Positive signals in Vietnam suggesting XRP payments adoption

Singapore Elects Crypto Skeptic as PresidentGarnering 70.4% of all votes cast on Saturday, Singaporeans chose to elect Tharman Shanmugaratnam as their next president, a move that may have implications for Singapore’s outlook when it comes to digital assets.While many had hoped that he would be the nation’s first non-Chinese prime minister, the crypto industry has greeted his rise to this largely ceremonial role with mixed feelings. Shanmugaratnam’s previous stances on cryptocurrency and digital assets have been predominantly critical.Photo by Justin Lim on UnsplashFormer MAS ChairmanIn the past, the president-elect has referred to cryptocurrency as “slightly crazy” and “purely speculative.” His ascent to the presidency comes after a distinguished career that includes serving as the former finance minister, deputy prime minister, and chairman of the Monetary Authority of Singapore (MAS), the country’s central bank, from 2011 to 2023.Crypto platform collapsesIt was during his tenure at MAS that two prominent crypto companies, Three Arrows Capital (3AC) and Terraform Labs, faced catastrophic collapses.The demise of Terraform Labs, along with its TerraUSD (UST) stablecoin, triggered a severe “crypto winter” in May 2022, from which the industry is still struggling to recover. This downfall wiped out a staggering $500 billion in value over just two weeks, devastating the portfolios of numerous retail investors.The ripple effect of TerraUSD’s fall also engulfed 3AC, a significant cryptocurrency hedge fund headquartered in Singapore. The contagion spread across the cryptocurrency market, leading to the downfall of other major entities like crypto lending platforms Celsius Network and Voyager Digital, alongside Singapore-based Hodlnaut.Given that these catastrophic events unfolded during Shanmugaratnam’s tenure at MAS, it’s plausible that he bore the brunt of the consequences. That might explain why in speaking on the subject in 2021, he appeared to be more accommodative, suggesting that there may be a useful role that crypto could play and highlighting that Singapore had allowed crypto businesses to develop within the city-state.In June of last year, MAS reprimanded 3AC for providing misleading information and exceeding the allowed assets under management (AUM) threshold, thereby breaching its status as a registered fund management company.In January, Shanmugaratnam said that regulating the crypto sector would give credibility to speculation and on that basis, it would be best to leave it unregulated. He went on to suggest that crypto should be subject to existing regulation as laid down for traditional finance.Early stage concernsBack in 2018, when he was Singapore’s finance minister, Shanmugaratnam questioned the wisdom of broad regulation potentially legitimizing a speculative and “slightly crazy” market. During the 2018 World Economic Forum, he emphasized the importance of anti-money laundering measures and advocated for educating consumers about the risks inherent in the unregulated crypto sector.Although he acknowledged blockchain’s potential to enhance global payment systems, Shanmugaratnam favored integrating existing traditional payment mechanisms as an alternative to blockchain innovations.Singapore’s new president brings with him a history of skepticism towards cryptocurrency and digital assets. However, with a largely ceremonial role relative to day-to-day governance, he’s not in a position to take direct action that could hold the sector back although he will have the power to initiate corruption investigations upon the advice of the Singaporean cabinet.

Nexo DWTC, the Dubai arm of the well-known crypto lender, has obtained initial licensing approval from Dubai’s Virtual Assets Regulatory Authority (VARA), marking a significant milestone in the company’s growth and development.Photo by Carlos Alberto Gómez Iñiguez on UnsplashLending, borrowing and broker-dealer activitiesThe approval grants Nexo the authorization to engage in virtual asset lending and borrowing, management and investment relative to digital assets, together with broker-dealer activities within the region. Commenting on the development, Nexo Managing Partner, CFO and Co-Founder Kalin Metodiev, stated:”Nexo is enthusiastic about the pursuit of new market strategies aligned with the transformative guidance of Dubai's Virtual Asset Regulatory Authority." The United Arab Emirates (UAE) has played a pivotal role in promoting the region as a nucleus for global innovation and governance. Dubai's early adoption of blockchain strategies in 2016 and the establishment of VARA in 2022 underscore its commitment to emerging as a global epicenter for digital asset innovation. This initiative mirrors the city's longstanding influence in the traditional finance sector. Seven million worldwide usersFor Nexo, which caters to over 7 million users worldwide, the Dubai market represents a substantial opportunity for regional expansion and the delivery of premium services. Nexo is cementing its position as a leading digital assets institution. However, it hasn’t always been easy for the company. Amidst the broader cryptocurrency downturn post the 2021 market peak, Nexo faced significant challenges. In 2022 prominent crypto lenders faced bankruptcy, drawing heightened scrutiny towards Nexo given its involvement in similar business activities. This prompted speculations about the platform's sustainability. Additionally, Nexo grappled with regulatory pressures, notably agreeing to a $45 million settlement with the U.S. Securities and Exchange Commission (SEC) for failure to register the offer and sale of its Earn Interest Product (EIP). It also faced money laundering charges in its home base of Bulgaria. These charges were later dropped. Subsequently, the company pursued $3 billion in damages from the Bulgarian state, refuting allegations that brought disrepute to the company following an investigation that found no evidence against it. Reflective of a more positive outlook more recently, Nexo Co-Founder Antoni Trenchev took to CNBC on March 1, offering his prediction that Bitcoin is on target for a $100,000 unit price in the not-too-distant future. VARA, established in March 2022 following the enactment of Law No.4 of 2022, assumes the responsibility of regulating, supervising and overseeing virtual assets and virtual asset activities across all zones in the Emirate of Dubai, excluding the Dubai International Financial Centre. VARA's pivotal role in crafting an advanced legal framework is geared towards safeguarding investors, setting international standards for virtual asset industry governance and bolstering the vision of a borderless economy. Nexo's attainment of initial approval from VARA signifies a major breakthrough in its expansion efforts, underscoring its commitment to compliance and innovation in the digital asset space. This achievement positions the company as one of the few crypto lenders making inroads into the influential Dubai market. 

Indian Railways (IR), the state-owned manager of India’s railway network, plans to issue non-fungible token (NFT)-based train tickets to transport pilgrims to Maha Kumbh Mela, the world’s largest religious festival. The Hindu festival is of particular significance given that it only occurs once every 144 years. ChainCode Consulting partnership According to a report published by Indian news outlet Pune.news on Jan. 13, IR has collaborated with ChainCode Consulting, a Bangalore-headquartered enterprise blockchain development and consulting firm, to provide the digital tickets. The Polygon blockchain has been chosen as the network upon which the NFT tickets will be minted. The tickets will then be made available to end users via NFTtrace, a real-world assets (RWA) tokenization and traceability platform run by ChainCode Consulting.Photo by Choong Deng Xiang on UnsplashLong-running collaborationService users and railway personnel will be free to check the validity of tickets on the public blockchain. This announcement is just the latest installment of a long-running collaboration between ChainCode Consulting and IR. In March 2024, a similar project was pursued by both parties. On that occasion, the collaboration involved the release of a series of NFT tickets for use on a train line running from Lucknow, the capital of the Indian state of Uttar Pradesh, to the Indian capital, New Delhi.  In that instance, NFTs were minted on the Hyperledger blockchain. A previous collaboration, earlier in 2024, saw NFTs minted on Polygon for digital tickets covering journeys to the sacred Hindu city of Ayodhya. Commenting on the choice of Polygon relative to this latest collaboration, Alok Gupta, CEO of ChainCode Consulting, stated: “By partnering with IRCTC and leveraging the Polygon blockchain, we are enabling a digital-first experience that complements the spiritual and traditional significance of the Mahakumbh while introducing a new level of engagement through NFTs.” Polygon is an Ethereum ecosystem scaling network. With that, it has fast throughput and low gas fees and it's on this basis that it’s understood that Polygon was chosen in this instance. Aishwary Gupta, global head of payment and fintech at Polygon Labs, the key developer behind the Polygon blockchain, told Cointelegraph that public blockchains are playing an important role in doing away with middlemen and intermediaries.  The Polygon Labs executive stated that at both state and central government levels in India, Polygon has been used on a number of projects. He added: ”With its low cost and high throughput, we are sure that the NFTs being issued around Maha Kumbh Mela would be yet another great success.” $94 billion market opportunityTicketing remains one of the proposed use cases for blockchain technology that has the potential to gain traction. That potential hasn’t gone unnoticed by ticketing industry leader Ticketmaster. In 2023 the company rolled out token-gated ticket sales. The feature enables artists to reward fans who hold NFTs with access to exclusive pre-sale events, prime concert seating and many other incentives and rewards. NFT technology offers a solution to a number of issues experienced within the events industry, including ticket scalping, fake tickets and security issues. The live events business is a $94 billion industry, underscoring the opportunity available to be exploited by innovative NFT-based ticketing startups.