Busan BDX Consortium named preferred bidder for Digital Asset Exchange

China Sees Further Metaverse Development Through Nanjing City InitiativeNanjing City’s Jiangning district recently unveiled its ambitious plans for metaverse development as competition in China’s metaverse sector intensifies.Photo by 李 亨 on PexelsThree-year planThe district aims to lay the groundwork for blockchain-based applications by attracting 200 metaverse companies and generating an industry with an annual revenue of 20 billion yuan ($2.80 billion) by the end of 2025. That’s according to a three-year plan to accelerate metaverse development published by Jiangning district’s management committee on Saturday.To support this vision, Jiangning plans to foster collaboration between local enterprises and academic institutions, with the goal of training 10,000 metaverse professionals over the next three years.Metaverse roadmapThe district’s comprehensive roadmap includes the identification of key metaverse technologies, such as blockchain, artificial intelligence (AI), and virtual reality. Additionally, the plan outlines the establishment of 50 research centers and laboratories dedicated to these areas of expertise.These initiatives were unveiled during a joint summit on metaverse and artificial intelligence-generated content (AIGC) held at the Jiangning High-tech Development Zone, a specialized industrial park known for its focus on life sciences, software development, and equipment manufacturing.At the summit, 16 metaverse-related projects were introduced, representing a total investment of 8.1 billion yuan ($1.13 billion). These projects encompass diverse fields, including A.I., cloud computing, big data, and healthcare. Jiangning’s commitment to the metaverse extends beyond the recently announced plan, as the district has been offering financial incentives to metaverse companies since May 2022.Moreover, an investment of 800 million yuan ($112 million) has been allocated to construct a dedicated “metaverse industrial building” that will provide office spaces for metaverse enterprises.Jiangning’s efforts contribute to Nanjing City’s broader aspiration of becoming a prominent metaverse hub in China. In February of this year, Nanjing unveiled its metaverse strategy and set the ambitious target of establishing an industry generating over 135 billion yuan ($19.13 billion) in annual revenues by the end of 2025. Additionally, Nanjing launched “the Blockchain Technology and Application Innovation Platform of China” in May, aimed at promoting and advancing metaverse research nationwide.Broader Chinese metaverse strategyWhile Nanjing is moving towards metaverse development, other Chinese metropolises, including Beijing, Shanghai, and Hangzhou, are also vying for dominance. Cities such as Zhengzhou and Suzhou are also endeavoring to participate in the trending technology.Last month, Zhengzhou announced a set of policy proposals aimed at supporting metaverse-centric enterprises locally. Earlier in May, the administrative body that governs Henan Province established a 150 million yuan ($21.7 million) private equity investment fund relative to the financing of metaverse-themed projects.As cities and regions in China compete to seize the opportunities presented by the metaverse, the country is witnessing significant investments and initiatives to establish a strong foothold in this transformative technology. Nanjing’s Jiangning district’s comprehensive plan and strategic partnerships signify the region’s dedication to becoming a flourishing metaverse ecosystem, while executing on a mandate from the central government to further develop metaverse technologies within China.

BIS Collaborates with Singapore’s MAS, Bringing CBDC Pilot to a CloseThe Bank for International Settlements (BIS) has recently signified the culmination of Project Mariana, a pilot initiative centered on exploring the cross-border trading and settlement of wholesale central bank digital currencies (CBDCs).Photo by Pixabay on PexelsUpdating financial market infrastructureThe bank of central banks published the findings of the project on Thursday. Conceived in partnership with the Monetary Authority of Singapore (MAS) alongside the central banks of France and Switzerland, the endeavor could have profound implications for the future landscape of financial market infrastructure.Project Mariana, conducted under the patronage of the BIS, harnessed principles gathered from the emerging world of DeFi to probe the viability of employing automated market makers (AMMs) for CBDC trading and settlement.The project involved three key facets:DeFi Ingenuity: Project Mariana took inspiration and cues from the DeFi universe, particularly AAMs, to streamline foreign exchange trading and settlement. This approach was designed to bolster market efficiency while curtailing settlement risks.Cross-Border CBDC Transactions: Hypothetical wholesale versions of the Swiss franc, euro, and Singapore dollar in CBDC form were tested for cross-border trading and settlement. The central banks of France, Singapore, and Switzerland orchestrated simulated transactions via AAMs to gauge feasibility.Interoperability and Token Standards: The project showcased the practical application of a standardized technical token format offered by a public blockchain, enabling seamless interoperability across various currencies. This interoperability element played a pivotal role in facilitating cross-border CBDC transactions.While the project represents a significant move forward for the BIS in its consideration of decentralized technology, the organization is still mindful that these decentralized tools are in their infancy and in need of further scrutiny and experimentation.With that, the BIS Innovation Hub has outlined its intent to further explore the prospective advantages and obstacles associated with DeFi-infused solutions within pertinent use cases going forward.Proof of conceptWhile the BIS and participating central banks were happy with the outcome of the project, the exercise was still a proof of concept and doesn’t mean there will be any immediate adoption of CBDCs by the participating nations.Rather, it spotlights the potentials of CBDCs and DeFi in streamlining financial transactions and enhancing efficiency. Central banks can oversee wholesale CBDCs without necessarily exerting control over the underlying infrastructure, thereby furnishing commercial banks with a potent tool for instantaneous FX trading and settlement while simultaneously mitigating credit and settlement risks.The project also shone a spotlight on certain challenges, including the logistical intricacies arising from the 24/7 availability of wholesale CBDCs. Nevertheless, the manifold advantages of instant foreign exchange trading and settlement appear to outweigh these hurdles.Central bankers are likely to want a different outcome from the use of this technology by comparison with those who are currently knee-deep in building out DeFi. One commentator on X had a cynical take on the project, stating: “Intermediaries attempting to justify their existence in an age with bitcoin.”Notwithstanding that, FX is the largest financial market in the world, where $7.5 trillion in value is traded every day. To utilize DeFi technology in that context would likely be profound, regardless of the nature of the application of the technology.

Korea’s FSC Embarks on Developing Regulatory Framework for VASPsThe South Korean Financial Services Commission (FSC) has taken a step towards the development of a virtual asset regulation system by seeking external parties to undertake a research project in this area, according to local news agency News1.Photo by Joshua Miranda on PexelsSecond phaseEarlier this month, the National Assembly passed the Virtual Asset User Protection Bill, aimed at protecting investors and preventing unfair trading practices. This legislative accomplishment, scheduled to go effective in July next year, is referred to as the “first phase” of virtual asset regulations. Building upon this foundation, the FSC has now shifted its focus to the “second phase,” which involves the regulation of virtual asset service providers (VASPs).Regulating VASP operationsOne primary concern regarding VASPs is the potential for conflicts of interest arising from their involvement in the issuance and distribution of virtual assets. In response, the FSC is determined to design a regulatory framework that covers a wide range of virtual assets, including stablecoins, security tokens, and utility tokens.In addition to this, the FSC intends to establish a system that governs advisory and disclosure businesses, which will play a crucial role in disseminating information about asset prices and disclosures.Moreover, the regulatory system will include guidelines for holding parties accountable in case of incidents and for overseeing the operations of VASPs to maintain a safe and fair market environment.The FSC acknowledges the significance of aligning policies with international standards. To achieve this, the commission will conduct an examination of virtual asset regulatory approaches taken by different countries and international organizations. Through this study, the FSC aims to integrate global best practices and approaches into Korea’s own regulatory framework for virtual assets.Once the study is complete, the FSC has to report the result to the National Policy Committee of the National Assembly by July 2024 before the Virtual Asset User Protection Bill goes into effect.