Tencent, the Chinese tech giant, was revealed to be participating in the tests that the Chinese institutions have completed using Mbridge, a CBDC-enabled cross-borders settlement platform. Tencent participated through its international settlements arm Tenpay, which piloted the use case of the Chinese CBDC, the digital yuan, to settle e-commerce exports using Mbridge’s rails. Tencent Participated […]
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MATIC Price Tests 8-Month Support As Polygon Unveils New Governance Hub
Polygon’s native token, MATIC, has experienced a notable disparity compared to the broader cryptocurrency market. Unlike the top cryptocurrencies that have posted double-digit gains year-to-date, MATIC has failed to post positive performance across all time frames since the 2021 bull run.
Adding to the concern, MATIC’s price has recorded losses amounting to 16.5% over the past seven days. This downward trend has prompted the token to test a crucial macro support level, raising questions about its future trajectory.
Amid these developments, Polygon has announced a strategic partnership with Aragon, a developer of decentralized autonomous organizations, to introduce a “governance hub” for the Polygon community.
Simplified Governance Hub For Polygon?
According to a recent blog post by the Layer 2 solution protocol, the governance hub is “designed to empower” users and builders, allowing them to influence the core development of Polygon’s technology. The hub will reportedly be developed in phases in collaboration with Aragon to ensure that community feedback is incorporated to create a decentralized platform that aligns with community values.
The governance hub will feature a unified interface for “two essential pillars” of Polygon’s governance: protocol and system smart contract governance.
The hub seeks to increase transparency and encourage greater community participation in protocol governance. As for system smart contract governance, it introduces an upgraded framework that prioritizes structured decision-making processes while maintaining transparency and safety.
In addition, Aragon will leverage its expertise to build the Polygon Governance Hub using Aragon OSx. This tool enables the construction of customized on-chain governance solutions that can be adapted over time through a modular plugin-based architecture. Polygon stated in its announcement:
Polygon, and all related network architecture, needs flexible, transparent, and future-proof governance mechanisms and tooling. The Polygon Governance Hub is central to achieving this.
MATIC Market Capitalization Drops Dramatically
Despite the developers’ focus on community governance within the Polygon ecosystem, key metrics indicate a consistent decline in the MATIC token’s price over the past year.
For instance, the token’s market capitalization has experienced a significant drop, plummeting nearly 50% in just three months. In March, it was valued at .9 billion, whereas it is currently valued at .6 billion. This decline suggests a potential capital shift towards other large-cap tokens or profit-taking activities.
Furthermore, MATIC’s trading volume has also seen a notable decrease of approximately 18% in the past 24 hours, according to CoinGecko data. The trading volume now stands at a mere 3 million. Moreover, MATIC has witnessed a substantial 80% decline from its all-time high of .92 in December 2021.
Presently, the token faces a critical test at an 8-month support level, as depicted in the MATIC/USD daily chart below, with its current trading price at .5982. Should the price continue to decline without a significant catalyst to drive an upward trend and price recovery, attention should be paid to the next support level at .5700.
The future trajectory of the MATIC price remains uncertain, and it remains to be seen whether further downside movement is in store or if a bounce at the current support level will materialize, offering potential opportunities for bullish investors.
Featured image from DALL-E, chart from TradingView.com
Bank of Thailand Tests Potential of a Retail CBDC, the Digital Baht
The Bank of Thailand (BOT) has released a report on its Retail Central Bank Digital Currency (CBDC) pilot project, conducted using Giesecke+Devrient’s (G+D) technology solution. The project tested the digital version of the Baht and its potential for financial innovation, delivering key lessons on the capabilities of a CBDC in supporting multiple online and offline […]
Bitcoin News
Brazilian BV Bank Tests Tokenized Model for Vehicle Sales
BV Bank, a Brazilian bank leader in vehicle loans, is running a pilot that uses tokenization to manage vehicle financing and sales operations. The first phase of the tests involves automating consumer-to-consumer vehicle sales processes, including the delivery of tokenized money in exchange for the ownership of the vehicle. Brazilian BV Bank Pilots Tokenization Model […]
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Sony Bank Tests Yen-Pegged Stablecoin, Taps Polygon for Pilot Project
According to a regional report, Sony Bank of Japan is currently exploring the potential of a stablecoin tied to the yen that could be utilized by Sony Group along with its associated entities. Insiders revealed that this endeavor’s testing phase employs the Polygon blockchain, with the crypto firm Settlemint lending its support. Polygon and Settlemint […]
Bitcoin News
Latam Insights: Chile to Keep Advancing CBDC Tests, Argentina Debuts VASP Registry
Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue: the Central Bank of Chile will keep experimenting with CBDC, Argentina’s VASPs will have to register to provide services in the country, and Argentines are warming up to bitcoin as an investment instrument. […]
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Monei Starts Conducting Euro Stablecoin Tests
European payment platform Monei has announced the start of the testing phase of EURM, a euro-pegged stablecoin, as part of the Bank of Spain’s national financial sandbox. The token will leverage Ethereum’s and Polygon’s blockchains, allowing each one of a reduced number of users to issue 10 EURM during this phase.
Monei Rolls Digital Euro Token Pilot Under Bank of Spain Supervision
Monei, a European payment provider, recently rolled out the first tests for EURM, a 1:1 backed euro stablecoin, under the approval of the Bank of Spain’s national sandbox, which allows for introducing innovative projects with mitigated risks. The token will be issued using Monei’s wallet, which will hold the EURM tokens issued by the users, accepting deposits using Bizum, a popular national payment system.
During these first tests, only a small number of individuals will have the opportunity to issue 10 EURM. The euros backing the issued EURM will be under the custody of BBVA and Caixabank, two reference financial institutions in Spain, ready to be swapped at any moment.
On the relevance of EURM’s first batch of tests, Monei’s founder and CEO Alex Saiz Verdaguer stated:
EURM proposes an unprecedented innovation and we have in our hands the opportunity to make the management of collections and payments, and the sending of money more secure, programmable, economical, democratic and liberalized than ever.
EURM, issued on top of Ethereum’s and Polygon’s blockchain, is designed for applications where leveraging standard digital money would be impractical.
These include sending euros to pay transport and food quotas to employees several times a day, automatizing payments to providers depending on the funds available, organizing daily deposits to complete larger credit payments, and allowing companies to organize daily payments to employees without disrupting their workflow or paying excessive fees.
Monei expects to reach several million users with this product after the test, having a potential target of 57 million users in Spain only.
What do you think about the start of the testing phase of EURM? Tell us in the comments section below.
People’s Bank of China Tests Digital Yuan Payment Integration in Hong Kong
The People’s Bank of China (PBOC) and the Hong Kong Monetary Authority (HKMA) are in the second phase of the integration tests of the digital yuan for payments and cross-border transactions in Hong Kong. This new phase includes more banks and the ability to use the Fast Payment System to top up digital yuan wallets.
China and Hong Kong to Develop Digital Yuan Payment System Integrations
The People’s Bank of China (PBOC) and the Hong Kong Monetary Authority (HKMA) are conducting technical tests to bring a higher degree of integration of the digital yuan into Hong Kong’s economy. According to reports from Global Times, the institutions are already in the second integration phase, which contemplates the inclusion of more banks in Hong Kong to the system and the usage of the Faster Payments system to top up digital yuan wallets.
One of the companies that will be facilitating these operations is Octopus Cards Limited (OCL), a startup with high penetration in Hong Kong exploring “new digital yuan application scenarios, with a view to benefitting both mainland visitors to Hong Kong and Hong Kong residents visiting the mainland,” the secretary for Financial Services and the Treasury of the Hong Kong Special Administrative Region (HKSAR) Christopher Hui Ching-yu stated.
Hong Kong as an International Finance Hub
The integration of the Chinese central bank digital currency (CBDC) in the Hong Kong economy seeks to position the area as an international finance hub, as countries that are part of the Belt and Road initiative, a project to establish trading links between several countries of the world and China, have an increasing demand of investment projects and effective cross border payment solutions.
Wang Peng, a researcher at the Beijing Academy of Social Sciences, declared:
The launch of digital yuan will enhance the efficiency and user experience of cross-border payment services, attracting more international enterprises and investors to use the yuan for cross-border transactions, thereby bringing more vitality and opportunities to Hong Kong’s financial market.
China had already announced it was moving to collaborate with Hong Kong to integrate its CBDC for mutual payments. During the Hong Kong Fintech Week, Di Gang, deputy director-general of the Digital Currency Institute of the PBOC, revealed that the bank was considering the application of the digital yuan to settle commodities transactions, including natural gas, oil, and other services between Hong Kong and the mainland.
The digital yuan would be beneficial for companies to avoid paying high fees using traditional payment channels for these settlements, Di stressed.
What do you think about the digital yuan and its internationalization? Tell us in the comments section below.
Hong Kong Monetary Authority Advances e-HKD Tests, Mbridge Project
The Hong Kong Monetary Authority (HKMA) has recently completed a series of tests regarding the programmability of the e-HKD, the proposed Hong Kong central bank digital currency (CBDC). While still in its initial phases, the e-HKD presents “interesting” use cases, HKMA CEO Eddie Yue stressed. He also revealed that the Mbridge project aims to have a minimum viable product for mid-2024.
Hong Kong Monetary Authority Advances e-HKD Research
The Hong Kong Monetary Authority (HKMA) has recently offered new insight into the different tests conducted with the e-HKD, a proposed central bank digital currency (CBDC). Eddie Yue, CEO of the HKMA, revealed that these tests focused on the programmable function of the e-HKD, allowing the issuer to establish certain limits in which the digital currency can be used.
According to the South China Morning Post (SCMP), this feature was tested by the Bank of China in Hong Kong this month. Furthermore, the bank has teamed up with ten firms, allowing customers to use the e-HKD in various retail payment promotions.
On the significance of these tests, Yue stated:
There are some interesting use cases of e-HKD in the areas like programmable payments, and in new areas like tokenised deposits and tokenised assets.
However, Yue detailed that e-HKD was still just in its trial stages, stressing that the HKMA had to “find a use case that is better than the current retail payments. Because if you are not either safer, faster, or more convenient, then it will not be doable.”
Project Mbridge
The HKMA is also a part of Project Mbridge, a CBDC network currently being tested jointly with the People’s Bank of China (PBOC) and the central banks of Thailand and the United Arab Emirates. Regarding this test, Yue stressed that the four participants were working out “important policy issues like governance and liquidity provisions,” getting ready to launch a minimum viable product by mid-2024.
Yue’s estimations differ from what Reuters, citing four people with knowledge on the subject, reported in August when it informed that Mbridge might have a minimum working product ready by year-end. Mbridge is currently under the watch of several central banks, which fear it could be used to move funds beyond the limits and sanctions of Western countries.
What do you think about the e-HKD tests conducted by the Hong Kong Monetary Authority and the Mbridge project? Tell us in the comments section below.
Cardano (ADA) Tests Psychological Support – What’s The Next Move?
Cardano (ADA) recently made waves as it brushed against the critical .30 resistance level. The significance of such resistance levels in the world of cryptocurrencies cannot be underestimated, as they often mark crucial junctures in the price trajectory of digital assets.
Resistance levels serve as key markers on the price charts, indicating levels at which an asset faces heightened selling pressure.
These levels are points where a substantial number of traders historically have chosen to sell their holdings, causing the price to temporarily stall or reverse its upward trajectory.
Such zones are closely monitored by market participants and analysts alike, as they offer insights into the sentiments and actions of traders.
A successful breach of a resistance level often signifies a potential continuation of the upward trend, while a failure to overcome this obstacle may lead to a period of consolidation or even a reversal.
Cardano Recent Performance And Market Landscape
As of the latest data from CoinGecko, Cardano (ADA) stands at a price of approximately .300341, reflecting a 1.5% decline over the past 24 hours.
However, the past seven days have seen a modest 0.9% surge, indicating a relatively stable performance.
Notably, ADA’s recent touch of the .30 resistance level has sparked interest among traders and investors, highlighting the psychological significance of this price point.
People believe in the long-term potential of #Cardano. According to Morning Consult, people sold $ADA (and Solana) the least often over the past month. Only 22% of holders. $BTC was sold by 46% and $ETH by 33% of holders. pic.twitter.com/UVGDrEasJ0
— Cardanians | stake with CRDN3 (@Cardanians_io) August 11, 2023
Interestingly, ADA’s current reversal mode should not be seen as an unequivocal bearish signal. The broader crypto market is exhibiting signs of recovery, with several major cryptocurrencies showing renewed potential.
Moreover, the absence of intense selling pressure suggests that the recent resistance encounter might not translate into an extended downturn.
Sideways Trading In The Near Future
Despite the intriguing movement around the .30 resistance level, it is plausible that ADA might engage in ongoing sideways trading within the wide range of .29 to .31, according to a recent price analysis.
This is a typical pattern observed in the cryptocurrency market, especially during periods of uncertainty. Such a scenario could persist until the end of the month, with traders cautiously navigating the price fluctuations.
Cardano’s journey to the .30 resistance level is a captivating development in the crypto world. While ADA currently grapples with a reversal mode, the overall market sentiment leans towards recovery.
Understanding the dynamics of resistance levels and their implications is crucial for traders aiming to decipher ADA’s future price action.
As the month unfolds, all eyes will remain on ADA and the wider crypto market to discern whether the sideways trading will give way to a more definitive trend.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from CryptoGlobe