Circle report highlights APAC moving ahead in stablecoin adoption

Bank of Korea Anticipated to Conduct Retail CBDC Pilot TestThe Bank of Korea (BOK), the South Korean central bank, is reportedly planning to conduct a pilot test for distributing retail central bank digital currencies (CBDCs) to the general public via commercial banks, according to a report by local news outlet IT Chosun.Photo by Zequn Gui on UnsplashBOK’s CBDC initiativesIn 2020, the BOK initiated a pilot test for CBDC issuance, establishing a platform for both online and offline payments. Last month, the BOK announced the successful completion of a CBDC simulation to ensure connectivity with commercial banks.A representative from a commercial bank stated that the BOK would recruit banks next month for a retail CBDC experiment. The pilot test for this retail CBDC is projected to take place next year.Wholesale and retailThe upcoming CBDC pilot test aims to cater to the retail needs of ordinary citizens. There are two types of CBDCs: wholesale CBDCs, which facilitate payments between financial institutions, and retail CBDCs, which are accessible to all economic entities, including the general public.The successful execution of the retail CBDC pilot test requires close collaboration between the BOK and commercial banks. A banking official highlighted that while the BOK can outline the distribution framework for wholesale CBDCs, it may not be the most suitable entity to design the intricate distribution scheme for retail CBDCs.Last year, 15 financial institutions, including five commercial banks (KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and NongHyup Bank), participated in an inter-institutional CBDC linkage experiment with the BOK. The BOK is expected to select banks from among these participants to design the distribution structure of retail CBDCs and proceed with a pilot test.Speculative timelineAn official from a commercial bank that took part in the BOK’s prior experiment said that the Korean central bank has recently maintained close communication with commercial banks and successfully completed the infrastructure linkage test for CBDCs. The official also mentioned that the retail CBDC test is expected to see its completion this year, potentially enabling the commencement of retail CBDC implementations in the private sector next year.However, a BOK official expressed a more cautious stance. The official stated that the BOK has recently expanded its digital currency research team and plans to conduct further research in the future. Specific timelines and plans for the retail CBDC test could not be disclosed at this time.Other countriesDifferent countries have adopted varying approaches to CBDC research and implementation, depending on their economic conditions. Developing nations have been promoting CBDC issuance to facilitate financial inclusion, while developed countries have prioritized the stability of their financial systems.However, as cash payments decline and private digital currencies continue to proliferate, developed countries are also turning their attention to retail CBDCs. For instance, the Bank of England collaborated with the Bank for International Settlements (BIS) to establish and experiment with retail CBDC prototype infrastructure. Similarly, the European Union (EU) has released draft legislation to introduce the digital euro as a legal tender within the Eurozone.

Korean Web3 Enabler Participates in NFT.NYC 2023The Moon Labs, a Korean Web3 enabler, participated in NFT.NYC 2023 that took place in New York from April 12 to 14, according to Maeil Business Newspaper.Photo by Luca Bravo on UnsplashCollaborations with SuperchiefIn collaboration with New York-based underground artist supporter Superchief Gallery NFT, the Moon Labs advertised its decentralized autonomous organization project LeisureMetaverse on Time Square’s digital screen. Previously, the Moon Labs co-hosted NFT Korea Festival 2023 with Superchief Gallery NFT.A2E incentivization modelThe Moon Labs boasts the web 3.0 community LM Nova, the NFT marketplace PlayNomm, and its native wallet, LM Wallet. In particular, LM Nova has adopted an act-to-earn (A2E) model to provide incentives to users.About NFT.NYCNFT.NYC, one of the world’s largest NFT events, has been held annually since 2018. The show attracted not only crypto entrepreneurs but also artists, investors, and influencers. More than 500 brands took part in the event, and over 1,500 speakers delivered their talks at the conference.The Moon Labs CEO Moon Seong-eok said the company will seize this opportunity to expand global partnerships and further commit to the growth of the NFT ecosystem.

Upbit Launches Campaign for Recovery of Mistakenly Transferred AssetsUpbit, the cryptocurrency exchange operated by Dunamu, announced on Tuesday (local time) that it is launching a campaign where users can get back the digital assets that they have transferred mistakenly as part of heightened efforts to protect investors and minimize their losses due to such errors.Photo by Luis Villasmil on UnsplashRole of secondary identifiersAmong the virtual assets that Upbit allows users to deposit, some require users to accurately input their unique identifiers — like a Destination Tag (D.tag) or Memo — in order to properly process a deposit. A D.tag or Memo is an additional address used to identify a transaction recipient beyond a wallet address, which is often required when trading altcoins like Ripple (XRP) and Monero (XMR). In the case of XRP, both the exchange address and the D.tag must be entered accurately for deposits to be processed properly.Enhancing investor convenienceHowever, misdirected transfers caused by incorrect or missing secondary deposit addresses occur quite frequently. Many users also remain unaware when their virtual assets have been mistakenly transferred.In response to this issue, Dunamu has organized its latest campaign to make it easier for Upbit users to recover the virtual assets that they mistakenly sent. A user can access the campaign page on the official Upbit website and search for the transaction ID (TXID) of the deposit where the secondary address was either not entered or entered incorrectly. If a matching deposit is found, they can click “Apply for Recovery” to submit a one-on-one inquiry.Previously, users were required to manually enter information such as the name and quantity of the cryptocurrency, as well as the TXID in the one-on-one inquiry. Now, this information is automatically filled in through the TXID search, boosting user convenience.In an effort to encourage campaign participation, Dunamu also said that it will waive all fees for the recovery of mistakenly transferred assets until the end of the year.As of July, the exchange has successfully processed over 99.5% of the total 45,474 recovery requests that it has received over the past five years by leveraging its industry-leading technical expertise.“Upbit will continue its efforts to protect user assets and provide convenient services,” Dunamu said.Global recognitionMeanwhile, Upbit has secured 9th place in the Kaiko Exchange Ranking for the third quarter of 2023, ranking first among Korean exchanges. Kaiko is a crypto market data company with offices in Paris, London, New York, and Singapore.The ranking evaluates exchanges based on the following criteria: governance (30%), security (20%), liquidity (15%), business (15%), technology (10%), and data quality (10%). Upbit earned a score of 76 points.Coming in first overall on the list was Coinbase with 90 points, directly followed by Bitstamp and Kraken with 86 and 82 points, respectively. Among Korean exchanges, Korbit ranked 15th worldwide with 72 points, followed by Bithumb in 17th with 72 points, then Coinone in 27th with 59 points.