The cryptocurrency market has rebounded after the sharp fall seen earlier this week. Whether it can consolidate and move up further is anybody’s guess. Bitcoin (BTC), which fell below $7,000, bounced back to trade at $7,156, reflecting a gain of 6.8% in 24 hours. Ethereum (ETH), similarly, has gained 3.8% to trade at $128.55. XRP has gained 1.9% to trade at $0.1904. Other other major altcoins, which has gained in the past 24 hours include TRON (TRX-$0.0130, 3.3%), Litecoin (LTC-$40.13, 7.1%), Stellar (XLM-$0.0456, 2.6%), Bitcoin Cash ($185.88, 4.1%), Dash (DASH-$43.30, 2.1%), Ethereum Classic (ETC-$3.69, 5.2%), Cardano (ADA-$0.0337, 5.1%), EOS (EOS-$2.42, 8.6%), Cosmos (ATOM-$4.23, 12.0%), Huobi (HT-$2.66, 7%), ChainLink (LINK-$1.83, 0.98%), Monero (XMR-$47.17, 2.7%), OKB (OKB-$2.48, 5.1%) and Binance Coin (BNB-$13.27, 5.0%). The major altcoins (top 20) which has lost in the past 24 hours are Tezos (XTZ-$1.58, -0.71%), LEO (LEO- $0.8630, -2.1%) and IOTA (IOTA-$0.1557, -2.8%).
Government level initiatives
ECB thinks it’s feasible to create a central bank digital currency payment system
A recent study by the European Central Bank (ECB) has pointed out that it is feasible to create a central bank digital currency (CBDC) based payment system that safeguards the privacy of the user.
According to the research report titled “Exploring anonymity in central bank digital currencies,” the European System of Central Banks (ESCB) has successfully completed a proof-of-concept (PoC) for privacy in CBDCs. The outcome is a part of the central bank’s continuing research on CBDCs and their likely advantages to the public. The PoC system was custom-built in partnership with tech firms R3 and Accenture.
The ESCB utilized Corda, which is an open-source blockchain system developed by R3, to create a PoC system that includes four teams, such as two intermediaries, an Anti-Money Laundering (AML) authority, and a central bank. Each party operated a node through CorDapp, which facilitates asset transfers between entities.
The PoC system also included an AML/ CFT (Combating the financing of terrorism) compliance procedure handling tool, which stored user identification data and transaction history anonymously. This implies neither the central bank nor third-parties other than the one selected by users could see the info.
The report further explained the objective of the PoC: “The proof of concept shows that it is possible, using the Corda platform, to build a simplified CBDC payment system that safeguards users’ privacy for lower-value transactions, while still ensuring that higher-value transactions are subject to mandatory AML/CFT checks.”
Private sector initiatives
Fidelity Investments opening a cryptocurrency division in the UK
The cryptocurrency division of Fidelity Investments, Fidelity Digital Assets, is setting up shop in the UK. Following the launch, the UK Fidelity division will start operations by providing services associated with Bitcoin (BTC) only.
A Fidelity Digital Assets representative issued the following statement regarding the UK operations. “We plan to provide our services to European institutional investors through our U.K.-registered entity, Fidelity Digital Assets, Ltd. We recognize that the regulatory requirement for service providers in the digital assets space is evolving, and we intend to comply with all applicable requirements in the U.K. and elsewhere as we continue to globally expand our services to the institutional investment community.”
The launch of UK operations will pave the way for the European financial institutions, such as hedge funds, to have access to the firm’s crypto-asset facilities. Boston-based Fidelity initially opened a digital asset service branch in the US last year, offering crypto-asset custody and trading facilities to hedge funds, third-party intermediaries, and other financial institutions. In November 2019, the firm also received approval from the New York State Department of Financial Services (NYDFS) to operate in New York.
ASB Bank part of $1.70 million funding round by TradeWindow
ASB Bank of New Zealand took part in a fresh $1.70 million funding round conducted by blockchain-focused startup firm TradeWindow. The institution, owned by Commonwealth Bank of Australia, had earlier invested in the venture in June 2019. Furthermore, the bank successfully trialed TradeWindow’s platform last year, completing a transaction between a Korean importer and Greenlea Premier Meats, a top New Zealand-headquartered meat exporter.
The firm offers a software-as-a-service supply chain solution, which can be used to develop a “single trading window” that can be accessed by all partakers in the deal between an importer and exporter.
With this investment, ASB’s ownership in the company has increased to 21%. It is the second-largest shareholder after TradeWindow’s founder and CEO, AJ Smith.
Miscellaneous
Diginex unites with IOM in launching a blockchain system to stop Hong Kong Migrant worker exploitation
Diginex, a blockchain-based financial services provider, and the UN-backed International Organization for Migration (IOM) partnered to unveil a blockchain system that intends to halt the exploitation of Hong Kong’s migrant workforce.
The system has been structured to be utilized by roughly 1,500 Hong Kong-based recruitment agencies bringing workers from overseas and their associate firms abroad. The blockchain-based platform is called International Recruitment Integrity System Self-Assessment for Ethical Recruitment (IRIS-SAFER).
Blockchain is employed in the venture to guarantee that information is secure and unalterable, ensuring better data integrity, visibility, and transparency. Roughly 390,000 migrant workers are there in Hong Kong, with 98% being women. A study indicates that 56% of women migrants paid higher than authorized fees to recruitment agencies. IOM China chief of mission Giuseppe Crocetti elaborate on the project: “Through the use of IRIS-SAFER, agencies will first learn what are global ethical recruitment standards, then be able to demonstrate their progress and, ultimately, prove their commitment. With this project, we are drawing from IOM’s global work, through the IRIS initiative, and tailoring it to the specific experience of recruiting migrant domestic workers to Hong Kong.”
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