Ripple to lead National Bank of Georgia’s CBDC pilot project

Coins.ph, the leading crypto exchange in the Philippines, has announced its support for BRC-20 tokens. As part of that move, the exchange has successfully integrated the ORDI token, thereby becoming the inaugural platform in the country to embrace the BRC-20 standard. The platform clarified its support for BRC-20 in a recent blog post, which it published to its website. Coins.ph revealed its intention to expand its services further by adding support for additional BRC-20 tokens, showcasing a forward-looking approach to cater to the evolving needs of its user base. BRC-20 is a standard facilitating the creation of fungible tokens on the Bitcoin blockchain. The inclusion of this technical standard allows for the minting of tokens with unique features, introducing a new dimension to the capabilities of the world's flagship cryptocurrency.Photo by Kanchanara on UnsplashORDI memecoin additionORDI stands out as one of the most popular BRC-20 tokens, gaining traction and reaching an all-time high above $81 earlier this week. This surge in value followed the addition of trading support by crypto exchange Binance in early November, underscoring the influence of strategic partnerships and market dynamics on token performance. Wei Zhou, CEO of Coins.ph, expressed the company's commitment to staying at the forefront of digital asset innovation through this strategic move. Highlighting the remarkable growth in BRC-20 activity since its launch earlier in the year, Zhou emphasized the importance of enabling users to participate in these opportunities. He mentioned the recent listing of $ORDI and hinted at future product offerings enabled by the BRC-20 standard. Industry trendWhile coins.ph may have been the first exchange in the Philippines to introduce BRC-20 support, it's not the first mover in the broader Asian region. Back in May, leading crypto exchange OKX decided to support the BRC-20 standard through its OKX Wallet product. The company’s support of the standard was validated more recently when it emerged that BRC-20 support played a large role in OKX NFT Marketplace taking top rank as the NFT marketplace with the greatest trading volume earlier this month. Seychelles-based crypto derivatives platform Bitget has also identified the associated growth potential. Earlier this week, the platform unveiled a plan to support development within the Bitcoin ecosystem, inclusive of BRC-20. The fusion of ordinals and BRC-20 enables users to embed images, texts or audio, among other data, into satoshis—the smallest units of BTC. Bitcoin community controversyAmidst these developments, concerns have been raised by Bitcoin core developer Luke Dashjr. On Dec. 6, Dashjr disclosed that developers are working to remove Bitcoin inscriptions before the v27 update scheduled for the next year. This would imply the elimination of ordinals and BRC-20 from the Bitcoin landscape. Dashjr clarified that Bitcoin Core has allowed users to set limits on extra data size in transactions since 2013 through the "datacarriersize" setting. Despite this, inscriptions have found a way to bypass the limit by obfuscating their data as program code. He reassured the community that a recent bug in Bitcoin Knots v25.1 has been fixed, addressing concerns about vulnerability.

BC Card Accelerates Launch of NFT Guarantees for Secondhand Luxury Goods TradesSouth Korean credit card issuer BC Card announced on Sunday that it has applied for two domestic patents for blockchain technology that will be used to issue digital guarantees for purchases of luxury goods, such as bags, watches, and more. These guarantees will be minted as non-fungible tokens (NFTs) that can later be accessed by buyers or sellers during secondhand trades, which often pose risks and uncertainty regarding product quality or authenticity.Enhancing trust and securityThese NFTs will be based on paper or digital payment receipts — which contain detailed information on purchase receipts, such as product names, payment amounts, purchase dates, and shop information — that a customer receives after purchasing goods at stores that accept BC cards.Photo by Towfiqu barbhuiya on UnsplashBecause the guarantees are stored on a blockchain, they are almost impossible to tamper with. BC Card anticipates that this service will offer advantages like boosted safety, convenience, and security for both buyers and sellers who wish to partake in transactions of secondhand luxury goods.In addition, the data distributed across servers eliminates concerns about data loss. To achieve this, BC Card plans to collaborate with telecommunications provider KT and BC’s subsidiary, VP, which specializes in electronic payment services.“Through this patent application, we expect to significantly enhance the trustworthiness of secondhand luxury goods transactions in Korea,” said Kwon Sun-moo, Director of the New Financial Research division at BC Card. “After the patents are registered, we plan to collaborate with companies under KT Group like KT Alpha as well as other distribution companies in a business-to-business-to-consumer (B2B2C) system.”Access through a digital walletCustomers can take a photo of a receipt with their phones or download it, then upload it to BC Card’s financial platform, Paybook. The photo is then converted into an image that is automatically stored as an NFT on the blockchain network.Once a seller registers a payment receipt for a product that they bought, then the subsequent NFT guarantee can be accessed or sent through their BC Card digital wallet — a feature that the company plans to launch soon — at any time during future transactions. This offers a convenient solution to the possibility of losing receipts, which traditionally requires manually downloading them again from the card company’s website or app.Revolutionizing secondhand tradeThis new technology could play a significant role in the booming resell and secondhand goods trading market, the company said. According to data from the Korea Internet & Security Agency last year, the domestic secondhand market has grown from a scale of KRW 4 trillion in 2008 to KRW 24 trillion in 2021 and is projected to exceed KRW 30 trillion this year.“Through the registration of payment receipts, we can analyze consumption patterns and even suggest improvements in spending habits to our customers,” Director Kwon highlighted.BC Card is also considering offering luxury appraisal and authentication services along with the future launch of the NFT service.

Korean Crypto Exchange Presents Bitcoin Forecasts for Three ScenariosRecently, concerns over a potential US default have heightened due to the ongoing disagreement between Republicans and Democrats in the US Congress regarding the necessity of increasing the debt ceiling. Democrats, along with the Biden administration, advocate for authorizing additional debt, while Republicans propose spending cuts.Considering the historical patterns observed in the US and the inherently political nature of this matter, it is improbable that the uncertainty surrounding the debt ceiling raise will endure for an extended period. In the past, when faced with a similar situation in 2011, the debt ceiling was ultimately approved despite significant political divisions. Particularly with upcoming elections next year and escalating concerns of an economic downturn, it is likely that a resolution to the debt ceiling issue will be reached soon.In light of these circumstances, the economic research institute at one of South Korea’s major crypto exchanges Bithumb released a report that outlines three distinct scenarios depicting the potential unfolding of the debt ceiling issue in the US. Additionally, it has offered insights into the potential implications for Bitcoin under each scenario.Photo by Shubham’s Web3 on UnsplashBipartisan agreement to increase the debt ceilingIn the scenario where the debt ceiling is promptly raised as a result of a significant bipartisan agreement, the US is anticipated to adopt an expansionary fiscal policy by issuing government bonds to prevent a default. If a debt ceiling deal is reached, it is projected that short-term bond issuance will reach a net amount of $1.4 trillion by the end of the year. There is also a growing consensus that medium- and long-term bond issuance may commence in the third quarter. Additionally, the possibility of interest rate cuts as early as the second half of this year entered the equation. In the long term, this could potentially lead to a depreciation of the dollar as market liquidity increases, thereby weakening the currency. It is worth noting that historically, the value of Bitcoin tended to go up when market liquidity rises.Debt ceiling disagreement and delayed negotiationsAnother scenario entails the failure of the two parties to reach an agreement and a subsequent delay in approving a raise to the debt ceiling. Should the debt ceiling not be raised in a timely manner, the US would potentially encounter an unparalleled default on its debt obligations. This default could trigger a severe credit crunch, resulting from international credit downgrades and a weakened global standing for the US. Such circumstances would further escalate the risk of an economic crisis.As the negotiations on the debt limit continue to be delayed, there will be a prolonged period of uncertainty in both Treasury issuance and secondary markets. This uncertainty poses risks to money market funds (MMFs) that hold a significant portion of short-term Treasuries, potentially resulting in losses. Consequently, there could be a shift towards reverse repo (RRP) transactions as investors seek alternative avenues. In fact, Treasury liquidity has recently exhibited signs of deterioration, with MMFs and RRPs garnering considerable attention in the market.Heightened concerns regarding short-term Treasuries could lead to a higher volume of reverse repo trades compared to repo trades. Repo transactions use Treasuries as collateral, whereas reverse repo transactions involve depositing funds with the Fed or lending money to the Fed in exchange for collateral, which often includes Treasuries, thereby earning interest. In such a scenario, market liquidity could become trapped in the Fed, potentially rekindling risks within the banking system.Given their sensitivity to liquidity conditions, crypto markets are anticipated to experience a temporary decline. However, Bitcoin has exhibited a historical pattern of appreciating in value as an alternative to the US banking system, especially during instances of small and medium-sized bank failures. In the event of prolonged negotiations and an escalating risk of a US default, the demand for safe-haven assets like Bitcoin might surge. As a result, Bitcoin could gain favorability as investors seek refuge in alternative assets amidst uncertain market conditions.Linking debt ceiling increase to spending reductionThe last scenario involves a conditional agreement accompanied by measures aimed at reducing the deficit, as proposed by Republicans. Given the longstanding concerns surrounding excessive US deficits, any agreement to raise the debt ceiling would likely be contingent upon fiscal consolidation and spending cuts. Notably, as of March 31, 2023, the US federal deficit is approximately 8% of GDP, a figure comparable to the 8.3% average observed in 2011 when the possibility of a US default reached its peak.While fiscal consolidation is necessary to ensure fiscal sustainability, unless the US significantly increases tax revenues, an increase in the debt ceiling may be negotiated at the expense of significant cuts to the national budget. In such a case, the US economy would inevitably experience the adverse effects of reduced government spending.The Republican party has put forth a demand of $4.8 trillion in deficit reduction over the next ten years as a condition for raising the debt ceiling. This figure translates to an average of $480 billion per year or approximately 1.8% of the current year’s GDP (as of May). However, it is important to note that in the medium to long term, reductions in government spending without complementary expansionary monetary policies have the potential to accelerate GDP decline. If Congress agrees to cuts in government spending, it could increase the probability of the Fed swiftly reversing its tightening policy. Unless the Fed halts its tightening measures, the likelihood of a US recession may become more pronounced.If the Fed decides to cut interest rates earlier than anticipated in response to the Treasury’s fiscal consolidation efforts, Bitcoin, which is known to be more responsive to long-term monetary policy, might be able to overcome the short-term downturn and experience an upward trend.The authors contend that at present, market attention is primarily directed towards the matter of raising the debt ceiling, taking into account the potential risks of a US default and the possibility of a bond rating downgrade. However, they believe it is unlikely that US politicians will make radical decisions in the run-up to next year’s presidential election.While the issue of raising the debt ceiling will have a short-term impact, the report argues that the main drivers of Bitcoin’s price in the medium to long term will be the Fed’s monetary policy and the occurrence of Bitcoin’s halving event.It is important to note that there is a time lag between the end of the Fed’s tightening measures and the halving of Bitcoin. In the short term, the price trajectory of Bitcoin will likely be influenced by factors such as the potential failure of additional small and medium-sized US banks (which is concerning given recent outflows of US bank deposits) and increased demand for safe-haven assets due to the delay in raising the debt ceiling. These factors will play a greater role in shaping Bitcoin’s short-term performance.