Grab joins hands with StraitsX to enable stablecoin retail payments across Asia

Ethiopian Investment Holdings, the largest sovereign wealth fund in Africa, has announced the signing of a memorandum of understanding (MoU), which is suspected to involve a deal on Bitcoin mining. Deal uncertaintyTaking to LinkedIn on Feb. 15, the sovereign wealth fund outlined details of a partnership with Data Center Service, a subsidiary of Hong Kong’s West Data Group. Separately, Kal Kassa, CEO of Ethiopian operations at Hashlabs Mining, posted on the X social media platform, outlining that it was a stakeholder in the project and that it involved Bitcoin mining. The matter lacks full confirmation however, given that Kassa subsequently deleted his post while the sovereign fund’s statement falls short of mentioning Bitcoin mining. Once verified, the project would signify a substantial investment of $250 million. It’s understood that the investment would be directed towards the establishment of state-of-the-art infrastructure tailored for data mining and artificial intelligence (AI) training operations within Ethiopia.Photo by Kelly on PexelsExploiting abundant energy resourcesA key component of this venture may involve the setup of Bitcoin mining operations utilizing Canaan Avalon miners. This initiative would align with Ethiopia's broader strategy to capitalize on its abundant energy resources to attract international investment and stimulate economic growth.Ethiopia has about 5,200 MW of installed generation capacity, 90% of it coming from hydropower and the remainder from wind and thermal sources. While the official confirmation from the government is pending, the ambitious project has sparked both excitement and skepticism within the industry. Concerns linger regarding the energy-intensive nature of Bitcoin mining and its potential strain on the local electricity supply, an issue of particular relevance in a nation where energy accessibility remains a pressing challenge for many. Bloomberg reportEarlier this month, a report from Bloomberg highlighted Ethiopia as being a new haven for Chinese crypto miners. Following the imposition of a mining ban in China in 2021, many operations were redeployed overseas. Kazakhstan in particular was a popular choice. The Eurasian country wasn’t prepared for the influx, leading to power blackouts.Hashlabs Mining co-founders Jaran Mellerud and Alen Makhmetov both featured in the article. Mellerud outlined the difficulty, stating:“Firstly, countries can run out of available electricity, leaving no room for miners to expand. Secondly, miners can suddenly be deemed unwelcome by the government and be forced to pack up and leave.”Makhmetov outlined that he had a 10 MW facility in Kazakhstan which still sits idle today as curbs and taxes enforced in Kazakhstan on miners “basically killed the industry.” Despite these difficulties in Kazakhstan and China's official ban on cryptocurrency trading, the legalization of Bitcoin mining in Ethiopia in 2022 has spurred a notable influx of Chinese miners seeking new investment avenues. Ethiopia will need to be mindful of the difficulties experienced in Kazakhstan. With that, the Ethiopian government's move towards regulating cryptographic products, including mining activities, reflects a measured yet optimistic approach towards harnessing the economic potential of Bitcoin mining. This regulatory framework aims to strike a balance between fostering sector growth and safeguarding the country's energy security and environmental commitments.  

BingX embarks on rebrand to further service offeringBingX, the Singapore-headquartered cryptocurrency exchange platform, has taken the decision to rebrand the business.Improving the trading experienceThe platform, originally known for its role in guiding newcomers into the crypto space through copy trading, claims that the move is designed to elevate the trading experience for users by prioritizing simplicity, efficiency and security.This transformation includes a substantial overhaul of BingX’s visual identity, highlighted by a streamlined logo that caters to the practical needs of traders. The changes extend to the platform’s color palette and typography on digital platforms, all aimed at making the trading process more intuitive and user-friendly.Photo by Patrik Michalicka on UnsplashBroadening market appealWhile initially recognized for its focus on crypto beginners, BingX is now broadening its horizons. The platform introduces advanced features catering to a diverse range of crypto enthusiasts, from novices to seasoned traders. This expansion underscores BingX’s adaptive approach to the dynamic cryptocurrency market, addressing the evolving needs of its user base.Megan Nyvold, Head of Branding at BingX, outlined that the rebranding aligns with the company’s enduring vision of democratizing crypto trading globally, emphasizing diversity and creating professional, user-centric trading environments.From ‘Trading Made Easy‘ to ‘Empowering Traders’In tandem with the visual changes, BingX has also unveiled a new tagline, transitioning from “Trading Made Easy” to “Empowering Traders.” This shift emphasizes the company’s commitment to supporting traders at all levels, ensuring access to reliable and transparent services.In a blog post published by the company on Thursday, Nyvold stated:”Over the past five years, BingX’s vision to build a gateway for the next billion crypto users has been unwavering. As part of this evolution, we have refined our core values with a renewed emphasis on promoting diversity. As we introduce our refreshed brand identity, we reaffirm our assurance of empowering our users, focusing on a more professional and user-centric trading environment that aligns with our vision for collective success.”This latest move is one of a number of ongoing efforts BingX has made this year to further develop the business. In July, the company introduced AstraBit to the platform, an automated algorithmic trading and portfolio management tool, to enhance and automate the crypto trading experience for its platform users.The following month, it introduced a Multiple Deposit Addresses feature to enable greater flexibility and convenience for service users. September brought a collaboration with WunderTrading, adding the use of its automated trading bots to BingX platform users. Earlier this year, the company had integrated crypto portfolio tracker CoinTracking with the platform, in an effort to allow service users to generate reports for tax purposes with ease.BingX was founded in Singapore in 2018 by Josh Lu. The platform claims to have five million service users.

South Korea is building payment rails for a tokenized won on two tracks, one led by banks extending a central bank digital currency pilot, the other by card issuers testing stablecoins, with no law yet to govern either. The Korea Internet & Security Agency and the Ministry of Science and ICT said last week they had begun a project to extend the Bank of Korea's CBDC pilot, Project Hangang, into retail payments, according to a report by local outlet Digital Asset.Ilustration generated with ChatGPTThe Korea Financial Telecommunications and Clearings Institute, which operates the country's interbank payment network, will lead the consortium of nine commercial banks, eight payment gateways and two large organizations that will pilot the payments. It will connect existing payment infrastructure to Project Hangang on a 9.6 billion won ($6.6 million) budget. The pilot tested deposit tokens, a tokenized form of commercial bank deposits backed by a wholesale CBDC. The design avoids building anything new. Consumers would pay through bank-issued deposit token wallet apps, with a physical card under consideration, and merchants would keep their existing terminals. The stated aim is faster settlement and lower fees for small merchants. The government also plans to use deposit tokens for public spending, starting with a pilot for official expenses and later a treasury model linked to dBrain, the nation’s digital budget accounting system. Card issuers defend the railsSeparately, Newspim reported the Credit Finance Association and nine card issuers, including Samsung Card, Shinhan Card, KB Kookmin Card and Hyundai Card, on July 22 concluded a joint proof of concept for won-denominated stablecoins. Run on a test network, it examined whether authorization, settlement and cancellation functioned when a won stablecoin was routed through existing card rails, and whether smart contract-based terminals and QR payments could also handle loyalty points and government-issued vouchers. The tests come as the card business faces mounting pressure. Net income at the eight card companies fell 8.9% last year to 2.36 trillion won ($1.6 billion), as merchant fee income declined despite rising card spending. With 3.09 million merchants, or 95.7% of the total, on preferential fee rates in the first half, and wallet-based stablecoin payments raising the prospect of transactions that bypass card networks altogether, issuers have reason to secure a role in whatever comes next. Their pitch is that they already own the hard part. "Issuers would have to build payment infrastructure from scratch to circulate a stablecoin," a card industry official said. Bolting a settlement function onto existing card rails, the industry argues, would also let issuers apply the fraud detection and anti-money laundering systems already running on those networks. Legislation still stalledDigital assets featured in a reform agenda announced last week by Kim Min-seok, a lawmaker and former prime minister running for leadership of the Democratic Party. "I believe we need financial reform, and one of its key aims should be to establish our sovereignty over digital assets," Kim told a news conference, according to another Digital Asset report. His agenda included passage of the Digital Asset Basic Act, a legal framework for won stablecoins, rules for issuing and trading security tokens, and investor protection. The act, covering stablecoin issuance and digital asset service providers, is targeted for passage this year. Work on the bill had been due to start after party and government consultations in March but was postponed indefinitely, with the crisis in the Middle East among the reasons cited.