The cryptocurrency market remains range bound with Bitcoin (BTC) hovering around $27,000. While preparing this report, Bitcoin was trading at $27,065, up 1.80% from the past 24 hours. Ethereum (ETH) has gained 2.50% to trade at $1,839. XRP was trading at $0.4625, reflecting an increase of 1.90% in the same period.
The only major crypto, which has gained ground in the past 24 hours, is IOTA (IOTA – $0.1853, 6.10%), Tezos (XTZ, $0.8981, 0.70%), Binance Coin (BNB – $311.14, 2%), VeChain (VET, $0.01944, 3.50%), Polkadot (DOT, $5.34, 2%), Bitcoin Cash (BCH, $116.50, 2.80%), ChainLink (LINK – $6.57, 2.70%), Avalanche (Avax- $14.75, 3.90%) and Stellar (XLM, $0.0885, 1%),
The major cryptos, which have lost ground in the past 24 hours, are Solana (SOL, $19.81, 1.90%), Cardano (ADA, $0.3697, 2.90%), Shiba Inu (SHIB, $0.00000892, 5.20%) and EOS (EOS – $0.8580, 1.30%).
Government level initiatives
Brazil’s CBDC: Empowering Banks with DLT Adoption and Asset Tokenization
Brazil’s central bank envisions its central bank digital currency (CBDC) to facilitate banks’ adoption of distributed ledger technologies (DLTs) and tokenization of their balance sheets, as per Renato Gomes, deputy governor at the Banco Central do Brasil. While speaking at the OMFIF Digital Money Symposium, he highlighted the possibility of establishing real-time settlements while making high-value transactions, for instance, cars and real estate, using digital currency.
Other use cases include cross-border remittances and dual offline settlements. The central bank does not foresee a requirement for a retail digital real due to the highly successful Pix retail payment solution. Gomes stated that the primary object of the country’s CBDC initiative is not about enhancing retail payments but about the establishment of a wholesale infrastructure for innovation based on DLT.
The digital real venture is basically a wholesale CBDC that will also facilitate retail access via tokenized deposits. As per the deputy governor, its key intention is to “commoditize financial services.”
Private sector initiatives
Samsung and South Korea’s Central Bank Join Forces for Offline CBDC Transfers
South Korea’s central bank and Samsung Electronics have partnered to trial offline central bank digital currency transfers. According to the report, the transfers will be carried out totally offline by employing Samsung’s mobile gadgets without the need for cash, credit card information, or even internet connectivity.
Samsung Electronics inked a memorandum of understanding (MoU) with the Bank of Korea (BOK) to develop an environment for digital won. Both parties will start exploring an offline CBDC and employ it to facilitate wire transfers and payments through Samsung devices as part of the deal.
The development comes after Samsung joined the central bank’s CBDC trial last year. The semiconductor behemoth and the BoK created offline CBDC technology that permits device-to-device transfers and payments by employing near-field communication (NFC) technology even if neither the remitter nor the receiver has internet connectivity.
The aforesaid CBDC structure will permit users to carry out transactions only with their Samsung mobile gadgets, without credit cards, net connectivity, or cash. The transactions are accomplished through a chipset that is embedded in Samsung phones and includes additional security features.
Samsung stated, “On the basis of this technology, the parties intend to continue their studies to reduce the threats to security linked to offline payments employing Samsung’s Galaxy smartphones and wearables, as well as assist with reliable payments in emergencies where network connectivity is unavailable.”
Jamaica’s CBDC-powered E-commerce Platform Boosts Financial Inclusion
An e-commerce platform accepting CBDC has been created by the government of Jamaica, as per the country’s senator, Aubyn Hill. It can be remembered that Jamaica was the first country to give legal tender status to its digital currency (CBDC), the JAM-DEX.
Notably, Lynk is another CBDC payment solution, developed by the National Commercial Bank (NCB), prevalent in the country. NCB has already launched a wallet for CBDC.
The senator states that the e-commerce platform will help small firms advertise their goods and keep middlemen at bay. It is specifically intended to serve vendors who are not equipped to process debit and credit card transactions, thus aiding the central bank’s secondary CBDC goal of better financial inclusion. The motivation is to overhaul the payment mechanisms.
The marketplace will be built by an association of private sector firms, headed by Lynk’s Chief Product Officer, John-Mathew Sinclair, as well as government officials and Bank of Jamaica executives.
Miscellaneous
Franklin Templeton Launches Second Blockchain Fund via Private Placement
The latest SEC filing indicates Franklin Templeton is setting up a second blockchain fund through private placement following the creation of the first one two years ago. The first fund has a comparatively small upper limit of $20 million.
Both funds were established under Article 506(b), which concentrates mainly on private placements with accredited investors, although 35 non-accredited investors are also accepted. The key differences are that the 2021 fund was established in the form of a venture capital fund, whereas the 2023 fund is regarded as private equity. The latest fund necessitates a minimum investment of $100,000, compared with $1 million for the earlier fund.
The asset manager of these funds is upbeat about the technology. The CEO has opined that the technology is disruptive for the asset management industry.
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