Singaporean Regulator Proposes Framework for Digital Money Use

SK C&C Issues Voluntary Carbon Offsets on Blockchain-Based Credit PlatformSK C&C, the information communications technology arm of South Korean conglomerate SK Group, said last Thursday that it has issued a total of 186,595 carbon offset credits through 19 projects on the blockchain-based carbon reduction certification and credit trading platform Centero.Amidst the ever-growing challenge of climate change, industries and companies around the world are attempting to reduce their carbon output and reach net zero emissions through involvement in carbon finance — specifically, carbon credit markets.Photo by Jas Min on UnsplashUnderstanding carbon marketsThere are two types of carbon markets — the compliance market, which uses a cap-and-trade system, consists of governments and companies that are legally mandated to offset their carbon emissions. On the other hand, the voluntary carbon market (VCM) operates outside of mandatory frameworks and uses a project-based system to allow companies, organizations, and individuals to trade carbon offset credits voluntarily. Each of these carbon offset credits represents the reduction of one metric tonne of carbon dioxide or greenhouse gas (GHG) emissions. Participants in the voluntary market are mainly driven by their corporate social responsibilities, shareholder pressure, or PR motives.Revolutionizing voluntary carbon reductionCentero — short for Center of Net Zero — provides a one-stop registry service that enables monitoring, reporting, and verification of greenhouse gas reduction projects in the VCM, and issues certified carbon reduction credits to support credit transactions with companies that are pursuing net zero goals. It was developed by SK C&C and is currently operated by the KCCI Center for Carbon Reduction Certification according to the KCCI Carbon Standard, which evaluates and certifies carbon reduction efforts.Centero takes care of the entire process of voluntary carbon reduction projects, from preparation to registration and execution, credit certification, and credit distribution. Its advantage also lies in its transparent management of carbon reduction projects and resources that reflect global regulations and standards, from organizing project information to keeping records of carbon reduction credits. Companies can also buy and sell credits on Centero’s intermediary carbon credit marketplace.Voluntary carbon reduction projects span a vast range of industries, from manufacturing and chemicals to information technology (IT) and construction. Current ongoing projects include carbon capture and waste management initiatives.Notably, Centero manages all credit information and transactions using blockchain technology. It makes all relevant information accessible to companies — including information about certifiers, verification, and quantity of issued credits — thereby increasing security and transparency in transactions. Credit-related events, such as the transfer of ownership, are also managed through blockchain processes.Through its most recent achievement, Centero has demonstrated a total carbon reduction effect of 186,595 tonnes.“The mandatory market has limited corporate participation, resulting in insufficient trading volume and difficulties in handling the demand for carbon emission rights due to the strengthening of global GHG emission regulations. Through Centero, we will encourage participation from local companies and organizations in voluntary carbon reduction projects and help accelerate a privately-led voluntary carbon market,” said Bang Soo-in, Head of SK C&C’s Digital ESG Group.

UK-headquartered decentralized mobile network project World Mobile has teamed up with PT Professional Telekomunikasi Indonesia, better known as Protelindo, to launch a blockchain-based 5G mobile network. Founded in 2003, Protelindo is an Indonesian digital infrastructure firm that specializes in fiber optic networks and telecommunications towers. It owns and operates a large network of these towers in Indonesia, leasing them out to various mobile service operators.  The two firms acquired Combined Space Technologies (CST) earlier this year as a joint venture. CST had been originally founded in Cambridge in the UK, backed by Deutsche Telekom to the tune of $70 million. Successful demos of its proprietary technology had been completed in conjunction with British Telecom (BT) and Deutsche Telekom before World Mobile and Protelindo decided to purchase the company.Photo by Alessio Soggetti on UnsplashWorld Mobile StratosphericIn a press release published on Aug. 8, World Mobile outlined that through CST, the two companies have launched World Mobile Stratospheric.  World Mobile asserts that the establishment of this stratospheric connectivity platform is “unprecedented.” The project implicates the use of fixed-wing drone aircraft, which it proposes to use to host 500,000 simultaneous 5G handset connections while flying at altitudes of up to 20,000 meters. World Mobile Group Chief Business Officer (CBO), Charles Barnett, told Cointelegraph that each drone can provide wireless network coverage over an area of 15,000 square kilometers. Each aircraft will host 450 individually steerable beams in order to deliver the service within a defined geographical area. Low latencyBarnett outlined that the technology can achieve just six milliseconds of total latency with the service having the capability of providing 5G service up to 18 times cheaper per gigabyte by comparison with other similar technologies. It’s thought that the service will compete with space/satellite-based telecoms systems such as Elon Musk’s Starlink. While Starlink has brought internet to corners of the globe that were otherwise underserved, it has been criticized in terms of its interference with astronomy, increased space debris and the potential for atmospheric pollution. Additionally, the low-earth orbit (LEO) satellite-based service has much higher overheads. In comparison with World Mobile Stratopheric’s six millisecond latency, Starlink is much higher at 47 milliseconds. The system delivers directly to the consumer’s device, whereas Starlink is delivered to a satellite dish with significant cost implications for the user. Stratomast, the hydrogen-powered drone aircraft, can stay up for between six and nine days and produces zero emissions. While Starlink and World Mobile Stratospheric may compete, Barnett believes that Starlink is the better choice when delivering service to remote areas that lack any cellular connectivity at all, whereas Stratospheric is the best option in areas with a higher density of mobile users. Micky Watkins, CEO of World Mobile, said that the partnership proves how blockchain can unlock new models for global connectivity. He added:“It aligns infrastructure deployment with community participation and makes decentralized telecom not just possible, but scalable.” Watkins believes that by combining advanced aerospace technology with token-driven economics, the project is building a network that connects more people, faster, in an economically efficient and environmentally sound manner. 

Japan’s Biggest Bank Explores Global Stablecoin IssuanceMitsubishi UFJ Financial Group Inc. (MUFG), the largest bank in Japan, is currently engaged in discussions with companies involved in popular global stablecoins, as well as other firms, to explore the possibility of issuing these tokens using MUFG’s blockchain platform.That’s according to a report published by Bloomberg on Thursday. The stablecoin law in Japan, which recently went into effect on June 1, has established that only licensed banks, registered money transfer agents, and trust companies within the country are authorized to issue stablecoins.Photo by CoinWire Japan on UnsplashProgmat platformMUFG is actively in talks with various parties regarding the utilization of its blockchain platform, Progmat, to mint stablecoins linked to foreign currencies, including the US dollar, with the intention of facilitating their global use.Tatsuya Saito, the Vice President of Product at MUFG, emphasized that the implementation of the legislation provides issuers and users with a sense of security when it comes to engaging with stablecoins. However, he refrained from disclosing the specific stablecoin parties that MUFG is currently in discussions with.Stablecoins play a pivotal role within the cryptocurrency sector, serving as a reliable asset for investors to hold between trades involving more volatile tokens. These tokens are designed to maintain a consistent value, often pegged to $1, and are typically backed by reserves such as cash and bonds. CoinGecko data indicates that approximately $130 billion worth of stablecoins are presently in circulation.Stablecoin stabilityNevertheless, stablecoins have faced challenges in the past when it comes to maintaining their pegs, resulting in disruptions within crypto markets. Notably, TerraUSD, a token reliant on algorithms and trader incentives, experienced a significant crash in May 2022, leading to losses of at least $40 billion. In response to such incidents, regulators have intensified their scrutiny of stablecoins. The stablecoin law in Japan encourages the issuance of stablecoins that are fully backed by fiat cash in a corresponding currency.MUFG envisions leveraging its Progmat blockchain platform to issue security tokens on behalf of third parties, with no immediate plans to develop its own stablecoin, according to Saito. He further revealed that the bank is actively exploring stablecoin projects with entertainment firms, non-financial businesses, and a consortium of Japanese financial institutions. Furthermore, overseas financial groups have shown keen interest, and Saito believes that Japan has the potential to become a global hub for stablecoin issuance.Tether dominanceTether ($USDT) holds the position of the top global stablecoin, accounting for more than 60% of the sector’s market value, while Circle Internet Financial Ltd.’s USD Coin ($USDC) occupies the second spot. Any party intending to produce stablecoins within Japan would need to comply with the country’s legislation.Saito highlighted that the regulation’s provision allowing stablecoins to be denominated in various currencies, including the US dollar, opens up opportunities for the issuance of tokens intended for global use. He expressed his belief that this presents a significant opportunity for Japan.Prime Minister Fumio Kishida’s economic agenda, known as “New Capitalism,” includes a focus on supporting the growth of Web3 firms. While Japan has taken steps to relax certain cryptocurrency regulations, such as those pertaining to token listing and taxation, it continues to be perceived as a country with relatively strict regulations.