Kazakhstan achieves first retail payment with digital tenge

Nano Labs, a Web3-focused semiconductor design company listed on the Nasdaq (NA) and headquartered in Hangzhou, China, has arranged $500 million in financing to fund a BNB treasury. In a press release published on the company’s behalf by GlobeNewswire on June 24, Nano Labs outlined that it has entered into a convertible notes purchase agreement with a number of investors. Convertible promissory notes to the value of $500 million will be issued. Holders of the notes, which mature in 360 days, have the option to convert them to Class A ordinary shares at an initial conversion price of $20 per share. Unconverted notes will not accrue interest, but will be repaid in line with the initial principal amount at maturity. 5%-10% of BNB’s total supplyNano Labs asserted that the agreement “marks an important step in the company’s strategic growth.” It stated that as part of the initiative it plans to conduct an in-depth assessment of the BNB token, the native token of the BNB Chain ecosystem. The token enables transactions on the BNB Chain and access to various services and decentralized applications (DApps) that run on the blockchain network. In the initial phase of the initiative, Nano Labs plans to acquire $1 billion worth of BNB through convertible notes and private placements. In the long term, the firm plans to build up a holding equal to 5% to 10% of BNB’s total circulating supply. On X, @Whdysseus, the pseudonymous founder of Asian Web3 and crypto financial media project BroadChain Finance, commented on Nano Labs' BNB reserve initiative, considering it to be a BNB version of the Bitcoin treasury strategy pioneered by American firm Strategy (formerly MicroStrategy).Photo by Vadim Artyukhin on UnsplashShare price surgeChangpeng Zhao (CZ), the co-founder and former CEO of Binance, who has been heavily involved in the development and overall vision of BNB Chain, outlined on X that Nano Labs’ share price “went through the roof” following the announcement. He added that none of his affiliated entities participated in the funding that Nano Labs has put in place. At the time of writing, Nano Labs stock (NA) was trading at $14.85, up 36.36% over the course of 24 hours. Nano Labs isn’t the only corporate entity to declare an interest in holding BNB. According to a report published by Bloomberg on June 23, former executives at Coral Capital, a Japanese venture capital firm, are understood to be in the process of raising $100 million through a newly formed entity called Build & Build Corporation, in order to launch a crypto treasury that will invest in BNB. In another positive development, on-chain analytics firm Nansen highlighted last month that the BNB Chain had seen active addresses double to two million.  Earlier in May, Geoff Kendrick, head of digital asset research at Standard Chartered, outlined in a research report that the BNB token could reach a unit price of $2,775 by 2028. Kendrick maintained that the deflationary nature of the token, together with its ties to the Binance exchange platform, are factors that support its long-term value.

The Philippines is on track to finalize Project Agila, its wholesale central bank digital currency (CBDC) trial, by the end of this year. Three primary use casesThat’s according to statements made on March 6 by Deputy Governor Mamerto Tangonan of the Bangko Sentral ng Pilipinas (BSP) —  the Philippine central bank. According to a local news report by GMA News, the Deputy Governor outlined three primary use cases for the wholesale CBDC trials in a press conference: interbank settlement, settlement of securities transactions and cross-border payments. Notably, the Philippines is participating as an observer in the cross-border CBDC project mBridge, which involves China, Hong Kong, Thailand and the United Arab Emirates (UAE). Six domestic institutions are involved in the current tests in the Philippines: BDO Unibank, China Banking Corp, Land Bank of the Philippines, Rizal Commercial Banking, Union Bank of the Philippines and Maya Philippines.Photo by OJ Serrano on UnsplashUsing pilot as ‘learning exercise’Tangonan described the pilot as a "learning exercise in order to put us in a better position to assess whether this technology is what, itself, claims to be.” Typically, central bank accounts are restricted to commercial banks and some central counterparties in financial markets. However, the BSP intends for the wholesale CBDC to be accessible to banks and certain financial institutions. Nevertheless, past tests, including one in Canada, have highlighted potential limitations, such as the inability of brokers to use the wholesale CBDC for settlement. An ongoing interest since 2020The Philippines initially expressed interest in issuing a CBDC in 2020, with the BSP Monetary Board conducting a positive initial assessment of a wholesale CBDC and planning pilot tests from 2022 onwards, known then as Project CBDCPh. The launch of the pilot project was announced in April 2022. In 2023, the Southeast Asian country participated in a pilot study with the Digital Dollar Project, Western Union and BDO Unibank to explore a retail CBDC for remittance purposes. While the study found potential cost reductions and increased transparency and competition, it also identified challenges related to transaction speed, particularly due to most remittances arriving after working hours. Moving away from blockchainLast September, the BSP announced plans to utilize the Hyperledger Fabric blockchain. However, in February, Governor Eli Remolona stated that the CBDC would not be utilizing blockchain technology. At that time, the central bank Governor had indicated the expectation of launching a wholesale CBDC either next year or by 2026. Elsewhere in the Asian region, the Hong Kong Monetary Authority (HKMA) recently announced its own wholesale CBDC trials, Project Ensemble, underscoring the growing interest and activity in CBDC development across various jurisdictions. The Chinese autonomous territory is also cooperating with its colleagues in mainland China in participating in testing of the digital yuan or e-CNY, with a particular focus on cross-border payments.India represents another key Asian nation which has devoted quite a lot of time and resources to CBDC development already. However, a report last month suggested that the world’s most populous country has concerns with regard to the question of privacy relative to CBDC use. For that reason, it has determined the need to remain cautious while continuing CBDC development.  

Busan Blockchain Special Zone Gears Up with Expert-Led Operations CommitteeGovernment officials and various executives from financial enterprises have been appointed as members of the operations committee of the Busan Blockchain Regulation Free Special Zone project, according to local news outlet Etoday on Tuesday. This project is geared towards growing the city as a blockchain hub and nurturing blockchain-related businesses in the special zone that are exempt from regulatory oversight. The operations committee will be responsible for overseeing the designated area, fostering new businesses and facilitating the development of Busan’s blockchain industry.Photo by Maicon Fonseca Zanco on PixabayDiverse lineup of expertsA total of 25 members have been appointed to the committee, including two ex-officio members — Lee Sung-kwon, Deputy Mayor of Busan for Economic Affairs, and Son Sung-eun, Policy Advisor for Financial Startups in Busan. Other members include Kim Sang-min, the leader of Busan’s initiative to establish its own digital asset exchange; Lee Keun-ju, President of the Korea Fintech Industry Association; and Jin Hyeong-gu, Vice President of KakaoPay, along with other relevant personnel and academic experts. Notably, the only representative affiliated with a cryptocurrency exchange is Seo Byung-yoon, Director of Bithumb’s Economic Research Institute.The participation of Jin Hyeong-gu, Vice President of KakaoPay, is also noteworthy given the fact that KakaoPay is under the internet juggernaut Kakao Group along with GroundX and Klaytn Foundation — two entities that served as the main driving force of blockchain projects at Kakao. However, KakaoPay clarified that its involvement in the operations committee is unrelated to any plans for blockchain and virtual asset-related businesses, instead attributing it to Jin’s experience and expertise in anti-money laundering (AML) procedures. Prior to joining KakaoPay, he had been an AML expert at prominent financial institutions like the Financial Services Commission (FSC) and Kookmin Bank.In addition, Kiwoom Securities and Hanwha Asset Management are both members of the Busan Blockchain Industry Association. Kiwoom Securities explained that it was asked to join the committee to serve as a representative of the association.Key milestones and plansThe committee’s first meeting is scheduled for Nov. 9, the first day of this year’s Blockchain Week in Busan (BWB) event, during which it will discuss matters such as the appointment of a chairman and detailed plans for setting the special zone in motion.The promotion committee of the city’s plan for a digital asset exchange, which has been active until now, is also being dissolved as the term for the members serving in the committee has ended. Subsequently, the new operations committee will become a priority.The committee’s detailed blueprint and action plan will be unveiled during BWB. Touting the theme “Target 2026 Blockchain Busan,” the event is set to host local and overseas experts in the field of blockchain and Web3 to jointly discuss the prospects and potential of Busan to become an urban blockchain hub by 2026.