● Bank for International Settlements: Tokenization of currencies and assets has great potential
According to an official statement, the Bank for International Settlements (BIS) pointed out in a special chapter of its 2023 economic report that the tokenization of currency and assets has great potential, but so far these initiatives have been carried out in "isolated islands" without access to central bank funds and the trust they provide. A new type of financial market infrastructure, the "unified ledger," can reap all the benefits of tokenization by combining central bank money, tokenized deposits, and tokenized assets on a programmable platform. Multiple ledgers may coexist, connected to each other through application programming interfaces to ensure interoperability and promote financial inclusion and a fair competitive environment.
● IMF President: Cross-institutional cooperation is very important for CBDC, and two documents on CBDC will be released
According to an official statement, Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), stated at a high-level policy roundtable on central bank digital currency (CBDC) that cross-institutional cooperation is very important for realizing the benefits of CBDC and payment system interoperability. The IMF’s mission is to help ensure that digital currencies, including CBDC, promote domestic and international economic and financial stability.
In addition, the IMF is about to release two documents on CBDC, one on “CBDC and Private Digital Payments in Sub-Saharan Africa” and the other on “CBDC Roadmap for the Middle East and Central Asia”, which will provide new analysis and learning for these regions.
● Zimbabwe’s central bank to launch peer-to-peer platform to facilitate gold-backed digital token transactions
The Reserve Bank of Zimbabwe (the country’s central bank) said it is “finalizing” the creation of a peer-to-peer (P2P) platform to facilitate trading of digital tokens backed by gold, Bitcoin.com reported.
The central bank said the platform is expected to help reduce local demand for the dollar and that it has sold about 313.9 kilograms of gold-backed digital tokens so far.
Governor John Mangudya said the P2P platform is currently undergoing testing: “The second phase of the rollout of the digital gold token will begin this month, which will enable trading in gold-backed digital currencies. We are currently testing the system before rolling it out.”
● Deutsche Bank applies for digital asset license
According to Bloomberg, Deutsche Bank has applied for a regulatory license to provide custody services for digital assets such as cryptocurrencies. David Lynne, head of Deutsche Bank's commercial banking department, said, "We are building our own digital asset and custody business, and we have submitted an application for a digital asset license to the German Federal Financial Supervisory Authority (BaFin)."
● Hong Kong Legislative Council studies policy measures from multiple countries to provide policy guidance for the development of local Web 3.0 technology
The Information Research Group of the Legislative Council Secretariat of Hong Kong recently released a data summary on "The Development of Web 3.0 Technology in Selected Places". The data summary first discusses the main features, basic technologies and applications of Web 3.0, and then outlines the recent development of Web 3.0 in Hong Kong. This article then analyses the development of Web 3.0 and related technologies/applications in selected places, including examining Japan's approach to formulating a comprehensive strategy, and other study places' efforts to promote application-based initiatives, including measures by Singapore and the UAE to develop blockchain technology and/or asset tokenization; and the development of the use of metaverse technology in Singapore, South Korea and the UAE.
The document mentioned in the recent development of Web 3.0 in Hong Kong that opinions have been received urging the government to: 1. Formulate a blueprint to promote the comprehensive development of Web 3.0 and focus on nurturing talents and start-ups; in addition, there are suggestions that the government should make strategic investments related to Web 3.0 technology cooperation through the newly established Hong Kong Investment Management Co., Ltd. 2. Actively explore various Web 3.0 technologies, such as blockchain-based applications (including DeFi and smart contracts), because in addition to virtual assets, Web 3.0 also has broad application potential in other fields; 3. Establish a clearer legal framework for new trends brought about by Web 3.0 technology, including the emergence of DAOs, intellectual property issues/concerns brought about by the use of NFTs, etc. 4. Learn from the experience of other places to catch up with the development of the metaverse and explore the application of the metaverse in public services, tourism and other industries. The document mentioned in the final conclusion that most of the above policy measures announced by various places covered by the study are still in the planning stage or early implementation, or it will take some time to determine their results and effectiveness. However, the experience of these pioneers may serve as a reference for Hong Kong and provide policy guidance for the local development of Web 3.0 technologies/applications.
It is reported that the summary of information was prepared at the request of Councillor Ng Kit-chung. The Information Research Group of the Hong Kong Legislative Council Secretariat conducted research on the pioneering places that have developed Web3.0 technologies/applications to explore the strategies they have adopted for this purpose.
● Australian think tank calls on the country to speed up the pace of crypto regulation to prevent lagging behind emerging markets
According to Cointelegraph, Loretta Joseph, chairperson of Australia’s newly established policy body, the Australian Digital Financial Standards Advisory Committee (ADFSAC), said that the Australian government needs to speed up the pace of formulating crypto regulations, otherwise it risks falling behind developing emerging markets.
Joseph said: "The pace of regulatory development in Australia regarding crypto is still too slow, and it really bothers me when I see countries like Bermuda, Mauritius and Nigeria developing faster than my own country. Much of Australia's crypto ecosystem cannot be covered using existing legislation, and the country needs to consider updating or adopting new laws to develop and promote innovation. There is a need to bring industry, academia, policymakers and government together to discuss this, and think tanks are very important for discussion and dialogue. Australia should align itself with global standard setters for international financial regulators such as the International Organization of Securities Commissions (IOSCO), the Financial Action Task Force (FATF) and the Financial Stability Board."
● Glassnode: The number of unique addresses holding at least 1 BTC has exceeded 1 million, setting a new record
According to Blockworks, on Tuesday, Glassnode data showed that the number of independent addresses holding at least one bitcoin exceeded 1 million, setting a new high; the number of addresses with more than 10 bitcoins also broke the highest level since September 2019.
Also this week, Bitcoin’s dormant supply hit a new all-time high of 15.2 million, while exchange balances fell to their lowest levels since January 2018. Bitcoin held in wallets has little to no transaction history, suggesting that more Bitcoin holders are choosing to HODL. Approximately 146,000 Bitcoins flow from centralized exchanges to illiquid wallets each month. Glassnode said this could provide a “gradual and steady” accumulation phase for specific groups of holders over the next six months. Glassnode added that this could also lead to a period of stagnation over the next eight to 18 months, as in previous cycles in Bitcoin’s history.
● Binance Labs invests in 5 projects in its incubation program season 5, including zkPass, DappOS, etc.
According to the official blog post, Binance Labs has invested in 5 projects in the fifth season of its incubation program. The selected projects cover various fields of Web3, including DeFi, infrastructure, tools and middleware. The specific project details are as follows:
- zkPass, a composable, privacy-preserving, decentralized authentication solution for Web3 based on multi-party computation (MPC) and zero-knowledge proof (ZKP) technologies. zkPass aims to provide a secure and privacy-preserving authentication solution for Web3 applications using the latest cryptographic techniques.
- Mind Network, a fully encrypted network built on the patented adaptive fully homomorphic encryption (FHE) framework to protect all user data, smart contracts, and AI on Web3. It is used as a decentralized privacy-preserving data lake, providing encrypted high-performance pay-on-demand data storage and computation.
- Kryptoskatt, a project that simplifies Web3 finances for users around the world, provides a comprehensive set of solutions including accounting, portfolio management, and tax reporting. Supporting over 2,000 DeFi protocols, 100+ exchanges and wallets, and 50+ blockchains, Kryptoskatt is a one-stop shop for all Web3 financial needs.
- Bracket Labs, a project building leveraged structured products on-chain with a simple interface and innovative adaptive pricing that greatly improves usability. Bracket Labs launched BracketX.fi, a platform that helps traders quickly take advantage of volatility in sideways and trending market conditions.
- DappOS, a project focused on building an operational protocol that lowers the barrier to entry into Web3 by creating solutions that increase the usability and accessibility of Web3 applications.
● Binance is integrating Bitcoin Lightning Network for user deposit and withdrawal operations
Binance tweeted that it is integrating the Bitcoin Lightning Network for users’ deposit and withdrawal operations. There is still more technical work to be done, and updates will be made after the Lightning Network is fully integrated.
As previously reported, Binance founder and CEO Changpeng Zhao (CZ) said in an AMA on May 31 that the Lightning Network cannot pre-generate addresses. If the Lightning Network is to be implemented, Binance must do something very different in terms of security, but this is not as simple as installing and using a wallet, and many security factors need to be considered behind the scenes. However, the team is very familiar with the Lightning Network, so they are working on various solutions.
● Mastercard files trademark application for cryptocurrency and blockchain transaction software
U.S. trademark licensing attorney Mike Kondoudis tweeted that payment giant Mastercard had filed a new trademark application on June 12, covering software for cryptocurrency and blockchain transactions and connecting virtual asset service providers for crypto transactions.
● OpenAI is considering launching an AI model version of the App Store, allowing customers to sell customized large models
OpenAI is considering launching a marketplace where customers can sell artificial intelligence models they have customized to their needs to other businesses, The Information reported, citing two people familiar with the matter.
The marketplace could be OpenAI’s version of an App Store, offering companies a way to access cutting-edge large language models that could, for example, sniff out financial fraud in online retail transactions or answer questions about a particular market with up-to-date information, the people said. Creating such an app store could also hedge against the risk of a future in which no AI model dominates. It’s unclear whether OpenAI would take a commission on those sales or otherwise generate revenue from the marketplace.
Such a store would compete with App Stores operated by some of OpenAI’s clients and technology partners, including Salesforce and Microsoft. Those stores already allow companies to sell access to chatbots created using OpenAI software. The store could also be a way for OpenAI’s technology to reach a wider customer base, giving it an edge over rivals like Anthropic and Cohere.
OpenAI CEO Sam Altman reportedly revealed the potential plan during a meeting with developers in London last month.
● Australian data center company Arkon Energy raises $26 million to expand into the U.S.
According to CoinDesk, Australian data center infrastructure provider Arkon Energy is expanding its business to the United States by acquiring a site in Hannibal, Ohio. The company has also raised $26 million in funding from Sandton Capital Partners. The Ohio data center is designed to have a capacity of 100 megawatts (MW) and is expected to increase the company's computing power by 3.3 EH/s by the end of 2023.
Arkon said it hopes the facility will provide a predictable revenue stream by offering server hosting services to bitcoin mining companies.
● European Investment Bank issues 1 billion Swedish kronor blockchain digital green bond
According to Cointelegraph, the European Investment Bank (EIB) has issued a blockchain-based "digital native green bond" (Climate Awareness Bond), which is supported by an environmentally incentivized node infrastructure.
This is purportedly the first blockchain-based bond to be registered on the Official List of Luxembourg Stock Exchange securities and listed on the Luxembourg Green Exchange. The bond will run on the recently launched sustainable blockchain digital bond platform So|bond.
It is understood that So|bond allows the issuance, trading and settlement of digital bonds and provides environmental incentives for its node operators.
● UK venture capital firm Illuminate Financial raises $235 million for its third fund
According to Bloomberg, British venture capital firm Illuminate Financial raised $235 million for its third fund, with participation from Bank of New York Mellon Corp., Euroclear, JPMorgan Chase & Co., Barclays Plc and Jefferies Financial Group Inc.
It is reported that this fund is the largest fund currently under Illuminate Financial and will invest in start-ups that provide technology services to financial institutions.
According to CB Insights data, fintech companies raised $15 billion in the first three months of 2023, down about 50% from the same period last year.
It is understood that Illuminate has also invested in several crypto companies, including digital asset market infrastructure companies Copper, Blockdaemon, Baton Systems and institutional staking platform Kiln.
