Tues. AM-PM Seeds of Wisdom Crypto Update(s) 10-22-24

(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

G20 REPORT ON TOKENIZATION OUTLINES HOW CENTRAL BANKS LIKELY TO ENGAGE

The Bank for International Settlements (BIS) has been pretty supportive of tokenization, promoting the idea of the Unified Ledger where tokenized assets can be settled with tokenized money. 

Today the BIS and Committee on Payments and Market Infrastructures (CPMI) released a report for the G20 which takes an upbeat but sober view on tokenization, highlighting both the opportunities and the risks, as well as the role of central banks.

On the opportunity front, the stand out benefit is seen as the ability for a single platform to support functions that have been traditionally split (such as pre and post trade) as well as multiple types of assets and different parties.

That reduces many frictions and costs, enabling transactions that previously weren’t possible. Plus the support for delivery versus payment (simultaneous exchange of the asset and money) helps with risk reduction.

It also steps through many potential risks beyond the conventional ones. In the early stages, as tokenization matures, there is some legal uncertainty as regulations get clarified.

The paper raised an interesting legal risk: In the United States, if a company goes bankrupt, its assets are frozen. However, that’s not the case regarding repurchase agreements (repos), which usually involve a company providing collateral in exchange for cash. The BIS notes that this advantage “may not extend to tokenised versions of repo transactions.”

Meanwhile, the authors highlight that more complex platforms which support multiple issuers and assets are likely to be more expensive to build. On the other hand, it’s less expensive to develop a single issuer or asset platform, but more likely to create siloed data which defeats the object of tokenization.

The role of central bankers

This potential proliferation of siloed systems and fragmentation highlights the need for central banks. Central banks can step in to coordinate efforts.

Plus, given the propensity for payments and network effects, there’s a risk that a lack of competition between tokens could result in a “winner takes most” situation. That could mean the benefits of tokenization translate to higher profits rather than lower costs for end users. Central banks want end users to benefit from the potential economies of scale that a large platform could enable.

A second consideration is the role of the central bank in providing central bank money for the settlement of tokenized assets. The paper considers various options, including integrating existing payment systems and providing tokenized central bank money (wholesale CBDC) on a central bank platform or third party platforms. While tokenized deposits are moving forward, the BIS is concerned about the potential proliferation of stablecoins for settlement.

Third, is the potential need to monitor these new platforms. They want to assess which ones fall into similar a classification to traditional Financial Market Infrastructures (FMIs).

Finally, there’s the impact on monetary policy. For example, the use of tokenized deposits or a wholesale CBDC could change the balance between public and private money. If tokenization ends up fragmenting money, then this could affect the implementation of monetary policy.

The road ahead

“Tokenisation has significant potential to improve the safety and efficiency of the financial system,” Agustín Carstens, General Manager of the BIS.

”Central banks along with the private sector must continue to explore novel technologies and develop solutions that are fit for purpose for the future financial system.

However, tokenisation also poses economic, legal and technical challenges that must be addressed if it is to fulfil its potential.  The BIS is committed to exploring aspects of these challenges through its analysis and Innovation Hub projects in the years ahead.”

@ Newshounds News™

Source: Ledger Insights

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JAPAN’S DPP LEADER PLEDGES 20% TAX CAP ON CRYPTO GAINS IN POLICY PITCH FOR UPCOMING E------N

▪️The leader of Japan’s D--------c Party for the People has included the reduction of taxes on crypto gains as part of the party’s policy statement.
▪️Japan currently imposes taxes of up to 55% on crypto gains as cryptocurrency is classified as miscellaneous income.

Yuichiro Tamaki, the leader of Japan’s D--------c Party for the People (DPP), has proposed a plan to reduce the tax on crypto gains to 20% as part of his policy statement for the upcoming general e------n.

“If you believe that cryptocurrency should be taxed at a flat 20% rate, instead of being treated as miscellaneous income, please vote for the D--------c Party for the People. We also propose no taxes on cryptocurrency-to-cryptocurrency exchanges,” Tamaki wrote on X on Sunday.

In a policy statement, the party suggests a 20% separate self-assessed tax and proposes exempting taxes on cryptocurrency exchanges, raising the leverage limit from 2x to 10x, and introducing crypto ETFs.Tamaki also wrote in an X post in July thatJapan should “aim to become a major cryptocurrency nation through deregulation and tax reform.”

“With the leverage ratio for retail investors limited to 2x, there is little incentive for speculators to enter the market,” Daiki Moriyama, director of Japan- and Singapore-based gaming blockchain builder Oasys, told The Block.

Japan currently imposes taxes of up to 55% on crypto gains, as cryptocurrency is classified as miscellaneous income. In December, the government approved a tax regime revision that seeks to exclude corporations from paying tax on unrealized crypto gains if they hold the assets longer-term.

“Cryptocurrency trading volumes in Japan remain extremely low,” Moriyama said. “Consequently, Japanese cryptocurrency exchanges, which rely mainly on trading fees as their primary source of revenue, are struggling to generate profits.”

Tamaki’s ambition to reform crypto taxes may still be far from becoming a reality. DPP currently holds seven seats in the House of Representatives, and Japan is set to hold a general e------n on Oct. 27 to fill its 465 lower house seats.

A survey conducted by the Asahi Shimbun, a major Japanese newspaper, showed that, in single-seat areas, the DPP may double its pre-e------n total of four seats. In the proportional representation category, DPP may increase its seats.

@ Newshounds News™

Source: The Block  

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WOW – FEDERAL RESERVE NOTE REMOVED FROM THE U.S. DEBT CLOCK – GLOBAL SHIFT? GOOD NEWS – WATCH | YouTube

@ Newshounds News™

Source: Seeds of Wisdom Team RV Currency Facts

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Source: Dinar Recaps

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30M METAMASK USERS CAN NOW ACCESS XRP LEDGER

Blockchain firm Peersyst Technology has launched an XRP Ledger (XRPL) Snap, which will allow over 30 million Metamask users access to the blockchain.

The software firm announced on Monday that Metamask users can now access the XRPL network and harness its properties through the self-custody wallet. Peersyst noted that the latest addition offers users the same functionality available on the XRPL mainnet and testnet.

For context, a Snap application allows non-Ethereum Virtual Machines (EVMs) access to integrate with the Metamask wallet. Notably, Metamask is a cold wallet that interacts only with the Ethereum network by default.

However, certain blockchains could bridge users to other chains such as Ethereum with innovations like Snap, as Peersyst’s XRPL Snap intends to achieve. This latest feature provides easy accessibility to the XRPL network, further expanding the ecosystem’s adoption.

Same Functionality, Different Access Point

Notably, using XRPL through Metamask provides the same functionality as directly accessing the blockchain. Per Peersyst, users can open XRPL wallets using the Metamask Snap.

Given that an XRPL account requires at least 10 XRP to be activated, the Snap feature allows the purchase of the token through Transak, an integrated on-ramp payment method. Subsequently, users can also purchase and hold XRP and non-fungible tokens (NFTs) through the feature.

Furthermore, the Metamask Snap allows users to view transaction details and history, as well as send and receive XRP. Developers can also integrate the feature into their decentralized application for extended visibility.

Integration Boost XRPL Adoption

The latest addition mirrors the growing adoption of the XRPL network. With Metamask’s over 30 million users having access to the blockchain, XRP enthusiasts have tipped the integration to increase user influx and grow liquidity.

Meanwhile, discussions about adding smart contracts to the XRPL network are also underway. Ripple announced in September that it was exploring a dual approach to introduce this feature.

@ Newshounds News™

Source: The Crypto Basic

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CHAINLINK INTRODUCES CCIP PRIVATE TRANSACTIONS TO ENABLE COMPLIANT BLOCKCHAIN INTEROPERABILITY

▪️Chainlink has launched CCIP Private Transactions on its Blockchain Privacy Manager, a feature that has the potential to accelerate institutional blockchain adoption.
▪️ANZ and Chainlink have demonstrated how financial institutions can use Chainlink’s CCIP to enable cross-chain settlement of tokenized assets.

Chainlink, the decentralized oracle network has introduced its CCIP Private Transactions to the crypto ecosystem. This is a feature that facilitates Private Transactions across blockchain networks.

Australia and New Zealand Banking Group (ANZ) are among the first institutions to pilot this security solution for settling tokenized real-world assets (RWA) under the Monetary Authority of Singapore (MAS) Project Guardian initiative.

The Blockchain Privacy Manager will allow financial institutions to play a critical role in the adoption of tokenized real-world assets by serving as asset issuers, custodians, and gateways for their customers to seamlessly access and trade these digital assets.

Key Advantages of Chainlink’s CCIP Private Transactions

A case study done by ANZ and Chainlink revealed that past interoperability solutions have often been limited due to their inability to provide broad support for both public and private blockchains.

Chainlink’s CCIP Private Transactions, powered by the Blockchain Privacy Manager, resolves this by ensuring end-to-end privacy. This allows institutions to meet strict regulatory requirements for both private-to-private and private-to-public blockchain interactions.

Additionally, the CCIP network allows traditional finance (TradFi) and enterprise systems to connect with private blockchains while selectively revealing only the necessary on-chain information for each transaction, addressing a major privacy issue in the blockchain industry

The Blockchain Privacy Manager keeps sensitive transaction details such as data, token amounts, and counterparties completely private through an advanced on-chain encryption and decryption protocol. Only authorized parties, such as compliance authorities, can access this data, which helps protect against third-party and adversarial breaches. Institutions can define specific privacy rules for their transactions, ensuring that all parties involved have appropriate access while maintaining strong protections against unauthorized access.

In other developments, Mountain Protocol recently integrated its USDM stablecoin with Chainlink’s CCIP, improving security and efficiency for token transfers across Ethereum, Arbitrum, and Polygon POS. This partnership enhances USDM’s interoperability and offers users a more secure way to transfer value between different blockchain ecosystems. After the partnership, LINK underwent a vertical ascent. The Chainlink price soared 2.61% to $11.41 on October 18.

Additionally, as CNF reported, Chainlink and eight market infrastructures and financial institutions have disclosed that they have found a successful solution to a decade-long challenge.

@ Newshounds News™

Source: Crypto News Flash

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MASTERCARD UNVEILS GROUNDBREAKING INNOVATION FOR CROSS-BORDER PAYMENTS: IS XLM OR XRP INVOLVED?

▪️The MasterCard payment solution provides value-added services such as risk control and fraud analytics and is compatible with current correspondent banking arrangements.
▪️While Ripple’s XRP has been acknowledged for its cross-border capabilities, Mastercard did not include XRP in this latest solution.

@ Newshounds News™

Read more: Crypto News Flash

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BANK SEIZURE ALERT: IS YOUR MONEY SAFE? SOWT | YouTube

@ Newshounds News™

Source: Seeds of Wisdom Team RV Currency Facts

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Source: Dinar Recaps

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