The cryptocurrency market remains range-bound with a slight bearish bias as Bitcoin (BTC) once again fell below $45,000. While preparing this report, Bitcoin was trading at $42,701, up 0.70% in the past 24 hours. Ethereum (ETH) inched up 0.50% to trade at $2,520. XRP had lost 1.90% to trade at $0.5751.
Major cryptocurrencies, that have gained ground in the past 24 hours, are Binance Coin (BNB – $314.71, 2.10%), VeChain (VET, $0.0304, 0.80%), EOS (EOS – $0.7776, 1.70%), Bitcoin Cash (BCH, $252.06, 0.60%), and Polkadot (DOT, $7.55, 1%),
Major cryptocurrencies, that have gained ground in the past 24 hours, are IOTA (IOTA – $0.2436, -0.30%), Avalanche (Avax- $36.04, -0.90%), Solana (SOL, $95.81, -0.6%), Cardano (ADA, $0.533, 0.9%), Shiba Inu (SHIB, $0.00009603, -1.30%), and ChainLink (LINK – $15.27, 3.30%).
Government Level Initiatives
Bank Indonesia Advances CBDC Plans with Project Garuda Proof of Concept
During last month’s festive season, the Bank of Indonesia released the results of its deliberations on wholesale central bank digital currency (wholesale CBDC). Presently, the central bank aims to advance Project Garuda to the proof of concept (PoC) stage.
The central bank published a document highlighting its comprehensive three-tiered CBDC strategy a year ago. The initial phase entails establishing a wholesale CBDC. In the subsequent stage, the central bank seeks to seamlessly integrate the wholesale CBDC with a securities ledger. The ultimate objective of the third phase is the introduction of an all-encompassing retail digital rupiah.
Recently, Bank Indonesia Governor Perry Warjiyo stated, “We have released the proof-of-concept for the digital currency and anticipate formulating the technology and infrastructure that will be employed in the forthcoming period.” The central bank has joined hands with financial institutions to begin the trial phase.
Discussions on CBDC by the Bank of Indonesia commenced last year, leading to an agreement centered on the adoption of a permissioned DLT solution featuring a Proof of Authority consensus mechanism. Additionally, the central bank expresses interest in incorporating De-Fi-style automated market-making (AMM) and liquidity management capabilities.
Private Sector Initiatives
Visa Unveils Web3 Loyalty Program with SmartMedia Technologies
Visa has launched a Web3 loyalty engagement program. The goal is to facilitate brands quickly starting to offer rewards in both the real and virtual worlds. In addition to digital collectibles, the video associated with the rollout reflects clients earning Visa points that can be exchanged for goods.
The features encompass digital ticketing, token-restricted access, loyalty tokens, digital coupons, and reward transactions. Additionally, brands have the capability to offer personalized, branded wallets.
Collaborating with SmartMedia Technologies, Visa joins forces with other prominent brands such as Amex, Accenture, Vodafone, and Burberry, eliminating the need to start loyalty programs from scratch.
Kathleen Pierce-Gilmore, SVP and Global Head of Issuing Solutions, at Visa, stated, “Consumers seek novel ways to interact with brands, and conventional loyalty programs have remained stagnant over the last decade. Imagine acquiring a distinctive digital collectible, be it through the purchase of sports event tickets or engagement in an augmented reality treasure hunt.”
Access Bank Joins Africa Consortium in Launching Naira Stablecoin cNGN
Nigeria-headquartered banks and payment providers have established an association to roll out a Naira stablecoin, cNGN. The consortium is believed to have Access Bank, Nigeria’s largest bank, as its member.
Furthermore, on January 4th, the Africa Stablecoin Consortium (ASC) affirmed that cNGN will be a portion of the Central Bank of Nigeria (CBN) sandbox and intends to roll out on February 27.
As per the published document, the Nigerian Financial Intelligence division seems to categorize stablecoins as e-money instead of virtual currency, even though it is subject to change.
The stablecoin intends to be unveiled on several public blockchains. The ASC stated that the main issuance will be on the Bantu blockchain, followed by issuance on the Binance Smart Chain. Automated Multi-chain Transfer Protocol (AMTP) will be utilized to employ interoperability.
Bank of Spain Awards CBDC Trial Contracts to Adhara and Abanca-Cecabank Association
More than a year ago, the Bank of Spain called interested parties to apply for a tender for the trial of wholesale central bank digital currency. In this regard, last week it awarded two contracts. The first contract for the development and delivery of a wholesale CBDC framework was awarded to Adhara, the tech associate of Fnality. The second contract for the trial of wholesale CBDC for securities settlement was awarded to an association encompassing Abanca and Cecabank.
Furthermore, Adhara will develop a ‘digital interbank orchestration solution’ in the form of a tokenized deposit framework. Adhara has already created such a solution. The company has a Spanish subsidiary.
The Adhara venture will also work on the issuance of two or additional distinct wholesale CBDCs for cross-border settlements and the allocation of wallets to participants. The ventures have mentioned English as a second language to share the outcome of the trial with a wider audience.
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