Japanese firm Soramitsu bonds countries with digital assets; Russia starts digital Ruble test run
Japanese blockchain firm Soramitsu is taking steps to foster stronger ties between Asian countries through the use of digital currencies.
Soramitsu aims to deploy Cambodia’s CBDC and fiat-pegged stablecoins as part of its new payment system targeting countries like India, China and Japan and regions like Southeast Asia.
The project intends to create a digital currency ecosystem that enhances financial inclusivity and simplifies cross-border payments. According to reports, Soramitsu is also targeting expansion to other Southeast Asian countries.
Russia Initiates Trials for Digital Ruble and CBDC
Russia has initiated trials for its Central Bank Digital Currency (CBDC), the digital ruble. The Bank of Russia (BoR) has revealed that it will begin testing operations on August 15.
The Bank of Russia’s pilot program will involve the participation of 13 banks and a restricted group of their clients.
The bank’s plan involves bringing the digital ruble into widespread use and aims to gather insights into its practical application, including its potential impacts on the country's financial ecosystem.
Participants in the pilot programme will be able to use digital rubles to make purchases at 30 retail locations spread across 11 Russian cities. By the end of 2023, it is intended to increase the number of pilot participants, including people as well as businesses.
Brazil's CBDC Receives Official Name and Logo
Brazil's Central Bank Digital Currency (CBDC), previously referred to as the “digital real,” has been given its official brand name: the Drex.
The Brazilian central bank has named the digital currency and unveiled a logo that reflects the nation's cultural and technological aspirations. Developed by the central bank, the brand “Drex” is an acronym for Digital+ Real.
DREX is supposed to support operations such as buying and selling public treasury bonds, transactions that will take place quickly on the surface and be supported by Web3 infrastructure for burning, creating, and registering tokens.
Citizens will be able to use the tokenized real, which will be a representation of the digital real, which will be handled only by authorized financial institutions.
PayPal Expands Crypto Presence with Stablecoin Launch
Global payment giant PayPal has entered the stablecoin market by launching its own stable digital asset pegged to the US dollar.
By launching the stablecoin PayPalUSD (PYUSD), PayPal becomes the first major financial technology firm to embrace digital currencies for payments and transfers.
PYUSD can be used for inter-person payments, funding purchases at checkouts, and transferring funds between PayPal and other external wallets. According to PayPal, you can also convert between PYUSD and the supported currencies.
PayPal's foray into the stablecoin space highlights the increasing integration of crypto assets into mainstream financial platforms.
US SEC wants scar on Ripple again
The US Securities and Exchange Commission (SEC) sued Ripple back in 2020 for raising more than a billion dollars in an unregistered securities offering by selling XRP. It was and has been SEC’s long-standing claim that crypto assets such as Ethereum (ETH) are securities just like stocks and bonds. However, the SEC suffered a serious setback in the month of July.
A US court ruled against the SEC by stating that Ripple did not break the law when the XRP token was sold on public exchanges, because purchasers had no reasonable expectation of profit based on Ripple's efforts. Following the victory, markets responded with a strong 60% rally in XRP. Notorious for taking more than 100 enforcement actions against crypto related participants, the SEC has plans to seek appeal on court’s decision involving Ripple labs.
That’s all for this edition of our crypto newsletter. Stay tuned for more exciting news and updates from the world of blockchain and crypto!
