The cryptocurrency market has turned bullish with Bitcoin (BTC) breaking above $30,000. While preparing this report, Bitcoin was trading at a 10-month high of $30,351, reflecting an increase of 7.30% in the past 24 hours. Ethereum (ETH) gained 4.40% to trade at $1,935. XRP was trading at $0.5165, reflecting a rise of 2.70% in the same period.
The major cryptos, which have gained ground in the past 24 hours, are Binance Coin (BNB – $323.46, 3.50%), Dogecoin (DOGE – $0.0851, 2.70%), Shiba Inu (SHIB, $0.00001119, 2.50%), VeChain (VET, $0.02509, 3.70%), IOTA (IOTA – $0.2271, 2.70%), Stellar (XLM, $0.1058, 2.50%), Polkadot (DOT, $6.34, 3.20%), Bitcoin Cash (BCH, $129.15, 3.60%), Cardano (ADA, $0.4005, 3.60%), Tezos (XTZ, $1.13, 3%), Solana (SOL, $21.24, 5%), ChainLink (LINK – $7.42, 3.50%), Avalanche (Avax- $18.05, 3.10%), Internet Computer (ICP, $5.22, 4.50%), and EOS (EOS – $1.25, 3.90%).
Government level initiatives
eNaira Surges in Popularity as Nigeria’s Cash Economy Shrinks
The quantum of Nigeria’s digital currency (eNaira) transactions surged 63% y-o-y as the liquidity of the country’s legal tender (fiat cash) was slashed by about 33% recently. In 2022, the government started substituting old banknotes to minimize cash hoarding, counterfeiting, and black market transactions.
Still, cash payments account for roughly 90% of Nigeria’s unofficial economy. Back in October 2021, the Central Bank of Nigeria (CBN) took the credit of being the first institution to roll out a large-scale CBDC (e-Naira) trial. Subsequently, the value of digital currency transactions in Nigeria has increased consistently to roughly 22 billion naira ($47.70 million). Notably, over 13 million digital wallets have been opened in the last six months.
On the contrary, the liquidity of fiat cash plunged by about 3.30 trillion naira ($7.10 billion) in December 2022 to slightly lower than 1 trillion naira ($2.10 billion) in February 2023.
CBN’s Governor Godwin Emefiele has pointed out that this has been a step in the continuous effort to draw the informal economy under governance and demotivate people from going around the formal banking framework.
eNaira products and services can aid in increasing participation in the digital economy and foster the growth of the Fintech environment. Additionally, eNaira can also expedite SME growth, boost cross-border transactions, and enhance interbank market competence.
UAE’s Central Bank Chooses R3 and G42 for CBDC Development
The Central Bank of the UAE has chosen R3 for providing the necessary technology for the development of its CBDC. The other firm chosen for the development is G42 Cloud for infrastructure.
The three aspects of its initial stage strategy have been revealed, with an intention to conclude them in the next 12 to 15 months. The first milestone is Project MBridge, the wholesale cross-border CBDC solution developed in partnership with the BIS (Bureau of International Settlements) and the central banks of China, Thailand, and Hong Kong.
The second milestone is the bilateral cross-border CBDC project with India. The final one is the domestic effort for both retail and wholesale CBDC. The proof-of-concept has been planned to be completed during the aforesaid period.
The central bank highlighted delays and high costs of traditional payment mechanisms as the principal driver behind the CBDC initiative. Other notable drivers are:
Financial inclusion:
- To promote a cashless society
- Reliable payment framework
- Tokenization of financial and non-financial assets.
Private sector initiatives
dwpbank Launches wpNex to Enable Crypto Trading for 1,200 Bank Clients
Germany-headquartered dwpbank (Deutsche WertpapierService Bank AG) has rolled out wpNex, a digital assets solution to back crypto and other digital assets trading for its 1,200 bank clients. These banks put together have 5.50 million retail clients.
The firm’s initial trial transaction involving Bitcoin had MLP Banking as one of the transacting parties. Dr. Paul Utzat, Head of Account and Securities Processing at MLP Banking AG said, “The pilot initiative with dwpbank allows us to offer cryptocurrency trading to our consumers in the initial phase. In our client platform, it is a natural extension of the prevailing wealth management services.”
Dwpbank underlined cryptocurrency trading as the main aspect of its offering and is aiming at facilitating regulated trading of other digital assets.
Miscellaneous
Nasdaq Applies for Trust Company Charter to Launch Cryptocurrency Custodial Facility
Last September, Nasdaq rolled out its digital assets unit, with the intention to establish a proprietary cryptocurrency custodial facility. The platform is forecast to be rolled out in the second quarter of 2023.
The stock exchange group has submitted an application to the New York Department of Financial Services (NYDFS) for a trust company charter, mainly for the aforesaid objective. As per the Chief of Nasdaq Digital Assets, Ira Auerbach, the service will initially start providing Bitcoin (BTC) and Ether (ETH) custody but intends to start offering institution-level execution services in the long term.
The Nasdaq CEO Adena Friedman has highlighted the ability of blockchain technology to create a paradigm shift in the way markets function in the long term.
Nasdaq’s tech unit has been providing similar services to the digital assets domain, including crypto AML solutions and marketplace (trading platform) technology.
The exchange has acquired a stake in both cryptocurrency startups and enterprise blockchain firms, including Symbiont and Fnality, the institution-level blockchain settlement platform.
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.
