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Sweden Researching Central Bank Digital Currencies With Possibility of Launching an E-Krona

By
Adam Barry
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0

Several countries have alluded to the possibility of issuing their Central Bank Digital Currency with Sweden becoming the latest to join the race. According to reports, the Swedish government is going forward with its CBDC following the launch of a formal review of risks and consequences of a possible transition into the e-Krona CBDC.

Sweden to study the risks and consequences of CBDC

The Swedish government is launching a review exploring the possibility of transitioning into a CBDC according to Bloomberg. Sweden is looking to transition into e-Krona CBDC despite the country having the most cashless payment system globally. Per Bolund, the country’s financial markets minister said that they expect to complete the CBDC review by November 2022. Former Swedish central bank, Riksbank’s financial committee chairperson, Anna Kinberg Batra will lead the review initiative.

Bolund said that it is vital to ensure that the country’s digital payment system is working safely and is accessible to everyone. The minister added that digital currencies can have huge implications on the financial system depending on how they are designed and the tech they use.

Regulators supporting the idea of e-Krona

Currently, Sweden is among the leading countries in terms of pioneering CBDC tech after regulators announced a pilot platform for a CBDC called e-Krona in late last year. The country’s central bank partners with Accenture to create the platform. In February this year, the central bank launched the forts e-krona stating that the pilot could continue until February 2021.

In October Stefan Ingves, the central bank’s Governor said that there is a need to issue an e-krona which will be a legal tender. Ingves said that the e-Krona will be 27/4 payments anywhere, be a cross border currency that will be issued directly from Riksbank. The digital currency will have a digital ID to ensure it is compliant with AML policies. He however indicated that the central bank cannot be the only institution deciding on the implementation of the e-Krona because this is an economically important issue. Ingves said that the decision needs massive political goodwill.

Crypto.com Introduces Bitcoin Credit Card Services in Australia

By
Adam Barry
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0

Cryptocurrency credit card provider, Crypto.com has received the green light to operate in Australia and issue bitcoin credit cards to citizens. This implies that the Great Outback consumers can now start using cryptocurrencies to purchase goods and services just like they could with fiat or standard payment methods.

Australians to get crypto-based credit cards

Besides the crypto credit card which is the main staple of the company, it also offers other digital tools and services that consumers can leverage to get crypto and spend it. In a recent interview, Crypto.com Co-founder, Kris Marszalek said that their mission is to offer a whole suite of product offerings to Australian customers. This can enable consumers to earn, spend, pay, buy, and sell crypto without leaving the platform. Kris added that this will allow them to maximize benefits such as low fees and high cashback rewards.

The volatility of crypto derailing acceptance as a payment mode

Bitcoin and other cryptocurrencies are highly volatile which means they are susceptible to high price fluctuations meaning that users can find themselves at the top of the financial tree or stuck somewhere. Interestingly this year the price fluctuations have been beneficial with BTC up more than 150% since March when it traded at $4,000 at some point. BTC has risen by over $10,000 and currently trades above $18,000 for the first time in almost three years.

Unfortunately, the price fluctuations can be against BTC fans that may end up counting losses. For instance in 2018, after a solid run in 2017 when BTC hit $20,000, Bitcoin lost almost 70% of its value dropping into mid $3,000 and in the process bankrupting most people.

Because of the volatility, few businesses are willing to gamble with crypto since they could potentially lose their profit. Most are not willing to accept crypto as outright payment methods for services and products. Excitingly, cryptocurrency-based credit cards are here to eliminate this hurdle because customers can now pay in digital currency that automatically converts into fiat or acceptable currency by the merchant enabling them to cash in instantly.

France Introduces New Regulation Aiming At Banning Anonymous Crypto Transactions To Prevent Financing Illicit Activities

By
Adam Barry
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0

Financial authorities in France are tightening crypto regulations to curb money laundering and cases of terrorism financing. French authorities are developing a framework of crypto regulations that will stop anonymous crypto transactions therefore banning anonymous crypto accounts.

France cracks down on anonymous crypto transactions

On December 9, various ministries jointly unveiled an order to commence the process of preventing anonymous crypto transactions. French finance minister Bruno le Marie, Junior economy minister Olivier Dussopt and overseas minister Sebastien Lecornu are backing the new regulatory efforts. The new order is as per Article 203 for the PACTE Law which represents France’s Action Plan for Business Growth and Transformation.

Although cryptocurrencies do promise numerous opportunities they do come with some risks related to illegal financial activity according to authorities. Most importantly, the ministers alluded to the September arrests that involved a terrorist financing network using cryptocurrency to conceal their tracks. Authorities across the globe and other organizations such as the G7, the G20, and the Financial Action Task Forces are championing regulations that will curb the use of cryptocurrency for illegal activities.

France wants to set conditions to make the crypto industry attractive

The ministers noted that the government wants to promote cryptocurrency development under the security conditions that can lead to industry attractiveness. As a result, the French government will introduce new regulations that provide for the application of new digital identification tools for digital asset service providers and cryptocurrency transactions. The finance ministry said that the regulation will be compulsory for all companies that want to enter the crypto market in France. Equally, companies operating in France will have to identify and verify cryptocurrency account owners and transactions under the new regulations.

The request emanates from actors in the industry and aims at making it possible to fight anonymous transactions in virtual assets while enabling user identification. French authorities have been vocal regarding the financing of illegal activities with digital assets. In October Le Maire condemned cryptocurrencies for offering additional tools for illegal activities such as the purchase of weapons, drugs, and money laundering.

Investment Management Firm 3iQ Launches Ether-Based Exchange Traded Fund

By
Adam Barry
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0

The crypto market is rallying this year and it has been a productive year for cryptocurrency-backed financial products. As a result, a Toronto-based investment management firm, 3iQ has launched its flagship Ether-backed asset fund.

3iQ launches Ether-based ETF

The Ether-based Exchange-traded fund (ETF) will list on the TSE offering investors exposure to the fledgling cryptocurrency asset and the daily movement of the cryptocurrency asset’s dollar price. ETH will offer investors exposure to ETH without selling, purchase, or storing the crypto asset themselves. Currently, ETH is the second-largest cryptocurrency operating on the decentralized Ethereum Blockchain for crypto assets and smart contracts. Gemini exchange’s custodial arm, Gemini Custody will hold the coins backing the shares.

In April 2020, the 3iQ managed fund launched a Bitcoin Fund and currently manages and accredited investors’ private fund called 3iQ Global CrypotAsset Fund which invests in Ether, Bitcoin, and Litecoin. Upon launch, the 3iQ Bitcoin Fund listed almost 1.5 million Class A shares selling at $11 per share but the value soon surged. 3iQ said that by October Bitcoin Fund has surpassed the $100 Million market capitalization threshold.

Ether ETF raises $76.5 million on the first day of trading

The Ether fund currently trading on the Toronto Stock Exchange raised around $76.5 million during the initial offering. However, despite a lot of initial fanfare about the fund, things didn’t go as planned. There were concerns from investors that the fund was not available for trading after the opening bell due to delays in closing the IPO prospectus.

Eventually, trading started but two hours late with 345,331 shares of the fund traded for the rest of the day. The fund’s performance was satisfactory hitting an intra-day high of $11.48 and closing the day at $11.02 considering EH was down 0.5% on the day. The 3.5% gain on the ETF is welcome news for investors.

There is the proliferation of cryptocurrency-backed ETFs with this trend expected to continue going forward. In the US the first Bitcoin ETF was launched in September and Hasdex also announced recently plans to launch the “hashdex Nasdaq crypto index.”

Microstrategy Raises $650 Million From Convertible Bond Sale for Bitcoin Purchase

By
Adam Barry
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0

Business intelligence company, Microstrategy (MSTR) has announced that it raised $650 million from convertible bonds sale to finance additional Bitcoin (BTC) purchases. The bond sale underscores the company’s CEO, Michael Saylor’s belief that BTC is a generational investment opportunity.

Microstrategy to purchase $650 worthy of BTC

The company said that it sold around $650 million worth of convertible notes due in 2025 at a 0.75% rate. The interest rate will be payable semi-annually for 2021 on June 15 and December 15. Proceeds from the sale will fund BTC purchases if they will not be required for funding corporate needs. A statement from the company confirmed that the company will use net proceeds from the convertible note sales in BTC per Treasury Reserve Policy subject to working capital needs identification.

Microstrategy issued under rule 144A of the 1933 Securities Act and will only be available to institutional investors. The raise comes just days after the company announced its plans of leveraging bond proceeds to buy more BTC. Initially, the company targeted to raise $400 million but with $650 million the company could purchase more than 36,300 bitcoins at current prices.

In August Microsytrategy bought $250 million worth of bitcoin labeling it a reasonable hedge against inflation. The investment was equivalent to 21, 454 bitcoins. At the start of this month the business intelligence firm also bought $50 million worth of the digital asset and currently it holds around 40,284 bitcoins representing more than $734 million. The company surprised the world early this year after it indicated that it will convert its balance sheet to BTC.

Analysts skeptical over MSTR’s BTC exposure

The aggressive strategy of the company is however worrying to Wall Street analysts who are skeptical. Analysts feel the Microstrategy is overexposing itself to BTC considering its volatility that has made most institutional investors cautious. Recently Citibank downgraded the company to “neutral” from “sell” due to the disproportionate focus on BTC.

Besides Microstrategy, MassMutual is also another institutional investor that leaning toward BTC following its $100 million bitcoin purchase for its investment account.

BBC Getting Into Nonfungible Token Collectibles With The Launch of Doctor Who Trading Card

By
Adam Barry
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0

Nonfungible tokens hold massive potential, and adoption is growing fast. British Broadcasting Company (BBC) has become the latest leading organization to foray into the segment after the launch of “Doctor Who” trading cards collection.

BBC and Reality Gaming unveil Doctor Who collectibles

Doctor Who completed its foray into the digital collectibles market following the launch of Doctor Who: Worlds Apart. This is a digital platform featuring over 200 trading cards that collectors and Whovians can leverage. The new collection developed by BBC Studios and Reality Gaming Group features cards based on scenes, characters, and objects from the 57-year history of Doctor Who.

The involvement of a big organization such as the BBC in the NFT market indicates how important and revolutionary the technology has become. The BBC is foraying into the digital collectibles market by featuring Doctor Who characters. Most importantly, the BBC is not doing things lightly, and quality is important to protect intellectual property as Reality Gaming Group established.

The web interface where the trading cards are available underwent a private development beta test. Following registration, users can learn more about the game and then check the whole card deck (sortable based on attributes) or go straight in and purchases a pack of cards. There are four card packs available containing between five and ten cards each. Interestingly some cards guarantee some or all the entire pack of cards featuring one of the rarer frame designs.

Cards come with unlimited core frames supply

Card collectability derives from the frames, and there is an unlimited supply of core frames. However, the seven alien frames are scarce and will be available in the early stages of the scale. They represent alien characters from series that include Cyber Warriors, Dalek, Tardis, and Weeping Angels. There is a three-dimension visualization of cards which can be rotated to show the artwork and the frame. Users can purchase packs through MasterCard, PayPal, and Visa or Crypto through coinfy. The card collectibles are targeting Doctor Who fans and not crypto enthusiasts, but there is a possibility of overlaps. 

Hong Kong Monetary Authority And PBoC Piloting Digital Yuan, China Construction Bank Working On Blockchain-Based Bond

By
Adam Barry
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0

The People’s Bank of China and the Hong Kong Monetary Authority (HKMA) are in the initial stages of piloting a digital Yuan to facilitate cross-border payments. This underscores an important development in the launch of a central bank digital currency.

Hong Kong and PBoC piloting digital Yuan for cross-border payments

HKMA CEO Eddie Yue offered an update on the progress regarding cross-border payments in a statement published on the HKMA’s website. Yue said that the HKMA was in discussions with the Chinese Central Bank to start piloting the e-CNY. He stated that the HKMA and the Digital Currency institute of PBoC were in discussions regarding the digital renminbi’s technical pilot testing. Yue said that they are already making similar technical preparations for the piloting of digital Yuan.

According to Yue, the e-CNY could benefit Mainland China and Hong Kong tourists because it represents the current value of the cash in circulation. And since Hong Kong uses the Yuan, having a digital equivalent will increase convenience. China is at the forefront of CDBC development, and in early November, digital Yuan pilots processed transactions worth $300 million.

China Construction Banks working on blockchain issued bonds

China Construction Bank is seeking new associates and a new blockchain-based bond proof of concept. The second-largest bank in terms of assets is collaborating with Singaporean and Malaysian partners to pilot blockchain tech for use in the bond market. According to previous reports, the bank’s branch in Labuan, Malaysia, pursued a partnership with a Labuan-based fintech company to issue the first-ever blockchain-based digital asset.

CCB Labuan had planned to use the Ethereum blockchain to issue a bond and raise around $3 billion in proceeds. The bank was to start with a $58 million tranche for institutions and individuals. However, following the announcement, the bond issuance was delayed, and the first tranche trading didn’t go ahead as planned. On December 3, they made a new announcement suggesting that work on blockchain-issuance was still in progress. The Malaysian stock exchange, Bursa Malaysia, and Labuan Financial Exchange are part of the process.

Coinbase Becomes The Latest Firm To Join Square’s Patent Initiative COPA

By
Adam Barry
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0

Coinbase is one of the latest companies that have joined the Crypto Open Patent Alliance (COPA) COPA is a consortium headed by a financial firm, Square to boost access to crypto technology by creating a collaborative patent library.

COPA to create patent protection for the crypto sector

Square launched the consortium in September to keep-off patent overreach, which is an issue that mostly limits technological advancement. So far, around 18 companies have signed up for the initiative, and they include Kraken, Satoshi Labs, Blockstream, and Protocol Labs. The consortium appointed Square Crypto Lead Steve Lee and Paradigm Research Partner’s Dan Robinson into the board. According to the COPA announcement, the independent board comprises members who have contributed significantly to crypto initiatives’ advancement.

COPA board member and Coinbase senior Counsel Brittany Cuthbert said that with the crypto economy growing, there is a need to empower projects focused on open financing system. Cuthbert added that Coinbase is looking forward to working alongside other COPA members to establish foundational patent protection for the cryptocurrency industry.

Square is planning to make cryptocurrency technology available and accessible to everyone through COPA. Most importantly, COPA members have pledged not to use their cryptocurrency patents against each other except for defensive purposes. Therefore this will make the patents free to use for anyone. The consortium has come up with a collaborative patent library where developers will share crypto patents and develop more technological innovations in the industry.

Patents can stifle the adoption of new technologies

Patents last at least 20 years and usually lay claim to innovations considered proprietary, thus preventing competitors from producing similar products or using a specific technology. Despite open-source tech being a common theme in the blockchain and crypto industry, some entities have claimed some advancement in the space, including Samsung and Block.one.

According to COPA, patents can sometimes be employed for offensive, defensive, and misguide purposes, thus threatening the growth and adoption of tech such as crypto. Therefore the consortium seeks to do away with patents that will stifle innovation.

LayerX Partners With xID To Develop Blockchain-Based E-Voting System For Kaga City

By
Adam Barry
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0

Japanese blockchain company LayerX has partnered with digital identity application xID to launch a blockchain-based voting system for Kaga City, Japan. The blockchain voting system’s launch is part of the Japanese city’s “Blockchain City” initiative unveiled in May 2018.

LayerX developing e-voting system for Kaga city

According to LayerX’s announcement, the Tokyo-based blockchain firm will develop an electronic voting system as part of the efforts to promote secure and safe elections for the city’s 68,000 residents. The company said that the stability and cost of current e-voting systems in the region require an overhaul. Kaga city expects the initiative to address concerns regarding e-voting and making it convenient for seniors living in remote areas of the region to vote in vital city policies.

The LayerX developed electronic voting protocol balances transparency and voting process and enhances confidentiality. The company stated that voting on the internet faces a myriad of challenges, including double voting, the cost of voting gadgets, and technical challenges to keep ballots confidential.

xID application will enhance LayerX’s current voting system by assisting in voter identity verification and ensuring there is one ballot for each voter. The LayerX voting system will permit voters to check voting results and offer the cryptographic ability for independent verification that the aggregation processes and recording for a particular vote are per the network’s right procedure. The blockchain firm said that it is possible to build a convenient e-coting system by combining the two solutions.

Kaga city building a “blockchain city”

Kaga City was the first to start an initiative to transform the region into a “blockchain city.” The initiative aims to address the decline in population in rural areas by encouraging private and public firms to employ innovative technology. In November, LayerX announced that it would also participate in Tsukuba City’s “smart city” project.

In recent times, blockchain voting has become an everyday use case of blockchain technology, with several e-voting projects launched so far. For instance, the Voatz voting platform has been employed in several US state and city elections but has faced criticism regarding security issues.

Spotify Set To Venture Into Cryptocurrency Payment Services

By
Adam Barry
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0

Audio streaming provider Spotify has hinted that it will launch cryptocurrency payments following the announcement that it is looking for individuals with a crypto background for a new role in the company. The company wants to hire an associate director to join the payment Strategy and Innovation unit.

Spotify could foray into crypto payments

The company posted the new job listing on LinkedIn on Wednesday. A successful candidate in the new position will play a vital role in defining and implementing its payment strategy. The individual will also enhance Spotify’s involvement in Facebook’s cryptocurrency project that was rebranded as Diem. The announcement also notes that the position will focus on broader digital asses and the cryptocurrency industry, including central bank digital currencies. The ad noted that the person would drive consideration of new opportunities and innovation in the emerging distributed ledger ecosystem, blockchains, stablecoins, cryptos as well as other digital assets.

Further, the posting aid that the candidate will leverage the company’s global footprint is seeking innovations in the payments sector and emerging market and regulatory trends that will influence the startup’s payments approach. The director will evangelize payment strategies and internal & external capabilities to all shareholders and help build the company’s reputation as a payments market leader.

Expanding beyond music streaming

Spotify launched in 2008 and has since grown to be a global leader in the music streaming sector, with more than 320 million active users per month. Besides music, the company is also expanding its offering with services such as podcasts.

According to the job posting, the candidate will be based in the company’s Stockholm or London offices and might require frequent travel between the officer and any of the company’s other locations. The company has not offered any details on digital currency services, but cryptocurrency industry leaders suggest that the Swedish startup could foray into crypto payment services.

The company is among the initial Libra foundation members alongside Shopify, Uber, and Coinbase. It is one of the companies that have not abandoned the project due to increased regulatory scrutiny.

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