Hong Kong Reiterates Web3 Credentials and Commitment

e-CNY Payments Enabled for Hong Kong Visitors From Mainland ChinaBank of China’s Hong Kong arm recently launched a digital yuan shopping festival, aiming to spur local consumption and promote the adoption of central bank digital currencies (CBDCs). The festival, which commenced on July 18, allows visitors from mainland China to make purchases in Hong Kong using the digital yuan.Bank of China (Hong Kong) Limited (BOCHK), a subsidiary of China’s central bank, initiated trials of e-CNY cross-border payments in Hong Kong last year, paving the way for the current shopping festival.Photo by Eric Prouzet on UnsplashSubsidized useAccording to a press release published by BOCHK earlier this week, as of July 18, digital yuan wallet holders have been able to use China’s CBDC to make payments at over 200 participating merchants across Hong Kong. Furthermore, consumers have the opportunity to receive shopping subsidies in digital yuan by scanning QR codes at specific stores, as stated in the BOCHK press release.The range of merchants accepting e-CNY payments spans from electronics sellers and pharmacies to supermarkets. Among the participants is U Select, a Hong Kong-based supermarket chain with a wide presence of more than 90 stores throughout the city.BOCHK strategically chose the summer tourist season for the expansion of e-CNY payments in Hong Kong. Chen Guang, representing BOCHK, mentioned the influx of tourists to the special administrative region, presenting a prime opportunity to attract more users and bolster local consumption through this cross-border shopping festival.The move makes BOCHK the first institution to partake in the cross-border e-CNY trial in Hong Kong. In December 2022, the bank initiated the first phase of its “digital yuan exclusive experience,” which allowed a limited number of BOCHK consumers to shop in the city using the digital yuan.Adoption strategyThe digital yuan has witnessed robust adoption in recent times, with China leading the global development of CBDCs. The Bank of China has been actively striving to advance and popularize the use of digital yuan in the country. Various initiatives, including business loans, trial expansions, and partnerships with prominent technology firms, have been undertaken to propel the widespread adoption of the digital currency.The introduction of the digital yuan shopping festival in Hong Kong signifies yet another significant step in China’s efforts to promote its CBDC and drive its usage in both domestic and international transactions. With over 200 merchants already participating and a seamless payment experience for tourists, the festival has the potential to encourage further adoption and shape the future of digital payments in the region.As this initiative gains momentum, it will be crucial to observe its impact on local consumption and the broader implications for CBDC adoption in the global financial landscape.The rate of China’s CBDC development and beyond that, the intent with which it is striving to drive adoption through a seemingly never-ending series of initiatives has been unmatched by any other nation. With that, the first real results of the active and widespread use of a CBDC are going to come from the country that makes up one-fifth of the world economy.

Rotonda launches crypto wallet service Burrito Wallet in Latin AmericaRotonda, a subsidiary of South Korean crypto exchange Bithumb and the operator of the digital wallet Burrito Wallet, announced on Tuesday (local time) that it has launched its services in the Latin American region, marking its entry into global markets.Photo by Leon Overweel on UnsplashLaunched in February, Burrito Wallet’s primary functions include convenient chat-based cryptocurrency transfers and crypto swapping. It is the largest multi-chain wallet in Korea that supports 11 mainnets, including Bitcoin and Ethereum, as well as over 1,000 token currencies.Expanding region-specific servicesIn addition to these basic services, the Burrito Wallet’s available services in Latin America will include both on- and off-ramp functions for buying and selling crypto, which will be added by the end of this year. An on-ramp function facilitates users in acquiring crypto assets, whereas an off-ramp facilitates users in disposing of their crypto assets. Considering that many countries in the region recognize cryptocurrencies as fiat currencies, the company plans to expand its services to meet the market demand. Furthermore, the company aims to secure users by providing transfer services and various airdrop events.“The greatest advantage of Bithumb Burrito Wallet is the ability to use various functions such as cryptocurrency storage, management, transfers and swapping all in one platform,” explained Burrito Wallet’s Chief Financial Officer Chung Jae-kwon. Jeong recently visited Colombia last month to introduce the wallet service. “We believe that we can respond to the specific demands of the financial environment in Latin America through our user-friendly wallet service,” he added.Addressing economic challengesThe blockchain market in Latin America has been growing rapidly with rising demand for convenient and secure crypto services, driven by low accessibility to traditional finance and unstable economic conditions such as inflation.“As the global financial crisis worsens due to a lack of liquidity in banks, the need for financial instruments that can safely protect assets is increasing,” Chung said. “We anticipate a growing demand for our non-custodial wallet, which allows users to hold their own private wallet keys.”Earlier this month, Burrito Wallet signed a business agreement with the blockchain gaming platform Yooldo to expand their respective blockchain ecosystems and secure a global user base.

Bakkt, an American digital asset custodian and trading firm, has acquired a stake in Marusho Hotta, a Japanese textile firm, as part of a new crypto treasury strategy which the company adopted recently. The firm, which was established in 2018 and is 55% owned by Intercontinental Exchange, the owner of the New York Stock Exchange (NYSE), published a statement on its website on Aug. 6, outlining that it had acquired a 30% stake in Marusho Hotta. The textile firm, a publicly-listed company on the Tokyo Stock Exchange (TSE: 8105), is both a manufacturer and distributor of yarn and bedding, as well as Japanese and Western clothing.Photo by 🇸🇮 Janko Ferlič on Unsplash‘bitcoin.jp’As a result of the transaction, Bakkt International President Phillip Lord will become CEO of Marusho Hotta, and the company will be renamed as “bitcoin.jp.” Akshay Naheta, co-CEO of Bakkt, commented on the development, stating: "Japan's regulatory environment creates an ideal platform for a Bitcoin-centered growth business. We look forward to working with MHT's team to integrate Bitcoin into their operating and financial model and to establish MHT as a leading Bitcoin treasury company." Back in June, it emerged that Bakkt was working towards raising $1 billion from investors, providing the first indication that the firm was moving towards pursuing a crypto treasury strategy. A filing lodged with the Securities and Exchange Commission (SEC) at the time stated:“We may acquire Bitcoin or other digital assets using excess cash, proceeds from future equity or debt financings, or other capital sources, subject to the limitation set forth in our Investment Policy.” The company went on to outline that the timing and magnitude of any such crypto purchases would depend upon market conditions at the time, capital market receptivity, the firm’s business performance and other strategic considerations. Given the credentials within traditional finance of the company’s owners, the arrival of Bakkt in 2018 was seen as a significant event within the crypto sector. However, the firm’s journey has not been an easy one. It started out by trying to appeal to retail users and bring about real-world use of cryptocurrency. It established an app and a partnership with Starbucks, which looked to bring crypto into mainstream use in terms of everyday payments.However, that partnership fizzled out and in 2024 a filing lodged by the company with the SEC revealed that the company’s position was challenging, with it warning that it “might not be able to continue as a going concern.” When the business first launched, it aspired to bring Bitcoin to 401(k) retirement accounts in the U.S. It may have been ahead of its time in that regard as it had to contend with Donald Trump’s first term as president when he wasn’t particularly pro-crypto and a distinctly anti-crypto Biden administration immediately afterwards. It is only now, seven years after the founding of Bakkt, that the current Trump administration is finally moving to allow crypto investment to form part of 401(k) plans. More recently the firm had concentrated on catering to the needs of institutional investors but faced further turmoil earlier this year when it lost two customers who allegedly made up 73% of Bakkt’s revenue.