Is account abstraction the next big thing?

Discover the news of the week [View in Browser]( [logo]( Every week is a great week to a Ledger Nano on Ledger.com]( , but this one is especially good: [we just turned on free shipping](. [Shop Now →](  [Ambush announces the first luxury case to go with your upcoming Ledger Stax. Design by Yoon of Ambush](. Inspired by the beauty of a water droplet with the functionality of a makeup powder mirror, you can conceal your Ledger Stax, Ambush style. Take a look on [Hypebeast]( or [Vogue Japan](. [Bitcoin hits lowest level since March as regulatory pressure heigthens,]( notably due to “a drop in market depth for bitcoin,” per Clara Medalie from Kaiko. The crypto industry’s battle with U.S. regulators is also widely influencing price fluctuations. Bitcoin is still up 59% year-to-date. [China’s National Blockchain Technology Innovation Center will train half a million specialists](. The center’s mission is to connect various blockchain use cases in the country into a cohesive network. Last month, the government said it would expand its digital yuan to its “Belt and Road” initiative. [“We’re shooting ourselves in the foot by not having a good regulatory regime in the US”: SEC Commissioner Peirce](. The Republican Commissioner stated that the EU's MiCA should be used as a model for crypto in the US. “If we built a good regulatory regime, people would come,” she added. [U.K. edges closer to deciding “when rather than if” the digital pound will be released.]( "We envisage a digital pound acting in a similar way to a physical pound, it will be a safe, trusted form of money," financial minister Griffith stated, adding Britain must not be left behind financial innovation. [“Account abstraction can onboard the next billion users on Ethereum”, per Ambire CEO Ivo Georgiev](. “There are many measures in traditional applications that make it (self-custody) manageable to people. And account abstraction solves this by allowing accounts to be programmable,” he said.   [5.84%]( The proportion of Bitcoin supply held on exchanges, the lowest since December 2017, reflecting a significant shift towards self-custody and decreasing trust in custodial platforms.  [8.6%]( The record-high staking rewards for ETH validators, with earnings reaching $46 million in the first week of May. The recent “pepe”-craze is the main reason behind the surge in validators’ rewards.   [Stake With Kiln Now →]( Banking Crisis: A Turning Point For Crypto? Recent bankruptcies of notable banks such as Silicon Valley Bank, Signature Bank, Credit Suisse, and First Republic Bank have sparked fears of another systemic shock. The outlook for regional banks isn’t [bright either]( making it unclear whether we’re witnessing isolated collapses or the beginning of a severe macro meltdown. The US government’s recent initiative to guarantee deposits might restore trust, but certainly creates moral [hazard]( in the medium-term. Regardless of the outcome, the banking system is much more fragile than many thought not so long ago, and its flaws have never been so apparent. Banks are, by design, opaque (nobody’s aware of their balance sheets before they disclose them), top-down (they are driven by central banks’ behind-closed-doors decision-making and rate-fixing policies), and built on control (banks prevent ownership over any monetary value.) Amid soaring signs of financial fragilities, [nearly half]( of Americans are worried about their banking deposits’ safety, and 19% are “very” worried, a level similar to… 2008. A Pivotal Moment In Crypto’s Young History? Financial crises are often turning points in economic history. The 2008 recession, caused by lenders handing high-risk loans, subsequently triggered a wave of regulatory oversights designed to reshape the rules of the banking sector. In 2023, the banking crisis could start something pretty different: a new crypto cycle, where millions of people, worried about their deposits’ safety, could understand crypto’s capacity to bring financial ownership. In turn, “self-custody” could go beyond a geeky buzzword, becoming an economic reality for millions willing to avoid soaring counterparty risks. So far, crypto markets have benefited widely from this banking crisis, highlighting that the decentralized world thrives when centralized players falter. And while there is yet [little evidence]( that investors are treating crypto as a valid economic alternative for now, the banking implosion gives clear credence to Bitcoin’s thesis of decentralization and ownership. Besides enabling ownership, it is now common literature that crypto and blockchain form an unprecedented promise to turbocharge financial markets’ efficiency, enhance capital market operations, and ease cross-border trade. Will the current banking crisis be remembered as a significant step toward this blockchain-enabled era? [title] [“How I Did Not Get Rekt”]( our new video series, features our CXO Ian Rogers with Zach Martin, from Moonpay. He explains how he moved his crypto to his Ledger… just before FTX’s collapse. [Take a listen]( to hear how Ledger’s attack lab, The Donjon, works and what they do when they find something dangerous. Ever wonder what’s behind seeing your balances in Ledger Live? Probably much more than you realized. Valentin Bergeron, Technical Lead of Blockchain Explorers at Ledger breaks it down in detail in [this article](. Order yours [now]( May 24th.  Refer your friends, Earn $10 worth of Bitcoin. Refer your friends, Earn $10 worth of Bitcoin. 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