Chinese Insurer Founds 2 Crypto Funds in Hong Kong

Animoca Brands Holding $3.4B in Cash and ReservesDigital entertainment, blockchain and gamification firm Animoca Brands provided an update on its financial position on Thursday, disclosing $3.4 billion in cash and assets as held on its balance sheet and in tokenized reserves as of April 30.Photo by regularguy.eth on UnsplashA financial breakdownThe Hong Kong-based Web3 firm published the interim financial report to its website. Breaking that down further, the company is holding $194 million in cash and stablecoin reserves. Additionally, $566 million is being held in liquid digital assets. This includes reserves of $SAND, the native token of the Ethereum-based Sandbox virtual metaverse.Beyond this, Animoca holds $2.7 billion in a varied portfolio of digital asset reserves, linked to its majority owned Web3 subsidiaries and portfolio companies. The firm outlined that it intends to release additional financial updates in the near future. That will include an audited financial statement for 2020. Furthermore, a summary statement of business activity for 2022 will be released, together with similar business highlights pertaining to Q1, 2023.Adjusting to changing market conditionsIt’s likely that Animoca took the decision to release this data at this point to bolster confidence in the company, off the back of a number of announcements that may have led some in the industry to question the overall financial health of the company.According to a report published in March by Reuters, Animoca Brands cut its target for its metaverse fund by 20% to $800 million. The scaling back was understood by many crypto sector commentators to be a reaction by the company due to changing market conditions within the crypto space. It was the second such adjustment the company made. In November 2022, the firm was working on the new fund, initially proposing a target of $2 billion. Once January came around, Animoca took the decision to scale that target back by half to $1 billion.Subsequent to reports of the fund scale-back being published, Animoca Brands CEO Yat Siu reacted, telling one crypto media outlet that “the claim that the Animoca Capital fund target was ‘cut’ from $2 billion to $1 billion is not correct, because $1 billion has always been within the range declared.”Playing down the news further, the company added: “There’s no doubt that the FTX and banking crises have had a serious impact on available venture capital, but fundraising for the Animoca Capital fund is in progress. When the raise is concluded, we will inform the market with the appropriate details, including the final size of this fund.”Siu stated that as the source of that report was an unnamed source, it was difficult to figure out the agenda of that person in broadcasting that claim.Animoca is perceived in the industry as a key player, particularly so when it comes to NFTs, blockchain-based gaming and the metaverse. The firm is classed as a Crypto Top 40 company by Forbes, while being a winner of Deloitte’s Technology Fast 50 award. Deloitte’s Technology Fast 50 program ranks fast growing companies based upon their percentage revenue growth over the course of three years.

Sam Altman’s iris-scanning project Worldcoin (WLD) has resumed its service in South Korea following two months of suspended operation, according to Digital Today. The project utilizes a device dubbed “Orbs” to collect personal biometric data from users who agreed to have their iris scanned by the machine.  The service was suspended after a number of complaints were filed against Worldcoin in February for its data collection practices. In the following development, Korea’s Personal Information Protection Committee (PIPC) launched an investigation into Worldcoin to examine if any local privacy law has been violated by Worldcoin. This led to suspension of six Orbs installed in several areas in Seoul, including Yeouido and Yeoksam areas.  While these Orbs have resumed operations, the investigation is still underway. The South Korean regulators are yet to decide what legal measures to take regarding Worldcoin, according to the press. Photo by Amanda Dalbjörn on UnsplashProof of personhood: Crypto tokens for simply being human Meanwhile, Worldcoin argues that it is impossible to identify an individual person by solely relying on the iris bio-data. It claims that the data will be only used in providing “proof of personhood” to distinguish humans from artificial intelligence (AI). The project aims to offer its WLD token to users “simply for being human” as universal basic income, whose jobs will be potentially replaced by artificial general intelligence (AGI) in the future.  A Worldcoin official added that the project has addressed potential privacy concerns by eliminating data custody processes and allowing users to remove their sensitive data at will. However, major countries including France and Spain have issued orders to suspend Worldcoin’s operation within their jurisdictions, citing risks involving personal data tracking and breaches.  A PIPC official stated that the government authority will continue the investigation and take further action in line with the Personal Information Protection Act.  

India’s RBI Collaborates Internationally on Digital Rupee PaymentsIndia’s Reserve Bank (RBI) is expanding its exploration of central bank digital currencies (CBDCs) by focusing on cross-border functionality, despite its cautious approach to CBDC development.The RBI aims to experiment with various use cases for CBDCs in international payments, as it believes this can enhance the efficiency of cross-border transactions. That’s according to a report which was recently published by local media source, the Economic Times. RBI Governor Shaktikanta Das emphasized the potential benefits of quicker, seamless, and cost-effective cross-border payments. The RBI is actively engaging in dialogue with other central banks that have already implemented or are planning to introduce CBDCs.Photo by rupixen.com on UnsplashUAE collaborationIn collaboration with the United Arab Emirates (UAE), the RBI is promoting joint studies on using CBDCs for settling international payments. The partnership is driven by the high volume of remittances between the two countries, a consequence of the large number of Indian migrants in the UAE.These recent developments follow the RBI’s retail and wholesale CBDC pilot programs, which began just seven months ago. Although the retail pilot attracted 50,000 users within 60 days, the RBI remains committed to a gradual and cautious approach to mitigate potential risks.Onboarding one million CBDC usersWhile expanding the pilot program to new cities, the RBI aims to onboard one million CBDC users within the coming weeks, despite the digital rupee currently having a very low circulation level. On the wholesale side, the RBI’s pilot has shown promising results, with the digital rupee being explored for government bond transactions, money market funds, and short-term lending.RBI Deputy Governor T. Rabi Sankar emphasized the importance of exploring multiple use cases for CBDCs, including account-based CBDCs. The RBI aims to offer as many applications for CBDCs as possible while ensuring the existing National Electronic Funds Transfer (NEFT) and other systems are not disrupted.Global surge in CBDC developmentThe surge in CBDC development worldwide can be attributed to various factors. The imposition of sanctions on Russia following its invasion of Ukraine led to a significant increase in wholesale CBDC initiatives as Russia sought alternatives to bypass the sanctions.Additionally, the diminishing use of cash and the rise of dollarization and cryptocurrency adoption in local economies have motivated over 120 central banks to initiate CBDC research. These central banks are attracted by the potential benefits of financial inclusion and the opportunity to address the decline in cash usage.India has been selective in terms of the aspects of digital asset technology it wants to see further developed within its borders. At a recent conference organized by the RBI, a central bank official called on Indian banks to adopt blockchain technology. When it comes to stablecoins, the central bank is apprehensive, warning of associated risks while calling for global regulation.As India’s RBI continues its CBDC exploration, the focus on cross-border functionality underscores the growing recognition of CBDCs as a transformative tool for international payments. The ongoing collaborations and pilots demonstrate India’s level of interest in staying at the forefront of CBDC development while taking measured steps to ensure a secure and efficient transition to digital currency.