Hong Kong taxis likely test case for stablecoin payments

Algorand Foundation and DWF Labs Partner for Ecosystem GrowthThe Algorand Foundation has joined forces with DWF Labs, a global digital asset market maker and Web3 investment firm, in a strategic partnership aimed at accelerating the growth of the Algorand ecosystem.An announcement of the collaboration was made on Monday, with the expectation that it will provide more opportunities for developers, businesses, and the wider blockchain community where the Algorand layer one blockchain is concerned.Photo by Shubham Dhage on Unsplash$50M token purchaseDWF Labs has committed to purchasing $50 million worth of $ALGO tokens, the native cryptocurrency of the Algorand network. This infusion of funds will enhance liquidity within the Algorand ecosystem, bolstering stability and growth.Beyond the token purchase, the partnership is reinforced by a memorandum of understanding (MOU), establishing a comprehensive funding framework to support projects built on the Algorand blockchain. This commitment will foster innovation across various sectors such as decentralized finance (DeFi), art and music, gaming, oracles and bridges, and infrastructure.Ecosystem collaborationsWeb3 investment firms like DWF Labs play a pivotal role in accelerating the growth of blockchain ecosystems. By investing in startups and projects that complement existing blockchain platforms, DWF Labs creates synergies that drive growth.It’s not the first time that DWF Labs has collaborated with blockchain network ecosystem projects. Earlier this month, the firm announced a deal with the project team behind layer one blockchain TRON, that will see it become a liquidity provider to that TRON network.In April, DWF entered into a partnership with the EOS Network Foundation (ENF) which included a $45 million $EOS token purchase agreement, with a further $15 million allocated towards investment into EOS ecosystem projects.Andrei Grachev, Managing Partner of DWF Labs, expressed enthusiasm for the partnership, highlighting Algorand’s technological superiority, security, and commitment to environmental sustainability and social impact.Through funding and strategic collaboration, DWF Labs will support the creation of diverse applications, services, and solutions within the Algorand ecosystem. This will foster the ALGO network effect, attracting more users and driving further growth.Algorand network stability and growthThe Algorand Foundation and DWF Labs partnership aligns with ongoing efforts to drive blockchain network adoption. Algorand’s platform offers scalability and security, while DWF Labs’ expertise and financial support will propel the ecosystem’s growth and adoption.The Algorand network is a proof of stake (PoS)-based blockchain network. It aims to accelerate the convergence between existing TradFi and emerging decentralized networks and technologies.The $50 million investment in ALGO tokens injects liquidity into the ecosystem, promoting stability and facilitating economic activities. The partnership’s funding framework ensures that projects built on Algorand receive the necessary resources.Collaborations like this drive blockchain adoption and development. The Algorand Foundation and DWF Labs share a vision of innovation and collaboration, fostering a thriving ecosystem.As the blockchain industry expands, strategic alliances play a crucial role in accelerating innovation and establishing interconnected ecosystems. The collective efforts of the Algorand Foundation and DWF Labs contribute to blockchain’s advancement, leading towards a decentralized future with transparency and inclusivity.

Thailand's government has recently secured approval for a $14 billion digital handout program as part of its economic recovery strategy. The program hasn’t come about without considerable debate and a backdrop of concerns expressed about the Southeast Asian nation's sluggish economic growth. According to Reuters, the decision was confirmed by Deputy Finance Minister Julapun Amornvivat, who stated that the Office of the Council of State, an advisory panel, found no legal obstacles to utilizing state budget funds for the initiative.Photo by Oleksandr P on PexelsDigital handout programThe digital handout program, a key policy of the ruling Pheu Thai party, involves distributing 10,000 baht (approximately $300) to digital wallets set up for each of the 50 million Thai citizens. This financial injection aims to stimulate spending within local communities, providing a much-needed boost to the economy. While the program has faced concerns about potential inflation risks due to Thailand's slow economic growth, the government has argued that it will ultimately benefit the economy. Julapun emphasized that the government plans to proceed with the scheme in May, funded through borrowing. Council of State and opposition party concernsEarlier reports had indicated that the Council of State had initially advised against the government's plan to enact a loan bill for the digital wallet scheme. Concerns were raised about potential violations of constitutional articles, including Article 140, which requires the government to offset any loans outside the budget bill in the next fiscal budget. In addition to inflation worries, the opposition expressed concerns about a potential breach of Article 53 of the 2018 State Fiscal and Financial Discipline Act, which permits off-budget borrowing only in urgent situations. Despite these concerns, the Office of the Council of State ultimately found no reason to prohibit the cabinet from borrowing to fund the program. Thailand's move towards a $14.3 billion cash handout program, termed the "digital wallet" program, is expected to commence by May. Prime Minister Srettha Thavisin affirmed this timeline after the Council of State's approval. The program, allowing Thais to receive funds via a mobile app, aims to spur consumption and overall economic growth. Election campaign giveawayThe idea of the digital asset giveaway was first floated by the Pheu Thai Party (PTP) in April of last year as part of its election manifesto. Subsequently, the party won the election in August, with Srettha being installed as Prime Minister. That appointment was interpreted as being a positive one by crypto advocates, given that Srettha had worked with crypto and blockchain-related technologies in his previous business dealings. Critics, including some economists and former central bank governors, argue that the handout plan could be fiscally irresponsible and fuel inflation. Prime Minister Srettha, who is also the finance minister, plans to discuss the stimulus plan and related matters with the central bank governor. The Thai Chamber of Commerce anticipates a 3% year-on-year growth in the first quarter of 2024, with an annual growth rate of 3.2%, driven by tourism and exports. The digital wallet scheme, if implemented as planned, could potentially add 1.0-1.5 percentage points to this year's growth, according to the chamber. 

An industry advocacy body for crypto and Web3 in India had urged the Indian government to take action against nine offshore exchanges, prompting the government to issue show cause notices and block URLs recently. Native industry pushbackAccording to CoinDesk, the publication has seen a copy of a letter that was sent in mid-December by the Bharat Web3 Association (BWA), addressed to the Indian Finance Ministry’s Department of Revenue Secretary, Sanjay Malhotra. The letter was penned by BWA Chairman Dilip Chenoy. Chenoy has been in the role since March of last year having a number of years of leadership experience within Indian industry bodies under his belt, with time spent previously as Secretary General of the Indian Chambers of Commerce and Industry and as Chairman of the board of Sant Longowal Institute of Engineering and Technology. According to its LinkedIn profile, the BWA seeks to “advocate for the collaboration between the regulatory bodies and the Industry for creating awareness about the new age technology and the emerging [Web3/crypto] asset class.” ‘Show cause’ noticesIt emerged last week that India’s Financial Intelligence Unit (FIU) had issued “compliance show-cause” notices to a number of overseas crypto platforms who have otherwise been active within the Indian market. The FIU is a national body tasked with liaising with and providing information to enforcement agencies where suspected illicit transactions are concerned. The offshore exchanges, including Binance, KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global and Bitfinex, have been given a two-week deadline to respond to the show cause notice. This notice questions why regulatory actions should not be taken against them, aiming to ensure compliance with the country's financial regulations. It’s understood that the BWA's letter requested a one-month grace period for offshore exchanges to register with the FIU. It remains unclear whether the government's actions were solely prompted by the BWA's letter or if it would have taken place independently. Notably, the BWA's letter aligns with the government's earlier mandate in March, requiring crypto businesses to register with the FIU and adhere to anti-money laundering processes under the Prevention of Money Laundering Act (PMLA). Since then, 31 domestic entities have registered with the FIU. Photo by Peter Glaser on UnsplashEnsuring a fair gameThe BWA's letter also proposes that offshore exchanges establish an Indian subsidiary, deposit the applicable tax deducted at source (TDS) from July 1, 2022 and face restrictions, including potential access blocks on mobile app stores and IP addresses, for non-compliance. While it's unclear if all these requests feature in the show cause notices, the BWA emphasizes the need for fair competition. Rajagopal Menon, Vice President of leading Indian crypto exchange WazirX, stressed that “all we are asking for is a level playing field." The BWA's letter also urges the government to grant Indian retailers a 30-day window to withdraw assets before implementing any restrictions. The fledgling BWA industry body recently celebrated its first anniversary with its founding member, CoinSwitch founder Ashish Singhal, stating that he got involved with the BWA “to help build an effective regulatory framework for Web3 and digital assets in India.” Singhal added that the BWA’s mission is “to help India realize its vision to be the leading digital economy.”