HSBC and Ant Group advance blockchain-based tokenized deposit system

China’s Jiangsu Province Integrates Digital Yuan Into Education SystemChina has taken a raft of measures to try to build momentum in its digital currency, the digital yuan or e-CNY, with the latest step being an expansion into the education system in Jiangsu Province.Photo by Kimberly Farmer on UnsplashChina’s digital yuan is a legal tender fully backed by the People’s Bank of China (PBOC) and pegged to the renminbi. Unlike most cryptocurrencies, it is not decentralized or anonymous but is monitored by the PBOC. While adoption has been slow, China has been first off the blocks in developing a central bank digital currency (CBDC) to the point of some level of active use by comparison with its international peers.Enforcing a payments use caseJiangsu Province will attempt to establish the use of the digital yuan in its education system by the end of 2025, according to the Jiangsu Education Department. By the end of the year, students studying within the province are likely to be paying tuition fees using the digital currency. The pilot plan that Jiangsu administrators within the province’s Education Department have put together also aims to establish a means through which examination registration fees will be paid in digital yuan, while scholarships will be received in the digital currency.Zhou Maohua, a researcher with Beijing-headquartered Everbright Bank, told China Daily that it is imperative that more users are registered and go on to actively use the digital yuan to further its development.“The establishment of infrastructure for the digital yuan should be further accelerated,” said Maohua. “Its software and hardware must be upgraded to improve user experience. The security and reliability of the system must also be strengthened,” he added.Over the course of the past three months, four million digital yuan accounts have been opened by ordinary citizens within Jiangsu Province. Total e-CNY transactions have reached a level in excess of 200 billion yuan ($29 billion).Multiple initiativesIn April, the administrators of the city of Changshu, which is situated within Jiangsu Province, announced that it was gearing up to commence paying state employees within the city in digital yuan. Around the same time, officials within the city of Xuzhou, also located within Jiangsu Province, announced that they were in the process of publishing a pilot scheme which will set out a means for promoting China’s e-CNY digital currency.If that was enough in proving Jiangsu’s commitment to furthering the development of the e-CNY, another Jiangsu Province city, Suzhou, was one of the first locations in China to run a digital yuan pilot scheme in April 2020.Earlier this month, it was revealed that the French international banking group, BNP Paribas, had partnered with the BOC in enabling an initiative to promote the use of the digital yuan among its corporate clients.China is working with other countries on a Multiple CBDC Bridge project to explore the feasibility of cross-border fund transfers among different currencies. Launching its own CBDC for cross-border transfers may allow China to reduce its reliance on the US dollar and increase its influence over global trade and monetary policy.

Fingerlabs teams up with Metaclub to gather users for Web3 membership platformFingerlabs, a subsidiary of South Korean digital marketing company FSN, has decided to collaborate with reward points app Metaclub to expand user engagement for its Web3 membership platform Bling, according to an official press release on Wednesday (KST).Photo by NordWood Themes on UnsplashInnovating rewards systems and digital marketingMetaclub is a lifestyle platform that allows users to accumulate and spend reward points that can be used at various brands and websites. It currently boasts 80,000 members and hit a cumulative transaction value of KRW 30 billion (approximately $22.7 million) within a year after its launch. On the other hand, Bling is a marketing solution that allows businesses to create and manage NFTs that offer membership benefits to their customers. Users can create customizable characters on Favorlet, Fingerlabs’ NFT wallet and customer management service, using clothing or accessories called “parts.” These parts are linked to various benefits offered by Fingerlabs’ partner firms.Unique membership experienceThrough this collaboration, Bling and Metaclub are holding a promotional event where users who fill their Metaclub account with more than KRW 200,000 and collect Metaclub parts NFTs on their Bling account will be eligible to receive 3% in reward points.“By working with Metaclub, which has a high number of users in their 20s and 30s, we believe that Bling can quickly establish itself as a next-generation Web3 membership service,” said Kim Dong-hoon, CEO of Fingerlabs. “We have a clear understanding of the features and capabilities of both platforms, so we will be able to build our membership base through various collaborative projects.”

Mt. Gox Extends Repayment Deadline to 2024In a development that has captured the attention of the cryptocurrency community, failed Japanese crypto exchange Mt. Gox has officially announced a one-year extension of its repayment deadline.The decision, authorized by the Tokyo District Court, represents a one-year delay from the previously stipulated date of October 31, 2023.Photo by Andre Benz on UnsplashInfamous collapseAt its height, Mt. Gox was the world’s largest cryptocurrency exchange, facilitating over 70% of all cryptocurrency trades. However, its fall from grace began in 2014 when it fell victim to a colossal hack, resulting in the loss of 850,000 Bitcoins. The collapse left approximately 24,000 creditors in its wake, each of them agonizing over a multi-year period for the return of their digital assets.In a letter dated September 21, Rehabilitation Trustee Nobuaki Kobayashi announced the extension of the repayment deadline. This extension applies to the base repayment, early lump-sum repayment, and intermediate repayment, all of which have been rescheduled to October 31, 2024.The rationale behind this delay is twofold. Firstly, to provide creditors with additional time to furnish essential information required for the repayment process. Secondly, it will allow the trustee to coordinate with associated banks, fund transfer service providers, and cryptocurrency exchanges to facilitate the repayments.Potential payout for diligent creditorsA glimmer of hope exists for creditors who have diligently provided the necessary information. Repayments may commence sequentially as early as the close of this year. That said, it should be noted that the specific timing of repayments for each creditor remains uncertain.Kobayashi emphasized that the schedule is subject to change depending on circumstances, and further adjustments are possible. The Mt. Gox Debtor has encouraged creditors who have as yet not provided required information to facilitate payments to do so.Naturally enough, long suffering creditors are frustrated by this latest update. Taking to X (formerly Twitter), one user named “Mt.Gox’ed” wrote: “People will not get their Mt.Gox money back.” . . . “I’ve been tweeting for a long time that infinite delays are coming.”The move evoked a similar response from distressed debt specialist Thomas Braziel, who wrote: “Another delay from the MtGox trustee’s office — COME ON!”Mt. Gox’s journey towards rehabilitation has been arduous and protracted since its declaration of insolvency in 2014. Legal battles, extensive delays, and the need for meticulous coordination have all contributed to this postponement. Nonetheless, creditors are holding onto the hope that, with this extension, the path to recovering their lost assets will become smoother.Crypto market impactThis latest news has drawn considerable attention within the broader crypto sector as it may have implications for the market as a whole. The repayment delay holds the potential to impact Bitcoin prices, given the sheer volume of tokens that will be released when repayments begin. The Mt. Gox estate holds 142,000 BTC, 143,000 BCH, and 69 billion JPY.As per UBS analysts, while this influx of funds could influence the market, it is unlikely to destabilize Bitcoin. Notably, the recovery of approximately 20% of the stolen tokens after the hack reflects a positive step in the ongoing rehabilitation process.