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- China Inaugurates Industrial Park For CBDC Development 🇨🇳🪙
China Inaugurates Industrial Park For CBDC Development 🇨🇳🪙
PLUS: Indonesia to conduct blockchain trials for public services. Uniswap launches Android wallet beta for Google Play.
Manan Vora
October 13, 2023
Snapshot Web3
October 13, 2023
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Regulatory and Legal News
China inaugurated an industrial park in Shenzhen focused on developing the digital yuan (e-CNY) ecosystem. It's the first park dedicated to a central bank digital currency. The park, in Luohu district, launched with nine residents and aims to boost digital yuan-related initiatives, including payment solutions, smart contracts, hard wallets, and promotions. Incentives include up to three years of free rent, with banks and startups eligible for substantial financial support. Hengbao, Wuhan Tianyu Information, and Lakala Payment are among the first residents. The digital yuan is in its pilot phase in 26 cities, with acceptance by 5.6 million merchants. (Cover Image Courtesy: CoinTelegraph)
Indonesia is set to embark on blockchain trials for public services, with a focus on digital certificates for land ownership and educational competencies. Tuhu Nugraha, a government advisor, emphasized the collaborative approach taken in exploring Web3 technology, aiming for regulations that foster innovation. Grace Sabandar, co-founder of the Indonesia Blockchain and Metaverse Center, highlighted the country's large and tech-savvy youth population, positioning Indonesia as a potential leader in Web3 adoption. The government's engagement with blockchain associations and readiness for experimentation underlines its commitment to understanding the technology's implications across various sectors.
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Innovation and Launches
Uniswap, the world's largest decentralized crypto exchange, has introduced a closed beta version of its mobile app for Android. This marks a significant expansion, as Uniswap was previously only accessible on PCs and iOS devices. The Android beta app simplifies coin selection across different chains, automatically detecting the network and switching accordingly. Initially compatible with Polygon, Arbitrum, Optimism, Base, and BNB Chain, the app plans to expand to more chains in the future. It also incorporates features to enhance transaction security and transparency. The open-source code for the app will be released as part of a security audit.
Mastercard has successfully completed a trial involving the wrapping of central bank digital currencies (CBDCs) on different blockchains, similar to how Bitcoin and Ether are wrapped. This trial, conducted with the Reserve Bank of Australia and the country’s Digital Finance Cooperative Research Centre CBDC, allowed a CBDC owner to purchase a nonfungible token (NFT) listed on Ethereum. The process involved "locking" the required amount of a pilot CBDC on the RBA’s platform and creating an equivalent amount of wrapped pilot CBDC tokens on Ethereum. This demonstrates the platform's ability to implement controls, even on public blockchains.
Trezor, a leading provider of hardware cryptocurrency wallets, has marked its 10th anniversary by unveiling three new self-custody products. These include the Trezor Safe 3 hardware wallet supporting over 7,000 cryptocurrencies, Trezor Keep Metal, a physical private key storage solution, and a Bitcoin-only hardware wallet. Trezor emphasizes open-source development in its new products and continues to focus on providing entry-level hardware wallets. The Trezor Keep Metal offers robust protection against various elements and is made from corrosion-resistant stainless steel. Trezor also pledges to donate a portion of sales from the Bitcoin-only wallet to support the Trezor Academy, a Bitcoin education initiative.
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NFT, Gaming and Metaverse
The nonfungible token (NFT) market may be experiencing a slowdown, but it's not dead. While many NFTs have little to no value, this is not surprising in the crypto space, where most tokens eventually become worthless. The ease of creating NFT projects led to a flood of low-quality offerings. However, beneath the surface, there are signs of life. Companies like PayPal, Amazon, and Walmart have shown interest in NFTs. Mainstream artists are collaborating with top auction houses, and musicians like Justin Bieber are exploring NFTs with royalty streams. The NFT space is evolving, and stronger projects will emerge.
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Scams and Hacks
Anonymous hackers who targeted the now-defunct FTX exchange have started moving significant amounts of stolen assets, particularly Ether (ETH), as the trial of FTX founder Sam Bankman-Fried begins. Roughly 72,500 ETH from the hack have been reactivated and converted into Bitcoin (BTC) through THORSwap. The thief then sent BTC to the sanctioned cryptocurrency mixer Sinbad. This comes amidst speculation, by blockchain analytics firm Elliptic, that the $477 million hack might involve an FTX insider. The identity of the hacker remains unknown.
The decentralized finance (DeFi) platform Platypus has fallen victim to another flash loan exploit, losing over $2 million. This marks the third attack on Platypus in 2023. During the recent attack, $1.2 million was taken initially, followed by two more attacks that resulted in the loss of $575,000 and $450,000 worth of assets, respectively. Flash loan attacks occur when traders exploit vulnerabilities to instantaneously borrow cryptocurrency without providing collateral. CertiK, the blockchain security platform, noted that Platypus had previously lost $8.5 million in February and around $157,000 in a flash loan exploit in July.
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Quick Links
Caroline Ellison, the star witness in the Sam Bankman-Fried criminal trial, testified that SBF tried to use identities linked to Thai sex workers to unfreeze funds before bribing Chinese officials for millions.
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Miscellaneous
Tencent, the operator of WeChat, is launching a digital yuan smart contract service for small and medium-sized enterprises (SMEs). This solution, developed with its online payments arm Tenpay and banking affiliate WeBank, aims to help banks track loan usage accurately using smart contracts, preventing misuse in areas like gambling and real estate. It also enhances security and compliance. This aligns with the Chinese central bank's efforts to promote e-CNY smart contracts, particularly in green financing and corporate loans. The program is set to expand in the future.
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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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