The cryptocurrency market remains range-bound, with Bitcoin hovering around $30,000. While preparing this report, Bitcoin (BTC) was trading at $30,179, a decline of 3% in the last 24 hours. Ethereum (ETH) lost 1.70% to trade at $1,789. XRP was trading at $0.4007, down 1.90% in the same period.
Major altcoins, which have lost ground in the past 24 hours, include VeChain (VET, $0.03016, -2.80%), Tezos (XTZ-$2.09, -1.50%), Uniswap (UNI, $5.06 -3.90%), Stellar (XLM-$0.1388, -2.40%), Binance Coin (BNB- $287.04, -1.80%), Polkadot (DOT, $8.97, -3.40), Cardano (ADA, $0.6325, -2.30%), Internet Computer (ICP, $6.50, -5.60%), Avalanche (Avax- $23.87, -4.10%), EOS (EOS-$1.25, -4.30%), ChainLink (LINK-$8.67, -1.20%), Bitcoin Cash (BCH, $176.03, -3.40%), Solana (SOL, $38.71, -3.30%), Cosmos (ATOM, $8.82, -5.80%), Polygon (MATIC- $$0.6044, -3.50%), Shiba Inu (SHIB-$0.00001052, -3.10%) and Dogecoin (DOGE- $0.080007, -2.40%).
Government level initiatives
Introduction of CBDC to begin in India by March 2023
A report published by the Reserve Bank of India indicated that a stage-by-stage introduction of a central bank digital currency (CBDC) is being planned to begin in the financial year ending March 2023. Notably, the emergence of a digital rupee is contingent on the results of a risk-based strategy for KYC and anti-money laundering (AML) oversight.
Requisite laws to establish the infrastructure to back a CBDC are already in place. In February 2022, the country’s Finance Minister Nirmala Sitharaman revealed plans to introduce a digital rupee that utilizes blockchain and other technology before March 2023.
In the annual report, CBDC was discussed under the section “regulation, supervision and financial stability,” instead of payments. Notably, India is already using a highly commendable, efficient payment network, referred to as UPI (United Payments Interface).
The annual report states, “The structure of CBDC has to be in accordance with the predetermined goals of monetary policy, which include maintaining financial stability and ensuring the effective functioning of currency and payment infrastructures.”
Regarding the CBDC plan, the report states that the Reserve Bank of India intends to employ a phased strategy for the rollout of CBDC, moving methodically through the milestones of Proof of Concept (PoC), trials, and the rollout.
Private sector initiatives
Car Maker Mazda joins MOBI
Auto manufacturer Mazda has joined the blockchain consortium MOBI. Other prominent names in the 120 member association are GM, BMW, Hyundai, Honda, and Renault.
Mazda, interestingly, intends that electrical vehicles (EVs) represent 25% of total sales by 2030. Out of several ventures carried out by MOBI, two of them are related to EVs. The first initiative, named MOBI Battery Initiative, studies the process of allotting a distinct passport to every EV battery. With the entire history of a battery being made available, recycling can be done in an effective manner. The availability of a battery passport will facilitate swapping of batteries to resolve the issue of a long recharge period, specifically during transit.
The second EV project focuses on integrating electric vehicles with the grid. Specifically, MOBI’s team is also working to facilitate peer-to-peer trading of electricity and also generate carbon credits for the users. If successful, the energy stored in an idle car’s battery (charged through solar panels) could be sold during peak demand.
Miscellaneous
NCUA gives thumbs up for blockchain tech at credit unions
The National Credit Union Administration (NCUA) has issued a letter to federally insured credit associations signaling its support for the implementation of blockchain technology by the latter. Notably, the NCUA is the federal agency that offers insurance. In December 2021, the institution issued a letter related to digital assets.
Nevertheless, the regulator has put forth numerous terms and conditions, including the prerequisite of using the distributed ledger technology (DLT) only for legitimate application and in accordance with the applicable laws. Credit unions are anticipated to carry out a detailed risk validation of any DLT network, including the one for compliance, cybersecurity, liquidity, threat to reputation, and risk posed by intermediates.
The letter issued in December gave the green signal for credit unions to join hands with intermediates to facilitate their members to retain digital assets and crypto in particular. However, the letter did not openly offer the credit unions the liberty to pursue in a straightforward manner.
Copper gets green light in Switzerland
Copper, which offers crypto custodial technology, has received regulatory clearance in Switzerland. Specifically, the firm has become a member of the Swiss Financial Services Standard Association (VQF). Notably, VQF is a self-regulatory institution that has been tasked by the Swiss regulator FINMA to govern its members and ensure adherence to anti-money laundering laws.
In March, Copper revealed that State Street, the second-largest traditional custodial firm in the world, had chosen its platform to build a custodial solution.
However, the UK headquartered Copper is still facing issues on its home turf. The firm is still one among the four firms which have been temporarily enrolled by the UK’s Financial Conduct Authority (FCA).
In May 2021, Copper successfully completed a $50 million Series B funding round, aided by Tiger Global and Dawn Capital. In June 2021, the firm received $25 million in financing, led by Alan Howard, co-founder of Brevan Howard and cryptocurrency-focused company Elwood Technologies. The firm has also inked a strategic deal with Elwood. Overall, Copper has received $85 million in funding.
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