Aevo opens up network to other developers

India Looks to Boost CBDC With 1 Million Users in 3 MonthsThe project team responsible for India’s retail central bank digital currency (CBDC) is aiming to increase its user base to one million users, while also prioritizing the challenge of creating an offline version.©Pexels/Sohel PatelAlthough the Reserve Bank of India (RBI), India’s central bank, publicly stated in March that they were aiming for 500,000 users by July, they are privately looking to double that amount. According to sources familiar with the matter cited by CoinDesk, the architects behind the centralized digital currency are confident that India’s population, being the world’s largest, will enable them to reach one million users easily. Tentatively the project team is aiming to achieve this within three months.Retail and Wholesale CBDCsThe RBI is currently conducting both retail and wholesale CBDC pilot programs. The retail CBDC pilot is active in at least 15 cities, with more than 13 banks participating. The digital rupee pilot began on December 1, 2022, and has seen over 100,000 customers participate in the four months since.India’s digital rupee gained significant attention at a recent meeting of the Group of 20 (G-20), which was hosted by India in Bengaluru, according to RBI Governor Shaktikanta Das. The central bank received positive feedback, with praise received for the design of the CBDC.Multiple challengesThe RBI initiated a Hackathon in 2023 to find solutions to some of the challenges around retail CBDC, including improving scalability, increasing transactions per second, and enabling offline transactions. However, achieving all three technical objectives at once is nearly impossible at present. Experts believe that it is only possible to achieve two out of the three objectives, but the hope is that technological innovation will address this in the future.Offline transactionsFacilitating offline transactions is crucial to improve financial inclusion in emerging economies such as India. The RBI is testing various methods to enable offline transactions, including wearables, debit and credit cards, Bluetooth technology, and smartphones. The central bank is also looking to address the risk of double-spending.More than 50 proposals were submitted to the RBI to solve the problem of offline transactions. The RBI has also been interacting with private companies to consider solutions to improving scalability, even though no partnership has been initiated with any prominent blockchain-related entities.News of India’s ambitious CBDC project fast-tracking has led some to speculate as to what technology lies behind it. Some have suggested Ripple as a possible partner but the suggestion is entirely speculative at this point.The RBI has not announced a timeline for rolling out a full-scale retail CBDC but has indicated previously that it was aiming for the end of the year. The development of a digital rupee has the potential to transform India’s economy by providing greater financial inclusion to its population, which is why the RBI is taking the time to ensure that the CBDC is as robust as possible.

Jingdong Coinlink Technology Hong Kong Limited, a branch of JD Technology Group, has declared its intention to launch a stablecoin tied 1:1 to the Hong Kong dollar (HKD). Despite its status as a sandbox participant under the Hong Kong Monetary Authority (HKMA), Jingdong Coinlink has clarified that this does not imply endorsement or licensure for stablecoin issuance. The company aims to offer this blockchain-based stablecoin as a solution for businesses seeking efficient, cost-effective and secure payment methods.Photo by Ben Cheung on PexelsThe proposed stablecoin promises redemption on a 1:1 basis, supported by reserves of “highly liquid, highly-trusted assets” held in licensed financial institutions. Furthermore, Jingdong Coinlink commits to ongoing cooperation with global regulatory bodies to ensure compliance with existing and future legal frameworks. Cryptocurrency developments in Hong KongThis announcement comes amidst a series of significant cryptocurrency-related activities in Hong Kong. On July 23, CSOP Asset Management launched Asia’s first Bitcoin futures inverse product, following their successful Bitcoin Futures ETF in December 2022. Additionally, the cryptocurrency exchange HKX recently retracted its application for a license from the HK Securities and Futures Commission (SFC), advising users to withdraw their crypto assets. This withdrawal adds to the growing list of 12 other platforms that have either pulled back their license applications or had them returned by regulatory authorities. 

Japan’s Biggest Bank Explores Global Stablecoin IssuanceMitsubishi UFJ Financial Group Inc. (MUFG), the largest bank in Japan, is currently engaged in discussions with companies involved in popular global stablecoins, as well as other firms, to explore the possibility of issuing these tokens using MUFG’s blockchain platform.That’s according to a report published by Bloomberg on Thursday. The stablecoin law in Japan, which recently went into effect on June 1, has established that only licensed banks, registered money transfer agents, and trust companies within the country are authorized to issue stablecoins.Photo by CoinWire Japan on UnsplashProgmat platformMUFG is actively in talks with various parties regarding the utilization of its blockchain platform, Progmat, to mint stablecoins linked to foreign currencies, including the US dollar, with the intention of facilitating their global use.Tatsuya Saito, the Vice President of Product at MUFG, emphasized that the implementation of the legislation provides issuers and users with a sense of security when it comes to engaging with stablecoins. However, he refrained from disclosing the specific stablecoin parties that MUFG is currently in discussions with.Stablecoins play a pivotal role within the cryptocurrency sector, serving as a reliable asset for investors to hold between trades involving more volatile tokens. These tokens are designed to maintain a consistent value, often pegged to $1, and are typically backed by reserves such as cash and bonds. CoinGecko data indicates that approximately $130 billion worth of stablecoins are presently in circulation.Stablecoin stabilityNevertheless, stablecoins have faced challenges in the past when it comes to maintaining their pegs, resulting in disruptions within crypto markets. Notably, TerraUSD, a token reliant on algorithms and trader incentives, experienced a significant crash in May 2022, leading to losses of at least $40 billion. In response to such incidents, regulators have intensified their scrutiny of stablecoins. The stablecoin law in Japan encourages the issuance of stablecoins that are fully backed by fiat cash in a corresponding currency.MUFG envisions leveraging its Progmat blockchain platform to issue security tokens on behalf of third parties, with no immediate plans to develop its own stablecoin, according to Saito. He further revealed that the bank is actively exploring stablecoin projects with entertainment firms, non-financial businesses, and a consortium of Japanese financial institutions. Furthermore, overseas financial groups have shown keen interest, and Saito believes that Japan has the potential to become a global hub for stablecoin issuance.Tether dominanceTether ($USDT) holds the position of the top global stablecoin, accounting for more than 60% of the sector’s market value, while Circle Internet Financial Ltd.’s USD Coin ($USDC) occupies the second spot. Any party intending to produce stablecoins within Japan would need to comply with the country’s legislation.Saito highlighted that the regulation’s provision allowing stablecoins to be denominated in various currencies, including the US dollar, opens up opportunities for the issuance of tokens intended for global use. He expressed his belief that this presents a significant opportunity for Japan.Prime Minister Fumio Kishida’s economic agenda, known as “New Capitalism,” includes a focus on supporting the growth of Web3 firms. While Japan has taken steps to relax certain cryptocurrency regulations, such as those pertaining to token listing and taxation, it continues to be perceived as a country with relatively strict regulations.