The cryptocurrency market remains range bound with Bitcoin (BTC) hovering around $30,000. While preparing this report, Bitcoin was trading at $29,028, up 1.90% in the past 24 hours. Ethereum (ETH) was trading at $1,900, reflecting an increase of 2% in the same period. XRP has gained 0.10% to trade at $0.4638.
The major cryptos, which have gained ground in the past 24 hours, are Binance Coin (BNB – $326.28, 0.50%), Shiba Inu (SHIB, $0.00001008, 0.80%), VeChain (VET, $0.0210, 0.70%), IOTA (IOTA – $0.1988, 2.60%), Stellar (XLM, $0.0936, 0.40%), Polkadot (DOT, $5.78, 1.70%), Solana (SOL, $22.37, 2.10%), ChainLink (LINK – $7.14, 2.60%), Avalanche (Avax- $17.17, 2.70%), and EOS (EOS – $1.03, 1.20%).
Government Level Initiatives
EU Parliament Approves Crypto Asset Regulations and AML Rules
The European Parliament has approved the introduction of Markets for Crypto Assets Regulations (MiCAR) by a vote of 517-38 in favor of the law. Furthermore, legislation enforcing the anti-money laundering (AML) rule pertaining to digital assets was also approved with a resounding majority.
Regarding the approval, Commissioner Mairead McGuinness opined that the law will safeguard consumers and also ensure financial stability and market integrity.
Mairead McGuinness also insisted on global cooperation and hoped other countries would make similar moves. The MiCA law is anticipated to become effective by July 2023, with stipulations related to service providers and the travel rule coming into force by January 2025.
She opined that a lot related to DeFi, borrowing and lending, and NFTs needs to be done.
Reserve Bank of Zimbabwe Plans Gold-Backed Digital Currency to Stabilize Fiat
The Reserve Bank of Zimbabwe (RBZ) is working on a digital currency backed by gold in order to stabilize its fiat currency. This could provide a way for its citizens to avoid erosion of their savings as the Zimbabwe dollar is known for huge fluctuations. Nevertheless, previous efforts to peg the country’s legal tender to other assets have not succeeded.
Almost 15 years ago, the country’s inflation hit 79.60 billion percent, forcing the government to terminate the printing of local currency completely. Ultimately, through the use of foreign currencies such as the Rand and the US dollar, the country was able to bring down inflation. However, the return to a new Zimbabwean dollar four years ago has once again fueled inflation to over 100%.
Therefore, the RBZ is currently looking at the option of introducing a gold-backed digital currency, which will primarily function as a store of value rather than a mode of payment. In this regard, the RBZ Governor, Dr. John Mangudya, stated that the digital currency (backed by gold) will enable the government to resolve the huge demand for overseas currency and provide a solution for poor people to secure their savings.
Private Sector Initiatives
Citi India And Cummins Execute First Domestic LC On Contour Blockchain
Citi India has revealed that it issued the Letter of Credit (LC) utilizing the Contour blockchain network by working in tandem with industrial giant Cummins. This is the first Contour blockchain-based transaction carried out by Citi India and the initial domestic letter of credit handled on Contour, a network that encompasses 17 top banks.
Contour digitizes the letter of credit procedures, which has conventionally been a thorough paper-based trade funding process taking between five and ten days to complete. On the contrary, the Cummins LC was released in a matter of three hours. By ending the need for certain paperwork, the system has also ensured better security as digital documents can be digitally signed, thereby minimizing the chance of forgery.
Notably, Cummins and the counterparty are clients of Citi. Also, Citi took part in Contour’s Series A+ funding in mid-2021.
Miscellaneous
Delta Capita and Montis to Transform CSD Domain with Blockchain
Renowned global capital markets consulting services and tech solutions provider, Delta Capita, has inked an agreement with Montis Group to function as an anchor customer for its latest Distributed Ledger Services project.
Simultaneously, Delta Capita has taken over distributed ledger technology division from SETL, which is a firm owned by Colendi Group. Delta Capita will use the technology to develop a futuristic capital markets solution.
Montis, an associate firm of Archax, is capitalizing on blockchain technology to overhaul the Central Security Depository (CSD) domain and facilitate tokenized assets, including digital securities and security tokens, to achieve the total capability. The CSD framework is structured to be blockchain neutral and will span across exchanges, issuers, other trading landscapes, and market participants across the globe.
The aforesaid platform is scheduled to go live in 4Q 2023. Montis will utilize the SETL technology provided by Delta Capita Distributed Ledger Services. Under the agreement, Montis Group will also acquire a minority stake in Distributed Ledger Services.
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.
