Snapshot Web3

July 28, 2023

Regulatory Updates

Hong Kong and Saudi Arabia Collaborate on Tokenization and Payments

Hong Kong and Saudi Arabia are strengthening financial collaboration, focusing on tokenization and payments infrastructure. They held a bilateral meeting, signed an MoU for joint discussions on financial innovation, and exchanged expertise in tokenization and payment technologies. However, there was no mention of cryptocurrencies. This reflects a broader trend of international collaboration among central banks and regulators in exploring digital assets and fintech.

Canadian regulator proposes new requirements for banks’ and insurers’ Crypto exposure

Canada's financial regulator, OSFI, has proposed strict guidelines for banks and insurers dealing with crypto-assets. The rules categorize crypto assets into two groups and set a 1% exposure limit for unbacked crypto assets. The guidelines are expected to come into effect in Q1 2025 after the consultation period ends on September 20. This move aims to regulate the crypto sector efficiently and combat increasing crimes related to digital assets.

Innovation and Launches

PancakeSwap Joins The Ranks Of DeFi Giants On zkSync Era: Here’s Why It Matters

PancakeSwap, a decentralized exchange, has launched v3 on zkSync Era for improved scalability and cost-effectiveness. It offers quick and low-cost token swaps, liquidity provision for passive income, and loyalty points with NFT rewards. By leveraging zkSync, it aims to increase transaction capacity and attract more users to DeFi. Despite recent market fluctuations, PancakeSwap's valuation has increased, showing potential for growth and adoption.

New Optimism wallet lets users receive crypto via Twitter login

The new "Beam" wallet on Optimism allows users to generate addresses without seed words and can be saved using a Twitter login. It enables sending transactions without owning Ether and allows gas fees to be paid in the coin used in the transfer. The wallet prioritizes user security with Web3Auth for account backup. It will also be available on Coinbase's Base network, making it a seamless "Superchain" wallet. The goal is to simplify crypto onboarding and improve user experiences.

Trending DApps

NFT and Metaverse

The British Museum Will Enter the Metaverse via 'The Sandbox'

The British Museum is partnering with The Sandbox, an Ethereum-based metaverse game, to create NFT digital collectibles reflecting the museum's vast collections. The museum will also establish its own immersive space within the game. This collaboration aims to share the museum's history, art, and culture with new audiences and explore innovative ways of engaging with its collection. The British Museum has previously collaborated with LaCollection on NFT collections, demonstrating its openness to embracing digital innovation.

Resource of the Day

POS Vs DPOS: Master the Essentials of Consensus Mechanisms

Proof-of-Stake (PoS) and Delegated Proof-of-Stake (DPoS) are major consensus mechanisms in the crypto space. PoS focuses on staking tokens for validation, while DPoS enhances speed with elected validators. DPoS is more democratic, PoS gives authority to users. DPoS has shorter transaction times due to a smaller network. Delegates play a role in DPoS, but not in PoS. Both support blockchain sustainability and offer transaction efficiency. Choice depends on project needs.

Interesting Reads

CBDCs Wrongfully Break Down the Separation Between Money and State

Central banks are exploring the issuance of Central Bank Digital Currencies (CBDCs) to reduce costs and improve efficiency. However, implementing CBDCs would give governments access to detailed financial information, compromising privacy and enabling potential abuse. CBDCs could be used for political purposes and industrial policies, posing risks of unbanking individuals and creating inflation pressures. Instead, a neutral and fixed monetary policy, as seen in cryptocurrencies like Bitcoin, could offer stability and benefits for developing countries seeking modernization.

Quick Links

Sequoia slashes its crypto fund by 66% after industry collapses: Report

Venture capital giant Sequoia Capital has downsized its cryptocurrency fund from $585 million to $200 million amid market changes and a focus on backing early-stage startups. The move aims to provide liquidity to investors and lower the barrier to entry. Venture capital investments in the crypto space have declined in recent times, but some firms, like Polychain Capital and Coinfund, are still raising significant funds for crypto investments.

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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.