The cryptocurrency market remains range-bound, with Bitcoin (BTC) trying to recapture $70,000. While preparing this report, Bitcoin was trading at $65,014, a decline of 0.40% in the past 24 hours. Ethereum (ETH) had lost 1.20% to trade at $3,274. XRP was trading at $0.5695, reflecting a decline of 2.50% in the same period.
Major cryptocurrencies which have gained ground in the past 24 hours are Binance Coin (BNB – $576.51, 3.10%).
Major cryptocurrencies that have lost ground in the past 24 hours are Polkadot (DOT, $8.40, -2.60%), Cardano (ADA, $0.5706, -2.20%), Polygon (MATIC – $0.8879, -2.10%), Solana (SOL, $183.36, -1.30%), Avalanche (Avax- $46.23, -2.60%), Shiba Inu (SHIB, $0.00002628, -2.30%), EOS (EOS – $0.9516, -2.30%), ChainLink (LINK – $17.78, -1.70%), and VeChain (VET, $0.0405, -2.80%).
Government Level Initiatives
Riksbank Tests Offline Payments in Latest Stage of e-Krona CBDC Development
Sweden-headquartered Riksbank revealed the outcome of the fourth stage of its e-Krona central bank digital currency (CBDC). The main objective was to make offline CBDC payments through the utilization of account balances. In the previous stage, it tested offline token-based payments. The central bank has determined that offline payments are feasible; however, they have identified notable security prerequisites. These requirements may pose usability challenges for certain categories of offline transactions.
Mobile phones are perceived to be too insecure to be the exclusive offline payment gadget. However, consumers utilize payment cards that are in accordance with the EMV standard utilized by several card networks. A main reason cards are regarded as safer is that the code is retained on the card and cannot be amended.
As a result, the central bank implemented limitations within the code, including a maximum wallet balance of SEK 3,000 ($286) and a restriction of no more than five consecutive offline transactions before requiring an internet connection.
The issue is that if the central bank wants to modify those payment limits, a new card needs to be issued.
Private Sector Initiatives
Alipay+ Launches Web3 Voucher PoC on Avalanche Blockchain for Milk Tea Discounts
The international division of China’s biggest payment processing platform, Alipay+, has unveiled a web3 voucher proof-of-concept (PoC) on the Avalanche blockchain. The initial phase calls for participation in a mini-game by users to receive discounts on milk teas in Southeast Asia.
Avalanche blockchain has the capability to establish subnets, which are specialized Ethereum-compatible chains offering heightened privacy features, often obviating the necessity for cryptocurrency gas payments.
The next phase of development involves extending the Proof of Concept (PoC) to a wider audience of merchants and leveraging the expansive user base of over 100 million within Southeast Asia through Alipay+. This initiative is integral to the Alipay+ D-store platform, an omnichannel solution customized for the food and beverage sector, facilitating seamless engagement with shoppers both online and in-store.
Along with its key function of facilitating payment transactions (not associated with web3), D-store also facilitates promotional activities, presenting an opportunity for the integration of web3 PoC to enhance its value proposition. Major brands such as Burger King and Nando’s are already utilizing the D-store solution.
Within a framework like Alipay+, catering to a diverse array of food and beverage clients, web3 vouchers can be embedded to run promotional campaigns, enabling one brand to extend vouchers to customers of another brand.
BlackRock Unveils Ethereum-Based Digital Fund ‘BUIDL’ for Stable Value Investments
BlackRock provided details about its planned digital fund on the Ethereum blockchain. The money market fund, named BlackRock USD Institutional Digital Liquidity Fund (BUIDL), aims to provide a stable $1 value. The firm has also confirmed that it took a stake in tokenization partner Securitize, which acts as a transfer agent, placement agent, and tokenization platform.
BlackRock has also stated that tokenization continues to be one of the central objectives of the firm’s digital asset strategy.
Tokens are offered only to accredited investors as per norms. Furthermore, transfers are allowed, albeit on a 24×7 basis, only between pre-approved investors. Tokenization also paves the way to access Treasury markets.
BNY Mellon acts as the custodian of the underlying assets and fund administrator. The firm also facilitates interoperability between digital and conventional markets.
BUIDL’s portfolio will encompass cash, repurchase agreements, and US Treasury securities. This will enable the holders of tokens held on the blockchain to earn a regular yield.
Swift Explores Tokenization and Distributed Ledger for Financial Communication Evolution
Swift has grasped the notion of tokenization and a distributed ledger, which could substitute the requisite for communication between financial entities. Swift presently runs the worldwide messaging platform, which could ultimately go extinct with the adoption of a distributed ledger.
To begin with, Swift contends that along with a distributed ledger for payments, there is a need to retain valuable data, including the ones required for anti-money laundering (AML).
Ideally, the transmission of such data would occur via messaging protocols. The suggestion is made that the collaborative ledger could potentially be founded upon a modified iteration of Swift’s centralized transaction management system. Similarly, established central securities depositories (CSDs) may emerge as logical candidates for overseeing securities ledgers.
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.
