Asian currencies have reached their lowest levels in over 19 months as the U.S. dollar strengthens, driven by expectations of prolonged elevated U.S. interest rates. The Bloomberg Asia Dollar Index fell by 0.1% on Thursday, marking its lowest point since November 2022. Significant declines in the Philippine peso, Indian rupee, and South Korean won are […]
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Bitcoin Sees Rise in Sell Calls Amid Expectations of Asian Institutional Boost
Over the past week, bitcoin has exhibited a downward trend, with its price stabilizing at around ,950 to ,125 per unit as of April 27. Despite this dip, the Crypto Fear and Greed Index remains firmly in the “greed” sector. According to Google Trends, interest in the term “bitcoin” has diminished, while the market intelligence […]
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China Debuts Digital Yuan Interconnection With Hong Kong Payment System During 19th Asian Games
The Chinese digital yuan, China’s central bank digital currency (CBDC), now features an interconnection with the Hong Kong payment system, allowing tourists coming to mainland China to purchase and top up a digital yuan wallet. The system, created by the Digital Currency Research Institute of the People’s Bank of China (PBOC), was tested just recently during the 19th Asian Games.
Digital Yuan Features Interoperability With the Hong Kong Banking System
The digital yuan, China’s central bank digital currency, is debuting a new interconnecting feature with the Hong Kong banking system that allows visitors and tourists to create and top up a digital yuan wallet using foreign accounts. The system, designed by the Digital Currency Research Institute of the People’s Bank of China (PBOC), links digital yuan wallets with the Faster Payments System (FPS) of the Hong Kong Monetary Authority.
The feature, announced in advance, presents several ostensible advantages for tourists who could use the digital yuan to make payments without resorting to alternative payment methods, topping it up in advance. The People’s Daily, a Chinese state outlet, remarked on the endeavor, stating that the digital yuan system was “more controllable,” with shorter transaction links and lower transaction costs.
Asian Games Pilot
The PBOC introduced this feature at the 19th Asian Games, held from September 23 to October 8 in Hangzhou, Zhejiang. According to local reports, different delegations of athletes used the system under the guidance of assistants at the Asian Games Village, where the athletes were hosted during the event.
During the trial, these athletes downloaded the digital yuan wallet, opened an account, and used the different payment and top-up methods involving the new feature. They also offered positive feedback on the new addition, stating that the wallet was “simple and convenient to use,” making their purchases in the Athletes Village “easy and convenient.”
The Chinese government and the PBOC have been pushing for adopting the digital yuan in several payment scenarios across China. In September, the PBOC implemented a QR-based interoperable standard compatible with multiple payment systems, including the digital yuan. Jinan implemented digital yuan payments for transportation fares after conducting a limited pilot in July.
What do you think about introducing the digital yuan interconnection feature during the 19th Asian Games? Tell us in the comments section below.
Asian Economies Could Benefit From Reduced Dollar Influence, Says Devere CEO
The CEO of asset management firm Devere Group says the world is shifting “away from a dollar-dominated financial system.” Emphasizing that a shift away from U.S. dollar influence “could have positive implications for Asian economies,” he described: “With the dollar losing its stranglehold, Asian economies would also likely experience a diversification of reserve currencies, paving the way for greater regional trade and investment opportunities.”
How Reducing Dollar Dependence Could Benefit Asian Countries
Nigel Green, CEO of asset management firm Devere Group, published an opinion piece in Asia Times on Friday arguing that the decline of the U.S. dollar could benefit Asian economies. The executive began:
I believe that we are witnessing in real time the world beginning to shift away from a dollar-dominated financial system.
“Among other reasons, this is because astronomic levels of debt, and the enormous amount of desperate money-printing to monetize these debts, have caused a considerable drop in the long-term value of the currency,” he detailed.
Reiterating his warning earlier this year that the U.S. dollar’s dominance is under threat as Russia and Saudi Arabia eye the Chinese yuan for oil trade, the Devere boss emphasized:
A shift away from dollar influence could have positive implications for Asian economies.
He explained that reduced reliance on the greenback would allow Asian countries to “implement policies that are more tailored to their domestic economic conditions, potentially boosting stability and growth.”
Green further detailed: “With the dollar losing its stranglehold, Asian economies would also likely experience a diversification of reserve currencies, paving the way for greater regional trade and investment opportunities.” He continued: “A multilateral currency system would promote more extensive use of regional currencies like the Japanese yen, Chinese yuan and Indian rupee, making trade within Asia more accessible and efficient.”
Moreover, “A diminished dollar dominance would lead to more stable exchange rates, reducing volatility and uncertainty in cross-border transactions,” he noted. The Devere executive concluded:
A decline in dollar dominance would encourage Asian countries to diversify their reserve holdings, leading to better allocation of resources and increased investment in productive sectors.
Do you agree with Devere CEO Nigel Green about the decline of the U.S. dollar benefiting Asian economies? Let us know in the comments section below.
Russia, 10 Southeast Asian Nations Discuss Using National Currencies in Trade Settlements
Russia is discussing using national currencies in trade settlements with 10 Southeast Asian countries, members of the Association of Southeast Asian Nations (ASEAN), Russian Foreign Minister Sergey Lavrov has revealed. The move comes as more and more countries worldwide are seeking to de-dollarize.
Russia and 10 Southeast Asian Nations Explore National Currency Usage in Trade
Russian Foreign Minister Sergey Lavrov revealed his country’s efforts to settle trade with 10 Southeast Asian countries in national currencies in an interview with Indonesian national newspaper Kompas. The interview was published in English on Wednesday, with the aid of Microsoft Azure Open AI and Google Translation AI. ASEAN members comprise Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.
Lavrov explained that Russia does not see the current international situation as a “new cold war.” He emphasized that the country is focused on the development of a multipolar world order, noting that the West, led by the U.S., is actively trying to slow down and reverse this process. “Their goal is not to strengthen global security and engage in mutual development, but only to maintain their hegemony in world affairs and further carry out neo-colonial agendas. In short, nothing has changed, as usual, they solve their problems at the expense of others,” he opined.
“Western egocentrism that disregards the interests of Global South and East countries actually contributes to the search for alternative cooperation formats in all fields. Due to the confiscation of Russia’s foreign reserves in the U.S. and Europe, there is a growing understanding in the global community that no one is immune from the confiscation of tangible assets stored in Western jurisdiction,” Lavrov detailed, adding:
Not only limited to Russia, several other countries are consistently reducing their dependence on the U.S. dollar, starting to switch to the use of alternative payment and calculation systems through national currencies.
“At the same time, the effectiveness of interstate association, in which Western countries do not participate, is increasing,” the top Russian official described, giving the BRICS and the Shanghai Cooperation Organization (SCO) as examples. The BRICS countries comprise Brazil, Russia, India, China, and South Africa.
The Russian diplomat emphasized Russia’s “constructive cooperation in the UN and other multilateral platforms on various urgent international issues,” adding that Russia is working closely with Indonesia this year as the chair of ASEAN.
Lavrov said that he plans to attend an upcoming ASEAN ministerial-level meeting in Jakarta. “We are giving special attention to the development of a strategic partnership with the association,” he stressed. “We have a history of relationships for more than three decades.”
The Russian official detailed that Russia is focusing its efforts on reinforcing the architecture established around ASEAN to foster stability and cooperation within the Asia-Pacific region, elaborating:
The practical cooperation interests between Russia and ASEAN countries, including Indonesia, will be answered with the launch of consultations on the use of national currencies in mutual settlements.
The 10 ASEAN member states have also intensified their own de-dollarization efforts. In May, they agreed to “encourage the use of local currencies for economic and financial transactions among ASEAN member states.” Indonesia’s central bank governor said in April that his country is following the BRICS’ de-dollarization lead to shift away from the U.S. dollar. The country recently introduced a new national payment system to further its de-dollarization efforts and protect against “possible geopolitical consequences.”
What do you think about Russia settling trade with 10 Southeast Asian nations in national currencies? Let us know in the comments section below.
‘Weaponization Project of the Dollar’: Asian Countries Talk De-Dollarization; Jim Rogers Says USD’s Time ‘Coming to an End,’ and More — Week in Review
The future fate of the U.S. dollar continues to dominate financial news, as investor Jim Rogers says the USD’s time is “coming to an end,” and nine Asian countries have been discussing de-dollarization measures in Iran. In other news, an expert has predicted that the price of gold will skyrocket due to economic conditions, and JPMorgan CEO Jamie Dimon has said of interest rates that people “should be prepared for rates going higher from here.” All this and more just below, in this latest Bitcoin.com News Week in Review.
9 Asian Countries Discuss De-Dollarization Measures in Meeting Hosted by Iran
Top officials from nine Asian countries, members of the Asian Clearing Union (ACU), have gathered in Tehran for their annual meeting, where de-dollarization takes center stage. In addition to the officials from Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka, Russia’s central bank governor and officials from Belarus and Afghanistan also attended the meeting.
Renowned Investor Jim Rogers Warns US Dollar’s Time ‘Coming to an End’ as Countries Seek Alternatives
Veteran investor Jim Rogers, who co-founded the Quantum Fund with billionaire investor George Soros, says the U.S. dollar’s time is coming to an end as more countries are seeking alternatives to the USD. “Many friends of America are moving, trying to find something to compete with and ultimately replace the U.S. dollar. It will happen. It has always happened,” he warned.
JPMorgan Boss Warns ‘Everyone Should Be Prepared’ for Interest Rates ‘Going Higher From Here’
JPMorgan Chase, the largest bank in the United States, held its investor day event on Monday, where CEO Jamie Dimon answered questions from analysts and journalists. Despite market expectations of a rate hike pause, Dimon cautioned that people “should be prepared for rates going higher from here.” The billionaire banker also discussed the potential for commercial real estate to sour following concerns raised by Berkshire Hathaway’s Charlie Munger about the sector.
Gold Prices Poised to Skyrocket as Expert Predicts Fourfold Increase in Demand
Although gold has been trading below the K range since May 16, 2023, Rick Rule, the founder of Rule Investment Media, is confident that the struggling U.S. economy will cause demand for precious metals like gold to skyrocket. In an interview published on May 18, Rule emphasized that people’s anxiety about the purchasing power of conventional savings methods has always been the main factor driving gold prices. According to Rule, this trend is likely to continue, and he predicts that demand for gold will increase by fourfold in the near future.
What are your thoughts about recent conversations on the dollar losing its influence in global economics? Let us know in the comments section below.
9 Asian Countries Discuss De-Dollarization Measures in Meeting Hosted by Iran
Top officials from nine Asian countries, members of the Asian Clearing Union (ACU), have gathered in Tehran for their annual meeting, where de-dollarization takes center stage. In addition to the officials from Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka, Russia’s central bank governor and officials from Belarus and Afghanistan also attended the meeting.
‘De-Dollarization Is Not a Voluntary Choice by Countries’
The two-day 51st annual Asian Clearing Union (ACU) meeting began on Tuesday in Tehran, with participation from officials representing members of the Asian Clearing Union (ACU) as well as several others. The meeting was hosted by the central bank of Iran and de-dollarization was a key topic discussed at the event, Tasnim news service reported.
The ACU currently has nine members: Bangladesh Bank, Royal Monetary Authority of Bhutan, Reserve Bank of India, Central Bank of Iran, Maldives Monetary Authority, Central Bank of Myanmar, Nepal Rastra Bank, State Bank of Pakistan, and Central Bank of Sri Lanka. Apart from the top officials of the ACU members, the governor of the Russian central bank is attending as an observer along with officials from Belarus and Afghanistan.
Commenting on the role of the U.S. dollar in the world economy and a growing number of countries shifting away from using the USD in trade settlement, Iran’s First Vice President Mohammad Mokhber said at the meeting:
De-dollarization is not a voluntary choice by countries anymore, it is the countries’ inevitable response to the ‘weaponization project of the dollar.’
Mokhber noted that over the past few decades, the “Weaponization of the dollar” has compelled countries to distance themselves from reliance on the USD in order to mitigate the potential impact of possible future sanctions.
Addressing the growing trend of countries seeking to diminish their reliance on the U.S. dollar, the Iranian first vice president pointed out that the weakening of the dollar poses a significant challenge to the United States’ global influence. Concluding his remarks, he emphasized that the Islamic Republic is ready to enhance its banking and trade relations with other nations, particularly ACU member states.
Iran has been ramping up its de-dollarization efforts, such as phasing out the USD in bilateral trade agreements with Russia. Earlier this month, Iranian President Ebrahim Raisi called on the central bank of Iran to ditch the U.S. dollar in trade and use national currencies instead. President Raisi also said Iran is seeking to join the BRICS economic bloc to counter Western hegemony and promote a multipolar world.
The BRICS countries (Brazil, Russia, India, China, and South Africa) have also pushed to reduce their reliance on the U.S. dollar. The economic group is discussing creating a common currency that is set to be discussed at its upcoming leaders’ summit. Ten Southeast Asian countries, members of the Association of Southeast Asian Nations (ASEAN), also recently agreed to encourage the use of national currencies instead of the U.S. dollar.
What do you think about a growing number of countries trying to move away from the U.S. dollar? Let us know in the comments section below.
10 Southeast Asian Nations Challenge Dollar Dominance With Push for Local Currencies
The leaders of 10 Southeast Asian nations, members of the Association of Southeast Asian Nations (ASEAN), have agreed to “encourage the use of local currencies for economic and financial transactions.” The group comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. This move will help them reduce their reliance on the U.S. dollar.
Southeast Asian Countries’ De-Dollarization Efforts
The leaders of the Association of Southeast Asian Nations (ASEAN) gathered in Labuan Bajo, Indonesia, for the 42nd ASEAN Summit on May 10-11 under the chairmanship of the Republic of Indonesia. ASEAN members comprise Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. The summit was chaired by H.E. Joko Widodo, president of Indonesia.
An official declaration released by the chairman at the conclusion of the summit states: “We adopted the ASEAN Leaders Declaration on Advancing Regional Payment Connectivity and Promoting Local Currency Transaction to foster bilateral and multilateral payment connectivity arrangements to strengthen economic integration by enabling fast, seamless, and more affordable cross-border payments across the region.”
The declaration continues:
We commit to encourage the use of local currencies for economic and financial transactions among ASEAN member states to deepen regional financial integration and promote the development of currency market in local currency to strengthen financial stability in the region.
At the end of March, the ASEAN finance ministers and central bank governors met in Bali, Indonesia, and agreed to take steps to reinforce the use of local currencies in the region and reduce reliance on the U.S. dollar or other major international currencies for cross-border trade and investment.
Bank of Indonesia Governor Perry Warjiyo said in April that Indonesia is following the BRICS’ de-dollarization lead. The BRICS nations (Brazil, Russia, India, China, and South Africa) are working on a common currency to reduce their reliance on the USD; their leaders plan to discuss this topic at their upcoming leaders’ summit.
Multiple people expect a common BRICS currency to erode the U.S. dollar’s dominance, including a former White House economist who warned that if the BRICS nations used only their common currency for international trade, “they would remove an impediment that now thwarts their efforts to escape dollar hegemony.” Investment analyst Jon Wolfenbarger cautioned that a successful BRICS currency could result in the U.S. dollar losing its reserve currency status. This would hurt U.S. living standards and lead to less power for the U.S. government.
What do you think about Southeast Asian countries pushing to use local currencies instead of U.S. dollars? Let us know in the comments section below.
AI-Focused Cryptogpt Raises $10 Million in Series A Funding to Expand Into Asian Markets
A Layer two (L2) project, called Cryptogpt, which leverages ZK-rollup technology and artificial intelligence (AI), has announced that its team has raised million in capital from a Series A funding round. The crypto and AI firm disclosed that the new funds would be used to expand into the largest Asian markets, and the company now has a valuation of 0 million.
Cryptogpt Startup Raises Million; Startup Now Has a 0 Million Post-Valuation
Artificial intelligence (AI) has become a popular subject in 2023 as AI projects, such as Midjourney and Chatgpt, along with many other programs, have seen a surge in demand. This has sparked a significant rise in value for a number of AI-related cryptocurrency and blockchain projects this year. According to statistics from cryptoslate.com, at the time of writing, 77 AI-focused cryptocurrencies are worth .48 billion.
On April 10, an L2 project called Cryptogpt announced that it raised million in a Series A financing round. “Cryptogpt receives M strategic investment from largest Asian market maker to expand into biggest Asian markets,” the Cryptogpt Twitter account told its 243,200 social media followers. “New funding at a 0M valuation from DWF Labs positions $GPT both financially and strategically with the most established layer-2 developments in Web3,” the company added.
Cryptogpt’s L2 network uses a native token called GPT, and the team asserts that GPT is a multi-value gas token that has high demand as fuel for network transactions. Over the past 30 days, GPT has gained 41.64%, with 14.79% of the increase recorded during the past 24 hours. Statistics show there is a circulating supply of three billion GPT, and the ERC20 version of GPT has 3,557 holders. Ten of the top GPT holders command 82.95% of the circulating supply. On April 10, Cryptogpt’s native token was trading for prices between .0672 to .0751 per unit.
The AI project also introduced a chatbot called “Alex” during the first week of March. “Cryptogpt releases 1st product: Alex, [a] key to infinite knowledge of the internet,” the team said at the time. “Today, we release our AI chatbot Alex — your companion in the Cryptogpt ecosystem that can answer any question [and] complete creative tasks.” Cryptogpt also detailed that Alex is “powered by Openai models,” the company behind the popular AI application Chatgpt.
What are your thoughts on the increasing intersection between artificial intelligence and cryptocurrency, and do you see this trend continuing to grow in the future? Share your thoughts about this subject in the comments section below.
China Ready to Talk Asian Monetary Fund to Cut Dollar Dependence, Malaysia Says
An idea to establish an Asian Monetary Fund has caught the attention of the Chinese leadership, the head of the Malaysian government revealed. The prime minister believes there is no reason for his country, which is hurting from a strong U.S. dollar, to remain dependent on the greenback.
Malaysia Prepares to Trade With China in National Currencies, Limit Reliance on Dollar
China is open to talks with Malaysia on a decades old proposal to set up an Asian Monetary Fund that can reduce reliance on the U.S. currency, Malaysian Prime Minister Anwar Ibrahim announced, quoted by Bloomberg.
Anwar, who also serves as Malaysia’s minister of finance, pitched the idea at the Boao Forum last week when he emphasized on the need to cut dependence on the International Monetary Fund (IMF) as well. On Tuesday, he told Malaysian lawmakers:
When I had a meeting with President Xi Jinping, he immediately said, ‘I refer to Anwar’s proposal on the Asian Monetary Fund,’ and he welcomed discussions.
The head of the Malaysian government was reporting on the results of his recent state visit to the People’s Republic. He also said that Malaysia’s central bank is already working on enabling the two nations to start trading in their respective national fiats, ringgit and renminbi.
An expensive U.S. dollar has been weakening currencies in the region and creating headaches for nations like Malaysia, which is a net importer of food items, the report remarks. Last fall, the ringgit, among other currencies, saw multi-decade lows against the greenback.
Anwar Ibrahim reminded that he initially circulated the proposal for an Asian Monetary Fund when he first took the job of finance minister in the 1990s. At the time, the idea did not gain sufficient traction as the U.S. dollar was seen as strong, he admitted, while pointing out:
But now with the strength of the economies in China, Japan and others, I think we should discuss this — at least consider an Asian Monetary Fund, and, secondly, the use of our respective currencies.
Anwar’s statements come after the finance ministers and central bank governors of the Association of Southeast Asian Nations (ASEAN), of which Malaysia is a member, discussed decreasing their countries’ dependence on western currencies like the dollar. During a meeting in Indonesia at the end of March, they also explored ways to promote the use of local currencies in trade settlements.
Do you think an Asian Monetary Fund will be formed in the near future? Share your expectations on the matter in the comments section below.