• BSP approves pilot for PHPC, a Peso-backed stablecoin, in collaboration with Coins.ph.
• Sandbox testing to evaluate PHPC’s real-world performance and impact on local fiat ecosystem.
• Transition to real-world usage subject to final evaluations and approvals by central bank.

The digital currencies landscape in the Philippines is set for a major shift after the country’s central bank, Bangko Sentral ng Pilipinas (BSP), granted approval for the commencement of a pilot program for a Philippine Peso-backed stablecoin (PHPC).

BHP’s move signals a progressive step towards exploring the potential of blockchain technology and stablecoins in the nation’s financial ecosystem.

Sandbox testing to evaluate PHPC’s viability

The pilot program, conducted within the framework of BSP’s Regulatory Sandbox, will see the collaboration between the central bank and crypto wallet provider Coins.ph.

#ICYMI: #CoinsPH has been granted @bangkosentral (BSP) approval to pilot PHPC, a Philippine Peso stablecoin

Learn more about this milestone and the pilot here: https://t.co/zpQQvr7Pv9 pic.twitter.com/a2jWB8mSeJ

— Coins.ph (@coinsph) May 9, 2024

The primary objective of the pilot program is to assess the real-world performance of the PHPC and its potential impact on the local fiat ecosystem.

Under the terms of the pilot, Coins.ph will maintain cash reserves in pesos equivalent to the circulating supply of PHPC within the sandbox environment, ensuring a stable 1:1 pegging of the digital currency to the Philippine peso.

BSP’s choice Coins.ph is strategic. Being a licensed crypto service provider in the Philippines, Coins.ph dominates Philippines crypto space, especially after its partnership with Circle in 2023 for USDC remittances in the Philippines. It was the first to add BRC-20-support in the Philippines.

The sandbox testing phase is designed to explore various use cases for PHPC, including domestic and cross-border payments, trading with other virtual assets, hedging against market volatility, and providing collateral and liquidity in decentralized finance (DeFi) applications.

These trials will provide valuable insights into PHPC’s practicality and effectiveness in facilitating financial transactions and promoting financial inclusion in the Philippines.

Transitioning from sandbox to real-world usage

While the pilot program marks an important milestone in the development of PHPC, its transition from a sandbox environment to real-world usage is contingent upon the results of the testing phase and final evaluations by the central bank.

According to local regulations, the duration of the testing period can range from three to 12 months, depending on the complexity of the project. However, no official deadline has been disclosed for the conclusion of the stablecoin experiment.

The current initiative to launch a Peso-backed stablecoin builds upon previous efforts to introduce stablecoins pegged to the Philippine peso, such as the PHX launched by UnionBank in 2019. UnionBank’s PHX, aimed at driving greater financial inclusion, is also redeemable for pesos and implemented on the bank’s i2i platform.

The emergence of PHPC and other stablecoin projects reflects the growing recognition of digital currencies as viable tools for enhancing financial services and expanding access to digital payments in the Philippines.

• Christopher Giancarlo, former CFTC chief has joined Paxos board.
• Giancarlo’s advocacy for blockchain innovation aligns with Paxos’ mission for regulated solutions.
• Paxos aims to drive financial sector innovation with Giancarlo’s guidance on board.

J. Christopher Giancarlo, former chairman of the U.S. Commodity Futures Trading Commission (CFTC), has been appointed to the board of directors for Paxos, the firm that issues PayPal’s (PYUSD) stablecoin.

Giancarlo’s extensive experience in regulatory matters and advocacy for blockchain technology is expected to significantly contribute to Paxos’ strategic initiatives and further strengthen its position in the rapidly evolving digital asset market.

CryptoDad to help advance Paxos crypto advocacy and regulation

The appointment of J. Christopher Giancarlo, widely known as “CryptoDad,” to the Paxos board underscores the growing convergence between traditional finance and the burgeoning cryptocurrency sector.

With a distinguished career in regulatory oversight, including his tenure as chairman of the CFTC, Giancarlo brings a wealth of expertise to Paxos. His advocacy for blockchain technology and commitment to fostering innovation in the financial sector align well with Paxos’ mission.

Giancarlo’s involvement in the regulatory landscape has been instrumental in shaping the dialogue surrounding cryptocurrencies and blockchain technology. As the author of “CryptoDad: The Fight for the Future of Money,” he has been a vocal proponent of embracing digital innovation while ensuring appropriate regulatory safeguards are in place.

Giancarlo’s contributions to the Digital Dollar Project further demonstrate his dedication to exploring the potential of central bank digital currencies (CBDCs) and their implications for the future of finance.

Charles Cascarilla, the CEO and co-founder of Paxos, expressed enthusiasm about CryptoDad’s appointment, highlighting the alignment of their vision for advancing regulated digital asset innovation. Giancarlo himself remarked on Paxos’ leadership in regulated solutions and emphasized his honour in joining the board.

Paxos’ expansion

Paxos, renowned for its regulated stablecoins and infrastructure solutions, stands at the forefront of bridging traditional financial markets with the emerging digital asset ecosystem.

The addition of Giancarlo to Paxos’ board signals a strategic move to leverage his insights and network within the regulatory landscape.

With Paxos’ recent expansion to integrate the Solana blockchain and its ongoing efforts to enhance market infrastructure, Giancarlo’s expertise will be invaluable in navigating regulatory complexities and driving sustainable growth.

CoinGecko introduced on Twitter that within the second quarter of this yr, the turnover of the highest ten DEX transactions was 155 billion US {dollars}, which is 30.8% lower than the primary quarter.

Amongst them, Uniswap maintained the most important DEX positions, accounting for as a lot as 70% of the buying and selling quantity in Might.

In response to earlier information, a report from CoinGecko reveals that in 2023 within the second quarter, the whole quantity of spot transactions of the highest ten centralized cryptocurrency exchanges was 1.42 trillion US {dollars}, which is 43.2% lower than within the first quarter.

Binance has been hit arduous by pulling out of some markets, being sued by the SEC, and layoffs. Her dominance dropped from 61% to 52% in simply three months.

The stablecoin market was additionally affected, with the BUSD dropping 45.4% of its worth between April and June.

TUSD grew to become probably the most secure coin with the most important improve in market capitalization within the second quarter, with a 50% improve in market capitalization.

USDT’s market cap elevated by 4.4%, and it nonetheless holds the highest spot with 66% of the stablecoin market share.

• Shinhan Financial institution and Siam Business Financial institution SCB TechX recorded real-time low-cost remittances.
• The Hedera community pilot included worldwide stablecoin funds in South Korean Received (KRW), Thai Baht (THB) and New Taiwan Greenback (NTD).

Shinhan Financial institution and Siam Business Financial institution SCB TechX have reportedly accomplished a proof-of-concept (PoC) pilot undertaking for stablecoin remittances on the Hedera community.

This was the second PoC check on the Hedera distributed ledger community after the preliminary program launched in 2021. and by which Customary Financial institution participated. With this newest pilot undertaking, the corporate aimed to check the effectivity, price and settlement pace of worldwide funds.

1/ Persevering with their work #DLT– worldwide transfers enabled, @ShinhanBankENG – in cooperation with SCB TechX and different monetary establishments – right this moment introduced the profitable completion of a #secure coin the remittance PoC pilot is on #Hedera.https://t.co/OUAxOfU2U4

– Hedera (@hedera) in 2023 July 18

In response to the main points, shared a Press launchbanks used to settle overseas alternate in actual time in three currencies: South Korean Received (KRW), Thai Baht (THB) and New Taiwan Greenback (NTD).

Byunghee Kim, Head of Blockchain at Shinhan Financial institution, stated in a press release:

“The profitable completion of this second PoC is a crucial step ahead in making worldwide funds sooner, cheaper and extra accessible to folks around the globe… With this subsequent part of PoC, we’re excited to point out how utilizing Hedera’s EVM-compatible know-how helps get rid of middlemen, scale back prices and pace up the remittance course of..

PoC compatibility with EVM signifies that the system might be open to all EVM-based stablecoin issuers, in order the worldwide funds ecosystem expands, it’s possible that extra banks and different monetary establishments will understand its potential.

• The FSB recommends that authorities make sure that issuers and suppliers of crypto-assets make applicable disclosures.
• Segregation of funds to guard purchasers and measures to make sure conflicts of curiosity are additionally highlighted.
• The watchdog additionally recommends adopting international guidelines for stablecoins.

The Monetary Stability Board (FSB) stated in its newest cryptocurrency report that the sector wants extra info suppliers and larger cooperation with regulators all over the world.

The FSB, tasked by the G20 to develop a complete regulatory framework for cryptocurrencies, has printed two units of suggestions. The primary set offers with a worldwide strategy to cryptocurrency regulation, together with supervision and oversight of digital asset operations and markets.

In the meantime, the second set of suggestions focuses on the worldwide regulation of stablecoins.

“Our international crypto regulatory framework goals to make sure that crypto property and international stablecoins are strictly regulated and supervised and don’t endanger monetary stability.“, group stated.

The FSB’s suggestions embody disclosure of data, separation of funds

A Press launch In a submit on Monday, July 17, the group highlighted the 2 paperwork, noting that “the ultimate suggestions are based mostly on the implementation expertise of the jurisdictions and are based mostly on the rules of “identical exercise, identical danger, identical regulation”; excessive stage and versatile; and technologically impartial, which knowledgeable the advisory framework.“

The system is constructed after a tumultuous yr for cryptocurrencies beginning in 2022. summer season, and the FSB says it has tightened its steerage in mild of the occasions. These embody the dramatic collapse of TerraUSD and the collapse of cryptocurrency trade FTX.

Because of this, three key areas of elevated focus are defending consumer property, addressing conflicts of curiosity points, and strengthening cross-border regulatory cooperation.

In whole, the watchdog made 9 key suggestions on the worldwide regulatory framework for cryptocurrency operations and markets, and 10 on the regulation and oversight of stablecoins. One of many suggestions concerning the regulation of cryptocurrency property is concentrated on disclosure and the FSB said:

“Authorities ought to require cryptocurrency issuers and repair suppliers to confide in customers and related stakeholders complete, clear and clear details about their governance framework, operations, danger profiles and monetary situations, in addition to the merchandise and actions they supply..

In a press launch, the FSB famous that the ultimate suggestions within the two paperwork included classes realized from current years’ developments within the cryptocurrency market. In addition they embody suggestions gathered throughout public consultations.

The European Union and the UK are among the many jurisdictions with complete regulation of cryptocurrency property and stablecoins. The EU’s Markets in Cryptocurrency (MiCA) regulation is predicted to come back into impact in 2024, and the UK’s Monetary Companies and Markets Act obtained royal assent in June when it was permitted by parliament.

How reported In April, the UK may implement its personal encryption legal guidelines by 2024. starting because it hopes to develop into a cryptocurrency hub.

The European Banking Authority (EBA) stated on Wednesday that stablecoin issuers ought to begin getting ready for brand spanking new EU guidelines, despite the fact that they’ll come into impact subsequent June.

The regulator stated the EBA needed to “encourage well timed preparatory motion” earlier than that date to guard shoppers and decrease difficulties for companies on June 30.

The EU’s Markets in Cryptocurrencies (MiCA) regulation, which units administration and stock necessities for cryptocurrencies linked to the worth of different property, will come into impact six months forward of different licensing guidelines for crypto suppliers and exchanges.

The European Union’s ESMA publishes the primary batch of complete cryptocurrency rules.

Fang Hongjin, chairman of the Hong Kong Blockchain Affiliation, stated in a current assertion that he disagrees with the Hong Kong authorities’s proposal to challenge a Hong Kong greenback stablecoin backed by overseas forex reserves.

Within the article, Fang Hongjin questioned whether or not the Hong Kong authorities wants to make use of overseas trade reserves as collateral to challenge stablecoins if it plans to challenge a digital Hong Kong greenback. He believes that the Hong Kong authorities, because the issuer of the fiat Hong Kong greenback, shouldn’t create derivatives with its personal fiat forex as collateral, as this might trigger confusion and sensible difficulties.

Fang Hongjin emphasised that the Hong Kong authorities shouldn’t be the entity accountable for issuing Hong Kong greenback stablecoins. As a substitute, he proposed that non-public establishments ought to challenge stablecoins below the supervision and oversight of the Hong Kong authorities. He believes that it could be wiser for personal entities to tackle this duty, as they will extra successfully take care of the complexities of issuing stablecoins.

As well as, Fang Hongjin expressed concern concerning the inflow of cryptocurrency tasks that don’t meet US regulatory necessities into asylum-seeking Hong Kong. He believes these tasks are unlikely to adjust to Hong Kong’s present and future monetary laws.

Issuing stablecoins has been a subject of intense debate and analysis within the blockchain and cryptocurrency neighborhood. Stablecoins are designed to offer stability in risky cryptocurrency markets by tying their worth to fiat currencies or different property.

Whereas they provide advantages akin to quicker transactions and borderless funds, considerations about their regulatory oversight and potential dangers have sparked debate amongst policymakers and trade specialists.

As an essential consultant of the blockchain trade, the Hong Kong Blockchain Affiliation performs a significant position in shaping the event and adoption of blockchain know-how in Hong Kong. The affiliation actively engages with coverage makers, regulators and trade stakeholders to advertise accountable blockchain innovation and advocate for enabling regulatory frameworks.

In a latest analysis report, the Financial institution of Italy highlighted the necessity for a stability between regulation and innovation within the cryptocurrency business. The report highlights that the implications of the cryptocurrency winter present a clearer case for coverage intervention.

Nonetheless, additionally it is famous that not all types of cryptocurrency actions and belongings needs to be regulated by the monetary sector, particularly when their issuance, buying and selling and holding don’t meet the monetary wants of consumers for cost or funding functions.

Central bankers admit that the character of decentralization is elusive and admit that it may typically be an phantasm. Nonetheless, it will also be a viable various to long-term enterprise endeavors. The report highlights the truth that stablecoins are sometimes described as efficient options within the worldwide funds market, however they’ve but to show their stability.

As well as, the central financial institution famous that from a market perspective, the efficiency of those belongings is more and more approaching that of conventional belongings. This remark exhibits that the as soon as distinctive traits of cryptocurrencies are step by step approaching these of conventional monetary devices.

The Financial institution of Italy’s analysis observe is a reminder of the continued debate about stablecoins and their function within the international monetary system. Whereas proponents consider they’ll facilitate sooner and cheaper cross-border transactions, critics have raised considerations about their potential impression on monetary stability.

The regulatory surroundings for cryptocurrencies has advanced quickly, with totally different jurisdictions taking totally different approaches. Some international locations have embraced these digital belongings by creating their very own governance and investor safety techniques, whereas others have remained cautious or carried out stricter rules.

Because the cryptocurrency market continues to mature, putting a stability between fostering innovation and making certain stability stays a significant problem for regulators all over the world. The Financial institution of Italy’s report provides to a rising physique of analysis and evaluation geared toward understanding the impression of digital currencies and offering steering to policymakers.

The report concludes by emphasizing the necessity to constantly monitor and consider the cryptocurrency surroundings as a way to alter regulatory measures accordingly. It highlights the significance of regulatory flexibility to maintain tempo with the quickly evolving cryptocurrency market whereas sustaining monetary stability and shopper safety.

• Powell testified right this moment earlier than the Home Monetary Companies Committee.
• On Wednesday, he mentioned varied subjects in digital belongings.
• Bitcoin broke above the $30,000 stage for the primary time in two months right this moment.

Cryptocurrencies appear to have some “endurance” as an asset class, says Jerome Powell, head of the US Federal Reserve Financial institution.

The Fed ought to play an vital function in cryptocurrency laws

On Wednesday, he additionally argued that the central financial institution ought to play a task in making a regulatory framework for stablecoins.

We see fee stablecoins as a type of cash. The last word supply of financial credibility is the central financial institution. We imagine it might be applicable to have a powerful federal function.

Chairman Powell made the feedback throughout testimony earlier than the Home Monetary Companies Committee right this moment.

Curiously, his assertion confirmed acceptance of crypto belongings though the SEC just lately filed swimsuit in opposition to each Binance and Coinbase World Inc.

A CBDC is unlikely to be within the close to future

Chairman Powell confirmed this morning that members of the Federal Reserve have held discussions with lawmakers relating to cryptocurrency laws.

Leaving us (the US Federal Reserve) in a weak function and permitting a variety of personal cash to be created on the state stage could be a mistake.

In his testimony, he additionally mentioned {that a} central financial institution digital forex, or CBDC, is unlikely within the close to future. His feedback got here shortly after the FOMC missed elevating rates of interest for the primary time since 2022. March.

Moreover, Bitcoin broke above the $30,000 stage on Wednesday, and technical information suggests it might rise to $34,000, in accordance with Glassnode, a community information supplier ( study extra ).

Circle founder and CEO Jeremy Allaire introduced his upcoming testimony earlier than the US Home Committee on Digital Property and Monetary Companies.

In his assertion, Jeremy emphasised that the actions of the US authorities within the coming years can have a major influence on the competitiveness of the US greenback for many years to return.

He emphasised that the Stablecoin Act is a crucial piece of laws and step one in making a regulatory framework that may go effectively past the boundaries of the digital asset market and have a far-reaching influence.

Jeremy pressured that now could be the time for the US to take a management function in setting world guidelines.

With the proper regulatory framework in place, stablecoins and blockchain networks can help billions of customers and trillions of {dollars} in funds.

Earlier, Patrick McHenry, chairman of the US Home Monetary Companies Committee, revealed that the listening to “The Way forward for Digital Property: Bringing Readability to the Digital Asset Ecosystem” shall be held on June 13 at 2 p.m. jap time. maintain on