Ethereum Foundation targets Asian expansion with Bangkok set for Devcon 7

StraitsX, a Singapore-headquartered digital asset infrastructure provider, has partnered with global payments firm Visa and Hong Kong-based RedotPay to enable the Hong Kong firm in launching a crypto credit card product offering. The partnership combines Visa’s global payments network with StraitsX’s facilitation as a means of accessing that network. Meanwhile, RedotPay’s proprietary real-time conversion technology enables users to spend crypto using the card on goods and services priced in fiat currency.Photo by Markus Winkler on UnsplashVisa BIN sponsorshipStraitsX published details of the development on its blog on Feb. 11. The company is authorized by Visa to act as a Visa BIN (Bank Identification Number) sponsor. Essentially, it acts as the conduit through which RedotPay is enabled to issue its crypto credit card. By leveraging StraitsX’s BIN sponsorship, RedotPay has cut through the complexity and cost that would be involved in trying to gain principal membership of the Visa network. Furthermore, as a BIN sponsor, StraitsX will handle compliance and security. The card offering allows holders to make purchases using crypto through the global network of merchants that accept Visa payments. Jason Tay, head of commercial at StraitsX, described the partnership as “a game changer for everyday retail use cases,” on the basis that the new card issuance will enable users to leverage their digital assets with ease in respect of daily transactions. Both companies emphasized that the partnership has led to a product offering that bridges the gap between digital assets and conventional commerce. Tay said that it “will transform how consumers interact with cryptocurrencies in the retail space." He added: "By combining our technology with Visa's vast network, we are making it easier than ever for users to seamlessly integrate digital assets into their everyday spending.” Targeting the unbanked & crypto usersRedotPay CEO and co-founder Michael Gao said that the collaboration marked a significant step forward in the company’s mission to make crypto payments accessible and user-friendly, while contributing towards the mass adoption of cryptocurrencies within payment systems. “Our users will enjoy the flexibility of spending their digital assets just like traditional currency,” he added. It’s understood that the product offering targets crypto users primarily in Singapore. Adeline Kim, Visa’s country manager for Singapore and Brunei, highlighted the potential of the card offering, given that over 35% of digital asset owners in Singapore use them for retail purchases. That data emerged via a Visa study which was completed in 2023. The same study found that close to six in 10 consumers in Singapore are aware of digital assets.  While this marks the official launch of the product, RedotPay soft-launched the card in late 2024. StraitsX has been influential in enabling other crypto-related payments systems in Asia. Last December it assisted Thailand’s Kasikornbank (KBank) in rolling out a Thai baht to Singaporean dollar cross-border payments solution implicating the use of stablecoins. The company received Major Payments Institution (MPI) licenses from the Monetary Authority of Singapore in July 2024.

The Philippines is on track to finalize Project Agila, its wholesale central bank digital currency (CBDC) trial, by the end of this year. Three primary use casesThat’s according to statements made on March 6 by Deputy Governor Mamerto Tangonan of the Bangko Sentral ng Pilipinas (BSP) —  the Philippine central bank. According to a local news report by GMA News, the Deputy Governor outlined three primary use cases for the wholesale CBDC trials in a press conference: interbank settlement, settlement of securities transactions and cross-border payments. Notably, the Philippines is participating as an observer in the cross-border CBDC project mBridge, which involves China, Hong Kong, Thailand and the United Arab Emirates (UAE). Six domestic institutions are involved in the current tests in the Philippines: BDO Unibank, China Banking Corp, Land Bank of the Philippines, Rizal Commercial Banking, Union Bank of the Philippines and Maya Philippines.Photo by OJ Serrano on UnsplashUsing pilot as ‘learning exercise’Tangonan described the pilot as a "learning exercise in order to put us in a better position to assess whether this technology is what, itself, claims to be.” Typically, central bank accounts are restricted to commercial banks and some central counterparties in financial markets. However, the BSP intends for the wholesale CBDC to be accessible to banks and certain financial institutions. Nevertheless, past tests, including one in Canada, have highlighted potential limitations, such as the inability of brokers to use the wholesale CBDC for settlement. An ongoing interest since 2020The Philippines initially expressed interest in issuing a CBDC in 2020, with the BSP Monetary Board conducting a positive initial assessment of a wholesale CBDC and planning pilot tests from 2022 onwards, known then as Project CBDCPh. The launch of the pilot project was announced in April 2022. In 2023, the Southeast Asian country participated in a pilot study with the Digital Dollar Project, Western Union and BDO Unibank to explore a retail CBDC for remittance purposes. While the study found potential cost reductions and increased transparency and competition, it also identified challenges related to transaction speed, particularly due to most remittances arriving after working hours. Moving away from blockchainLast September, the BSP announced plans to utilize the Hyperledger Fabric blockchain. However, in February, Governor Eli Remolona stated that the CBDC would not be utilizing blockchain technology. At that time, the central bank Governor had indicated the expectation of launching a wholesale CBDC either next year or by 2026. Elsewhere in the Asian region, the Hong Kong Monetary Authority (HKMA) recently announced its own wholesale CBDC trials, Project Ensemble, underscoring the growing interest and activity in CBDC development across various jurisdictions. The Chinese autonomous territory is also cooperating with its colleagues in mainland China in participating in testing of the digital yuan or e-CNY, with a particular focus on cross-border payments.India represents another key Asian nation which has devoted quite a lot of time and resources to CBDC development already. However, a report last month suggested that the world’s most populous country has concerns with regard to the question of privacy relative to CBDC use. For that reason, it has determined the need to remain cautious while continuing CBDC development.  

South Korea Introduces ABLE Alliance for Blockchain Advancement and CollaborationThe South Korean Ministry of Science and ICT (MSIT) celebrated the launch of the Alliance of Blockchain Leading Digital Economy (ABLE) yesterday, according to its press release. The ministry convened a meeting in Seoul to discuss the government’s digital transformation agenda with the alliance’s members.Photo by Shubham Dhage on UnsplashStartups’ challengesIn the rapidly evolving blockchain technology landscape, Korean startup vendors have encountered challenges in finding clients for their products. Moreover, they often face the problem of their services or technology becoming outdated by the time they are ready to be brought to market. To address these issues, MIST and the Korea Internet and Security Agency (KISA) took the initiative to establish the ABLE alliance.64 ABLE membersThe ABLE alliance consists of 64 entities, categorized into three distinct groups: clients, vendors, and advisors. Prominent clients include financial institutions such as the Bank of Korea, KB Kookmin Bank, and Hana Bank. Notable vendors within the alliance include Lambda256, a blockchain solution provider; AhnLab Blockchain Company; and Raon Secure, a mobile security solution. Serving as advisors are well-known participants like SK Securities; NH Investment Securities; and Nice Information Service, a credit bureau and corporate intelligence data provider.Objectives and rolesThe primary objective of the ABLE alliance is to promote effective communication among its entities, fostering a better understanding of each other’s requirements for blockchain projects. ABLE will serve as a centralized point of contact for handling various industry suggestions.To achieve its goals, ABLE will operate an advisory body that offers consultations on diverse areas such as attracting investments, expanding into overseas markets, formulating regulations and policies, and facilitating networking within the technology sector. The alliance will also provide opportunities for its members to showcase and explain their products and technologies to one another. Regular meetings will be conducted to share industry trends and policy developments, ensuring seamless communication among the alliance members.