Velo token gains momentum across Southeast Asia's crypto landscape

Ripple Collaborates with Hong Kong Regulator in RWA TokenizationIn a demonstration of an extended use case, Ripple, the real-time gross settlement system, currency exchange, and remittance network, has announced that it has been selected by the Hong Kong Monetary Authority (HKMA) to showcase a real world asset (RWA) tokenization solution.Photo by Redd F on UnsplashReal world asset (RWA) tokenizationIn a press release published on Thursday, the San Francisco-based firm outlined that the objective of its participation in the HKMAs inaugural e-HKD Pilot Program is to showcase a particular approach to real estate tokenization. In principle the e-HKD project is a central bank digital currency (CBDC) scheme.Ripple is one of sixteen firms that will participate in the program. Among the other participants are HSBC, one of the largest banking and financial services institutions in the world, British multinational bank Standard Chartered, and Bank of China (Hong Kong).For its part, Ripple will partner with Fubon Bank, a subsidiary of one of the largest financial holding companies in Taiwan. The e-HKD Pilot Program will feature a series of pilots conducted through several industry players with a view towards carrying out in-depth research into application, implementation, and design issues relative to the e-HKD.Real estate tokenization is a leading example of RWA tokenization, which overall is anticipated to become a multi-trillion dollar industry by the end of this decade. Its plan is to build the solution on a private and secure ledger, guided in principle by the same technology that the company has utilized for XRP, the native token of the Ripple ecosystem.Illiquid assetsThe company points out that people’s homes are usually one of their primary assets. Notwithstanding that, unlocking value in real estate can be problematic, having considerable friction. The idea is that this illiquid wealth can be unlocked through tokenization. It’s a concept that is seeing a lot of interest from competing projects. Start-ups like Securitize and Provenance Blockchain would be among a long list of start-up firms that see the potential in the tokenization of RWAs.In Asia, Japanese trading and investment firm Mitsui has gotten involved in the tokenization of real estate through its Alterna investment platform. Tokeny and CoFund offer other examples of innovators that are pioneering real estate tokenization.In its press release, Ripple outlined that it aims to use its technology in this particular instance to enable Hong Kong citizens to experience the faster and more efficient release of equity relative to real estate.James Wallis, Ripple’s VP of Central Bank Engagements & CBDCs, expanded on this idea further:“The Asia Pacific region has many forward-looking regulators such as the HKMA, who are looking to leverage the capabilities of blockchain and crypto technology. It’s a huge honor for Ripple to be one of the select few organizations participating in the HKMA’s e-HKD Pilot Programme. We now have the opportunity to demonstrate how real estate asset tokenization could be brought to the citizens of Hong Kong, and are confident that our fully integrated solution will be an industry-first use case demonstrating the power of leveraging a CBDC for real estate equity asset release.”

Laos targets crypto operators’ unpaid feesIn a bid to enhance state revenues, Laos has turned its focus to the cryptocurrency sector, revealing that operators in the country owe a total of $20 million in fees. The announcement, reported on Thursday by Chinese state news agency Xinhua News, references information from the Lao People’s Army News.Photo by Alessio Roversi on UnsplashLoss-making mining activityLaos had previously granted authorization to 15 blockchain companies to engage in crypto mining or operate as exchanges as part of a strategy to diversify government income sources. However, Prime Minister Sonexay Siphandone disclosed that two of these companies showed no progress in their operations, while others lagged behind in meeting their financial obligations to the state.It emerged in August that the national electricity supplier, Electricité du Laos, had decided to suspend the supply of energy to crypto miners amid a perfect storm of challenges. Laos has ample hydro electric resources and is a net exporter of electricity. However, a drought this year has challenged it to honor contracts for supply of electricity to the Electricity Generating Authority of Thailand.To deal with this issue, power supply to Laotian crypto miners was suspended. To compound matters, many mining operators have been struggling financially and were unable to pay their bills.Debt reliefSiphandone mentioned that since the government initially set the tax obligations, the overall value of cryptocurrencies has experienced a 50% decline. Consequently, Laos has decided to alleviate the burden on crypto companies by reducing the outstanding balance by an equivalent 50%.Following this decision, the affected companies have commenced the settlement of their fees, and it is anticipated that all outstanding amounts will be fully resolved by the year’s end, according to the country’s Prime Minister. However, he issued a cautionary note, stating that companies failing to make satisfactory progress would face consequences, including the suspension of their operations, imposition of fines or even the revocation of their licenses.Digital transformationIn May, Laos outlined key aspects of its digital transformation strategy, emphasizing the use of digital technology to generate new fiscal revenue, strengthen foreign exchange reserves, control inflation, and promote sustainable economic growth. The move to reduce crypto companies’ tax burdens amid market volatility underscores Laos’ adaptability to the challenges presented by the dynamic cryptocurrency landscape.As part of its digital transformation strategy, the Laotian government signed a cooperation agreement with Singapore’s MetaBank. Partnering with another overseas entity, the country has also relied upon the expertise of Japanese fintech developer Soramitsu with regard to a central bank digital currency (CBDC). Soramitsu has played a pivotal role in enabling the issuance of Laos’ Digital Lao Kip.Early last year, the landlocked Southeast Asian country authorized trading licenses for two crypto platforms. These included Lao Digital Assets Exchange (LDX), a joint venture between Phongsupthavy Group and AIF Group, and Bitqik, a subsidiary company of Simuong Group.

Daegu to host first-ever metaverse expo on Nov. 8South Korea’s Daegu Metropolitan City is set to host its first metaverse expo called the “ABB Big Show” from Wednesday to Friday (local time) at the EXCO convention center as part of efforts to stimulate and promote the metaverse industry — a key industry that was notably earmarked as a growth engine in last year’s eighth nationwide local elections. Despite more recent concerns about the sector due to worsening domestic and international economic conditions and reduced investments, the global market continues to recognize its high potential, as divulged at CES 2023, one of the biggest tech events in the world. Daegu has thus stepped up to promote the latest metaverse technologies and content across diverse industrial, administrative and educational services.“The metaverse industry represents a new field that symbolizes a digital era with infinite opportunities and possibilities,” said Choi Woon-baek, Director of the city’s Office for Future Innovation Growth. “I hope that this event will be a meaningful time for citizens to experience firsthand the advanced metaverse technology that is poised to change our future lives.”Photo by GuerrillaBuzz on UnsplashA confluence of metaverse innovation and technologyUnder the theme of exploring the link between reality and the virtual realm, the ABB Big Show — ABB is an acronym for AI, blockchain and big data — will be hosted by Daegu and jointly organized by the Daegu Gyeongbuk Metaverse Industry Association, the MICE Industry Research Institute and local news outlet Yeongnam Ilbo. It will also be held simultaneously with this year’s ICT Convergence Expo Korea and the ABB Hackathon. Of the 156 total companies that are scheduled to participate in the shared event, 32 of them are metaverse companies, the city said.These companies are set to introduce various cutting-edge metaverse technologies through hands-on activities and exhibitions, many of which come with prizes and special events for visitors. In particular, creative media content company YDesign Lab plans to set up a futuristic Instagram photo zone for visitors using immersive anamorphic technology, while mixed reality (MR) content provider DG Entertainment will showcase its motion recognition technology.Other individual guests plan to give lectures on the prospects of Korea’s metaverse industry and propose related policies to push these prospects in a promising direction. The second day of the expo will host a conference featuring Ahn Jong-bae, President of Hansei University’s Future Creativity Campus, who will deliver a keynote speech on the role of artificial intelligence (AI) in changing the future and the metaverse industry.Daegu’s ambitious projectsDaegu is also pursuing several other big-budget projects to foster its regional metaverse ecosystem, including the construction of a metaverse hub in the greater metropolitan area that will serve to support related businesses and cultivate metaverse experts. Also on the city’s agenda is the development of a “Daegu World” metaverse that leverages regional intellectual property in the realms of tourism, education and culture to give citizens unique virtual experiences.