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- CBDC Is The Future Of Money In Australia 🏦🇦🇺
CBDC Is The Future Of Money In Australia 🏦🇦🇺
PLUS: Solana becomes ecosystem partner of Dubai free zone. Token adoption grows as real-world assets move on-chain.
Manan Vora
October 17, 2023
Snapshot Web3
October 17, 2023
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Regulatory and Legal News
The Reserve Bank of Australia (RBA) is exploring the potential of a Central Bank Digital Currency (CBDC) as a future form of money. Brad Jones, Assistant Governor of the RBA, discussed the opportunities and challenges of asset and money tokenization in the digital age. He emphasized that well-regulated stablecoins backed by high-quality assets could be used for tokenized transactions, but CBDCs in the form of tokenized bank deposits might offer a secure settlement method. Jones also shared insights from the RBA's CBDC pilot program, indicating areas where CBDCs could enhance value in wholesale payments and asset markets. (Cover Image Courtesy: CoinTelegraph)
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Innovation and Launches
The Solana Foundation has partnered with the Dubai Multi Commodities Centre (DMCC), a prominent free economic zone in the UAE. Through this collaboration, Solana will offer technical and business development support to members of the DMCC Crypto Centre. Additionally, the company will provide webinars and educational courses on various Web3 topics and expand its grant program at DMCC. In return, Solana's existing partners will receive special privileges within the DMCC. The DMCC, which boasts over 23,000 member companies, is focused on creating a conducive environment for business and investment in the UAE.
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NFT, Gaming and Metaverse
Major NFT creators, including Yuga Labs (makers of Bored Ape Yacht Club and CryptoPunks) and Pudgy Penguins, are reconsidering their partnerships with leading marketplaces like Blur and OpenSea. This comes in response to significant reductions in royalty percentages for secondary market transactions on these platforms, aimed at stimulating activity in the NFT market. Yuga Labs, for instance, has halted trading of its latest collection, Mara, on Blur and OpenSea, emphasizing that only marketplaces with sufficient royalties will be allowed to list their tokens. This move could have a notable impact on the overall NFT market, given Yuga Labs and Pudgy Penguins' substantial presence in the space.
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Scams and Hacks
Tether, the stablecoin issuer, has frozen 32 cryptocurrency addresses linked to terrorism and warfare activities in Israel and Ukraine, in cooperation with the NBCTF in Israel. The total value of assets in these addresses is $873,118. This action is part of Tether's commitment to combat cryptocurrency-funded terrorism and warfare, with CEO Paolo Ardoino highlighting their dedication to global security. Tether had previously frozen $46 million worth of its USDT stablecoin in response to a law enforcement request last November. When a wallet is frozen, the ability to send USDT funds is restricted until the freeze is lifted.
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Interesting Reads
The tokenization of real-world assets (RWAs) is rapidly gaining traction, with the sector's value reaching an all-time high of $2.75 billion in August. The tokenization of global illiquid assets is projected to be a $16 trillion industry by the end of the decade, according to Boston Consulting Group. Real estate is a prominent area for tokenization, with its value expected to be around $613 trillion in 2023. Beyond real estate, tokenization is also making strides in areas like collectibles, luxury items, securities, and carbon credits. Tokenization's impact is extending into traditional finance, particularly in bonds and fixed-income products. The transition to tokenized assets is seen as a natural progression in the market.
The U.S. government is estimated to hold over 200,000 BTC, worth more than $5 billion. This estimation is based on major seizures linked to incidents like the Bitfinex hack and Silk Road. The actual holdings could be even larger. These holdings are primarily kept offline in encrypted storage devices under the Justice Department and the Internal Revenue Service. The U.S. government occasionally sells a portion of the seized Bitcoin through auctions. Notably, billionaire Tim Draper bought 30,000 BTC from a government auction in 2014. In recent years, the government has also turned to crypto exchanges for such sales.
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Quick Links
Fees will not be collected on inter-stablecoin trades, nor on wrapping Ether.
The move comes after the Financial Conduct Authority imposed restrictions on its United Kingdom partner REBS.
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Miscellaneous
FTX and FTX.US, recently declaring bankruptcy, have proposed a settlement that could lead to over 90% of assets being returned to customers by mid-2024. The plan involves a "shortfall claim" where customers of FTX.com and FTX.US would collectively receive 90% of the available assets for distribution, estimated at around $8.9 billion for FTX.com and $166 million for FTX.US. This proposal is subject to approval by the bankruptcy court, with a final filing due by December 16, 2023. The amended plan also includes provisions for clawbacks, reducing claims for customers who withdrew over $250,000 within nine days of bankruptcy.
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Resource of the Day
Reed's Law, an extension of network effects, emphasizes the power of communities within a network. It posits that a network's value grows exponentially with the number of potential subgroups users can form, differing from Metcalfe's Law. In the crypto space, this impacts community building, decentralized apps (DApps), and niche-specific cryptocurrencies. It also influences tokenomics strategies, highlighting the potential for exponential growth. However, managing numerous subgroups and predicting their success present challenges. Despite this, Reed's Law is set to revolutionize the crypto industry by fostering exponential growth and democratizing finance and governance.
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The information provided in this newsletter is for informational purposes only and should not be interpreted as investment advice, endorsement, or recommendation. Cryptocurrency investments carry significant risk due to their volatility. You should consider your financial situation, investment goals, and risk tolerance before making any investments. We strongly recommend consulting a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.
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