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US Congress to introduce a new draft bill for stablecoins

A new draft bill providing a framework for stablecoins in the United States was published in the House of Representatives document repository a few days before the scheduled hearing on the topic on April 19. 

The draft puts the Federal Reserve in charge of non-bank stablecoin issuers, such as crypto firms Tether and Circle, respectively, issuers of Tether and USD Coin.

Stablecoins are a class of cryptocurrencies that attempt to offer investors price stability by being backed by specific assets or using algorithms to adjust their supply based on demand. Stablecoins were introduced in 2014 with the release of BitUSD.

According to the document, insured depository institutions seeking to issue stablecoins would fall under the appropriate federal banking agency supervision. In contrast, non-bank institutions would be subject to Federal Reserve oversight. Additionally, failure to register could result in up to five years in prison and a fine of $1 million. Issuers out of the United States would have to seek registration to do business in the country.

Among the factors for approval is the ability of the applicant to maintain reserves backing the stablecoins with U.S. dollars or Federal Reserve notes, Treasury bills with a maturity of 90 days or less, repurchase agreements with a maturity of seven days or less backed by Treasury bills with a maturity of 90 days or less, and central bank reserve deposits.

Furthermore, issuers must demonstrate technical expertise, established governance, and the benefits of offering financial inclusion and innovation through stablecoins.

Also, as part of the drafted legislation is a two-year ban on issuing, creating or originating stablecoins not backed by tangible assets. It also establishes that the U.S. Department of the Treasury would conduct a study regarding endogenously collateralized stablecoins. As per the document definition, an endogenous stablecoin relies solely on the value of another digital asset created or maintained by the same originator to maintain the fixed price.

The draft further allows the U.S. Government to establish standards for interoperability between stablecoins. It also determines that Congress and the White House would support a Federal Reserve study about issuing a digital dollar.

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African Crypto Payment Startup Ivorypay Selected For Funding By CV VC Labs

CVVC recently kickstarted its 5th global blockchain startup accelerator where it selected nine innovative projects to work with. Ivorypay, an African-based cryptocurrency payments service based in South Africa with offices in Nigeria, was chosen as one of the projects to take part in the current round. 

The CVVC batch 5 accelerator includes cutting-edge projects in the areas of payments, web3 dev training, regenerative finance, gaming infrastructure, no-code tools, marketplaces, and BNPL services.

Ivorypay was one of only three African projects to be chosen, making this decision significant. Its creative solution aims to make it easier for people to make online and offline payments using the blockchain on the African continent.  Particularly for African businesses, Ivorypay seeks to remove barriers to both domestic and international payments. 

Businesses in Africa face a wide range of difficulties, as is well known.  The high cost of domestic and international transactions, restrictions on online purchases made in dollars using foreign currency, and the unpredictability of transaction completion times are just a few of these difficulties. With blockchain technology, Ivorypay is utilizing, it is resolving all of these issues for African businesses. 

Utilizing QR codes, payment links, and checkout buttons, Ivorypay’s cutting-edge online and offline payment solution enables businesses to accept payments in stable cryptocurrencies. Additionally, it gives social commerce and SMEs access to a digital storefront where they can display their goods and accept immediate payments in stablecoins for goods sold. 

The solutions offered by Ivorypay therefore seem ideal for the African continent.  It offers businesses a lifeline and addresses one of the main obstacles that African businesses must overcome. It is the most recent innovation to help improve the business climate in Africa.

Ivorypay is receiving capital funding as well as access to additional funding options from Crypto Valley VC as part of the accelerator program. Ivorypay is currently taking part in the 10-week CVVC boot camp where it will receive individualized mentoring and learn specialized growth hacks. In order to provide African business owners with a reliable crypto payment solution, a strong blockchain infrastructure is being built.

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Hong Kong’s ZA bank now offering crypto conversions

Hong Kong’s biggest virtual bank is pushing into transfers of crypto and fiat currencies and will provide account services for the city’s burgeoning digital asset sector.

ZA Bank, which was founded by Chinese billionaire Ou Yaping among others, will offer token-to-fiat currency conversions through licensed exchanges, according to Ronald Lu, the lender’s chief executive officer, in an interview Tuesday. After depositing crypto tokens with exchanges, ZA will act as a settlement bank for clients, allowing withdrawals in Hong Kong, China, and US currencies, according to Lu.

HashKey and OSL, the only two crypto exchanges in Hong Kong that are currently licensed, are using the business model already, according to Iu. In the event that additional exchanges obtain licenses, ZA Bank will also offer the same service to them. “For the dozen of interested firms, big or small, from abroad and local, top of their concern is to have a path to make things work,” said Lu.

In an effort to restore its reputation as a financial hub after years of Covid restrictions and political unrest, Hong Kong is going against the grain by opening up to the disadvantaged sector. The city’s goals, however, have been significantly hampered by access to banking. Later this month, the city’s banking and securities regulators will host a round table for cryptocurrency users and bankers to discuss their experiences with and views on banking services.

A new framework for virtual asset exchanges that permits exchange operators to accept retail investors will be put into place by Hong Kong as of June 1.  Traditional banks have been reluctant to provide services due to strict know-your-customer and anti-money-laundering regulations, which has further eroded banking access for many crypto firms in the wake of Silicon Valley Bank’s recent collapse.

ZA Bank is now offering online account opening for regional Web3 start-ups and small-medium enterprises after a trial in a regulatory sandbox that onboarded about 100 firms. The bank connected to the city’s company registry data, allowing for minimal information input and cross-checking, according to Devon Sin, the bank’s acting chief executive.

To comply with regulatory requirements, ZA Bank is only planning to work with licensed exchanges and performs AML scrutiny using the standard checklists. The last few months of work have not revealed any AML issues, according to Sin.

Due to the restrictions in place in mainland China, the lender does not provide services to customers from that country, according to Iu. One of Hong Kong’s eight licensed virtual banks, ZA Bank was officially launched in March 2020 and had accumulated the most net assets while remaining unprofitable as of the previous year.

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Mastercard launches free NFTs and Web3 music accelerator

Credit card company Mastercard announced recently at NFT.NYC that it’s releasing non-fungible tokens (NFTs) to help Web3 musicians access resources to boost their careers.

The Mastercard Music Pass NFT, which is free to mint and developed in coordination with Polygon, is a digital collectible that allows artists to access the Mastercard Artist Accelerator program. The accelerator provides artists with AI technology and educational tools including access to advice from Web3 mentors like artist Latashá and Ledger CXO Ian Rodgers.

Web3 musicians, fans, and enthusiasts will be able to collect these NFTs through the end of April.

Raja Rajamannar, Chief Marketing and Communications Officer and President of the healthcare business at Mastercard stated in the press release that providing Web3 education is a key motivator for the company’s new NFTs and accelerator program.

“As a company, we hope to help people and partners around the world better understand and trust how blockchain and digital assets are used, and how our technology can support the ecosystem. We also believe that Web3 can be a powerful tool in connecting people and building communities around shared universal passions,” he stated.

Although Mastercard has previously made moves in supporting musicians by sponsoring the Grammy Awards, Latin Grammy Awards, and Brit Awards, this is the company’s first move that combines music and NFTs. 
It’s not Mastercard’s first foray into NFTs overall: In June 2022 it began allowing cardholders to purchase NFTs with fiat through a partnership with payments infrastructure company MoonPay.

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Zambia to finish cryptocurrency regulation tests by June, Minister says

Cryptocurrency regulation tests aiming to help shape crypto laws in Zambia that simulate the real-world use of crypto are on track to finish by June.

According to a Reuters interview, Zambia’s Innovation, Science, and Technology Minister, Felix Mutati, said the purpose of conducting the tests was to help the Government see what would happen in the real world, to assist in forming crypto regulations.

Zambia’s central bank and securities regulator commenced the tests in February, which Mutati stated was looking to balance safety and innovation.

“Our main goal in the area of cryptocurrency is to strike a balance between innovation in terms of digital payments against citizens’ safety, particularly given that cryptocurrency is very volatile,” the Minister noted.

Additionally, Mutati commented that before cryptocurrencies can be introduced, digital identities and other digital infrastructures need to be implemented.

Although Zambia’s debt restructuring process has been long delayed, with the largest portion of its debt owed to creditors from China, Mutati suggested it hasn’t deterred investment in Zambia.

Mutati commented on this saying, “What we are seeing is increased appetite to invest in Zambia.”

Zambia, which was the first African country to default in the COVID-19 era in 2020, could lose gains made from economic reforms if the restructuring of $18.6 billion of external debt is further delayed, the country’s Treasury secretary stated on Wednesday.

When Mutati initially announced that the country would be testing technology for crypto regulation in February, he stated that through digital payment platforms, people will become much more included in digital financial services.

He added, “Cryptocurrency will be a driver for financial inclusion and a change maker for Zambia’s economy.”

Many countries in the African region have made moves toward crypto adoption in recent times. The Central African Republic made Bitcoin legal tender in April 2022, along with a regulatory framework for the use of cryptocurrency in the country.

It was also reported last year that the Nigerian Government plans to pass a new law in the near future that will recognize cryptocurrency and other digital funds as capital for investment, despite banning crypto activity in 2021.

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Ethereum Shanghai Upgrade goes live

As most of the crypto world watches, Ethereum’s highly-anticipated Shanghai update officially went live. The development scheduled to arrive Wednesday night, arrived at 6:27 pm EST and was set to enable the withdrawal of previously staked Ethereum on the network for the first time.

The proof-of-stake (PoS) model is a more optimal method in regard to energy efficiency. Moreover, it verifies crypto transactions with randomly elected validators based on staked ETH. Additionally, withdrawal functionality is the prime function of the two-part network update, Shanghai and Capella.

The network commented, “This enables previously staked ETH to be deposited into execution layer accounts, closing the loop on staking liquidity.” Subsequently, noting the end of the lock-up period, users are free to stake their own ETH and more.

There has been some speculation that the upgrade’s arrival could negatively impact the price in the short term. Conversely, its implementation signifies a host of technology improvements for the Ethereum Network.

Furthermore, the simultaneous Beacon Chain update, known as Capella, has occurred. Thus, is a requirement for the Shanghai Update finally arriving. Together, both upgrades have gone live to enable the newly developed withdrawal feature.

Ethereum has noted the new approach to staking withdrawals does away with the necessity to submit transactions that request a specific amount of ETH be withdrawn. Consequently, there is no transaction fee required, as withdrawals are not in competition for execution layer block space.

Conclusively, Ethereum states that a maximum of 16 withdrawals can be processed in a single block. Moreover, 115,200 validator withdrawals are able to be processed on a given day. Subsequently, the network predicts that the calculation will equate to 400,000 taking 3.5 days to complete, and 800,000 taking 7 days.

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India seeks a common crypto framework for all countries

Indian Finance Minister Niramala Sitharaman is currently on an official visit to the U.S. to attend this year’s Spring Meetings of the World Bank Group and the International Monetary Fund (IMF) which are taking place from April 10 to April 16. 

She is also representing India at the G20 Finance Ministers and Central Bank Governors meetings on the sidelines of the IMF-World Bank Spring Meetings.

Sitharaman discussed a wide range of topics during her trip, including cryptocurrency regulation. At a roundtable discussion titled “Investment Opportunities for the Long Term: India on the Rise,” the Indian finance minister emphasized that the regulation of cryptocurrencies is a key topic being discussed by the G20 nations under India’s presidency. 

She stated, “Cryptocurrencies are a very important part of the discussion under India’s G20 presidency, given so many collapses and shocks in cryptocurrencies. We seek to develop a common framework for all countries to deal with this matter.”

The Ministry of Finance recently warned India’s parliament that cryptocurrency is currently unregulated, noting that crypto assets are by definition borderless and require international collaboration to prevent regulatory arbitrage.

India’s central bank, the Reserve Bank of India (RBI), has repeatedly recommended that the Indian government ban all cryptocurrencies, including Bitcoin and Eth. In February, RBI Governor Shaktikanta Das said that the G20 finance chiefs widely recognized that cryptocurrency poses major financial stability risks.

However, the Government has stated that both regulating and banning cryptocurrencies would require collaboration on a global scale. During the last meeting of G20 finance ministers and central bank governors requested the IMF and the Financial Stability Board (FSB) to prepare a synthesis paper on crypto assets.

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AI-focused CryptoGPT raises $10 Million in Series A funding

Artificial intelligence (AI) has become a popular subject in 2023 as AI projects, such as Midjourney and ChatGPT, along with many other programs, have seen a surge in demand. 

This has sparked a significant rise in value for a number of AI-related cryptocurrency and blockchain projects this year. According to statistics, at the time of writing, 77 AI-focused cryptocurrencies are worth $3.48 billion.
An L2 project called CryptoGPT recently announced that it raised $10 million in a Series A financing round.

Dejan Erja, Co-founder and Chief Technology Officer of the AI-focused blockchain commented saying that the proceeds of the new funding will be used to grow its developer team globally and build on the firm’s regional presence in the Asian markets.

CryptGPT’s L2 network uses a native token called GPT, and the team asserts that GPT is a multi-value gas token that has high demand as fuel for network transactions. 

Over the past 30 days, GPT has gained 41.64%, with 14.79% of the increase recorded during the past 24 hours. Statistics show there is a circulating supply of three billion GPT, and the ERC20 version of GPT has 3,557 holders. Ten of the top GPT holders command 82.95% of the circulating supply. On April 10, CryptoGPT’s native token was trading for prices between $0.0672 to $0.0751 per unit.

The AI project also introduced a chatbot called “Alex” during the first week of March. Alex is key to infinite knowledge of the internet and is powered by Openai models.

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Crypto exchange Bitget launches $100M Web3 fund

Seychelles-based crypto exchange Bitget has started a $100 million fund targeting Web3 startups as Asian countries build a framework for developing Web3.

East Asian countries have been making strides to promote crypto in the last few months, with Hong Kong seemingly easing its crypto regulations and Japan approving a white paper for Web3 development.

Gracy Chen, Managing Director of Bitget, stated, “Despite the bear run, Bitget has always been supporting promising and innovative projects and the development of the Web3 environment with a focus on BUIDL. The launch of Bitget Web3 Fund is a continuation of our ongoing efforts to drive the adoption of crypto and Web3, reflecting our ‘Go beyond derivative’ strategy in 2023.” 

A Bitget spokesperson said that the fund is self-funded. 

“Bitget is debt-free with adequate cash flow, thanks to its steady development and fast-growing business,” she said.
The launch of this fund comes after Bitget invested $30 million into decentralized multi-chain wallet BitKeep.

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Bank of England builds a team of experts for CBDC

The Bank of England is looking to hire a staff of as many as 30 people to develop a central bank digital currency, according to reports.

In February, the U.K.’s central bank and finance ministry said they were starting further research and development on a digital version of the pound sterling, and invited the public to weigh in on the plans.

While the project has been dubbed Britcoin in the press, the bank is less keen on the moniker, saying no decision has been made on whether a digital pound would use distributed ledger technology.

The CBDC initiative of the Bank of England looks to investigate the advantages and disadvantages of digital currencies, including their effects on monetary policy, financial stability, and consumer protection. 

This may help the bank to assess CBDC’s technical viability, taking into account concerns about cybersecurity, privacy, and compatibility with current payment systems.

However, the Bank of England is aware of the possible dangers and difficulties involved with CBDCs, such as the requirement to take precautions against fraud, money laundering, and cyberattacks.

The bank’s website careers page lists positions for a digital pound security architect and digital pound solutions architect, both added toward the end of last month. Both pay as much as 80,000 British pounds ($99,000) in salary. The Treasury advertised for a head of central bank digital currency in January.

“A team of 30 seems like quite a significant resource to focus on the digital pound. It shows the impact it would have, and that the bank is serious about it,”  said Ian Taylor, a Board Adviser for Trade Association CryptoUK.