The cryptocurrency market remains range bound with a slight bullish bias as Bitcoin (BTC) is inching upwards after testing $15,000 on Tuesday. While preparing this report, Bitcoin was trading at $16,705, up 1.10% in the past 24 hours. Ethereum (ETH) has gained 3.50% to trade at $1,201. XRP was trading at $0.3818, an increase of 1% in the last 24 hours.
Major cryptos, which have gained ground in the past 24 hours, are VeChain (VET, $0.01924, 4.50%), EOS (EOS – $0.9172, 2.20%), IOTA (IOTA – $0.2205, 1.90%), Binance Coin (BNB – $299.02, 9.60%), Polkadot (DOT, $5.44, 1.60%), ChainLink (LINK – $6.77, 4.30%), Polygon (MATIC – $0.8808, 1.90%), Avalanche (Avax- $13.28, 4%), Bitcoin Cash (BCH, $114.68, 1.30%), Internet Computer (ICP, $3.95, 4.90%), Dogecoin (DOGE – $0.0832, 3.70%), Solana (SOL, $14.68, 10.70%), Cardano (ADA, $0.3199, 1.30%), Tezos (XTZ, $1.02, 2.30%), Shiba Inu (SHIB, $0.00000910, 1.30%) and Stellar (XLM, $0.0896, 1.50%).
Government level initiatives
BIS Innovation Hub Swiss Centre and Project Tourbillon
The BIS Innovation Hub Swiss Centre has roped in cryptographer David Chaum, who created Bitcoin’s predecessor eCash in the 1990s, for a new central bank digital currency (CBDC) research Project Tourbillon. Specifically, by joining hands with Thomas Moster, a board member of the Swiss National Bank (SNB), Chaum published a research paper on eCash 2.0.
The salient features of the solution are cyber threat proof, including attacks from quantum computers, privacy, and scalability. Last year, both authors wrote another paper that provided glimpses of the features. The latest document delves deep into the subject.
The major challenges faced by a CBDC are anonymity and privacy. eCash facilitates anonymous payments. Nevertheless, to deal with eCash, a consumer must complete the KYC (know your client) compliance process through their commercial bank. The smart feature is that although commercial banks and central banks legally allow a person to gain access to CBDC, the tokens pegged to fiat cash can’t be identified. It is similar to the case of a banknote whose serial number is known to the user but not the bank.
Private sector initiatives
Iberpay and other Spanish banks to trial digital euro payments
Iberpay and several Spanish banks divulged their plans to trial digital euro payment through PoC (proof-of-concept) later this year. Other payment processing firms, which have joined hands with 29 banks, including Sabadell, BBVA, Santander, Deutsche Bank, and ING, are Bizum, Iberpay, and Redsys.
The consortium has confirmed that the PoC is related to a likely issuance of a central bank digital currency (CBDC) as the Eurosystem’s CBDC research is expected to comply only by October 2023. A final decision on the issue of CBDC is anticipated only after that.
The Spanish banks are interested to trial how a retail CBDC will form a part of the prevailing payment framework. This includes banks, payment processors, and other systems such as the local real-time payment platform Bizum.
Notably, the ECB (European Central Bank) has already revealed its CBDC objectives, which include P2P (person-to-person) transfers, e-commerce payments, and in-store payments. The trial will involve the banks as the third party and custodians of the CBDC accounts.
JPMorgan sets up Payments Innovation Lab in Greece
JPMorgan has set up a firm, named Payments Innovation Lab, in Greece. The firm intends to involve blockchain research and innovation. In this regard, the lab is looking to employ 50 people in Athens. The research will also cover the business aspects of Onyx (a blockchain-focused business division of JPMorgan).
The research lab’s goal is to create solutions that employ distributed ledger technology (DLT), cryptography, and artificial intelligence.
Takis Georgakopoulos, Global Head of J.P. Morgan Payments, said “we want to remain at the forefront of payments-related technical advancement, and our latest headquarters in Athens will serve as a vital central hub for our state-of-the-art payments-related initiatives.”
Notably, the financial behemoth projects Onyx as developers of “products, platforms and marketplaces” for itself and its clients. Currently, the blockchain division is offering Onyx Digital Assets with an intraday DLT repo application and for tokenization of collateral. The firm’s other offering i.e. Link solution is for managing a traditional form of payments.
MAS and NYIC reveal joint trials of Project Cedar Phase II x Ubin+
The Monetary Authority of Singapore (MAS) and the New York Innovation Center (NYIC), a division of the NY Federal Reserve, have revealed joint trials for cross-border CBDC, named Project Cedar Phase II x Ubin+.
The initiative will study the likely efficiencies of utilizing wholesale CBDCs (central bank digital currencies) for cross-border settlement.
The trial will specifically study the curtailment in settlement risk through the utilization of wholesale CBDC (wCBDC) as a settlement asset and the interoperability of two networks utilizing various technologies.
Notably, a week before both central banks issued separate announcements. The NYIC disclosed the outcome of the initial stage trial of Project Cedar which studied a wholesale CBDC for quicker settlement. The NYIC was eager to stress that this is only a technological research endeavor. No decision has been taken to release a CBDC, nor does the technology signal any likely trend.
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