The cryptocurrency market remains slightly bearish with Bitcoin (BTC) falling below $28,000. While preparing this report, Bitcoin was trading at $27,380, down 1.20% in the past 24 hours. Ethereum (ETH) had lost 1.70% to trade at $1,835. XRP was trading at $0.4620, reflecting a decline of 2.30% in the same period.
The major cryptos, which have lost ground in the past 24 hours, are Binance Coin (BNB – $331.67, -0.20%), Shiba Inu (SHIB, $0.00001027, -1.40%), VeChain (VET, $0.02192, -1.80%), IOTA (IOTA – $0.1980, -0.70%), Stellar (XLM, $0.0929, -2.50%), Polkadot (DOT, $5.88, -1.30%), Bitcoin Cash (BCH, $118.34, -1.90%), Cardano (ADA, $0.3818, -2.70%), Tezos (XTZ, $1.00, -2.10%), Solana (SOL, $21.12, -3.10%), ChainLink (LINK – $7.02, -1.90%), Avalanche (Avax- $16.85, -0.50%), and EOS (EOS – $1.04, -2.20%).
Government level initiatives
Macroeconomic Benefits of Retail Central Bank Digital Currency
The economists at BIS carried out macroeconomic research on the likely effect of releasing a retail central bank digital currency (CBDC). The results pointed out that the preferred level of issuance for CBDCs will be 40% of the Gross Domestic Product (GDP). This is a huge quantity in comparison to the level being discussed by central banks. However, the paper has underlined that this could bring considerable macroeconomic and financial balance in the years ahead.
The report has clarified that at a rate of issuance of 30% of GDP, a CBDC could increase a country’s output by 6% and boost welfare gains by more than 2%. In contradiction to popular assumptions, the report states that the introduction of digital currency could improve the financial stability of a country, with banks’ balance sheets rising in the long run and the average cost of funding staying constant. Furthermore, CBDCs could act as a complement to the prevailing monetary and fiscal policy rules, aiding to stabilize inflationary pressure and output during financial jolts.
Nevertheless, the authors point out that the aforesaid benefits will be much higher if the rate of issuance of CBDCs is 40% of the GDP of a country.
Jamaica Launches Incentive Programs to Boost Adoption of CBDC JAM-DEX
Jamaica has launched two new incentive programs to boost the adoption of its CBDC (central bank digital currency), the JAM-DEX. The initiatives will reward vendors who accept the government-backed digital currency at the point of sale and also individual users who employ the JAM-DEX regularly. The goal is to pave the way for transformation to the digital economy.
While speaking about the upcoming budget for the fiscal year, Jamaica’s Minister of Finance, Dr. Nigel Clarke, revealed details about the aforesaid incentive programs.
The first one is the “Small/Micro Merchant Incentive Program”, which will incentivize the first 10,000 vendors who are members of the official JAM-DEX platform as of April 1, 2023, with a J$25,000 (approximately $164) deposit.
The government targets food outlets, hairdressers, gas stations, and other personal care services.
The second one is the “Wallet-holder Individual Loyalty Program”, which offers regular JAM-DEX users loyalty points that can be exchanged for things including 2% cash back on eligible purchases.
Even though all individuals holding a bank account qualify for a CBDC wallet, the major objective is to lure non-bank account CBDC users by employing a simple “know your customer” process.
Central Bank of Montenegro Partners with Ripple to Trial National Stablecoin
The Central Bank of Montenegro (CBCG) has entered into a partnership with blockchain and cryptocurrency-focused company Ripple to create a digital currency strategy and trial a central bank digital currency (CBDC) aka a national stablecoin. The central bank is looking at two options, but the creation of a national stablecoin has a higher probability due to the distinct currency scenario of the country.
Two decades earlier, the country chose to adopt the euro on a suo motto basis despite not being a member of the EU (European Union). Therefore, experts are concerned about the viability of a CBDC. One choice could be to follow Cambodia’s model, which established a blockchain-powered payment network three years ago to foster domestic currency usage and address the country’s de-dollarization.
Even though frequently depicted as CBDC, the mechanism includes a mobile payment system that handles both US dollars and domestic riels by tokenizing prevailing commercial bank balances without the creation of fresh digital currency. This is almost similar to a stablecoin or tokenized bank account. However, this mechanism will permit Montenegro’s digital currency initiatives and aid the country in achieving its goal of improving the digitization of financial services and promoting better financial inclusion.
Private sector initiatives
Telstra, Dalet, and Eluvio Partner for Web3 Content Distribution Solution
Australia headquartered telecom firm Telstra has collaborated with broadcast solutions and services solutions provider Dalet and content blockchain leader Eluvio to offer a peer-to-peer Video Service and Web3 Content Distribution Solution (CDN). The service is aimed at OTT providers, content owners and creators, broadcasters, and the rest of the media and entertainment firms across the world.
The latest system paves way for simplified, low-cost, and on-time video distribution from the origin (stream or file), without creating file copies and without the employment of high-cost third-party cloud storage, OVP, transcoding, or CDN providers.
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