Bank of Korea Explores Jeju, Busan, and Incheon for Citizen-Centric CBDC Pilot Test

Indonesia’s Financial Regulator Appoints Hasan Fawzi to Oversee CryptoThe Financial Services Authority (OJK) of Indonesia has chosen Hasan Fawzi, a former executive of the Indonesia Stock Exchange (IDX), as the head of fintech and digital assets oversight and innovation.That’s according to a number of reports published in local and regional news outlets on Thursday. Fawzi, who has served as the Director of the Indonesia Bond Pricing Agency (IBPA) since 2008, brings a wealth of experience in the securities pricing sector. Alongside Fawzi, Lodewik Paulus Agusman, previously responsible for the internal audit department at Bank Indonesia, has also been elected as a member of the OJK Board of Commissioners. These appointments were approved by the House of Representatives Commission overseeing banking and finance.Photo by Tom Fisk on PexelsDigital asset oversightFawzi’s role as the Executive Director for the Supervision of Technological Innovation in the Financial Sector, Digital Financial Assets, and Crypto-assets places him in charge of overseeing peer-to-peer lending platforms, cryptocurrencies, and other components of the evolving industry.Indonesia’s stance on cryptocurrencies remains complex and multi-faceted. While the country is striving to launch a state-backed crypto exchange by mid-2023, as announced by Didid Noordiatmoko, head of the Commodity Futures Trading Regulatory Agency (Bappebti), recent statements by Bali Governor Wayan Koster suggest a tightening of regulations concerning crypto payments.Governor Koster emphasized that foreign tourists who use cryptocurrencies for payments, violate visa provisions, or engage in unauthorized activities will face strict consequences. The Bali Representative Office of Bank Indonesia reiterated that while cryptocurrencies themselves are legal in Indonesia, their use as a payment instrument is not.The appointment of Hasan Fawzi to OJK demonstrates Indonesia’s strategic efforts to strengthen oversight and foster innovation within the fintech and digital asset sectors. Fawzi’s extensive experience in securities pricing and leadership in the Indonesia Stock Exchange make him a valuable addition to the regulatory landscape. As Indonesia navigates the complexities of cryptocurrency usage, it will be fascinating to observe the evolution of regulations and how the country’s financial authorities shape the future of the industry.Controlled innovationThese recent developments highlight Indonesia’s determination to stay at the forefront of financial technology albeit with efforts to retain strict controls over the rollout of that innovation. The country recognizes the importance of effectively regulating emerging technologies while fostering an environment conducive to innovation. With Fawzi at the helm of fintech and digital assets oversight, the OJK aims to strike a balance that protects investors and consumers while promoting technological advancement.As these appointments await final approval from President Joko Widodo, the financial industry and crypto enthusiasts will closely watch Indonesia’s regulatory landscape. The decisions made in the coming months will shape the future of fintech and crypto in the country. Indonesia’s approach to this dynamic sector serves as a case study for other nations seeking to establish oversight and embrace the potential of digital assets. Their international regulatory peers will be monitoring efforts in Indonesia to bring about effective regulation of the digital assets space.

Korea invites distinguished financial officials to discuss digital moneyThe Bank of Korea (BOK), South Korea’s central bank, announced on Friday (local time) its participation in an international conference focused on the economic impact and future prospects of digital currencies. This event, co-hosted by the BOK, the Ministry of Economy and Finance (MOEF), the Financial Services Commission (FSC), and the International Monetary Fund (IMF), is scheduled to take place in Seoul on Dec. 14 and 15.The conference, titled “Digital Money: Navigating a Changing Financial Landscape,” is set to welcome high-ranking officials such as Kristalina Georgieva, the Managing Director of the IMF; Choo Kyung-ho, the Minister of the Ministry of Economy and Finance (MOEF); Rhee Chang-yong, the Governor of the Bank of Korea (BOK); and Kim So-young, the Vice Chairman of the Financial Services Commission (FSC). This event is particularly significant as it marks the first visit of IMF head Kristalina Georgieva to South Korea.Photo by pan zhen on UnsplashCrypto, stablecoins, CBDCsDuring the conference, MOEF Minister Choo and FSC Vice Chairman Kim will kick off the event with welcome remarks, followed by a keynote speech from IMF’s Managing Director, Kristalina Georgieva. Spanning over two days, the conference will include seven sessions, covering a diverse range of topics. These sessions will delve into various aspects of digital money, such as practical use cases of digital currencies, regulatory approaches to cryptocurrencies, and discussions on stablecoins and central bank digital currencies (CBDCs).The conference will feature prominent financial officials in both its opening and closing sessions. On the first day, Thursday, a distinguished panel, including IMF Chief Georgieva; Stefan Ingves, the former Governor of Sveriges Riksbank; FSC Vice Chairman Kim; David E. Rutter, the Founder of R3; and Shin Hyun-song, the Economic Adviser at the Bank of International Settlements (BIS), will discuss the opportunities and challenges facing digital money.The final session on Friday will see another group of high-level financial authorities sharing their expertise and insights. This session will include BOK Governor Rhee; Eddie Yue, the Chief Executive of the Hong Kong Monetary Authority; Serey Chea, the Governor of the National Bank of Cambodia; and Veerathai Santiprabhob, the former Governor of the Bank of Thailand. Their discussion will focus on regulatory policies surrounding digital currencies.Live-streaming scheduledThe two sessions of this conference will be accessible to a global audience as they will be live-streamed on the BOK’s official YouTube channel. This provides an opportunity for interested individuals from around the world to tune in and gain insights into the evolving landscape of digital money and its regulatory environment.

OKX NFT Marketplace hits the front on trading volumeIn the non-fungible token (NFT) space, OKX’s NFT marketplace has emerged as the leader in daily trading volume, surpassing long-standing frontrunners such as OpenSea, Blur and Magic Eden.According to data from decentralized applications (DApp) tracker DappRadar, on Dec. 18, the OKX NFT Marketplace had recorded a 24-hour trading volume of $50 million. In more recent trading, that has reduced to around $35 million. Nevertheless, it maintains its lead over its main competitors, whose combined 24-hour trading volume stands at approximately $24 million.Photo by Kanchanara on UnsplashOrdinals driving volume uptickThe surge in trading volume can be attributed to OKX’s support for Bitcoin Ordinals NFTs and BRC-20 tokens. Notably, the NFT transaction volume on Bitcoin experienced a substantial increase, reaching $121.8 million between Dec. 10 and Dec. 17.Unlike traditional NFTs, Ordinals do not rely on smart contracts pointing to a digital asset. Described as digital artifacts by developer Casey Rodarmor, they lack smart contract features, making their trading reliant on decentralized exchanges and wallets.The Ordinals protocol has been made possible by the Bitcoin Taproot upgrade, which was implemented in November 2021. The upgrade allows digital files to be inscribed on satoshis, the smallest monetary denomination on the Bitcoin network, each with a unique number or ordinal.Strategic focus on BRC-20The OKX NFT Marketplace’s strategic focus on the BRC-20 token standard has also played a role in its success. Collaborating with UniSat, a developer of Ordinals wallets, OKX created an indexing mechanism for BRC-20 transactions built on ordinal inscriptions, further solidifying its position in the market.The Ordinals protocol has not been without controversy, with some, including Adam Back, CEO of Blockstream, criticizing it as a misuse of Bitcoin transaction blockspace. Despite the controversy, Ordinals have gained momentum, contributing to $367 million in sales volume on the Bitcoin network, surpassing Ethereum and Solana.Ordinals and the BRC-20 standard have generally been a boon for Bitcoin miners, boosting their revenues through increased fees. This incentivizes miners to secure the network. Over 49 million transactions have resulted in over 2,250 BTC in transaction fees. Around 6 p.m. UTC on Monday, bitcoin fees are averaging out at $38.43 per transaction.Beyond Bitcoin Ordinals, the broader NFT space has seen a resurgence, with the collective volume nearing $1 billion in November. During that month, the average value of NFT transactions experienced a notable 114% increase, rising from $126 to $270. This suggests a willingness among users to engage in higher-value trades compared to previous months.Speaking with The Block, Nick Ruck, COO of ContentFi Labs, a community-owned Web3 tool suite, had this to say on the development:“OKX has become the number one NFT marketplace after enabling trading of BTC Ordinals NFTs. Blur and OpenSea have not yet allowed trading of these Bitcoin-based NFTs, so they’ve started to fall behind in terms of volume due to the huge demand of Ordinals.”