Thai Central Bank Collaborates With Singapore’s 2C2P on CBDC Pilot

UBS Pioneers Tokenized Money Market Fund on EthereumUnderscoring what is very much an ever-evolving financial sector, large-scale investment manager UBS Asset Management has taken a pioneering step by launching a pilot project for a tokenized money market fund on the Ethereum blockchain.Photo by Bastian Riccardi on UnsplashBlurring the lines of TradFiThe initiative, announced by UBS in Singapore on Monday, promises to streamline the traditionally cumbersome processes of fund subscriptions and redemptions. Additionally it highlights the increasing integration of blockchain technology into traditional finance, effectively blurring the boundaries between the two worlds.The UBS project aligns with Singapore’s Variable Capital Company (VCC) fund structure and falls within the scope of Project Guardian, championed by the Monetary Authority of Singapore (MAS).Structured in this way, UBS believes that the project design lends itself to the ability to bring various forms of real-world assets (RWAs) to the blockchain. Furthermore, it establishes a favorable rapport with regulatory authorities in Singapore, a jurisdiction known for its forward-thinking, crypto-friendly financial regulatory environment.Public blockchain useThis new offering relies upon a smart contract that’s run on the Ethereum public blockchain, encapsulating the money market fund. Through this smart contract use, the subscription and redemption processes can be simplified. That will represent a major change, given that those processes have traditionally been laden with paperwork and delays.In the first iteration, large TradFi firms like UBS considered the use of private blockchains but as Matt Hougan, the CIO of crypto asset manager Bitwise, pointed out, this particular initiative is indicative of a shift towards public blockchains. Hougan stated:“Remember when TradFi projects were built on private blockchains? They are all being built on Ethereum today. Progress.”RWA tokenization potentialThe tokenization of real-world assets has the potential to revolutionize digital asset investments by offering transparency, security, and trust. It not only paves the way for a better understanding of digital assets but also accelerates their adoption. UBS’s pilot project represents another significant move in this direction.With increasing support from regulatory bodies like MAS, the fusion of digital assets with traditional financial structures is likely to witness a myriad of large-scale implementations in the not too distant future.UBS TokenizeUBS harnessed the power of its in-house tokenization service, UBS Tokenize, to seamlessly conduct the controlled pilot of the tokenized money market fund. The initiative falls squarely within the purview of UBS’s global distributed ledger technology strategy, which aims to elevate fund distribution and issuance to greater levels of efficiency by leveraging the capabilities of both private and public blockchains.UBS Tokenize also featured in a separate initiative earlier this year in Hong Kong, facilitating the issuance of digital structured notes on the Ethereum blockchain via the Bank of China Investment (BOCI).The momentum behind the tokenization of real-world assets has been building in recent years, with various protocols focusing on real-world assets consistently outperforming other sub-sectors of decentralized finance.

Laos to Prioritize Blockchain for Digital TransformationThe Laotian government, under the leadership of Prime Minister Sonexay Siphandone, recently hosted the inaugural Ministerial Conference on Blockchain 4.0 Digital Transformation in Vientiane, the country’s capital. The conference, held on Friday, brought together blockchain experts and leaders from various economic departments in the country, indicating the government’s prioritization of blockchain technology for its digital transformation efforts.Photo by Molydar SOUAMA on UnsplashMetaBank cooperation agreementIn an effort to promote digital transformation within Laos, the Laotian government has signed a cooperation agreement with Singapore’s MetaBank. Software company MetaBank describes itself as a “digital civilization accelerator empowered by blockchain.”A report from MetaBank sheds light on the main focus of the conference. The key objective was to expedite Laos’ digital transformation by harnessing the potential of digital technology. The concept of Blockchain 4.0 was introduced, highlighting the importance of open collaboration and positioning Laos as both a catalyst and a beneficiary of the emerging global digital landscape.In a press release published on Monday, MetaBank Founder and Chairman Frank Sui said that blockchain technology can help developing countries like Laos to “overtake on a bend.” Laotian Minister of Technology, Boveingkham Vongdara, suggested that blockchain technology is needed to transform production and service methods.In line with this vision, MetaBank and the Laotian Ministry of Technology plan to establish a blockchain research and development center that will support the Blockchain 4.0 initiative in Laos. This center will serve as a hub for innovative blockchain projects and contribute to the country’s technological advancements.Leveraging digital technologyThe conference outlined several goals for the development of Laos’ digital economy. These goals include leveraging digital technology to generate new fiscal revenue, strengthen foreign exchange reserves, control inflation, foster sustainable economic growth, improve living standards, and enhance international competitiveness in the short term.Furthermore, the event proposed the establishment of a Blockchain Technology Transformation Committee, which would be responsible for ensuring legal compliance and drafting legislation relevant to the digital economy.During the conference, Prime Minister Siphandone stressed the importance of integrating blockchain technology into various government processes and utilizing it extensively for administrative management and public services. He emphasized that embracing blockchain technology is vital for the successful implementation of Laos’ ninth five-year plan, which aims to drive national, economic, and social development.Laos, situated in Southeast Asia, has recently taken significant strides in adopting blockchain and digital technology. In February, the country’s central bank signed a memorandum of understanding with Japanese financial software firm Soramitsu to launch a proof-of-concept project for a central bank digital currency (CBDC).The project involves the creation of a digital currency called DLak, which will be exchanged with commercial banks for fiat currency and used for real-time transactions through a QR code and an accompanying app. This initiative aims to address the delays previously experienced in digital transactions within Laos, which could take up to a month to clear.With the establishment of this Blockchain 4.0 initiative and the planned research and development center, Laos is positioning itself to make further progress in its digital transformation journey.

Study Places Hong Kong as Leader in Crypto ReadinessHong Kong, according to a recent study conducted by Forex Suggest, has emerged as the leading jurisdiction worldwide in terms of its readiness for cryptocurrencies. The study evaluated various factors such as the number of blockchain startups per 100,000 people and the density of crypto ATMs in relation to the population.Photo by Traxer on UnsplashZero capital gains taxThe attractiveness of Hong Kong for investors in the crypto space stems from its advantageous tax policies. The study noted that Hong Kong does not levy capital gains taxes on cryptocurrency, making it an appealing destination for crypto enthusiasts. The United States and Switzerland secured the second and third positions, respectively, in the rankings of the most crypto-ready countries.In recent times, Hong Kong has actively embraced investments from digital asset companies and is poised to implement new regulations for the industry. Effective from June 1, the city’s new rules aim to establish Hong Kong as a global hub for digital assets. These regulations permit licensed cryptocurrency trading platforms to offer services to retail investors while incorporating measures to safeguard individual traders.Global crypto firms are gearing up for that new licensing approach, carving out separate corporate entities in order to meet the regulatory requirements which the Hong Kong regulator, the Securities Futures Commission (SFC), has set. Another Hong Kong regulator, the Hong Kong Monetary Authority (HKMA), is also opening up to embrace digital asset innovation through a pilot project implicating the tokenization of real world assets.Regarding the number of blockchain startups, Hong Kong boasts three startups per 100,000 individuals, securing the second position globally. Topping the list is Switzerland, with an impressive count of 12.9 blockchain startups per 100,000 residents, amounting to a total of 1,128.The study also highlighted that countries such as Hong Kong, Switzerland, Panama, Portugal, Germany, Malaysia, and Turkey impose the lowest taxes on cryptocurrencies. These nations exempt individuals from capital gains taxes on profits derived from cryptocurrency trading.Crypto ATM proliferationWhen considering the prevalence of crypto ATMs, Hong Kong ranks third globally, with two ATMs per 100,000 people, totaling 149 ATMs. The United States takes the top spot with nearly 34,000 crypto ATMs, but when normalized to the population, it has 10.1 ATMs per 100,000 individuals.Regressive measures in USIn contrast to Hong Kong’s favorable environment, regulators in the United States have intensified their efforts to tighten regulations on cryptocurrency exchanges, leading many within the industry to advocate for clearer guidelines. Consequently, several exchanges are exploring jurisdictions that offer more favorable conditions.Forex Suggest emphasized that the report’s findings were based on extensive data analysis, taking into account factors such as tax regulations, legislation, the presence of blockchain startups, and the level of interest in cryptocurrencies. Each jurisdiction received a normalized score out of 10 for each factor, and the overall rankings were determined by averaging these scores.Hong Kong’s position as the most crypto-ready jurisdiction in the world showcases its commitment to fostering innovation and becoming a global leader in the digital asset space. With its advantageous tax policies, growing number of blockchain startups, and forthcoming regulations, the autonomous Chinese territory is solidifying its position as an attractive destination for businesses and investors in the cryptocurrency space.