A compilation of news from the previous week!
✅ Brazil Begins Testing Pilot Approach to CBDC
The Central Bank of Brazil has selected 14 companies to participate in pilot tests of the digital real (CBDC). The list includes the largest local bank, Banco do Brasil, as well as other banks (Bradesco, Nubank, and Itaú Unibanco), and the local stock exchange. International providers Visa and Microsoft will also be involved in the pilot. The experiment will take place in the Real Digital Pilot test environment starting in June.The Central Bank of Brazil plans to launch its own digital currency, known as the "digital real," in 2024. This digital asset will incentivize banks to tokenize their assets and improve payment efficiency. The regulator highlights several advantages of CBDC, including reduced costs for invoice processing, auditing, and financing.
✅ China Approves Use of CBDC in Stock Trading
Investors will now be able to use e-CNY for "purchasing financial products such as government funds." Soon, local clients will have the opportunity to buy securities in digital form using digital yuan directly through intermediaries such as stock exchanges. CSRC promotes the benefits of e-CNY in its documents, emphasizing its smart contract capabilities, traceability, and resistance to counterfeiting and duplication.
✅ Kenya Identifies Risks in CBDC Implementation
The Central Bank of Kenya has published its research report on CBDC, which has been in progress since 2022. The regulator states that it currently does not see the need for the implementation of digital currency in the short or medium term. However, CBDC integration is associated with numerous risks, particularly related to illegal financial transactions and cybercrime.
✅ Decline in Stablecoin Capitalization
Over the past 14 months, the overall market capitalization of stablecoins continues to decrease. According to the latest data, it amounts to $129 billion, which is $57 billion less than a year ago. Thus, stablecoin market capitalization has reached its lowest level since September 2021.
Despite this, the popularity of stablecoins remains high. It is worth noting that Tether (USDT) continues to lead among stablecoins in terms of market capitalization, controlling 63.9% of the market. This is the highest share since December 2021. The circulating supply of USDT coins stands at $83.2 billion, approaching its all-time high of $83.7 billion. The market capitalization of TUSD and Gemini Dollar has also increased.
✅ Shaquille O'Neal Served with Complaints for FTX Promotion
The basketball star has been evading lawyers for several months, as he is accused of promoting the exchange. Shaquille O'Neal was served with a summons during one of the sports matches. The lawsuit against celebrities advertising FTX was filed by investor Edwin Harrison, who claimed to have lost his investments and could not withdraw money from the cryptocurrency exchange. In the lawsuit, Harrison accuses the celebrities of "influencing clients' decisions with their authority."
.png)
