The cryptocurrency market remains rangebound as Bitcoin (BTC) inches towards $30,000. While preparing this report, Bitcoin was trading at $29,154, down 2.10% in the past 24 hours. Ethereum (ETH) lost 1.30% to trade at $1,840. XRP was trading at $0.6825, down 2.50% in the same period.
Major cryptocurrencies, which have lost ground in the last 24 hours, are ChainLink (LINK – $7.34, -4%), Avalanche (Avax- $12.52, -2.40%), Binance Coin (BNB – $239.93, -2.50%), EOS (EOS – $0.7315, -2.20%), Shiba Inu (SHIB, $0.00000823, -2.10%), Stellar (XLM, $0.1433, -5.30%), Solana (SOL, $23.23, -2.50%), Cardano (ADA, $0.2995, -2.80%), Polkadot (DOT, $5.04, -2.90%), VeChain (VET, $0.01829, -3%), Bitcoin Cash (BCH, $230.99, -5.30%), and IOTA (IOTA – $0.1734, -5%).
Government Level Initiatives
Pakistan’s State Bank Expedites CBDC Development and Plans Digital Rupee by 2025
Jameel Ahmad, the governor of the State Bank of Pakistan, revealed the institution’s intention to expedite the creation of central bank digital currency (CBDC). The government also aims to debut the Pakistani rupee by 2025.
The State Bank of Pakistan has encountered significant delays in its pursuit of a central bank digital currency (CBDC) compared to other countries on an international scale. Several other countries in the Asia-Pacific region, such as India, have been actively engaged in conducting trials for a considerable period. These nations have already initiated efforts to evaluate various use cases related to wholesale and retail applications.
On the contrary, Pakistan has been showing a lack of urgency in addressing the issue. Four years ago, the central bank introduced legislation to establish the necessary framework for an upcoming digital currency. However, it seems that the initiative is still in the preliminary research stage.
Furthermore, Ahmad has emphasized the importance of exercising patience to thoroughly evaluate the efforts made by the rest of the central banks and carefully validate the possible threats to the Pakistani economy. He expressed his reluctance to make hasty decisions without conducting an in-depth analysis.
Banque de France’s Wholesale CBDC Paper on Models and Recommendations
The Banque de France released its second paper on wholesale CBDC, after the completion of a dozen central bank digital currency (CBDC) trials. The two main real-life use scenarios for an interbank CBDC are the settlement of securities on DLT platforms and cross-border payments. Based on the trial, the bank highlighted three prospective models.
While some European central banks propose the integration of Distributed Ledger Technology (DLT) systems with current payment platforms for settlement purposes, the French central bank recognizes the potential of a wholesale Central Bank Digital Currency (CBDC) to facilitate atomic settlement or delivery versus payment. This would allow for the concurrent exchange of cash and securities. This eliminates the task of reconciling data, which is a significant challenge that distributed ledger technology (DLT) aims to resolve.
The central bank formulates several policy and technical suggestions. The most critical need is interoperability and standardization, both for cross-border CBDCs and for employing DLT in the securities markets.
A significant challenge faced by central banks pertains to the operational framework of a wholesale Central Bank Digital Currency (CBDC) system. One of the most simple alternatives available is an interoperability model, which operates in a manner comparable to the current interaction between Distributed Ledger Technologies (DLTs). This implies that the tokenized assets remain within their respective ledgers, and any changes in ownership occur exclusively within the ledger.
The integration model entails the establishment of a unified network that is jointly managed by the Eurosystem, comprising the European Central Bank (ECB) and the central banks of the European Union (EU).
Furthermore, the distribution model can be described as a combination of the aforementioned models. There exists a network that is shared among multiple entities and operates autonomously.
Private Sector Initiatives
Ducati Partners with NFT Pro for Web 3.0 Entry on Ripple’s XRP Ledger
Ducati has partnered with NFT Pro to make an entry into Web 3.0. Notably, NFT Pro is the numero uno corporate white-label NFT solution for worldwide brands. The forthcoming Ducati ventures will be employed utilizing Ripple, the prominent blockchain firm offering technical assistance on the high-speed, cost-effective, and carbon-neutral XRP Ledger (XRPL) blockchain.
Following the collaboration, the Bologna-headquartered motorcycle manufacturer affirmed the significance of the digital world for the experiences it proves to fans. In the following months, a plethora of Web3 activities will be created via the development of fresh digital aggregation initiatives, NFT collections, and chances to take part in the new activities that are normal in the Web3 domain and prevalent in the crypto community.
Miscellaneous
Indonesia Launches Government-Backed Crypto Exchange and Clearing House
The Indonesian government-backed cryptocurrency exchange and clearing house has commenced operations. As per the country’s Commodity Futures Trading Supervisory Agency (Bappebti), the platform, tracked by the government watchdog, will be the only one permitted for digital asset transactions.
In addition to the exchange, the agency has set up a futures clearing house. Also, the clearing house will act as an intermediary between a buyer and seller.
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.
