Thailand’s SEC expands list of approved cryptocurrencies to include stablecoins

Hong Kong has launched a pilot program for the digital yuan, marking the People’s Bank of China's (PBoC) central bank digital currency’s (CBDC) first major deployment outside mainland China.  This initiative, facilitated by the Hong Kong Monetary Authority (HKMA), represents another step forward in the integration of the digital yuan into Hong Kong's financial ecosystem.Photo by bady abbas on UnsplashCross-border transactions rather than P2PAccording to a press release, the HKMA and PBoC are working together to enable Hong Kong users to set up personal e-CNY wallets using just their Hong Kong mobile phone numbers. The faster payment system (FPS) will support these e-CNY wallets, allowing users to top up their wallets through 17 retail banks in the Chinese autonomous territory. However, the e-CNY wallets are primarily designed for cross-border payments between Hong Kong and the mainland, and currently do not support person-to-person transfers within Hong Kong. This pilot aims to facilitate transactions for Hong Kong residents using their digital yuan wallets, marking the first integration of a CBDC through a major central bank. The Digital Currency Institute (DCI) is managing the interoperability infrastructure between the FPS and the digital yuan, with a focus on enhancing cross-border payments, a key objective on the G20 countries' roadmap. More functionality promisedLike blockchain protocols, the digital yuan pilot offers 24/7 payment capabilities. Eddie Yue, the chief executive of the HKMA, stated that the e-CNY application and wallet would gradually gain more functionality as the HKMA and PBoC work to encourage more retail merchants to adopt the system. Yue stated: “By expanding the e-CNY pilot in Hong Kong and leveraging the 24x7 operating hours and real-time transfer advantages of the FPS, users may now top up their e-CNY wallets anytime, anywhere without having to open a Mainland bank account, thereby facilitating merchant payments in the Mainland by Hong Kong residents.” The HKMA and DCI are planning upgrades to the e-CNY wallets through real-name verification, aiming to enable corporate use cases for cross-border trade settlements in the future. Adoption strugglesWith at least 140 countries exploring CBDC pilots, China's digital yuan is among the most advanced. China has been actively promoting its CBDC, even paying monthly salaries in e-CNY to government workers and employees of state-owned enterprises. However, as reported by the South China Morning Post, many recipients are hesitant to use the digital yuan due to privacy concerns and other limitations. China's central bank aims to increase the use of the yuan in Hong Kong, especially in tourist areas. Last June, digital yuan ATMs were installed in the resort city of Sanya in an attempt to target use of the currency by tourists. Although the city of Jinan embarked upon an initiative last year to enable digital yuan payments on its bus system, the currency is not yet widely accepted for public transportation across China.  Meanwhile, Hong Kong is in the second phase of its own CBDC pilot, the e-HKD, and has launched a regulatory sandbox for stablecoins to foster communication between regulators and issuers of fiat-pegged stablecoins in the region. 

The People’s Bank of China (PBOC) plans to roll out a new structure for its central bank digital currency (CBDC) operations, moving the digital yuan into a deposit-based role within the commercial banking system beginning Jan. 1, 2026. Lu Lei, a deputy governor of the PBOC, announced the update, marking a new direction after nearly a decade of pilot programs. According to a report by FTChinese, the move fits into Beijing’s broader economic planning, as authorities seek to reinforce China’s role in global finance while containing risks tied to loosely regulated digital activity. The deputy governor said China will continue to run the digital yuan under a two-tier system, with the central bank responsible for rules and infrastructure, while commercial banks manage wallets, payments, and compliance. He added that the arrangement is designed to prevent banks from being sidelined and to limit shadow banking risks associated with digital payment platforms outside the regulated system.Photo by Eric Prouzet on UnsplashDigital yuan transactions top $2.3TThe announcement comes as use of the digital yuan, known as the e-CNY, continues to rise. By late November 2025, the system had handled 3.48 billion transactions with a total value of 16.7 trillion yuan ($2.3 trillion). There are about 230 million personal wallets and 18.84 million corporate wallets. Beyond domestic use, the e-CNY is being positioned for international trade. Lu pointed to progress on mBridge, a cross-border payments project involving multiple central banks. The platform has processed 4,047 transactions worth the equivalent of 387.2 billion yuan ($55.3 billion), with the digital yuan accounting for about 95.3% of the settlement value. The deputy governor also sounded a note of caution on private-sector innovation, saying the rapid growth of digital assets and stablecoins could complicate the conduct of monetary policy. He said central banks need to ensure that new payment tools do not undermine macroeconomic stability or allow money to circulate beyond regulated channels. Hong Kong to license crypto dealers, custodiansAs Beijing moves to strengthen its state-backed currency framework, Hong Kong is also tightening oversight of the crypto market. On Dec. 24, the city’s Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) released their conclusions on proposed legislation to regulate virtual asset dealing and custodial services. Following the implementation of the Stablecoins Ordinance in August, regulators are now moving to require firms offering crypto dealing or custody services in Hong Kong to obtain licenses and operate under regulatory supervision. They also began seeking feedback on whether to extend oversight to virtual asset advisory and management providers, with the proposed framework modeled on existing securities market rules. In a separate development underscoring the contrast between state-backed and decentralized digital currencies in the region, reports this month pointed to a sharp drop in Bitcoin network activity linked to mainland China. BTC hashrate drop seen amid China mining changesKong Jianping, CEO of Nasdaq-listed Web3 infrastructure firm Nano Labs, said on the social media platform X that the global Bitcoin network’s hashrate fell by about 100 exahashes per second, or roughly 8%, around Dec. 15. He attributed the decline to the shutdown of an estimated 400,000 mining rigs, mainly in Xinjiang. A lower hashrate means less computing power is securing the network, reducing competition among miners that validate transactions. China has maintained a broad ban on crypto trading and mining since 2021. Industry outlet Wu Blockchain said the reasons for the latest shutdowns were unclear. 

Shapella Upgrade to Have limited Impact on ETH’s Selling PressureThe Shapella upgrade on the Ethereum network scheduled to take place on Wednesday will only have a limited impact on the selling pressure on ETH, according to a report by the research center at Korean cryptocurrency exchange Korbit.©Pexels/JievaniShapella upgradeOne of the key features of the Shapella upgrade is to allow withdrawal of staked ETH. This upgrade follows September’s Merge upgrade that switched the Ethereum network’s consensus algorithm from Proof of Work to Proof of Stake, significantly reducing electricity consumption.Impact on selling pressureTo predict the impact of the Shapella upgrade on the selling pressure on ETH, the analysts at Korbit Research calculated the amount of time it takes for all the ETH staked as of March 22 to be withdrawn. They believe this calculation is relevant because withdrawals of staked ETH could trigger bulk sales, potentially imposing a greater selling pressure on ETH.According to the findings, the daily sell volume for the first three days is expected to be 300,700 ETH, 0.254% of the circulating supply. This volume will gradually decrease to 43,000 ETH for the next six months and to 29,000 ETH for the following six months, each corresponding to 0.035% and 0.024% of the circulating supply, respectively.All in all, bulk selling of ETH is not likely, considering it will take about a year and five months for all the staked ETH to be withdrawn and that the amount of withdrawable ETH will stay relatively low for each period. Furthermore, since this analysis assumes an extreme case, the market will be able to effectively handle the volume over the six month to 18 month period.4 other reasonsIn addition, Korbit Research outlined four other aspects that limit the selling pressure on ETH.Firstly, there is some concern that the selling volume of ETH may increase due to unstaking resulting from the cessation of staking services at American crypto exchange Kraken. However, a decrease in the number of validators on the Ethereum network will raise the base reward. This may prompt those who unstaked ETH to stake them on other platforms, rather than selling them.Second, ETH locked up at liquidity staking protocols such as Lido Finance and Rocket Pool provide liquidity for representations of staked ETH. These platforms allow users to stake fewer than 32 ETH for rewards. According to a February Binance Research report, 57.7% of ETH stakers enjoy liquidity and rewards. Therefore, there may be a limited impetus to divest of staked ETH.Third, since only 41.1% of ETH stakers are seeing profits as of the time of writing the report, the remaining stakers would have to risk losses when withdrawing ETH. This suggests that those not yet seeing profits are more likely to keep ETH staked. Furthermore, Dune Analytics data shows that most of the ETH stakers with gains staked ETH when its price was relatively low, which indicates that they participated in staking in early days. Shivam Sharma, the author of the aforementioned Binance report, states that these ETH stakers are likely “some of the strongest Ethereum believers.”Lastly, despite the Shapella upgrade, ETH withdrawals at different staking pools may not be initiated immediately. This could limit the circulation of withdrawable ETH, which in turn would hinder the selling pressure on ETH.Macroeconomic factorsThe Korbit researchers concluded their paper with a note that the selling pressure on ETH will be more influenced by macroeconomic factors than technical factors. They added that a possible downturn in the overall economy and corrections in risky asset markets might lead investors to sell ETH.