Bitfinex Turkiye Facilitates Zero-Cost Deposits via VakıfBank Partnership

India’s RBI Cites Stablecoin Risks With Call for Global RegulationIn its latest Financial Stability Report released on Wednesday, the Reserve Bank of India (RBI) expressed concerns about the potential harm stablecoins could inflict on emerging markets and developing economies (EMDE).Photo by rupixen.com on UnsplashPerennial criticThe RBI has been a consistent critic of cryptocurrencies, but particularly so in the case of stablecoins, from an EMDE perspective. However, the lack of authenticated data and inherent data gaps in the crypto ecosystem hindered a comprehensive assessment of financial stability risks.According to the report, one of the ways stablecoins could pose a threat to an EMDE is through currency substitution. Since the underlying assets of stablecoins are generally denominated in freely convertible foreign currencies, the widespread adoption of stablecoins could lead to currency mismatches on the balance sheets of banks, firms, and households, resulting in an increased risk to the economy.Monetary policy headacheFurthermore, the presence of stablecoins in the economy could create challenges for an EMDE’s central bank in setting domestic interest rates and managing liquidity conditions. The decentralized, borderless, and pseudonymous characteristics of crypto-assets make them potentially attractive instruments for circumventing capital flow management measures.Another concern highlighted by the RBI is that stablecoins could undermine credit risk assessment and interfere with banks’ ability to mobilize money and create credit by offering an alternative to the domestic financial system. Additionally, the report emphasized the difficulty in tracking peer-to-peer transactions, on the basis that they increase the potential for illicit activities.In light of these risks, the RBI reiterated its call for global coordination and regulation. It emphasized the need for a globally coordinated approach to analyze the risks posed to EMDEs compared to advanced economies (AEs). As India holds the G20 presidency, one of its priorities is to establish a framework for the global regulation of unbacked crypto-assets, stablecoins, and decentralized finance (DeFi).Establishing a CBDCWhile the RBI has been cautious about cryptocurrencies, it has shown more enthusiasm for central bank digital currencies (CBDCs). In November, the RBI launched a wholesale digital rupee pilot project. It followed that up in February with a retail digital rupee pilot project. In March, it signed an agreement with the Central Bank of the United Arab Emirates to study a CBDC bridge aimed at facilitating trade and remittances.By calling for global regulation and highlighting the risks associated with stablecoins, the RBI aims to foster a safer and more secure environment for financial transactions while exploring the potential benefits of CBDCs in facilitating trade and remittances.As the discussions around stablecoins and CBDCs continue, we’re likely to see ever greater collaboration between regulators, policymakers, and international organizations with a view towards establishing a comprehensive regulatory framework that addresses the challenges and harnesses the potential of digital assets on a global basis.

AndUs to implement ZK rollups on Its public permissionless blockchainAndUs, the South Korean developer of public permissionless blockchain Anduschain, announced on Wednesday (local time) that it is preparing to implement zero-knowledge (ZK) rollup technology into its blockchain to enhance scalability and security. ZK rollups are layer-2 scaling solutions that move transactions off-chain to increase throughput on the Ethereum mainnet.Photo by Shubham Dhage on UnsplashPerspective on ZK rollupsMany Korean projects are focused on developing various layer-2 solutions. Against this backdrop, Park Sung-jun, CEO of AndUs and a Ph.D. in cryptography, believes ZK rollups will eventually surpass the currently popular optimistic rollups as the mainstream technology. Although both ZK and optimistic rollups improve scalability by processing transactions off-chain, they differ in their approaches: ZK rollups rely on validity proofs, while optimistic rollups utilize fraud proofs.Introduction next yearHolding this belief, AndUs has formulated a ZK rollup implementation plan and has begun its development, aiming to introduce it by next year. Park commented that this upgrade will significantly improve the blockchain’s speed and expressed plans to offer the world’s lowest gas fees.AndUs claims that their DEB consensus algorithm focuses on fairness, enabling nodes to engage in mining without preconditions. Furthermore, Anduschain’s ZK rollups will be fully compatible with Ethereum virtual machines (EVMs), facilitating a seamless transition of decentralized applications (dApps). The cryptocurrency used on Anduschain is named DEB, and it is currently listed on cryptocurrency exchanges ProBit Global and MEXC, according to CoinMarketCap.AndUs has been participating in the Tech Incubator Program for Startups (TIPS) program, which is led by private investments under the guidance of the Korean Ministry of SMEs and Startups.

China Makes History by Settling Cross-Border Oil Deal with Digital YuanThe digital yuan, China’s central bank digital currency (CBDC), also known as e-CNY, was used for the first time to settle a significant oil transaction.Chinese state-owned media outlet China Daily reported on Saturday that the Shanghai Petroleum and Natural Gas Exchange (SHPGX) revealed on October 20 that PetroChina International, a subsidiary of the China National Petroleum Corporation (CNPC), successfully acquired 1 million barrels of crude.Photo by engin akyurt on UnsplashAdvancing e-CNY use internationallyThis transaction is a response to the call by the Shanghai Municipal Party Committee and Municipal Government to incorporate the digital yuan into international trade, marking a noteworthy stride towards the broader adoption of the digital currency.The exact seller and price details for the deal were not disclosed. This historic crude oil transaction signals not only the increasing use of the digital yuan in global trade but also a noteworthy step in the movement towards de-dollarization. Reports from China Daily suggest that the use of the yuan in cross-border settlements experienced a remarkable 35% year-on-year increase in the first three quarters of 2023, reaching a total of $1.39 trillion.This milestone isn’t the first time the yuan has been utilized in the energy sector. In March, the yuan was first used in a liquefied natural gas (LNG) purchase on the SHPGX, as French TotalEnergies reached an agreement to sell LNG to the China National Offshore Oil Corporation (CNOOC). Recently, another LNG deal was executed between CNOOC and French Engie, although these transactions did not involve the digital yuan.In parallel developments, First Abu Dhabi Bank announced on October 19 that it had established an agreement on digital currency with the Bank of China during the third Belt and Road Forum for International Cooperation. China and the United Arab Emirates, including Abu Dhabi, are participants in the mBridge platform designed to facilitate cross-border transactions using CBDCs. The mBridge platform is expected to launch as a minimum viable product in the coming year.Furthering mass adoptionThe Chinese authorities are taking several distinct approaches in furthering mass adoption of the e-CNY. The Chinese subsidiaries of both Singapore’s DBS Bank and France’s BNP Paribas have recently partnered with the People’s Bank of China to enable their international clients operating in China to use the digital yuan.A long list of initiatives have been taken within mainland China by regional governing authorities to further the use of the CBDC. To further enable mass adoption at home, a new offline SIM card-based digital yuan wallet was developed and launched earlier this year.The successful use of the digital yuan in settling this oil deal represents a significant step forward in the internationalization of China’s currency and the growing influence of CBDCs on the global economic stage. As the world watches these developments unfold, the digital yuan continues to make strides towards becoming a crucial means of exchange in international trade and finance.