NEOPIN, Futureverse and Catalyze Research team up to bolster global blockchain ecosystem

e-CNY Payments Enabled for Hong Kong Visitors From Mainland ChinaBank of China’s Hong Kong arm recently launched a digital yuan shopping festival, aiming to spur local consumption and promote the adoption of central bank digital currencies (CBDCs). The festival, which commenced on July 18, allows visitors from mainland China to make purchases in Hong Kong using the digital yuan.Bank of China (Hong Kong) Limited (BOCHK), a subsidiary of China’s central bank, initiated trials of e-CNY cross-border payments in Hong Kong last year, paving the way for the current shopping festival.Photo by Eric Prouzet on UnsplashSubsidized useAccording to a press release published by BOCHK earlier this week, as of July 18, digital yuan wallet holders have been able to use China’s CBDC to make payments at over 200 participating merchants across Hong Kong. Furthermore, consumers have the opportunity to receive shopping subsidies in digital yuan by scanning QR codes at specific stores, as stated in the BOCHK press release.The range of merchants accepting e-CNY payments spans from electronics sellers and pharmacies to supermarkets. Among the participants is U Select, a Hong Kong-based supermarket chain with a wide presence of more than 90 stores throughout the city.BOCHK strategically chose the summer tourist season for the expansion of e-CNY payments in Hong Kong. Chen Guang, representing BOCHK, mentioned the influx of tourists to the special administrative region, presenting a prime opportunity to attract more users and bolster local consumption through this cross-border shopping festival.The move makes BOCHK the first institution to partake in the cross-border e-CNY trial in Hong Kong. In December 2022, the bank initiated the first phase of its “digital yuan exclusive experience,” which allowed a limited number of BOCHK consumers to shop in the city using the digital yuan.Adoption strategyThe digital yuan has witnessed robust adoption in recent times, with China leading the global development of CBDCs. The Bank of China has been actively striving to advance and popularize the use of digital yuan in the country. Various initiatives, including business loans, trial expansions, and partnerships with prominent technology firms, have been undertaken to propel the widespread adoption of the digital currency.The introduction of the digital yuan shopping festival in Hong Kong signifies yet another significant step in China’s efforts to promote its CBDC and drive its usage in both domestic and international transactions. With over 200 merchants already participating and a seamless payment experience for tourists, the festival has the potential to encourage further adoption and shape the future of digital payments in the region.As this initiative gains momentum, it will be crucial to observe its impact on local consumption and the broader implications for CBDC adoption in the global financial landscape.The rate of China’s CBDC development and beyond that, the intent with which it is striving to drive adoption through a seemingly never-ending series of initiatives has been unmatched by any other nation. With that, the first real results of the active and widespread use of a CBDC are going to come from the country that makes up one-fifth of the world economy.

Hong Kong-based game software company Animoca Brands has announced its foray into the Bitcoin industry by endorsing the Opal Foundation, a novel Bitcoin ecosystem protocol. The move involves the Opal Protocol and BLIF token, initiated by Animoca Brands and Darewise, a metaverse technology platform. On April 30, Animoca Brands disclosed its plans to become the "largest Web3 ecosystem" for gaming, education and culture built on Bitcoin. The company aims to establish the Opal Protocol and BLIF token as key components of this ecosystem.Photo by Kanchanara on UnsplashBLIF token and Opal ProtocolThe BLIF token, also known as the Opal Protocol Runes token, is hailed by Animoca as a means to enable a "true digital life" on Bitcoin. According to Animoca's executive chairman and co-founder Yat Siu, Bitcoin is now primed for Web3, transitioning from a mere store of value to a store of culture for the Web3 age. Six of Animoca Brands' portfolio companies have already joined as Genesis members, signaling a strong start for the Opal Protocol. Additionally, all future Bitcoin-based projects from Animoca Brands will collaborate with the Opal Foundation. Launched in 2024, the Opal protocol positions itself as a decentralized ecosystem protocol on Bitcoin, powered by BLIF. Its litepaper describes it as a seamless blend of virtual and real-life experiences, offering digital extensions of reality across various domains such as banking, entertainment, education and social interactions. The launch date of the Opal protocol and BLIF airdrop is yet to be announced, but Opal's Telegram group has hinted at its impending arrival. Despite not being operational, Opal's X profile already boasts over 270,000 subscribers. Strategic partnershipAnimoca Brands is hailed as the first strategic launch partner for the Opal Foundation. The company's collaboration aims to integrate its vision into the open Opal protocol on Bitcoin and ordinals. Animoca's venture into Bitcoin coincides with the recent trading debut of spot Bitcoin and Ether exchange-traded funds (ETF) in Hong Kong. However, the initial trading volumes of these ETFs were relatively modest compared to spot Bitcoin ETFs launched in the United States in January 2024. 

OKX maintains robust asset reserves with 103% BTC backingSeychelles-incorporated cryptocurrency exchange OKX has recently released its 12th asset reserve certificate, with its latest report revealing that the company maintains reserves of 103% for its top coins, which include Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Tether (USDT) and USD Coin (USDC). The measure is meant to reassure users that their funds are well-backed and, in fact, more than covered by the exchange’s reserves.Photo by rc.xyz NFT gallery on UnsplashBitcoin, Ether reserve surplusesOKX provided details on its latest asset reserve status via a blog post published to its website on Monday. Alongside providing the relevant asset reserve data, the exchange celebrated its first complete year of having utilized a proof-of-reserve-based system.For BTC, OKX holds a substantial reserve of 140,484 BTC, effectively exceeding the 136,227 BTC held in user accounts. Similarly, ETH reserves stand at 1.46 million ETH, providing a surplus over the 1.42 million ETH owed to OKX users.The exchange also demonstrated its considerable holdings in stablecoins, with over $5 billion in USDT reserves and over $327 million in USDC reserves. In an interview with CoinDesk recently, OKX Chief Marketing Officer (CMO) Haider Rafique, referred to the need to provide a mechanism to reassure platform users. He stated:“Customers often express concerns in person about centralized exchanges, highlighting issues with security, solvency and downtimes, even if they don’t always voice these concerns digitally.”Use of zero-knowledge technologyIn April, OKX upgraded its proof of reserve system, opting for the use of zero-knowledge scalable transparent argument of knowledge (zk-STARK) technology. This approach allows OKX platform users to independently verify exchange solvency, confirming their assets are backed by OKX reserves. A zero-knowledge proof demonstrates the truth of a statement without sharing the statement’s contents. Therefore, no account balances are made public to other service users, maintaining user privacy.Regular transparency is now crucial for exchanges like OKX, as it aims to provide users with the certainty that their funds are genuinely available for withdrawal at any given time. After the FTX insolvency incident, verifiable proof of reserves has become paramount in reassuring users about the safety of their investments.Trend towards improved standardsIn the wake of several high-profile crypto platform failures in 2022, many exchanges are making greater efforts towards reassuring users that their funds are safe and accounted for. This has given rise to the popularity of proof of reserve systems.On that basis, OKX hasn’t been alone in implementing a proof of reserves-based system. In July another Seychelles-incorporated crypto platform, Bitget, announced that it could demonstrate the debt-free status of its business through its proof of reserves system.Nic Carter, Partner at crypto venture capital and private equity firm Castle Island Ventures, has carried out some research into the various proof of reserve systems employed by a number of global crypto platforms. While accepting that the approach is not foolproof, Carter maintains that it’s still a move in the right direction. “The way PoR works is, if enough exchanges do it, the few exchanges that don’t do it end up sticking out like a sore thumb,” he states.