Korean Firms Team Up to Boost Biofuel Use Through Blockchain Tech

Ripple Pursues International Growth Via Dubai ExpansionThe Dubai Fintech Summit was held in the Venice of the Gulf earlier this week, bringing with it an announcement from Ripple outlining its plans to expand in the Middle Eastern location.Photo by Christoph Schulz on UnsplashResponding to the regulatory environmentRipple CEO Brad Garlinghouse was a keynote speaker at the Summit on Monday, and he took that opportunity to outline the company’s plans within the region. Immediately following his speech, Garlinghouse took to social media to confirm those plans. He tweeted out:“As I just shared on stage at #DubaiFintechSummit, @Ripple is expanding in Dubai. With 20% of our customers based in MENA and clear regulatory regimes being developed, it’s no surprise that Dubai is emerging as a key global financial hub for crypto innovation to thrive.”It’s no coincidence that at the very same event, Coinbase CEO Brian Armstrong was present alongside the company’s executive team. Armstrong also spoke at the event and the outcome of that involvement saw Coinbase too, signaling that it sees potential in setting up a regional base in the United Arab Emirates (UAE).In Coinbase’s case, it’s understood that it is considering the Emirate of Abu Dhabi as opposed to Dubai. Nonetheless, the rationale for pursuing such a move by both leading digital assets companies is the same. Both have been outspoken about the issues they have with the regulatory situation as it exists in the United States right now, relative to digital assets.Office presenceAs an initial step in that Middle East expansion, Ripple is opening an office in Dubai. The office will be located within the Dubai International Financial Centre (DFIC). In what appears like an effort to underscore the company’s official arrival in the United Arab Emirates, Ripple is holding its seventh annual customer conference in the country’s capital later this year.This week, Garlinghouse confirmed that the company’s prolonged legal battle with the Securities and Exchange Commission (SEC) in the United States is projected to cost the company a whopping $200 million. The Biden administration is using all the major financial agencies in the US to clamp down on the sector. It’s little wonder, therefore, that companies like Ripple and Coinbase are seeking refuge overseas.That regulatory and administrative landscape in the United States relative to crypto stands in total contrast to the experience of Navin Gupta, Ripple’s Managing Director of South Asia & MENA in respect of the UAE. In an interview with CoinDesk TV Gupta said that the “UAE as a market is very attractive to us, the Middle East as a market is doing very well.”Gupta drew on his experience in working in Silicon Valley previously and recalling how back then it had three ingredients that made it function that he believes is now the case for the UAE: talent, venture capital investment and a workable regulatory approach.

Circle CEO Sees Role for Yuan-Backed Stablecoins in Hong KongJeremy Allaire, the Co-Founder and CEO of Circle, the USDC stablecoin operator, expressed his acceptance of mainland China’s ban on cryptocurrencies. However, he remains optimistic about the development of Web3 technology in Hong Kong and the city’s monetary authority’s move towards regulating stablecoins.Photo by Mitchell Luo on UnsplashYuan internationalizationAllaire believes that Hong Kong must embrace digital assets to remain relevant in the global financial market. While he acknowledges that China is unlikely to open up its markets to cryptocurrencies, he sees potential for stablecoins to contribute to Beijing’s goal of yuan internationalization.During an interview with the South China Morning Post (SCMP), Allaire highlighted that major financial markets worldwide are embracing digital assets and that the biggest financial institutions are adopting them. He mentioned that there is Chinese government support for stablecoins, but he clarified that it doesn’t imply opening up crypto trading on the mainland. Allaire emphasized that stablecoins could be a more immediate solution to the Chinese government’s aim of internationalizing the yuan compared to the central bank digital currency (CBDC) e-CNY.Allaire cited the example of a stablecoin pegged to the offshore yuan (CNH) as a potential tool to facilitate the RMB’s use in global trade and commerce. He mentioned the existence of CNH Coin, a stablecoin team that also offers HKD Coin, pegged to the Hong Kong dollar.Virtual asset hubHong Kong is positioning itself as a global virtual asset hub by focusing on the regulation of stablecoins. The Hong Kong Monetary Authority (HKMA) has committed to implementing stablecoin regulations by 2024, recognizing the potential impact of such assets on financial markets. Additionally, the Securities and Futures Commission (SFC) is working on complementary regulations for stablecoins following the recent implementation of licensing rules for sellers of other cryptocurrencies.Circle’s USDC, the second-largest US dollar-backed stablecoin by market capitalization after Tether (USDT), is considered a “stored-value instrument” in the United States. Allaire expressed Circle’s encouragement regarding the HKMA’s plans and highlighted the positive motivation to expand their business in Hong Kong.While central banks worldwide have expressed concerns about stablecoins’ impact on financial stability, the HKMA has proposed that the value of reserve assets should match the outstanding stablecoins at all times. The HKMA has also been researching the possibility of a digital Hong Kong dollar and is part of a cross-border trial for the e-CNY using a blockchain known as the mBridge.CBDCs alongside stablecoinsRegarding the future role of stablecoins in a well-regulated environment alongside CBDCs, Allaire believes that CBDCs and private coins are complementary. He sees CBDCs as an upgrade to central banks’ systems and views the private sector’s work on innovation in distributed ledger technology as distinct and valuable.Allaire noted that Circle conducts significant business activity in Asia, particularly in Hong Kong, which is its largest non-US market, employing around 125 individuals.While mainland China maintains its ban on cryptocurrencies, Allaire remains optimistic about Hong Kong’s regulatory stance on stablecoins and believes they could contribute to the internationalization of the yuan. Allaire emphasized the importance of digital assets in the global financial market and expressed Circle’s support for Hong Kong’s initiatives.

Shinhan Bank and SCB TechX Succeed in Stablecoin Remittance PilotSouth Korean banking institution Shinhan Bank, Thai Siam Commercial Bank’s tech arm SCB TechX, and a Taiwanese financial institution recently announced the successful completion of a proof-of-concept (PoC) pilot of stablecoin remittances. The PoC was built on the hashgraph consensus-based public ledger, Hedera. Hashgraph consensus is a technology that provides an alternative to the more commonly used blockchain consensus mechanisms.Photo by Lea L on UnsplashThree currenciesThe pilot test was conducted to assess the feasibility and functionality of a system involving real-time settlement and real-time foreign exchange (FX) rate integration. The test was successful in implementing these capabilities for three currencies: the Thai Baht (THB), the New Taiwan dollar (NTD), and the South Korean won (KRW). Since the PoC is compatible with the Ethereum Virtual Machine (EVM), EVM-based stablecoins should be able to join the PoC framework without significant modifications.More efficient and affordableIn November 2021, Shinhan Bank developed this PoC on the Hedera network in collaboration with an international bank outside Korea, employing stablecoins for cross-border remittances. The success of the subsequent pilot test this year represents a major achievement in the pursuit of more efficient and affordable cross-border payments, especially given that the financial industry has been increasingly recognizing the transformative possibilities of blockchain and distributed ledger technology.These banks expect that this stablecoin solution will allow individuals and organizations to conduct transactions in locally denominated stablecoins, benefiting from remarkably low fees.Kim Byung-hee, Chief of the Blockchain Division at Shinhan Bank, said, “The successful completion of this second PoC marks an important step forward in our efforts to make cross-border payments faster, cheaper, and more accessible to people around the world.”SCB TechX’s CEO Trirat Suwanprateeb echoed this sentiment, stating that this endeavor can help “increase financial inclusion and improve access to financial services for individuals and businesses in underserved communities.”