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(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
CITI, JP MORGAN, OTHERS COMPLETE TOKENIZATION SETTLEMENT TRIALS
Ten institutions completed simulated trials of the Regulated Settlement Network (RSN), exploring the use of a shared DLT network to settle tokenized transactions. It was an extension of previous trials of the Regulated Liability Network conducted last year, which included tokenized commercial bank money and tokenized central bank money on the same network.
This time tokenized Treasuries and investment grade bonds were also on the shared ledger, enabling delivery versus payment for wholesale transactions. The trials also explored interoperability with external DLT networks.
Securities Industry and Financial Markets Association (SIFMA) acted as coordinator for the institutions involved, which were Citi, J.P. Morgan, Mastercard, Swift, TD Bank N.A., U.S. Bank, USDF, Wells Fargo, Visa, and Zions Bancorp, led by SIFMA.
The group published three reports on the business, technology and legal aspects and will hold a virtual briefing on the RSN trials at 1pm Eastern Time.
The Benefits of Shared DLT Ledgers
Shared institutional networks for tokenized assets are attracting attention for several reasons. If a tokenized Treasury is settled using central bank money on the same ledger, settlement risks are eliminated almost entirely. Smart contracts enable automation and straight through processing. And always-on networks allow for settlement outside of working hours and batch cut off times. That could prove especially convenient to assist overseas clients.
Five thoughtful use cases each demonstrated different benefits. While immediate settlement of Treasury transactions is risk free, institutions prefer net settlement to reduce cash demands.
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Today just 20% of repo transactions are centrally cleared, but new SEC rules will require a far larger proportion. Hence, one of the use cases ran a central counterparty (C*P) using the shared ledger that offered multiple settlement windows during the day. That allows firms to settle intraday and take advantage of netting.
While the RSN could become a major network, the group recognizes it won’t be the only DLT network. So other trials explored interoperability with non RSN networks, either using Swift orchestration or via direct APIs.
For example, Mastercard has its Multi Token Network (MTN) which tested payments between two banks using MTN. The interbank settlement was performed on the Regulated Settlement Network (RSN) using central bank money.
Meanwhile, RSN trials used the Canton DLT from Digital Asset. Deloitte assisted SIFMA in coordinating the project and Sullivan & Cromwell provided legal input.
Contributors included BNY Mellon, Broadridge, the Depository Trust and Clearing Corporation (DTCC), International Swaps and Derivatives Association (ISDA), Tassat Group, and the non profit MITRE Corporation. The New York Innovation Center (NYIC) at the Federal Reserve Bank of New York participated as a technical observer.
@ Newshounds News™
Source: Ledger Insights
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VANCOUVER MAYOR PUSHES BITCOIN AS RESERVE ASSET IN BOLD FINANCIAL PLAN
Vancouver is the latest city to join the discussions on adding Bitcoin to the government’s financial reserves. At a city council meeting on November 26th, Mayor Ken Sim submitted his notice of motion, where he plans to introduce his proposed Bitcoin bill on December 11th.
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The city’s proposal is titled ” Preserving the city’s purchasing power through diversification of financial resources: Becoming a Bitcoin-friendly city. ” It aims to integrate Bitcoin into the city’s financial system and make Vancouver a “Bitcoin-friendly city,” using Bitcoin as a hedge against inflation and promoting economic development.
Vancouver Makes A Move Towards BTC Adoption
Vancouver Mayor Ken Sim is taking the necessary steps to prepare the city for the blockchain.
As a Bitcoin supporter, Sim is pushing for widespread adoption to hedge against inflation and promote economic development. In a November 27th meeting, Mayor Sim filed a motion of notice detailing his plan to present the proposal to adopt Bitcoin on December 11th.
Under the proposal, Vancouver will transform into a “Bitcoin City” and authorize the city government to diversify its resources to include Bitcoin. If the council approves, residents of Canada’s third-largest city can purchase Bitcoin.
However, it isn’t clear in the proposal if Sim also authorizes setting up a Bitcoin strategic reserve, similar to the one being pushed by US senator, Cynthia Lummis.
Mayor Sim And His Campaign For Bitcoin
Sim is one of the country’s most vocal supporters of Bitcoin. During the campaign, Sim’s party announced it would accept cryptocurrency donations. He explained that their commitment to blockchain technology demonstrates their plan to accept crypto as donations. He also teased the electorate that he will push for crypto-related policies if he wins.
Sim became Vancouver’s mayor in October 2022. During his tenure as city mayor, he rarely gave speeches or talks on Bitcoin and cryptocurrencies. Interestingly, a book titled “The Bitcoin Standard” by Saifedan Ammous was seen in the mayor’s office during his interview with Global News on November 25th. Many observers pointed to this item in his office as evidence of the mayor’s interest in crypto.
Push For BTC Mainstream Adoption Intensifies
Today, Bitcoin continues to surge in price thanks to a growing mainstream adoption. Sim’s move to integrate Bitcoin into Vancouver’s financial system is just one of the many proposals reported recently. According to Jeff Booth, a blockchain author, Mayor Sim’s proposal aims to promote the adoption of Bitcoin as a reserve asset.
Aside from Vancouver, a few states and governments are working overtime to fast-track Bitcoin’s mainstream adoption.
For example, the state of Florida plans to tap a portion of its pension funds and use it to buy crypto. Pennsylvania is also planning to set up a Bitcoin reserve. Then, there’s the city of Detroit, which teases a plan to accept Bitcoin as a payment option.
@ Newshounds News™
Source: Bitcoinist
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Source: Dinar Recaps
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