Japanese Survey Finds One-Third Familiar with Web3

South Korea’s one of the leading crypto exchanges, Bithumb, has launched a new service dubbed Benefit Zone. Here, users can participate in the platform’s promotional events and earn in-app points, local media outlet Digital Today reported. These rewarded points can be traded for crypto assets through an in-app point shop. The event missions are available either on its mobile app or on PC. Photo by Kanchanara on UnsplashOne of these event missions involves participants predicting Bitcoin prices – BTC Up? Down? – where users can make a bet on whether Bitcoin’s price will rise or fall compared to its closing price of the previous day. The mission is available daily from 10:00 to 22:00 (KST). Winners of the bet are provided with a reward of 100 points and double that amount if they are newly signed-up users of the given month. If the Bitcoin price remains unchanged, all participants are rewarded points.  More promotional events to comeAside from the Benefit Zone, Bithumb is hosting another event targeting new members who joined the platform in March. Those who deposit funds in Korean won into Bithumb deposit accounts are eligible for Bithumb Cash worth around KRW 20,000, or approximately $15. Bithumb’s Service General Manager Moon Seon-il stated that the exchange platform is conducting various promotional events to offer more perks and benefits to users, showing the company’s commitment to introducing more user-friendly services and events in the future.  

Yuan Surpasses Dollar in China Cross-Border TradeThere has been a lot of talk in recent weeks and months about the continued use of the US dollar as the global reserve currency and newly published data from Beijing now demonstrates that the Chinese yuan became the most widely used cross-border currency in China for the first time in March.©Pexels/VOLKAN SORKUNErosion of dollar dominanceOver the course of the month of March, the US dollar was used in 46.7% of cross border transactions. That’s down 1.1% on the preceding month. Meanwhile, the yuan was the currency of choice in cross border Chinese trade last month, used in 48.4% of all cross border transactions.While this may seem impressive and it is encouraging for the Chinese authorities, it is still just a drop in the ocean when compared with the overall global cross border transaction statistics. Data produced by international financial messaging service, SWIFT, demonstrates that while the yuan’s share of global currency transactions relative to trade finance increased to 4.5%, that’s just a drop in the ocean. The same data set reveals that the US dollar accounted for around 84% of global cross border transactions in March.While it’s unlikely that the US dollar will be usurped in its global reserve currency role over the short to medium term, certain cracks are beginning to emerge that serve to weaken the leading fiat currency. According to a recent report by emerging market focused management firm Eurizon SLJ Capital, the dollar demonstrated a decline in reserve currency use of 8% in 2022. Since 2016, the leading international currency has declined in use on an adjusted basis by 11%. It also emerged this week that Argentina will begin to pay China in yuan for imports. The move comes at a time when the South American country is experiencing an acute shortfall in its dollar reserves following a drought-induced decrease in agricultural exports which would have ordinarily brought more dollars into the country’s coffers.SanctionsIn the case of Russia, China’s yuan replaced the US dollar in monthly trading volume in February for the first time, according to data compiled by Bloomberg. The emergence of the Russia Ukraine conflict in 2022, and more specifically the United States’ response to Russia as a consequence of the conflict, appears to have led to major change in terms of dollar use. Prior to the invasion, the trading volume of the Chinese yuan in Russia was negligible.The United States introduced a raft of sanctions that made it difficult for Russian banks and Russian corporations to trade internationally. It also confiscated sovereign funds held in US dollars belonging to Russia.It’s thought that this move has had wider repercussions as other nations have started to feel increasingly insecure in holding US dollars against that background. The logic is that any potential conflict between a nation and the United States could lead to a similar outcome. The US may have crossed a line that destroys confidence in other countries’ use of the US dollar.Implications for cryptocurrencyWhile these weaknesses in the global reserve status of the US dollar are unlikely to lead to its demise in that role any time soon, they may well be a bellwether of what plays out over the longer term. US dollar weakness is one aspect. Set against that, it’s hard to imagine the yuan being so dominant as to ever be the leading world currency relative to international trade.It’s far more likely that we may see several global ‘reserves’ share the role in the longer term. Bitcoin has been mentioned in the past as a candidate for this role given that it is not associated with any one nation. However, its current market capitalization and trading volume is minuscule by comparison with what would be required of a global reserve currency. That said, in a future where various currencies play a part in holding that reserve status, Bitcoin could very well see a modest but increasingly significant increase in its use for global trade purposes in the years ahead.

Blockchain-based digital payment network enterprise Ripple has announced that it has acquired in-principle approval of a financial services license from the Dubai Financial Services Authority (DFSA) in the United Arab Emirates (UAE). In a press release published on the firm’s website on Oct. 1, Ripple claimed that the approval “unlocks Ripple’s end-to-end payment services in the UAE, boosting Middle East operations.” The in-principle approval is a first step on the company’s path towards full approval. That eventuality will enable Ripple to offer cross-border payment services relative to fiat and digital assets, within the Dubai International Financial Center (DIFC) special economic zone.Photo by Moose Photos on PexelsExpanding Middle Eastern presenceThe company claims that pursuing the license is part of a broader strategy to expand its Middle Eastern presence. It follows on from the firm’s move in 2020 to establish its Middle Eastern headquarters in Dubai. Ripple claims that the licensing “significantly strengthens Ripple’s global footprint as a regulated entity and enables the introduction of seamless cross-border payment services, including Ripple Payments Direct (RPD), in the United Arab Emirates (UAE).” In moving from in-principle approval to full approval, Ripple will have further obligations to accomplish, such as securing office space within the DIFC special economic zone. The company had previously indicated its intention of establishing an office within the DIFC. Back in August, it emerged that Ripple had partnered with the DIFC Innovation Hub with a view towards promoting blockchain and digital asset innovation within the UAE. Regulatory clarity in the UAERipple is striving to become the first blockchain-enabled payment services provider licensed by the DFSA. Once licensed, the company plans to roll out its enterprise-grade digital asset infrastructure. Ripple’s XRP has been one of five digital assets approved by the DFSA such that investment funds are allowed to invest in it, although the regulator did indicate in June that it is moving towards expanding the list of recognized tokens. Mired in legal difficulties with local regulator the Securities and Exchange Commission (SEC) in its home market of the United States in recent years, the company signaled a change of strategy in 2023, indicating its interest in focusing more on international expansion. While speaking at an event in Dubai at the time, Ripple CEO Brad Garlinghouse said that Ripple was expanding in Dubai. Taking to X in relation to this latest milestone, Garlinghouse wrote that “regulatory clarity is what businesses want, and what consumers need,” adding that “the UAE understands that.” In the company’s press release, Garlinghouse referred to the “forward-thinking regulatory approach” being pursued in the UAE, which he believes is positioning the country “as a global leader in this new era of financial technology.” The UAE isn’t the only focus for the company’s international expansion. Ripple has established an office in Singapore which handles over 50% of the firm’s payment flows. On Oct. 1, U.S. investment bank Houlihan Lokey published a report in which it highlighted Ripple as an emerging competitor to the SWIFT cross-border payments system.  Although the company has had some success in navigating its way through litigation with the SEC in the U.S., it’s thought that the dispute may be prolonged further as some commentators have suggested that the SEC plans to appeal a recent court decision.