoassets is not indicative of future performance and should not be used to forecast any return that an investor may realize.

Fred Pye

Frederick T. Pye


Frederick T. Pye is the Chairman, Chief Executive Officer and Director of 3iQ Corp. He is also the Chairman and Director of 3iQ Digital Holdings Inc. Mr. Pye is recognized for creating and promoting creative and unique investment products for the investment industry.

Mr. Pye has managed private client portfolios with Landry Investment Management and various other investment dealers. Prior to this Mr. Pye was Founder, President & Chief Executive Officer of Argentum Management and Research Corporation, a company dedicated to managing and distributing quantitative investment portfolios including the first long-short mutual fund in Canada.

He was also Senior Vice-President and National Sales Manager of Fidelity Investments Canada and an integral part of the team that saw assets rise from $80 million to over $7.5 billion in assets under management during his tenure. He also held various positions with Guardian Trust Company, which listed the first Gold, Silver and Platinum Certificates on the Montreal Exchange.

Mr. Pye obtained a Masters in Business Administration from Concordia University.