News — Dinar Recaps Blog Page — Dinar Recaps (2024)

Europe’s MiCA will take effect on Sunday, ushering in a new age of transparent crypto regulation

MiCA provides regulatory clarity to the entire digital assets market across the Eurozone, making Europe one of the first Western countries to implement a clear framework that crypto exchanges, digital assets companies, and stablecoin issuers can adopt to remain compliant.

The framework aims to protect European investors from the fraud and risks plaguing the crypto markets while fostering innovation, economic competitiveness, and the interest of the Eurozone.

MiCA pushes for innovation in its stipulations around stablecoins, which will allow Euro-denominated stablecoins to replace the dollar-denominated variant. Under the new rules, stablecoins will be treated as electronic money, subjecting issuers to the same levels of compliance as traditional banks and money transmitters, including a 1:1 redemption to the Euro.

While the framework pushes for bold reforms, it also emphasizes protecting the European investor by mandating digital service providers obtain licenses as either digital asset service providers (DASP), virtual asset service providers (VASP), or crypto asset service providers (CASP).

Global stablecoins are not allowed under MiCA, and stablecoins pegged to other cryptocurrencies must primarily comply with European e-money licensing requirements. This would entail abiding by prudential, financial-crime compliance, and other rules.

To boost job and economic growth, licensed entities must maintain a local presence within the EU, which will serve as a base for their European operations.

While MiCA is a step forward, it is not without fault. Some of its faults include the cost of compliance, which could be burdensome on smaller crypto exchanges and service providers, vague (virtually non-existent) stipulations around decentralised finance, and a lack of flexibility in some stipulations, like those around stablecoins.

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Read more:Coin Journal

Less Than 1 in 10 Firms Are Fully Prepared for MiCA With 25% Having Made No Preparations

The first stage of the European Union‘s Markets in Crypto Assets Regulation (MiCA) will come into play on 30 June. However, a new report by Acuiti, the management intelligence platform, and conducted by Eventus, the trade surveillance software provider, has found that a move to establish market surveillance systems is underway as firms find themselves underprepared.

The study, The Impact of MiCA on Crypto Market Surveillance: Insights and Challenges, was based on a survey and series of interviews with senior executives at 68 firms engaged in crypto trade across the buy-side, sell-side and exchanges. It found that, of the firms that were in scope for MiCA, just nine per cent were fully prepared, and a quarter of firms had not begun preparations.

With MiCA coming into full effect at the end of the year, it is important that firms identify whether they are in scope now and begin preparations to comply.

In terms of market surveillance, the MiCA regulation is based upon requirements set out in the EU’s Market Abuse Regulation (MAR). For many firms, particularly crypto-native firms coming into scope for the first time, there will be a significant operational lift to put in place the systems required to be compliant. This study found that there were still high levels of firms that were not sure if they were in scope.

“For firms that are not already operating under MIFID II, MiCA will present a significant operational lift to become compliant, and it is no surprise that we found that firms were looking to third-party vendors to assist them in their preparations,” says Ross Lancaster headof research at Acuiti.

“There is a relative lack of awareness among some areas in the market as to who is in scope, which will need to be addressed if firms are going to have time to get ready for compliance.”

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Read more:The FinTech Times

IBKR’s ForecastEx secures CFTC approval to launch prediction market

The Commodity Futures Trading Commission (CFTC) has approved ForecastEx LLC’s application to operate a contract market and derivative clearing organization.

ForecastEx, a wholly-owned subsidiary of Interactive Brokers, starts operations on Monday, July 8, 2024.

Interactive Brokers clients from eligible countries will have immediate access, the brokerage firm announced as it is the first Futures Commission Merchant to join as an exchange member.

“Markets are the most direct ways of expressing our unbiased expectations”

After its initial launch, ForecastEx will expand internationally and cover additional local and controversial global issues, the firm stated.

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Read more:Finance Feeds

UK is 3 months away from transition away from US dollar LIBOR

The Financial Conduct Authority has reminded market participants of the expected cessation of the remaining synthetic US dollar LIBOR settings at the end of September 2024.

“We have no intention to use our powers to compel IBA to continue to publish the settings beyond this date”, the regulator stated. “Market participants with outstanding US dollar LIBOR exposures must make sure they are prepared for these remaining synthetic US dollar LIBOR settings to cease by the expected deadline.”

The FCA further warned that parties to contracts still referencing US dollar LIBOR should be taking steps to transition to appropriate, robust reference rates, renegotiating with counterparties where necessary.

The FCA and BoE have been taking steps to promote the switch from LIBOR to SONIA. Throughout the last few years, they actively provided guidance to lenders, borrowers, and investors who are amending their documentation to reference SONIA.

Nevertheless, the transition from US dollar LIBOR remains of critical importance globally, including in the UK where many firms are active in US dollar interest rate markets.

LIBOR, which underpins more than $300 trillion in derivatives and other instruments, is set to be replaced worldwide with the Bank of England’s Sonia rate for sterling-denominated swaps, loans, and futures.

Instead of interbank offered rates, the FCA notes that overnight SONIA is now fully embedded across FX markets. Successful CCP conversion processes saw some of the largest single day amendments to financial contracts, with in excess of £13 trillion LIBOR-referencing contracts converted to SONIA.

This shift is expected to boost liquidity in these products, which aided relevant providers in achieving the Working Group’s key milestone of ceasing LIBOR-linked derivatives.

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Read more:Finance Feeds

Digital Assets
Analysis: How the Fed’s rate policy spurred crypto adoption in Africa

Increases in U.S. interest rates are historically considered to generate adverse spillovers to emerging market economies (EMEs), including those in Africa. However, whether these rate hikes are detrimental depends on their underlying causes.

Higher rates resulting from stronger U.S. growth generate only modest spillovers to African financial markets. In contrast, rate hikes stemming from hawkish Federal Reserve policy or inflationary pressures are much more disruptive, often leading to capital outflows and currency depreciation.

African currencies have struggled against the U.S. dollar over the last two years, and they are unlikely to see recoveries soon as long as the Federal Reserve continues to delay cutting interest rates. This sustained pressure has driven many Africans to seek refuge in cryptocurrencies, which are perceived as less susceptible to the Fed’s monetary policy changes.

According to Chainalysis, Africa received $117.1 billion in on-chain crypto transactions between July 2022 and June 2023. Although it has consistently been one of the smallest cryptocurrency markets, a closer analysis reveals that crypto has penetrated key markets and become an important part of many residents’ day-to-day lives. The Fed’s higher interest rates have indirectly contributed to this trend by exacerbating economic conditions in these countries, prompting people to seek financial alternatives.

That said, experts on the ground also observed that crypto fans in Africa have shifted their focus from Bitcoin to stablecoins due to their lower price volatility compared to the original cryptocurrency.

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Read more:Finance Feeds

Trade finance to play major role in $30 trillion tokenised assets market

Demand for tokenised real-world assets could reach $30.1 trillion by 2034, with trade finance assets making up a significant part of the market, predicts a paper from Standard Chartered and Synpulse.

Currently, the tokenised assets sector is mainly made up of traditional assets like US treasuries and money market funds. However, the supply side is still in its infancy, with the total value of tokenised assets (excluding stablecoins) standing at just $5 billion in early 2024.

However, the paper argues that growing industry digitisation and the specific features of real-world trade finance assets, make it an ideal category to originate tokens.

Currently, trade finance assets are underinvested due to lack of familiarity, pricing inconsistency and operational intensity. Tokenisation has the potential to address these challenges, whilst also reducing information asymmetry and offering transparency to investors.

By 2034, trade finance assets could become one of the top three tokenised assets globally, at 16% of the $30.1 trillion total, predict the authors.

Kai Fehr, global head, trade, Standard Chartered, says: "We see the next three years as a critical junction for tokenisation, with trade finance assets coming to the fore as a new asset class.

"To unlock this trillion-dollar opportunity, industry-wide collaboration among all stakeholders, from investors and financial institutions to governments and regulators is critical. Banks need to increasingly take on the role of bridging the existing traditional financial markets with a newer and more open token-enabled market infrastructure."

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Read more:FinExtra

Techcombank launches AI-powered banking

Techcombank launched AI-powered banking at the Techcombank Keynote event in Hanoi on Friday, aiming to become a leading bank in Vietnam with innovative digital solutions.
Techcombank's first Keynote event, titled "Pioneering Innovation: Reaching for New Heights," showcased the bank's most innovative new solutions for individual, business, and corporate customers and highlighted how it is harnessing the power of data and AI to create meaningful experiences for customers and deliver unprecedented growth for Techcombank.

Kicking off the event, CEO Jens Lottner highlighted the investment made by Techcombank over the first three years of its 2021–2025 transformation plan to create a number of first-in-the-market innovations.

Techcombank has applied data analysis and AI across the bank, and most major systems have been transitioned to the cloud.

This puts it around three years ahead of its competitors in Vietnam and is enabling the bank to harness the power of data and AI in order to drive unique business outcomes.

Lottner said that this year the bank has accelerated its drive towards leveraging digital platforms, new data, and AI capabilities, creating more hyper-personalized experiences for customers.

"We are now redefining banking in Vietnam with our product innovations and personalized experiences," said Lottner.

Its new loyalty ecosystem offers rewards and experiences tailored to individual customers’s preferences and lifestyles.

It is already one of the largest and most diverse loyalty programs in the Vietnamese banking industry, encompassing over 19,000 points of sale with over 300 brands where customers can earn reward points.

"With the strong support of our partners and shareholders, we have built one of the best banking platforms in Asia. We are now ready to go to the next level, to compete and win over customers to realize our vision, Change Banking, Change Lives," Abraham said.

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Read more:Vietnam Express

The free trade agreement (FTA) between China and Serbia will officially take effect on July 1, 2024, as the two sides will gradually eliminate tariffs on 90 percent of products in the tariff lines. Tariffs for more than 60 percent of products will be suspended immediately on the same day, China's Ministry of Commerce (MOFCOM) said on Friday in a statement.

The FTA was signed on October 17, 2023, and both countries have completed the respective approval procedures.

The final proportion of zero-tariff imports on both sides will reach about 95 percent, covering major trade commodities. The import tariffs on the Serbian side will be gradually reduced to zero from the current 5 to 20 percent for Chinese products such as automobiles, photovoltaic modules, lithium batteries, telecommunication equipment, machinery and equipment, refractory materials and some agricultural and aquatic products, according to a separate MOFOCM statement on Friday, citing an official.

China will also reduce the 5-20 percent tariffs to zero for major Serbian imports, including generators, electric motors, tires, beef, wine, nuts and other products.

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Read more:Global Times

Supreme Court Ruling Boosts Ripple (XRP) in SEC Lawsuit

The U.S. Supreme Court has abolished the Chevron deference, altering the way federal regulations will be interpreted.

This landmark decision could influence the ongoing lawsuits faced by Ripple and Coinbase with the SEC.

Without Chevron’s deference, Ripple might gain ground by arguing that XRP tokens are not securities.

The Supreme Court’s dismantling of the Chevron deference marks a critical legal shift, potentially altering the landscape for Ripple and Coinbase in their battles with the SEC over digital asset classifications.

The U.S. Supreme Court’s decision to dismantle the Chevron deference doctrine represents a seismic shift in how federal regulations are interpreted. Previously, courts often deferred to federal agencies on interpreting ambiguous statutory language, leaning on their expertise.

This landmark ruling empowers judges to now independently interpret regulations, reshaping the legal landscape across various sectors including environmental protection, consumer safety, and financial regulation.

The removal of Chevron deference significantly curtails the interpretative authority traditionally wielded by regulatory bodies like the Environmental Protection Agency (EPA) and the Securities and Exchange Commission (SEC).

Agencies will face greater challenges in implementing and enforcing existing regulations as federal judges take on a more active role in interpreting the law. This shift could lead to an uptick in litigation, with companies and individuals seeking judicial clarification in the absence of agency expertise.

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Read more:Coinotag

ISO 4217
Currency codes
People around the world rely on almost 300 different currencies to do business with each other, which is why it pays to use ISO 4217.

This standard establishes internationally recognized codes for the representation of currencies that enable clarity and reduce errors. Currencies are represented both numerically and alphabetically, using either three digits or three letters. Some of the alphabetic codes for major currencies are familiar, such as “EUR” for Euros. Fortunately, ISO 4217 covers everything from Afghanis to Zambian Kwacha as well.

Maintaining ISO 4217
Periodically, amendments must be made to ISO 4217:2015 and these are managed by the Secretariat of the Maintenance Agency, in this case the SIX Financial Information AG on behalf of the Swiss Association for Standardization, SNV.

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"National Australia Bank kills off stablecoin project

One of the four largest banks in Australia, National Australia Bank (NAB) (NASDAQ: NAUBF), has pulled the plug on its AUDN stablecoin.

Citing a lack of customer demand, NAB canceled the project, causing the team to switch to independent Australian dollar stablecoin Ubiquity. The latter will join ANZ Bank and Novatti (NASDAQ: NTTIFI) as the race continues to create the AUD version of USDC.

NAB started work on the AUDN stablecoin in 2022 and thought clients would use it to settle cross-border transactions, among other uses.

Like many other countries, Australia is exploring the concept of an Australian Dollar CBDC. It has been working with the Digital Finance Cooperative Research Centre (DFCRC) to test the idea.

While Australia has yet to announce concrete plans to launch the eAUD, CBDCs are moving ahead full steam elsewhere, and national digital currencies will pose serious competition to private stablecoins.

Adding to the woes of private stablecoin issuers is the ever-worsening reputation of Tether, the largest one by market cap. Its ties to terrorism and trafficking and continued refusal to prove it is backed by real U.S. dollars continue to harm the image of private stablecoins generally. The Brookings Institute recently published a paper showing that the U.S. government views private stablecoins as a national security threat, and it’s a safe bet that other governments feel the same.

Why would anyone use bank-issued coins running on expensive blockchains like Ethereum when national digital currencies can be sent anywhere in the world in seconds through systems similar to mBridge? A betting man might wager that the National Australia Bank has asked itself the same question, and that’s why it has thrown in the towel on AUDN."

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"Crypto market faces $860M token unlocks in July

Around 40 crypto projects are set for token unlocks next month, with a combined value of roughly $860 million hitting the market. According to data from Token Unlocks, Xai, AltLayer, Arbitrum, and Aptos lead the charge with the largest token releases.

Token unlocks refer to the release of a chunk of tokens that were previously restricted from trading. Investors often fear price declines caused by selling pressure when a large amount of tokens enter the market.

However, token unlocks aren’t inherently bad. Small unlocks may have minimal impact. An annual report from Token Unlocks shows that tokens rise 34% on average after being unlocked for private investors.

Overall, the exact impact of token unlocks is often unpredictable. When considering a crypto investment, it’s important to be aware of upcoming token unlocks and their potential impact on the price."

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"Bolivia Revokes Ban on Financial Entities’ Use of Crypto

Bolivia’s central bank issued a resolution to allow financial institutions to use cryptocurrencies, banned since 2020, bank chief Edwin Rojas said in a press conference.

Rojas said Bolivian citizens trade around $10m in cryptocurrencies per month, a number that is expected to increase with the rule change."

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"Coinbase partners with payments firm Stripe

The partnership means Stripe will incorporate Coinbase’s Layer 2 network Base into its crypto payout products.

In addition, users can use Stripe’s fiat-to-crypto onramp to buy digital assets with credit cards or Apple Pay inside the Coinbase Wallet.

The crypto exchange giant Coinbase and payment firm Stripe have penned a partnership.

Stripe will incorporate Coinbase's Layer 2 network Base into its crypto payout products, and Coinbase will add Stripe as a way for its customers to buy crypto with credit cards or Apple Pay inside the Coinbase Wallet, according to a Coinbase release published Thursday.

"Crypto is the future of money because it is unrestricted by international borders or banking hours, and reduces both friction and fees for users. These three key integrations lay a strong foundation for Stripe and Coinbase to begin building a better payments future for users around the world," Coinbase wrote in a statement."

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"Worldcoin’s WorldID to arrive on Solana via Wormhole grant

The Worldcoin Foundation announced 16 grants worth over $800,000 at current WLD prices.

In a June 27 statement, Worldcoin said the ID integration effort will “equip the Solana ecosystem with a much-needed tool” for proving humanness.

The grant awards 25,000 WLD to Wormhole.

Wormhole described the grant in greater detail, stating that it will seamlessly allow Solana-based protocols to verify user IDs previously authenticated on the Ethereum blockchain.

Wormhole described several benefits related to the integration. The approach will allow for new use cases and demonstrate the versatility of Wormhole’s multichain infrastructure.

Furthermore, the integration aims to make verification easy for developers and ensure forward compatibility with future updates and improvements in verification methods.

The effort also aims to enhance security and decentralization by ensuring ID verification is carried out in a manner that preserves privacy. It will also improve cross-chain interoperability by allowing more decentralized apps to interact with identity verification systems on Ethereum.

Finally, the initiative aims to grow financial inclusion by supporting Worldcoin in providing universal access to the digital economy by serving ID users worldwide."

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"JPMorgan Chase says its stress test losses should be higher than what the Fed disclosed

JPMorgan Chase said late Wednesday that the Federal Reserve overestimated a key measure of income for the giant bank’s recent stress test, and that its losses under the exam should actually be higher than what the regulator found.

The bank took the unusual step of issuing a press release minutes before midnight ET to disclose its response to the Fed’s findings.

The error means that JPMorgan might require more time to finalize its share repurchase plan, according to a person with knowledge of the situation.

JPMorgan Chase said late Wednesday that the Federal Reserve overestimated a key measure of income in the giant bank’s recent stress test, and that its losses under the exam should actually be higher than what the regulator found.

The bank took the unusual step of issuing a press release minutes before midnight ET to disclose its response to the Fed’s findings.

“Should the Firm’s analysis be correct, the resulting stress losses would be modestly higher than those disclosed by the Federal Reserve,” the bank said.

The error means that JPMorgan might require more time to finalize its share repurchase plan, according to a person with knowledge of the situation who declined to be identified speaking about the regulatory process. Banks were expected to begin disclosing those plans on Friday after the market closes.

The news is a wrinkle to the Federal Reserve’s announcement Wednesday that all 31 of the banks in the annual exercise cleared the hurdle of being able to withstand a severe hypothetical recession, while maintaining adequate capital levels and the ability to lend to consumers and corporations."

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"Japan Fires Its Top Currency Diplomat As Yen Disintegrates, Another Intervention Looms

It is hardly a coincidence that literally minutes after the USDJPY hit 161 for the first time in almost two generations that Japan's Nikkei reported the man who had been tasked to explain away Japan's absolutely catastrophic currency policy, one which has made the yen the worst performing currency of the world and the envy of banana republics everywhere, Japan's top currency "diplomat". Masato Kanda, has been fired.

Kanda will be replaced with Atsushi Mimura, a director-general of the Finance Ministry's international bureau, who will take over as vice finance minister for international affairs on July 31.

And while no amount of intervention will prevent the yen from imploding further - to do that the BOJ will have to raise rates to 4% or higher, setting of a cataclysmic collapse of the entire Japanese bond market - the outrage among the populace at the runaway inflation in Japan in large part due to the plunging currency, is finally being addressed now that Japan is facing election in a few months, and scapegoat time has arrived."

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"Third plenum in mid-July to draw clear path for high-quality development amid complex global situation

"The Communist Party of China (CPC) will convene, on July 15 in Beijing, the third plenary session of its 20th central committee, which will primarily examine issues related to further comprehensively deepening reform and advancing Chinese modernization, according to a Thursday meeting of the Political Bureau of the CPC Central Committee chaired by Xi Jinping, general secretary of the CPC Central Committee.

The critical meeting, often referred to as the third plenum in its shortened form, is expected to draw a road map for China's continuously deepening reforms for years to come. Coming at a time marked by changes unseen in a century and complex international and domestic situations, the plenum will offer a clear path for the country's pursuit of high-quality development and ultimately Chinese modernization, experts said.

Experts said that the third plenum will offer the sense of continuity in the CPC's steadfast efforts and unwavering commitment to carrying out reform, and is of utmost importance to propelling the Chinese nation ahead and achieving its ultimate goal of national rejuvenation.

Underscoring this firm determination, in March, Xi sounded the clarion call for reform, dispelling concerns about whether China's reform efforts are "stagnating," or its economy is "losing steam.""

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Read more:GlobalTimes

"China-Serbia FTA to take effect on July 1, further facilitates bilateral exchanges

The free trade agreement (FTA) between China and Serbia will officially take effect on July 1, 2024, as the two sides will gradually eliminate tariffs on 90 percent of products in the tariff lines. Tariffs for more than 60 percent of products will be suspended immediately on the same day, China's Ministry of Commerce (MOFCOM) said on Friday in a statement.

The move will promote the growth of bilateral trade, as consumers in both countries will be able to enjoy better and more favorable imported products. In addition, it will boost the investment cooperation and industrial chain integration and jointly elevate international competitiveness by utilizing both countries' advantages, according to the official.

The FTA has also established institutional arrangements for related fields, including rules of origin, customs procedures and trade facilitation, trade remedies, dispute settlement, intellectual property rights protection, investment cooperation, competition and other areas. The arrangements will provide a convenient, transparent and stable business environment for enterprises of both countries."

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Read more here:Global Times

There has been a lot of talk about different coins being 'backed' by precious metals...

"This Is Why XRP Cannot Be Backed by Gold, Ex-Ripple Official Explains

Matt Hamilton trashes XRP's gold backing talk

Ripple's former director of developer relations, Matt Hamilton, has dispelled another popular misconception surrounding XRP. This time it was talk and speculation that XRP could be backed by gold. This kind of talk has emerged relatively recently amid speculation that XRP could be accepted by the world's banks and other financial institutions for international settlements and would be backed by gold for its fair value.

Hamilton is adamant that such an outcome is impossible. The blockchain developer explains his view that XRP is a decentralized cryptocurrency with finite supply, which trades on the open market and has no issuer to hold collateral for gold. For this reason, Hamilton explains, XRP cannot be inflated to have a peg with another asset.

The only contact between gold and XRP is possible through its tokenization via XRP Ledger, with the creation of a token tracking the precious metal's quotes, concluded the developer. For those who do not believe it and still think otherwise, Hamilton offered to exchange one ounce of gold for one XRP."

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Read more:U Today

"Summer Davos concludes, highlighting China's critical role on global stage

Experts, scholars hail nation's 'certainties' as worldwide risks soar

The 15th Annual Meeting of the New Champions (AMNC24), also known as the Summer Davos, wrapped up on Thursday with officials, economists and business leaders from around the world concluding their three-day discussion covering topics spanning from technology, economics and geopolitics and highlighting China's key role in driving the global economic growth.

At the event, Chinese and international business leaders and scholars hailed "certainties" from China amid a turbulent world and highlighted China's critical role in helping address growing challenges, including the global economic downturn.

Compared with the first two days' spotlight on specific discussions addressing artificial intelligence (AI), climate change, food and energy security, panels held on the third day - Thursday - attached more importance on how China could drive the world forward.

Jin Keyu highlighted that China's new innovative business models, and the digital economy, accounting about 40 percent of the country's GDP, are a practical and cost-effective solution to many developing countries' present problems."

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Read more:Global Times

"HKMA to join European test of cross-border payments on tokenised assets

Agreement with France’s central bank will make HKMA the first non-European participant in tests of the European Central Bank’s Eurosystem

“This marks an important milestone as HKMA will be the only major central banking institution outside the Eurosystem participating in the initiative,” Colin Pou Hak-wan, executive director of HKMA, said on Thursday.

The collaboration came about because both parties are working on wholesale CBDC projects, Pou said. HKMA in March announced a CBDC pilot project called Project Ensemble, while BDF has a similar project called DL3S.

“HKMA’s recent announcement of the launch of Project Ensemble was very timely to initiate this cooperation. We look forward to further testing our DL3S platform in this context and hope that together we can facilitate the financial inclusion expected from enhanced cross-border payments.”

France is also among the 26 observing members of project mBridge, a multi-country CBDC project involving mainland China, Hong Kong, Thailand, and the United Arab Emirates as founding members. Saudi Arabia joined the project earlier this month as a full member.

Started in 2021, mBridge allows the central banks and the Bank for International Settlements Innovation Hub to use digital currencies built on distributed ledger technology to enable instant cross-border payments and settlement."

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Read more:Currency Insider

"Hong Kong, France announce cross border CBDC interoperability trial

Earlier this week the European Central Bank (ECB) announced 48 new participants in the second wave of its wholesale DLT settlement trials. The unexpected news was the participation of the Hong Kong Monetary Authority (HKMA). The ECB trials include three central bank settlement solutions, only one of which is a wholesale CBDC (wCBDC) from the Banque de France. Based on today’s announcement, Hong Kong only plans to work with France’s CBDC platform DL3S to enable real time cross border payments.

In early March the HKMA unveiled Project Ensemble, a new wholesale CBDC initiative to support interbank payments using tokenized deposits. It also aims to provide a settlement asset for tokenization projects such as Hong Kong’s recent digital green bond.

Today’s announcement did not mention mBridge. The HKMA is one of five central banks participating in mBridge, the most advanced cross border CBDC initiative. Both the Banque de France and the ECB are mBridge observers. However, what is being proposed as part of the Eurosystem tests is quite different.

This third route is the hardest because the systems were not designed to interconnect. It means if France or Hong Kong want to link with another system, they more-or-less start again. However, if the work is part of a learning process, it could help in developing interoperability standards.

mBridge is currently in its minimum viable product (MVP) phase. Going forward, some countries may choose not to participate directly in mBridge. That would mean that the country’s currency is not directly supported. However, out of pragmatism, mBridge might choose to connect to a handful of external platforms that support important currencies. That remains to be seen."

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Read more:Currency Insider

"North Carolina Senate approves CBDC ban bill

On Wednesday (June 26), the North Carolina Senate passed a bill aimed at prohibiting central bank digital currencies (CBDCs) in the state. The legislation now awaits the Governor’s signature to become law.

If enacted, the bill would prevent North Carolina from participating in any Federal Reserve testing of future CBDCs. Additionally, it would bar state agencies and courts from accepting CBDC payments.

The Carolina Journal reports that Senate Bill 690 received overwhelming support, passing with a 109-4 vote. This marks an increase from Tuesday’s 39-5 vote.

Senator Brad Overcash, a proponent of the bill, stated that its purpose is to discourage the federal government from pursuing CBDC implementation. He argued that such a move could potentially undermine the dollar’s status as a major global currency. He said:

This would bar our state agencies or courts from accepting a central bank digital currency, and it would also bar them from participating in a pilot project if one were to be initiated by any of the Federal Reserve Banks. […] This is an important step to the stability of our financial sector and our financial privacy.

The North Carolina bill aligns with broader national skepticism towards CBDCs. In May, U.S. House Majority Whip Tom Emmer proposed the CBDC Anti-Surveillance State Act, seeking to halt the Federal Reserve’s efforts to develop a digital dollar. The act raised concerns about potential government control over Americans through a CBDC.

Federal Reserve Chair Jerome Powell, speaking at a Senate Banking Committee hearing in March, emphasized that the U.S. is “nowhere near” adopting a CBDC in any form.

Earlier this week, Louisiana quietly enacted House Bill 488, a crypto bill known as the “Blockchain Basics Act” or “Bitcoin Rights” bill. Other than guaranteeing some crypto-related rights, the bill also prohibits CBDC creation."

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Read more:Currency Insider

"CBDC is future of money; no competition with UPI: RBI Governor

Shaktikanta Das says CBDC is interoperable — with the same QR code, one can make UPI payments or CBDC payments

He says the digital currency is in a trial mode with the central bank currently running a pilot project.

“We have made it interoperable because (with) the same QR code you can make UPI payments you can make CBDC payments,” Das adds. The bank plans to enable users to make money transfers using the digital currency to accounts through the latter’s UPI. The bank has started incorporating new features into the new currency so that one can program even the conditions of their CBDC transfers."

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Read more:Currency Insider

"CBDCs can improve cross-border payments, financial inclusion in the Middle East: IMF

In a statement, the IMF noted that two-thirds of the 19 countries in the two regions are exploring CBDCs. Some, including the UAE and Saudi Arabia, are at the proof-of-concept stage; Kazakhstan is the most advanced after conducting two pilot programs for its digital tenge.

The most advanced cross-border CBDC project in the Middle East is mBridge, which includes the UAE and, as of this month, Saudi Arabia. mBridge, which also includes China, Hong Kong, and Thailand, entered the MVP stage recently.

In some CBDC models, digital currencies are directly offered by central banks, which, unlike commercial banks, are not after profits. This allows them to provide services and products that other lenders can’t, and in turn, they increase competition in the payments space.

The IMF cautioned that for Middle Eastern and Central Asian nations to maximize the benefits of CBDCs, they must address the risks. This includes potential bank disintermediation, which could impact deposits and, consequently, the ability of commercial banks to lend to their clients.

Some central banks, such as the Bank of Israel, view this competition differently with commercial lenders. BOI has proposed an interest-bearing CBDC, which it believes would chip away at bank deposits. However, it views this as healthy competition that would challenge the banks to improve their services."

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Read more:Currency Insider

Cyber Resilience Controls For The Financial And Banking Sector In Iraq

June 26, 2024 diamonds: Cyber ​​resilience controls for the financial and banking sector in Iraq .. For more, click here https://cbi.iq/static/uploads/up/file-171939700326129.pdf

https://cbi.iq/news/view/2607

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[Approximate and incomplete translation of first two pages of 48 page

https://cbi.iq/static/uploads/up/file-171939700326129.pdf]


All banks

All electronic payment service providers

Cyber ​​ Resilience Controls for the Financial and Banking Sector in Iraq

Based on the main role of the Central Bank of Iraq in regulating, developing and advancing the financial and banking sector

"UAE: New guidelines for public-private partnerships, Sandbox Conditions regulation

The PPP Manual and the Sandbox Conditions regulation are crucial steps in the UAE’s strategy to build the country’s business ecosystem

The UAE’s Ministry of Finance announced the approval of the Public-Private Partnership (PPP) manual by the UAE Cabinet.

This manual is designed to foster a robust framework for federal government entities to efficiently execute developmental and strategic projects, leveraging the financial, administrative, and technological prowess of the private sector, reported state news agency WAM.

The PPP Manual aims to motivate private sector participation in national projects, enhancing societal and economic benefits.

It outlines procedures for designing, planning, and implementing projects, ensuring transparency and accountability between federal entities and private sector partners."

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Read more:Gulf Business

"HSBC chooses UAE to debut its global trading platform

HSBC said its WorldTrader platform connects to 77 exchanges across 25 markets

HSBC has selected the UAE as the inaugural market for its new digital trading platform, WorldTrader.

This platform provides HSBC Wealth and Personal Banking (WPB) customers with access to a vast range of investment options, covering up to 80 per cent of global stock market capitalisation.

Through WorldTrader, users can trade equities, exchange-traded funds (ETFs), and bonds, as well as invest in mutual funds and fixed-income products, said the release announcement.

HSBC WorldTrader

WorldTrader connects to 77 exchanges across 25 markets, catering to the growing demand for international investments."

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Read more:Gulf Business

"Money and Payments: The U.S. Dollar in the Age of Digital Transformation

This paper examines the pros and cons of a potential U.S. central bank digital currency, or CBDC, and is the first step in a discussion of whether and how a CBDC could improve the safe and efficient domestic payments system. Money and Payments: The U.S. Dollar in the Age of Digital Transformation (PDF) invites comment from the public. Importantly, the paper does not favor any policy outcome.

The paper summarizes the current state of the domestic payments system and discusses the different types of digital payment methods and assets that have emerged in recent years, including stablecoins and other cryptocurrencies. It concludes by examining the potential benefits and risks of a CBDC, and identifies specific policy considerations."

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"Bitwise CIO Says Spot Ethereum ETFs To Attract $15,000,000,000 in First 18 Months – Here’s Why

“Everyone wants to know how much spot ether exchange-traded products (ETPs) will attract in net flows. My answer: $15 billion in their first 18 months.”

Hougan says his estimate is based on ETH’s market capitalization relative to Bitcoin’s, how similar products have performed in other markets such as the UK and Canada and the impact of the carry trade strategy."

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Read more:DailyHodl

"Gary Gensler Provides Ethereum ETF Update While Slamming ‘Highly Centralized’ Crypto Industry

U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler says that the approval process for spot market Ethereum (ETH) exchange-traded funds (ETFs) is “going smoothly.”

In a new interview at the Bloomberg Invest Summit in New York, Gensler indicates that the SEC will give final approval to the ETH ETF applications, but stops short of giving a timeline.

He says that the agency’s staff is working through the particulars of required registration and disclosure statements for the ETH ETFs.

“I don’t know the timing, but it’s going smoothly. You can almost follow it publicly. You see these filings…""

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Read more:DailyHodl

"How Vulnerable Are Our Digital Systems?

The problem is that the technological revolution as we fashioned it 30 years ago gradually evolved in an ever more centralized way, wholly dependent on a weak and old-fashioned electrical grid of networks without much duplication or backstopping. The software too has become centralized for each industrial purpose. If one thing goes wrong in any system with a single point of failure, the whole comes to a grinding halt.

It’s amazing to consider that the old analogue world that lasted from the ancient world until the 21st century did not have this problem. It was more durable, physically anchored, fixable by human hands, comprehensible, and manageable. The move to digital everything introduced a fragility to the whole that we are only now discovering.

This is not only a problem for whole industries. It affects individuals too. "

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Read more: ZeroHedge

"China’s Missing Gold Reserves: Unveiling the Mystery

A recent report from a Singapore-based newspaper stirs fresh speculation regarding China’s gold stockpile, suggesting it may be significantly larger than officially reported. This revelation comes from economist Chen Long, who identified a substantial discrepancy when he compared China's total gold holdings—encompassing retail buyers, regional banks, and the People’s Bank of China—with the country’s gold import and production figures.

The Four-Figure Discrepancy
Chen Long’s analysis uncovered a striking four-figure gap in China's gold reserves. The reported holdings, when combined from various sources, do not align with the impressive numbers seen in import and production data. This raises an important question: where is the missing gold?"

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Read more:ZeroHedge