Hong Kong and Kazakhstan Pilot SWIFT’s CBDC Solution

Bitfinex Turkiye Facilitates Zero-Cost Deposits via VakıfBank PartnershipIn a strategic move to bolster its presence in Turkey, cryptocurrency trading platform Bitfinex has introduced a seamless and cost-free method for Turkish customers to deposit Turkish lira directly into their accounts.According to a press release published by the company on Thursday, this integration comes as a result of collaboration between Bitfinex Turkiye and VakıfBank, Turkey’s second largest bank in terms of asset size, and a significant player in the Turkish banking sector.Photo by Meg Jerrard on UnsplashExpanding market accessBitfinex’s Chief Technology Officer, Paolo Ardoino, emphasized the user-centric benefits of this partnership. He stated that Turkish customers can now deposit lira effortlessly and economically, streamlining their access to the cryptocurrency market.This development could potentially aid Bitfinex in expanding its operations within Turkey, which stands as one of the largest markets for leading global crypto exchange Binance. Ardoino stated that the move facilitates “the ability to deposit [lira] seamlessly and cost-effectively.” Additionally, Ardoino maintained that market access was being enabled “by integrating with VakıfBank,” and that “[Bitfinex] is making it easier” for customers to participate.Collaborating with the crypto sectorFounded in the 1950s, VakıfBank has 935 brick-and-mortar branches, a network of over 4,000 ATMs and almost one million point-of-sale (POS) terminals in use. This latest partnership is not the first touch point for the bank when it comes to the crypto sector. It has a similar deal in place with Istanbul-based crypto platform, CoinTR. In that instance, CoinTR customers can deposit or withdraw Turkish lira to or from their CoinTR accounts via VakifBank instantly, 24/7 and with zero fees.The bank has also participated in a blockchain-based trade finance initiative, the Turkish Trade Chain Project. In a press release published by the bank last year, it expressed the belief “that blockchain technology will make data sharing more transparent, traceable, verifiable and controllable by reducing the communication traffic between parties in the foreign trade process that requires many documents.”Partnering with TradFiBy aligning its services with a traditional financial institution, Bitfinex joins the ranks of other industry players like Fidelity, BlackRock, and PayPal, which have demonstrated increasing openness to cryptocurrencies despite the ongoing bear market.Turkey has proven to be an important market for cryptocurrencies like Bitcoin and USDT, the US dollar stablecoin issued by Bitfinex’s sister company, Tether. Runaway inflation in recent years has led to an outsized interest in decentralized money in the country.Bitfinex’s business in Turkey has not been without its hiccups. Earlier this year, a Wall Street Journal report alleged that Bitfinex Turkiye user accounts had been implicated in terrorist financing. One particular account was alleged to have been used for money laundering purposes by the armed wing of Palestinian militant group, Hamas.This latest initiative follows Bitfinex’s recent announcement of the launch of Bitfinex P2P, a peer-to-peer exchange catering to clients in Argentina, Venezuela, and Colombia. With such expansions and collaborations, the cryptocurrency sector continues to evolve, demonstrating resilience and adaptability in the face of bear market conditions and regulatory challenges.

Lambda256 and CryptoLab partner to pioneer privacy-enhanced blockchain technologyLambda256, the Blockchain-as-a-Service (Baas) arm of South Korea’s largest crypto exchange Upbit, has signed a business agreement with private AI technology developer CryptoLab to develop and commercialize technology that can enhance the privacy of data on blockchain networks, according to local news outlet Kyunghyang Games on Friday (KST).Photo by GuerrillaBuzz on UnsplashAdvanced privacy measuresThe two firms will work together to develop various blockchain-based service platforms, such as a token securities offering (STO) platform, that will be equipped with strengthened privacy protection technology for data stored on blockchains.Innovation unleashedLambda256 has been leveraging its Web3 developer platform Luniverse to work with a plethora of businesses, including those in the security token industry, to help them build, deploy and manage blockchain networks. Some of its solutions include DID, a blockchain-based identity management system; Trace, a blockchain verification and tracking system; and Point, a blockchain-based loyalty rewards solution.CryptoLab, on the other hand, has developed in-house homomorphic encryption technology that can encrypt data while allowing that data to still be operated on. The firm’s CEO, Chun Jeong-hee, who is also a professor at Seoul National University’s Department of Mathematical Science, was selected as a Fellow of the International Academy of Cryptography (IACR) this year in recognition of his contributions to the development of the field of cryptography.“By combining Lambda256’s blockchain platform with our homomorphic encryption technology, we look forward to exchanging our technology and capabilities,” said Shin Jun-bum, CTO of Cryptolab. Jason Lee, CISO of Lambda256, also reaffirmed the companies’ joint goal of solving data privacy issues that occur in the blockchain space. He added that they would take this opportunity to bring blockchain to fields like finance and healthcare that are sensitive to data privacy.

China’s former central bank governor has warned that speculation in stablecoins could threaten financial stability, Bloomberg reported, citing a post from the Beijing-based think tank CF40 Research. His remarks run counter to calls from some economists and industry figures for a yuan-backed stablecoin as the U.S. advances its digital-asset policy agenda. Zhou Xiaochuan, who led the People’s Bank of China (PBOC) from 2002 to 2018, delivered the comments at a closed-door meeting in mid-July. He argued that China’s payment rails—spanning third-party platforms, the central bank digital currency (CBDC), digital wallets, and clearing infrastructure—are already highly efficient, leaving little scope for stablecoins to deliver meaningful cost savings. He also rejected the premise that conventional cross-border payments come at steep costs. Zhou identified price manipulation driven by speculative trading as the chief risk to financial and asset markets, adding that current safeguards in the U.S., Hong Kong, and Singapore remain inadequate.Photo by Mitchell Luo on UnsplashOnshore controls push yuan stablecoins offshoreAny debate over a yuan-linked token must also contend with China’s currency structure. The onshore yuan (CNY) is subject to strict capital controls and limited cross-border convertibility, while the offshore yuan (CNH) trades more freely. As a result, any prospective yuan stablecoin would likely reference the CNH; pegging directly to the CNY would conflict with Beijing’s capital rules. An earlier Reuters report has indicated that Beijing is weighing whether to authorize a yuan-pegged stablecoin to promote international use of the currency. Analysts caution that such a token would almost certainly be confined to offshore markets, even if regulators proceed. U.S. sets federal guardrails for stablecoinsMeanwhile, policy moves in the U.S. are gathering pace. In July, President Donald Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act into law, creating a federal framework for stablecoins. A White House fact sheet says the law requires issuers to maintain 100% reserves in liquid assets such as U.S. dollars or short-term Treasuries and to publish monthly disclosures on reserve composition. The administration has argued that dollar-backed stablecoins could bolster demand for Treasuries and reinforce the dollar’s reserve-currency role. Hong Kong has emerged as comparatively receptive to digital assets. The special administrative region’s Stablecoins Ordinance entered into force on Aug. 1, establishing a licensing regime to oversee Hong Kong dollar–backed stablecoins. Earlier this month, CMB International Securities, a subsidiary of China Merchants Bank, became the first Chinese bank-affiliated institution to offer trading in Bitcoin, Ethereum, and Tether (USDT). Industry voices are also pressing the case for stablecoins. At the WebX conference in Tokyo on Aug. 25, Binance co-founder Changpeng Zhao (CZ) argued that CBDCs are becoming obsolete, while stablecoins—typically backed by real assets—enable wider transactions and are gaining market traction. He said CBDCs remain rarely implemented due to limited demand and suggested China appears more open to stablecoins after years of tighter oversight, pointing to Hong Kong’s efforts to build an ecosystem. Potential PBOC stimulus may lift cryptoChina remains a consequential force in global crypto markets. A recent report suggested that potential PBOC stimulus could fuel an altcoin rally. With China accounting for 19.5% of global GDP, shifts in its monetary stance are seen as important drivers of worldwide liquidity. Following July data showing a 0.1% month-on-month decline in retail sales, a 0.4% rise in industrial production, and an uptick in unemployment to 5.2%, analysts expect measures to support growth. Any additional liquidity could flow into risk assets, including cryptocurrencies, potentially pushing digital tokens toward new highs.