Bullish Market Analysis Finding as Asia Doubles Crypto Users

Hong Kong Urged to Issue HKD StablecoinA new policy proposal is urging the Hong Kong government to take a bold step by issuing its own stablecoin, HKDG, pegged to the Hong Kong dollar. The aim is to compete with established stablecoins like USDT and USDC, according to a paper co-authored by notable experts in the field.The proposal, co-authored by Wang Yang, Vice Chancellor of the Hong Kong University of Science and Technology and Chief Scientific Advisor of the Hong Kong Web3 Association, angel investor Cai Wensheng, BlockCity founder Lei Zhibin, and Ph.D. student Wen Yizhou, stresses the significance of stablecoins as a link between traditional finance and the digital economy.Photo by Chapman Chow on UnsplashHKD stablecoin benefitsThe authors believe that a Hong Kong Dollar-pegged stablecoin can enhance financial inclusiveness, improve transaction efficiency, reduce costs, strengthen payment systems, and boost Hong Kong’s fintech capabilities.The experts argue that the current plan of allowing private institutions to issue stablecoins is not ambitious enough and may result in limited market share. They draw a comparison with Singapore’s XSGD stablecoin, issued by Xfers, which only has a market cap of $65 million, compared to the combined market capitalization of over $110 billion for USDT and USDC. With Hong Kong’s foreign exchange reserves surpassing $430 billion as of March, an HKDG stablecoin backed by the government would offer higher credibility and lower risk.Private vs. public issuanceWhile the proposal acknowledges potential risks, such as legal and regulatory challenges, technical risks, and short-term exchange rate fluctuations, it argues that government-issued HKDG would bear lower risks compared to stablecoins issued by private institutions. The authors assert that HKDG would benefit from government regulation and the transparency provided by blockchain technology.Furthermore, the paper suggests that HKDG could aid in Hong Kong’s de-dollarization efforts and challenge the dominance of the US Dollar in the crypto ecosystem. It is believed that HKDG could provide additional liquidity for government investment projects, facilitate the digitization of traditional assets, foster financial innovation and competitiveness, and increase transparency.Recent months have seen Hong Kong demonstrate its intention to establish itself as a global hub for the crypto industry. To support this, a Web3 task force has been set up to cultivate a thriving ecosystem in the region.There has been plenty of activity of late relative to stablecoin development in Asia. At the end of May, Hong Kong-based qualified custodian and trust company First Digital Trust, announced plans to introduce a US dollar stablecoin, issued and regulated in Hong Kong. Last month it emerged that Japan’s largest bank, Mitsubishi UFJ Financial Group, Inc. (MUFG), is in discussions regarding the issuance of stablecoins on its blockchain network.Competing internationallyIssuing a government-backed stablecoin could be a transformative move for Hong Kong’s fintech landscape. By leveraging its substantial foreign exchange reserves and embracing blockchain technology, Hong Kong could create a stablecoin that not only competes with established players but also promotes financial inclusiveness and strengthens its position as a fintech leader.With the potential benefits appearing to outweigh the identified risks, it still remains to be seen whether the Hong Kong government will adopt this proposal and pave the way for an HKDG stablecoin in the near future.

Japanese Games Publisher Suspends Metaverse DownloadsJapanese video game publisher Bandai Namco has taken the step of temporarily suspending downloads of its recently unveiled Gundam Metaverse, raising questions and concerns about a potential major leak within the project.In an official announcement on Thursday (local time), the company expressed regret over the temporary suspension of client file downloads, stating that the firm is sorry that downloading the client files for the Gundam Metaverse has been temporarily suspended.Photo by Jason Ng on UnsplashRecent game releaseGundam Metaverse was launched with the collaborative intention of Bandai Namco and Gundam fans, aimed at creating a community that contributes to future Gundam projects. The sudden halt to downloads came as a surprise, given that the game was released just this month.The Gundam Metaverse was initially slated to be open for a limited time in Japan and the US. It featured an “Early Access” phase for a select number of users, which commenced on October 6, followed by the “General Access” phase available to the public starting on October 12.During this time, visitors had the opportunity to immerse themselves in a 3D world inspired by the iconic Gundam anime. The virtual world included a store offering six distinct Gundam Plastic models, commonly known as Gunpla, and a space for digital live performances by artists affiliated with the Gundam series.Suspected design file flawsBandai Namco has remained tight-lipped about the reasons behind the decision to cease downloads, leaving fans and observers speculating about potential issues with the project. Speculation was further fueled by rumors that circulated online, suggesting that the game’s downloads contained unencrypted design files related to specific models from “Gundam SEED Freedom.”These rumors began circulating as early as mid-September when a Weibo user claimed to have shared images of the “Freedom Gundam” and “Justice Gundam” designs, scheduled to make their debut in “Gundam SEED Freedom.” This upcoming animated film is produced by Bandai Namco Filmworks and directed by Mitsuo Fukuda, with a release date set for January 26 next year, marking the 20th anniversary of the Gundam SEED franchise.Given that Gunpla models were set to be released in tandem with the film’s screening in January, the alleged leak of design files would be a substantial concern for Bandai Namco.Hong Kong news outlet HK01 reported:“There were a large number of 3D model CAD [computer-aided design] files of Gundam models hidden inside [a download], including 2024-only 3D model CAD files.”Metaverse visionBandai Namco set out its metaverse vision in March 2022 when it provided initial details on what it termed back then as its “Gundam Metaverse Project.” The project involved an outlay of $130 million for the company to get it off the ground.At the time, Bandai Namco saw its entry into the world of the metaverse as an opportunity for it to be “connected with fans,” becoming a hub so that those connections could run more deeply and broadly and result in greater enjoyment for IP fans, partners, group employees, and society worldwide.Bandai Namco’s decision to halt downloads remains a topic of intrigue that has left Gundam fans and industry observers eagerly awaiting further developments and clarifications from the gaming giant.

With Thailand just having elected its youngest-ever Prime Minister (PM), speculation has arisen within the crypto sector as to whether the new appointee will be bullish where digital assets are concerned. On Sunday, 37-year-old Paetongtarn Shinawatra was sworn in as the Southeast Asian country’s Prime Minister, having received two-thirds of the votes in a House of Representatives ballot on Friday. On Aug. 18, a pseudonymous crypto commentator, @martypartymusic, told his 109,000 followers on X that Shinawatra’s appointment was positive for crypto. He wrote:”She is a crypto bull. Her father was a crypto bull. IMO: Thailand could be next to adopt crypto as legal tender. Let’s watch it play out."Photo by Evan Krause on UnsplashDigital wallet programShinawatra has committed to continuing a similar approach to policy as followed by her predecessor, Srettha Thavisin. That will include an emphasis on pursuing economic reform and accommodating economic stimulus measures.  One crypto-related measure introduced by her predecessor is the digital wallet handout project. According to Nikkei Asia, the scheme has been burdened with both legal and budgetary challenges. Kasit Piromya, a former Thai Foreign Minister, is understood to have said that Shinawatra would be committing “political suicide” if she continues to drive that project forward.  It’s understood that she has indicated that the government will continue with the project but that it plans to take steps to ensure that the program can proceed in a financially sustainable way. Shinawatra’s Pheu Thai Party had first floated the notion of giving 10,000 baht in digital assets, at the time valued at $300, in April 2023, to Thai citizens above the age of 16. Further moves were made to progress that $14 billion project earlier this year. While insiders have reported that Shinawatra has been non-committal about the digital wallet project, she has been quoted as stating previously that “the digital wallet scheme is a project we intend to use as a major economic stimulus.” As various commentators speculate on her likely course of action, the reality is that these matters will remain unclear until such time as she appoints a cabinet and announces relevant policies. Tanawat Sutunthivorakoon, the CEO of Thai digital asset management platform Bitazza Thailand, expressed the view that this change in leadership will have very little impact on the development of digital asset regulation in the Southeast Asian country. Regulatory developmentThe country has seen a number of crypto-positive developments over recent months. Back in March, the country’s tax authority approved a crypto income tax exemption in an effort to incentivize crypto-based fundraising. The authorities had already made crypto trading VAT-free the previous month. Earlier this month, Thailand’s Securities and Exchange Commission (SEC) introduced a digital asset regulatory sandbox in an effort to foster innovation relative to the digital assets sector. The SEC allowed institutional investors in Thailand to access U.S. spot Bitcoin exchange-traded fund (ETF) products. In June, the regulator followed up by approving the country’s first spot Bitcoin ETF.