The cryptocurrency market has turned slightly bearish as Bitcoin (BTC) moves further below $30,000. While preparing this report, Bitcoin was trading at $28,946, down 1.80% in the past 24 hours. Ethereum (ETH) has lost 2.30% to trade at $1,847. XRP was trading at $0.6831, down 3.30% in the same period.
Major cryptocurrencies, which have lost ground in the last 24 hours, are ChainLink (LINK – $7.42, -2.80%), Avalanche (Avax- $12.65, -4.50%), Binance Coin (BNB – $239.25, -1.90%), EOS (EOS – $0.7302, -3.80%), Shiba Inu (SHIB, $0.00000827, -1.20%), Stellar (XLM, $0.1471, -5.70%), Solana (SOL, $23.37, -5.50%), Cardano (ADA, $0.3012, -4.70%), Polkadot (DOT, $5.04, -3.60%), VeChain (VET, $0.01833, -2.60%), Bitcoin Cash (BCH, $242.68, -5.60%), and IOTA (IOTA – $0.1716, -2.30%).
Government Level Initiatives
Unveiling Advancements in Digital Won and CBDC Experiments
The Bank of Korea (BOK) has published the 2022 Payment and Settlement Systems Report, which provides an in-depth analysis of various aspects, including advancements that have been made in the development of the central bank digital currency (CBDC) referred to as the digital won.
The publication reveals that the central bank has significantly increased the size of its dedicated team responsible for central bank digital currency (CBDC) studies. The move aims to efficiently tackle the rising need for an in-depth exploration of system layouts and institutional matters related to CBDCs.
Furthermore, the organization’s recent Central Bank Digital Currency (CBDC) experiments have been noteworthy. These experiments have involved collaborating with 14 banks to explore various aspects, such as Distributed Ledger Technology (DLT) payments for digital assets and facilitating transactions across borders.
Two years ago, the percentage of cash payments experienced a decline, dropping under 15% with respect to value and 22% with regard to the total number of financial transactions. This dramatic change forced the central bank to initiate the preliminary steps toward a potential rollout.
In recent times, the Bank of Korea (BOK) has taken part in the mBridge project as an observing institution, focusing on the development of cross-border Central Bank Digital Currency (CBDC). In addition, the Bank of Korea (BOK) undertook two simulation assignments last year and the previous year in order to assess the viability of specific design frameworks and establish the necessary technical groundwork for an eventual Central Bank Digital Currency (CBDC) solution.
Private Sector Initiatives
Shinhan Bank and SCB Tech X’s Cross-Border Stablecoin PoC on Hedera DLT
Korea’s Shinhan Bank and Siam Commercial Bank’s SCB Tech X have concluded a proof of concept (PoC) to utilize stablecoins on the public distributed ledger platform Hedera. Notably, another top Taiwan-based financial institution also took part in the transaction, paving the way for cross-border remittances and real-time foreign exchange (FX) in Thai Baht, New Taiwan dollar, and Korean Won.
This is the second trial for Shinhan on Hedera DLT. Earlier, it carried out a similar trial in partnership with South Africa’s Standard Bank. Notably, both banks are on the Hedera governing council.
Currently, a considerable percentage of stablecoin usage is for crypto-related trades. A major percentage of the remaining portion is for P2P payments. As per a World Bank survey, the average cost of remittances is 6% but varies considerably across the globe. In the case of the Hedera network, it costs less than a cent to complete a transaction.
Interestingly, Hedera has developed a stablecoin accelerator program that will give access to the software components required to develop a stablecoin.
BITA Standards Joins Forces with GBBC
The supply chain and logistics association BITA Standards has merged with the Global Blockchain Business Council (GBBC). BITA, established in 2017, was initially referred to as the Blockchain in Transport Alliance (BiTA) and was an earlier part of the media house FreightWaves.
BITA’s board is headed by Dale Chrystie, Business Fellow and Blockchain Strategist at FedEx. Following the merger, BITA will continue to be led by Chrystie, with valuable input from executives from UPS, Delta, and Salesforce.
The present priority is to monitor the progress of a shipment as it transitions between various logistics companies and modes of transportation. In the months ahead, this technology may also expand its focus to encompass additional sectors such as identity verification, clearance of customs, and the management of Internet of Things (IoT) metadata.
Last year, IBM and Maersk decided to discontinue TradeLens, a prominent blockchain supply chain venture. Nevertheless, the utilization of blockchain technology remains prevalent in various global initiatives. Many electronic bill of lading (eBL) solutions utilize blockchain technology. There is an optimistic outlook for the future of electronic bills of lading (eBLs) as leading container shipping companies have reached a consensus to gradually implement eBLs within the next decade.
SocGen Forge Awarded DASP License for Digital Asset Services
Societe Generale Forge (SocGen Forge) has received a Digital Asset Service Provider (DASP) license from the Autorité des Marchés Financiers (AMF). In 2022, it enrolled as a DASP for crypto-asset trading, custody, and sales. Furthermore, it now has the power to receive and forward orders in place of customers. Notably, the institution is the only “licensed” DASP as of now.
Licensing is discretionary, while registration is mandatory. Licensing involves additional prerequisites, including the necessity of obtaining professional indemnity insurance or meeting a predetermined minimum capital threshold. Licensees are required to establish and maintain internal controls, robust information technology systems, effective claims-handling procedures, and other necessary controls. In addition, it is essential to fulfill certain fundamental criteria, including the possession of client agreements.
SocGen Forge has been a leader in blockchain adoption. Four years ago, the firm issued security tokens on a public blockchain. Additionally, the institution worked with the European Investment Bank (EIB) on public blockchain-based digital bond issuance.
Jean-Marc Stenger, CEO of Societe Generale-FORGE, stated that the DASP license will acknowledge Societe Generale-FORGE’s leading role in the crypto asset ecosystem.
Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.
