Japan’s PM holds off on supporting Bitcoin as reserve asset

Taiwan weighs up CBDC following feasibility study completionTaiwan’s central bank, the Central Bank of the Republic of China (Taiwan), recently concluded an in-depth feasibility and technology study on the potential implementation of a wholesale central bank digital currency (CBDC).Photo by Timo Volz on UnsplashGathering feedback and refining designAccording to statements made by Deputy Governor Chu Mei-lie while speaking at an annual event organized for the banking sector by the Financial Information Service Co., an entity that oversees Taiwan’s banking, payment and settlement systems, Chu disclosed that the central bank is now in the process of gathering feedback and refining the design of the CBDC platform.In her keynote speech, Chu underscored the significance of CBDCs in the evolving landscape of digital currencies. She concurred with the Bank for International Settlements’ (BIS) assertion that conventional payment tools and platforms may not always meet the demands of all-day transactions, smart contracts and automatic settlements facilitating simultaneous and irreversible transfers of assets or funds.Supporting asset tokenizationChu emphasized that a nation’s monetary system should be poised to support tokenized assets. CBDCs, she suggested, could potentially offer comprehensive payment and settlement services, integrating tokenization and a unified ledger that harmonizes CBDCs with traditional currencies.The concept of a unified ledger, as explained by Chu, doesn’t imply a single ledger but rather that tokenized ledgers of each economy could coexist and connect through an application interface.This approach aims to ensure interoperability, minimizing the risk of errors in message transmission. Interoperability is also being worked on by financial messaging service SWIFT. It recently collaborated with central banks in Hong Kong and Kazakhstan with a view towards testing a connector that would enable the integration of SWIFT with CBDCs.Additionally, a unified ledger is anticipated to expedite the clearing process, foster a secure trading environment and ensure the safe, reliable and effective execution of currency and asset transactions.International integration of e-CNYChu acknowledged that foreign central banks are actively exploring the feasibility of issuing CBDCs to establish a unified value for all forms of currency. Of the many early-stage CBDC projects that are out there, China’s e-CNY has gathered the greatest momentum.British bank Standard Chartered has been the most recent entity to join the Chinese CBDC international pilot project. Taiwan’s Fubon Bank has enabled its customers to top up e-CNY via mobile banking. The leading CBDC currency has similar collaborations in place with Hong Kong banks, HSBC and Hang Seng Bank.Fubon has also gotten involved alongside Ripple in a pilot program run by the Hong Kong Monetary Authority. Through that collaboration, it is supporting an asset tokenization trial that revolves around Hong Kong’s CBDC, the e-HKD.Chu outlined that in the case of Taiwan, the matter of a CBDC is being pursued cautiously, without a predefined timetable for reaching a conclusion. The monetary policymaker plans to engage in discussions with academic and business sectors to inform its stance on CBDCs.Meanwhile, the central bank is committed to enhancing overall planning related to the CBDC platform, focusing on transaction ease, capacity and innovative functionalities. Chu also highlighted the consideration of offline transaction scenarios in this ongoing process.

Polymesh’s APAC Digital Asset Regulation Report Highlights ChallengesThe project team behind Polymesh, an institutional-grade permissioned blockchain built specifically for regulated assets, released a report on digital asset regulation within the Asia Pacific (APAC) region on Tuesday, highlighting several challenges that regulators are attempting to overcome.In a press release, the company outlined that the report covers recent regulatory developments in South Korea, Singapore, Hong Kong, and the broader APAC region.Photo by Jéan Béller on UnsplashProgressive regulatory effortsRegulators within the APAC region are currently striving to introduce legislation for digital assets, while several centers within the region are vying to establish themselves as hubs for digital asset-related business.The report explores the individual efforts of regulators in various APAC nations as they work towards crafting regulatory frameworks tailored to their jurisdictions. Those efforts encompass implementation, investigation, and enforcement of legislation in a borderless industry.Regulators in South Korea, Singapore, and Hong Kong have all embarked on formulating rules for emerging asset categories, albeit using different terminologies such as “digital assets,” “digital payment tokens,” and “virtual assets.” Their focus lies in striking a balance between consumer protection, market integrity, and industry development.Additionally, all three regulators adhere to the principle of “same activity, same regulations, same risks” when it comes to tokenized securities. They argue that regulatory requirements do not significantly differ solely because a security is in tokenized form. Each state has been actively engaged in local and global activities surrounding security tokens, including state involvement in the advancement of security token technology and cross-border transactions.Main findingsThe report’s main findings emphasize that while regulators in the APAC region are making strides in introducing digital asset legislation, the road ahead will not be without challenges.Legislating a cross-border industry poses difficulties that necessitate harmonization to foster a robust and interconnected ecosystem. Digital assets originating in Asia can be traded globally and vice versa. Merely identifying the asset’s place of origin is no longer sufficient.Although the report delves into the efforts of individual regulators, it emphasizes the need for long-term collaboration to establish a unified vision and practical implementation of regulations for this borderless phenomenon.Regulatory challengesThe regulatory challenges faced by South Korea, Singapore, and Hong Kong in driving the growth of digital assets in the APAC region are multifaceted. They include the intricacies of legislating an inherently cross-border industry. In turn, that can lead to the potential violation of legislation from other jurisdictions.The lack of harmonization among different jurisdictions, and variations in regulatory approaches among the three regulators are likely to be problematic. Furthermore, there are push-pull dynamics between the industry and regulators, with even the regulators themselves not always in agreement.However, despite these challenges, all three regulators have initiated the formulation of rules for new asset categories, with a strong emphasis on safeguarding consumer interests, maintaining market integrity, and fostering industry development.

AIITONE Launches PoC Platform for Security Token Projects in South KoreaAIITONE, an augmented reality firm in South Korea, announced today its launch of a proof-of-concept (PoC) platform aimed at facilitating the security token projects of securities and financial companies.Photo by Shubham’s Web3 on UnsplashTechnological validation for STO projectsAIITONE’s security token offering (STO) PoC platform serves to conceptually validate technological aspects before the implementation of specific projects. This solution validates business concepts by enabling a systematic connection among various entities, including security token issuers, account management institutions (issuance intermediaries), the total supply management institution (the Korea Securities Depository), investors, securities companies, over-the-counter (OTC) brokerages, and financial companies.Through this platform, AIITONE’s clients will have the capability to conduct PoC studies for both primary and secondary markets. Businesses with an interest in security token operations can test in advance the entire lifecycle of an STO. This encompasses activities such as security token assessment, subscription, allocation, issuance, distribution, and eventual burn. Assessing technical requirements prior to embarking on a security token project is expected to not only save time but also mitigate risks.Versatile support for industry playersAccording to an AIITONE official, the firm’s STO PoC platform is highly effective, considering it offers a wide range of support, spanning from security token product planning to networking assistance for platform and infrastructure development. The official also expressed their expectations that the platform’s versatility is poised to attract many securities and financial companies as potential customers.Meanwhile, AIITONE aims to offer a comprehensive STO solution encompassing a range of features, such as STO PoC consulting, industry trend assessment, and risk management capabilities.