Legislation on stablecoins may appear as early as this year
Katherine Dowling, Bitwise’s chief executive officer, made this statement.
Stablecoin Act is likely to be the first piece of legislation related to cryptocurrency regulation. In her interview with CoinDesk TV, Katherine Dowling, chief compliance officer and chief executive of Bitwise, said stablecoins “are easier to manage than cryptocurrency overall.” The adoption of stablecoin laws can be a big benefit to the entire industry. According to Katherine, this will allow you to put clear and understandable rules of the game and will be the impetus to restore confidence from investors. She noted that stablecoin issuers would need to have an actual amount of fiat cash to support them rather than using leverage. In addition, adopting the law can prevent the displacement of cryptocurrency businesses outside the United States to more crypto-friendly jurisdictions. Finally, consideration of the initiative should take little time since the mechanism of operation of stablecoins is much more precise and straightforward than other cryptocurrency processes.
Vitalik Buterin proposes to create invisible crypto addresses
This will ensure that blockchain privacy is protected.
In The Ethereum creator, Vitalik Buterin has suggested using “stealth addresses” in a new blog post. It is now considered a major problem for the blockchain to maintain complete confidentiality (without being able to view the user’s transactions, even when you do not know who they are). “Stealth addresses” are assumed to solve the problem by generating a new address for each new transaction by the wallet. When accessing private transactions, the user must use a special key. Buterin added that the mechanics would work with both tokens, like his own ETH and NFT. Experts are sure that “stealth addresses” have great potential for expanding the use of cryptocurrency in everyday life.
The government of India launches a blockchain
The initiative will work based on technology from 5ire and Network Capital.
The leading analytical center of public policy of the Government of India (NITI Aayog) launched a blockchain network in partnership with platforms 5ire and Network Capital. Atal Innovation Mission oversaw the launch, which Atal Tinkering Labs implemented in more than 10,000 Indian schools. The blockchain network is designed to expand the use of educational platforms and increase the number of tools for working with students. In addition, the initiative is expected to contribute to creating and promoting an entrepreneurial culture in the country.
Interestingly, the main product of the company 5ire, in partnership with which the blockchain was created, has yet to be released. It is planned to implement the leading main network by the third quarter of 2023 after launching a test network. In 2022, the startup raised $100 million in funding from the British conglomerate SRAM & MRAM and set an ambitious goal of “becoming the world’s first blockchain unicorn.”
Argentina and Brazil are preparing to present a common currency
Despite the negotiations between the countries, crypto market analysts do not believe in the initiative’s success.
A joint statement from the presidents of Brazil and Argentina, published in the Argentine media Perfil Sunday, reported on the “continuation of discussions on the common South American currency.” Its creation is due to the need to reduce operating costs, successfully conduct commercial activities and abandon the US dollar as a voting player in the financial market. The presidents called this an “external vulnerability.” Brazil’s president said the same during a press conference in Argentina. According to him, the sharp growth of the dollar did not go unnoticed by Brazil, which depends on it.
Fernando Haddad, Brazilian Finance Minister, cautioned against exaggerating the scale of the idea, despite the positive attitude of the heads of state. The upcoming reform means staying in the Brazilian real, he added. However, analysts are skeptical: most do not think Brazil and Argentina will create a common currency. The reasons for this judgment can also be attributed to the countries’ economic situation: the Brazilian economy will grow by 0.8% in 2023, while consumer prices in Argentina will rise by 95%. To launch a “monetary union,” countries must bring economies to a relatively similar state.
It should be noted that Brazil and Argentina are members of the MERCOSUR trade bloc. It includes Uruguay and Paraguay as well. A single currency has already been discussed between the states since the bloc was founded in 1991.
In Davos, a blockchain project has been created, which has every chance of becoming a SWIFT system for stablecoins
In addition to stable tokens, the project will feature regulated digital currencies.
The company Red Date Technology, which participated in creating the national blockchain project of China, launched the Universal Digital Payment Network (UDPN). It took two years to develop. The launch occurred in Davos, Switzerland, during the World Economic Forum. Specialists from the engineering company GFT Technologies and the law firm DLA Piper are also involved in the development.
The project itself is a DLT platform that is similar to SWIFT. It will create an initial common standard for the exchange of information between users and institutions, as well as for sending transactions in stablecoins and CBDCs. According to the company’s press release, “global first-tier banks” are already testing the project’s strength. Presumably, Deutsche Bank, HSBC, Standard Chartered, The Bank of East Asia, and Akbank were all featured on the Davos project panel. After eight tests to test the concept of the project, it will be presented to the general public.
Nigeria turns its payment system toward blockchain
The country’s central bank has published a document with the main directions for changes in the national payment system.
Among the topics covered in the two-year roadmap is the study of stablecoins by the Central Bank, the introduction of the blockchain to support a regulated digital currency, and experiments about placing crypto coins. Furthermore, the 83-page document discusses that blockchain-based mechanisms will have to become a driver of innovation for the entire payment system. This conclusion is further supported by 11 advantages of blockchain technology, among which are: cost management, the ability to view any transaction, simplified logistics, the fight against counterfeit currency, and the overall efficiency of payments. In addition, using blockchain and a regulated digital coin will allow you to control the currency’s value and track tax evasion and money laundering operations.
The project of changes does not end with the advantages of the blockchain for the country’s economy. The government is considering the possibility of developing a regulatory framework for creating a stablecoin and smart contracts linked to securities as well as other assets.
It is important to note that Nigeria has been using its digital currency, eNaira, since 2021. Despite this, less than a percent of the country’s population uses the coin, but many citizens are interested in cryptocurrencies. Nevertheless, earlier, the country’s Central Bank banned commercial banks from servicing cryptocurrency exchanges.
The Central African Republic is going to legalize cryptocurrency
A 15-member committee is already developing a legal framework for this.
A committee in the CAR is creating a bill on using cryptocurrencies and the tokenization of the region’s economy. The President of the Republic Faustin-Archange Touadera announced this. According to him, cryptocurrency can eliminate the current financial barriers and create an environment favorable for business growth. Therefore, the country needs to legalize cryptocurrency. Now the project is being carried out by the ministries of the CAR responsible for mining and geology, water management, forestry, hunting and fishing, agriculture and rural development, land reform, urban planning, housing, justice, leadership, and citizens’ rights.
It is not the first time that the African continent has faced cryptocurrency. For example, Roqqu, a Nigerian cryptocurrency exchange, received a license to issue virtual currency from the European Economic Area after two years of waiting. As a result, Africans working outside Africa will be able to send money more quickly to their families back home.