Thurs. PM Seeds of Wisdom RV/GCR Update(s) 8-22-24

(Note: If you’re looking for more news regarding cryptocurrency, please visit our website Bitcoin Commando. All crypto news will be posted there. ~ Dinar Chronicles)

Seeds of Wisdom

XRP Goes Global: Research Reveals Institutional Use Across All 7 Continents

Ripple is rapidly expanding its international footprint through global partnerships and focusing on expanding the use of the XRP Ledger.

Ripple is advancing in South America with its CBDC platform, collaborating with the Bank of Colombia and Brazil’s Fenasbac.

Blockchain startup Ripple has been making every possible effort lately to promote the adoption of its XRP Ledger and the use of XRP in the global financial markets.

Tokenicer, an enterprise blockchain researcher, recently stated that despite Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC), the company has been swiftly expanding its global partnerships and services in different regions outside the United States. As reported by Crypto News Flash, Ripple has signed 1,700 agreements with global financial players to boost XRP use.

Although America-based firms have been hesitant to partner with Ripple amid legal considerations, companies overseas have been quite flexible in adopting the Ripple technology. The XRP Ledger facilitates instant cross-border settlements by using Ripple’s native XRP cryptocurrency for settlements. As per the CNF report, Ripple is further expanding the use of XRP Ledger by working on stablecoin integration backed by Gold and Silver, moving beyond the boundaries of fiat settlements on XRPL.

Ripple Eyes Big Opportunity in South America and Europe
Ripple is seeing major advancements in the South American market, particularly with the release of the central bank’s digital currency (CBDC) platform. Last year, Ripple launched its CBDC platform, making it easy for central banks worldwide to quickly launch their CBDC, where Ripple does all the infrastructure-heavy lifting. As a result, the Bank of Colombia has been testing its CBDC on the Ripple platform.

Furthermore, Ripple has joined hands with Brazil’s National Federation of Associations of Central Bank Servers (Fenasbac), which seeks to boost the country’s financial sector through advancements in tokenization, payments, and treasury management.

Europe is another region where Ripple’s influence is growing gradually. Earlier this year, Ripple partnered with Clear Junction to facilitate instant cross-border settlements between the UK and the European Union, per the CNF report.  This partnership, regulated by the Financial Conduct Authority (FCA), positions Ripple as a compliant and trustworthy European partner.

On the other hand, the Central Bank of Montenegro is also testing its CBDC on the Ripple platform, while Germany’s DZ bank integrated with Metaco, Ripple’s acquired digital asset custody firm.

Expanding into Asia and the Middle East for XRP Use

Ripple has always maintained a stronghold in the Asian and Middle East markets by working with partners such as SBI Holdings since 2016. This collaboration has led to key advancements for the blockchain startup, such as the use of XRP for cross-border remittances across Vietnam, the Philippines, and Indonesia. These countries are currently the fastest-growing remittance markets globally.

Furthermore, Ripple also secured an MPI license from the Monetary Authority of Singapore (MAS), which allows it to expand its services in the region. Ripple has also expanded its presence in the Middle East through its strong connections in Dubai. The company’s partnership with the Dubai International Financial Centre aims to advance blockchain adoption in the United Arab Emirates (UAE).

@ Newshounds News™

Source: Crypto News Flash

~~~~~~~~~

India’s crypto future hinges on gov’t consultation paper

India’s Department of Economic Affairs’ consultation paper is expected to be a watershed moment for crypto regulation in the country, potentially setting the stage for future legislation.

India’s cryptocurrency landscape could be about to change as the Department of Economic Affairs (DEA) prepares a key consultation paper on cryptocurrency legislation.

According to local media, the paper, which is expected in September or October, will invite feedback from various stakeholders, with the government playing an active role in the direction of digital currencies in India.

India’s crypto conundrum

The paper, led by a panel chaired by the secretary of the DEA, represents a significant step in India’s ongoing effort to balance innovation and regulation in its rapidly evolving crypto sector.

The release comes at a time when global scrutiny of cryptocurrencies is intensifying, particularly in light of the G20 nations’ unified approach to regulation, as highlighted by Indian Finance Minister Nirmala Sitharaman at a meeting of the group of nations in October 2023.

India, which has already implemented a stringent tax regime on cryptocurrency transactions, has taken a cautious approach to regulation. The 30% tax on unrealized crypto gains and a 1% tax deducted at source implemented in April 2022 marked the government’s first major move toward imposing some control over the crypto market.

However, despite the measures, the Indian government has refrained from regulating the sale and purchase of cryptocurrencies, focusing instead on curbing crypto-related money laundering and t-------m financing.

DEA paper to address regulatory concerns

The DEA’s forthcoming paper is expected to address the broader concerns surrounding the regulation of crypto assets, including those raised by the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI).

In May, SEBI suggested a multi-regulatory approach, wherein different aspects of cryptocurrency trading would be overseen by various financial authorities. This fragmented approach underscores the complexity of regulating a technology that crosses traditional financial boundaries and poses unique challenges.

On the other hand, the RBI has consistently warned of the macroeconomic risks posed by digital currencies. The central bank’s stance reflects deep concerns about the potential impact of cryptocurrencies on India’s economic stability.

This caution is mirrored in the government’s recent actions against offshore crypto platforms and digital asset service providers, including a high-profile ban on Binance, the world’s largest cryptocurrency exchange.

Despite this, Binance managed to reestablish its presence in India by registering with the Financial Intelligence Unit, even as it faces a hefty $86 million tax demand from Indian authorities.

@ Newshounds News™

Source: CoinTelegraph

~~~~~~~~~

ICMA updates repo agreement for digital assets

The International Capital Market Association (ICMA) has published a digital assets annex for its Global Master Repurchase (repo) Agreement (GMRA). The Annex follows work by ICMA and ISLA in the Digital Assets Legal Working Group, with Clifford Chance appointed as counsel.

Repo involves the sale of collateral, usually securities, with an agreement to buy them back at a future date for a slightly higher amount representing interest.

There are already two significant intraday repo solutions with a third in progress. JP Morgan has an intraday solution for its clients, and technology firm Broadridge has its Distributed Ledger Repo (DLR) solution that processes $1.5 trillion in transactions monthly.

In Europe, HQLAᵡ has been running a DLT based solution for collateral mobility for a few years. It recently conducted end-to-end repo tests with Fnality, the institutional settlement system where the settlement tokens are backed by cash held in a central bank account. The goal is to support intraday repo for trades on the Eurex Repo F7 system. Fnality is awaiting regulatory approval for its participation and hopes to launch later this year.

By including the ICMA digital assets annex, transactions can include digital cash and/or digital securities.

The digital assets Annex

The GMRA Annex specifies various terms, such as an “Asset-backed Digital Asset” that includes a tokenized traditional security or contractual claim on an underlying asset. Digital cash could be central bank digital currency, tokenized deposits, electronic money tokens or other cryptographically secured representations of a single fiat currency.

If we’re not mistaken, the agreement might also account for HQLAᵡ, where custodians effectively lock conventional assets and DLT is used to transfer ownership. We guessed this from the reference to a “Platform Transferred Security” which is a conventional security that’s capable of being transferred cryptographically.

Support for intraday transactions

Until recently, conventional repo transactions have been constrained by the settlement delays for securities transactions. One of the key innovations of combining DLT with repo is the ability to settle instantly, which enables intraday repo where the repurchase happens at a precise time.

The existing agreement did not account for settlement at specific times, hence the Annex includes wording to support this. Additionally, there are adjustments to interest calculations given they need to account for hours rather than days.

“We hope the Digital Assets Annex will assist the further growth of the market by presenting a common approach that firms can leverage for transactions referencing the relevant categories of digital asset,” said Michael Brown, partner at Clifford Chance.

@ Newshounds News™

Source: Ledger Insights

~~~~~~~~~

Source: Dinar Recaps

=======================================

LIVE: Fed Chair Jerome Powell speaks at the 2024 Jackson Hole Economic Policy Symposium — 8/23/2024 AT 10:00 AM EDT

Federal Reserve Chair Jerome Powell speaks at the central bank’s annual Jackson Hole conference on the economic outlook on Friday. That will follow minutes from the Fed’s July gathering released Wednesday. They indicated that most participants at the central bank’s meeting said it would “likely” be appropriate to lower the fed funds rate from the current range of 5.25% to 5.5% at the September meeting — if data continues to come in as expected.

@ Newshounds News™

Watch Live Here: BENZINGA

~~~~~~~~~

Jackson Hole Preview: 5 Important Questions Ahead Of Jerome Powell’s Fed Speech

Zinger Key Points

Investors anticipate insights on upcoming rate cuts, particularly in Powell’s Friday speech at 10 a.m. ET.
Analysts expect Powell to hint at rate cuts while emphasizing the Fed’s data-driven approach to monetary policy.

Traders are anxiously awaiting the Federal Reserve’s annual Jackson Hole Symposium. This highly anticipated event could set the tone for the Fed’s future policy actions, especially as investors anticipate a rate cut at the upcoming September meeting.

All eyes are on Fed Chair Jerome Powell’s pivotal speech on Friday at 10 a.m. ET, where he is expected to provide crucial insights into the economic outlook and the central bank’s rate-cut plans.

Here are five important questions answered about this year’s Jackson Hole Symposium, scheduled for Thursday and Friday.

1. What Is Jackson Hole?

The Jackson Hole Symposium is a prominent late-summer economic conference hosted by the Federal Reserve Bank of Kansas City.

The event attracts central bankers, policymakers, academics and economists from around the world and takes place in Jackson Hole, Wyoming.

2. Why Should Investors Focus On Jackson Hole?

Generally, the Jackson Hole Symposium holds particular importance for two key reasons: it occurs during the longest gap between Federal Open Market Committee (FOMC) meetings, offering potential clues on future monetary policy. It also takes place in August, when market activity is typically quieter due to summer holidays and a scarcity of other significant events.

Regarding the 2024 event, while a rate cut at the Sept. 18 FOMC meeting is considered as a done deal by markets, investors are keenly focused on how quickly the Fed will proceed with additional cuts and what the economic outlook will be, with a special focus on inflation and the jobs market.

3. How Will Jackson Hole Be Covered?

Powell’s speech at 10 a.m. ET Friday will be live-streamed, but the rest of the symposium’s speeches will not be televised.

Although there isn’t live coverage of the other sessions, major business networks typically feature a series of sideline interviews with key attendees, such as Fed officials, who could provide near-term views on monetary policy.

4. What Do Wall Street Analysts Expect From Jackson Hole This Year?

“The easiest thing for Chair Powell would be to repeat his message from July. An evolution of the July FOMC language would suggest the committee is ‘very close’ or ‘close’ to the point where easing is likely to occur,” noted Bank of America economist Stephen Juneau.

Ed Yardeni, president of Yardeni Research, stated, “He is likely to support market expectations that the Fed will cut the federal funds rate by 25bps in September. But he is also likely to push back on expectations of cuts in November and December. He will repeat that the Fed’s decisions are data dependent.”

Goldman Sachs analysts “expect to hear more comments like those from Goolsbee earlier in August that the Fed’s job is not to react to a single data point.”

However, they also expect the Fed to reassure markets that it stands ready to act swiftly should the economy take a turn for the worse.

Greg Marcus, managing director, UBS Private Wealth Management, expects Jerome Powell “to hint strongly at rate cuts and try to calm the market. He’ll make it clear that the Fed will be data dependent and won’t commit to any one position but will continue to emphasize the importance of not forgetting that the Fed has a dual mandate.”

5. How Has the Stock Market Performed Historically During Jackson Hole?

Historically, the Jackson Hole Symposium has had a muted impact on the S&P 500’s performance.

A Benzinga analysis of the past 10 events shows that the S&P 500 has generally remained flat during the symposium days (Thursday and Friday), with an average decline of 0.4% and a median return of 0%.

When extending the analysis to the entire week, the index shows a slightly better performance, with an average gain of 0.4% and a median return of 0.8%.

Over the past 10 events, the S&P 500 index, as tracked by the SPDR S&P 500 ETF Trust S-Y, recorded positive returns in six instances during the symposium days and in seven instances over the entire week.

Notable market reactions to the Jackson Hole events included 2022, 2019 and 2015.

In 2022, Powell’s hawkish remarks at Jackson Hole triggered a 3.4% drop in the S&P 500 over two days, with the index down 4% for the week due to fears of prolonged high interest rates.

In 2019, uncertainty from Powell’s speech amid the U.S.-China trade war led to a 2.9% decline during the symposium days and a 1.4% loss for the week.

In contrast, 2015 saw the S&P 500 rise 2.43% during the symposium and 0.8% for the week, as markets were reassured by the Fed.

@ Newshounds News™

Source: BENZINGA

~~~~~~~~

Latam ecommerce giant Mercado Libre launches MELI dollar stablecoin in Brazil

Mercado Libre, the Latin American ecommerce giant, has launched the MELI dollar stablecoin in Brazil via its digital bank, Mercado Pago. The parent company is the Latin American equivalent of Amazon.com and has the highest market capitalization of any company in the region.

It’s a big deal because the digital bank has 52 million monthly active users across the entire region. While the company doesn’t break out the users by country, its financial report for Q2 2024 said the digital bank users in Brazil had grown 46% year on year.

Users can access the stablecoin via the Mercado Pago app, which also supports cryptocurrencies. The company is currently waving stablecoin transaction fees, whereas other crypto attracts fees of 1.5%. It partnered with crypto firm Ripio, which is providing market making.

Ripio is also a distributor of the Lift stablecoin, a yield bearing dollar token targeted at Argentinians. Paxos issued it out of the Abu Dhabi Global Market (ADGM).

Meanwhile, the MELI stablecoin is issued by Meli Uruguay. Mercado Libre’s headquarters were originally in Argentina but moved to Uruguay, and its holding company is registered in Delaware.

The company has been interested in stablecoins for some time as it was a member of the Facebook-founded Diem stablecoin initiative.

In 2022 Mercado Libre launched the MercadoCoin as part of a loyalty program that started in Brazil.

@ Newshounds News™

Source: Ledger Insights

~~~~~~~~~

Source: Dinar Recaps

______________________________________________________

If you wish to contact the author of a post, you can send us an email at voyagesoflight@gmail.com and we’ll forward your request to the author (if available). If you have any questions about a post or the website, you may also forward your questions and concerns to the same email address.
______________________________________________________

All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.

Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content or communications posted on this site. Information posted on this site may or may not be fictitious. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.

Copyright © Dinar Chronicles