The cryptocurrency market remains rangebound with Bitcoin (BTC) hovering around $17,000. While preparing this report, Bitcoin was trading at $16,832, down 0.20% in the past 24 hours. Ethereum (ETH) was trading flat at $1,213. XRP had lost 0.70% to trade at $0.3434.
Major cryptos, which have gained ground in the past 24 hours, are ChainLink (LINK – $5.98, 0.20%), VeChain (VET, $0.01636, 1.10%), EOS (EOS – $0.8889, 0.40%), IOTA (IOTA – $0.8889, 0.50%), Internet Computer (ICP, $3.71, 1.10%) and Tezos (XTZ, $0.8076, 0.10%).
Major cryptos, which have lost ground in the past 24 hours, are Binance Coin (BNB – $246.78, -1.30%), Polkadot (DOT, $4.48, -1.90%), Polygon (MATIC – $0.7907, -0.80%), Avalanche (Avax- $11.71, -1.10%), Bitcoin Cash (BCH, $100.48, -1.40%), Dogecoin (DOGE – $0.073757, -0.30%), Solana (SOL, $12.12, -0.80%), Cardano (ADA, $0.2536, -1.40%), Stellar (XLM, $0.07516, -0.90%) and Shiba Inu (SHIB, $0.00000829, -1.20%).
Government level initiatives
ECB Reveals Details of Retail Digital Euro Prototype Features
The European Central Bank (ECB) divulged details about its retail digital euro (CBDC – central bank digital currency) features that were part of the prototypes. In September, the institution revealed the list of five organizations that were tasked with the development of front-end prototypes for the central bank digital currency (CBDC).
The prototype description indicates that the latest digital euro version is token-based and utilizes UTXO, a token model that rose in popularity with the launch of Bitcoin (BTC). Nevertheless, it still uses blockchain. The ECB document indicates that the digital euro UTXO ledger is a fresh design made by the Eurosystem professionals.
Notably, the digital euro prototype gives the control of private keys to wallet service providers, also the front-end interface providers in this case, instead of users. The objective of centralizing key administration is to enhance usability by end-user.
An interesting feature of the digital euro is that there will be restrictions on the holding limits. Therefore, there is a necessity for the digital wallet to get linked with bank accounts. The document also mentions offline usage without any possibility of reversibility, even in case of any kind of fraud.
Private sector initiatives
SMBC to Focus on Web3 Soulbound Digital Tokens
Japan’s banking behemoth Sumitomo Mitsui Banking Corporation (SMBC) has revealed plans to concentrate on Web3 soulbound digital tokens. The renowned East Asian bank aims to capitalize on the prevailing relationship with blockchain firm HashPort to attain the Web3 objective.
SMBC stated that it would carry out the piloting of the soulbound tokens (SBTs) for validation via its HashPort collaboration. As per the Japanese bank, the partnership with HashPort would establish a “secure web3 economic zone.” Additionally, the Tokyo-headquartered bank also mentioned that the trial period would continue until March 2023. After the conclusion of the trial, SMBC intends to focus on career soulbound tokens.
Furthermore, the bank would evaluate fan groups created around these digital tokens in concurrence with other enterprises. Finally, SMBC and HashPort Group is also likely to look at non-fungible tokens (NFTs) and web3 framework development.
During the trial, SMBC would release soulbound digital tokens with technical assistance from HashPort. These tokens will be later assessed to demonstrate behavior patterns or claims related to careers.
German bank KfW issues a digital bond on the D7 post-trade platform
Germany-headquartered bank KfW has issued a digital bond using the D7 post-trade platform run by the Deutsche Börse. The bond issuance was done by Clearstream, a post-trade-focused subsidiary of Deutsche Börse. In the weeks ahead, the firm intends to utilize D7 in other jurisdictions, beginning with Luxembourg.
Notably, all securities were required to be physically released before the German parliament passed the eWpG legislation in mid-2021. Interestingly, the D7 platform has been purposely built for handling digital securities. Also, the aforesaid digital bond issuance was carried out using Digital Asset’s DAML smart contract language.
The main advantages of digital securities include the speed of release and reduction of work required for the issuance. Overall, €20 million worth of KfW bonds carrying a coupon of 2.381% were issued. Nevertheless, the bonds were stored in a digital central security depository (CSD) instead of a blockchain.
Miscellaneous
Starbucks launches beta loyalty program – Starbucks Odyssey
Coffee chain Starbucks revealed the beta launch of Starbucks Odyssey, a blockchain-based loyalty program offering a range of benefits and immersive coffee experiences for regular customers.
The initiative is an extension of the prevailing Starbucks Rewards loyalty program and the beta rollout was accessible to a predetermined list of individuals, including customers and Starbucks employees.
The chosen participants will be able to have an immersive experience by taking part in activities such as ‘journeys’ through the Starbucks rewards page. To begin with, participants will take a virtual tour of the firm’s coffee farm in Costa Rica to understand lesser-known details about Starbucks’ heritage.
After completing the journey, members will be rewarded with Polygon-hosted NFTs named ‘Journey Stamps’, and also Odyssey loyalty points that can be used to enjoy other benefits and immersive experiences. Furthermore, the beta participants will partner with Starbucks to mold the destiny of the Odyssey experience.
Beginning next year, members will be able to buy distinct, unique ‘Limited-Edition Stamps’ (NFTs) on the secondary marketplace.
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.
