Mark Zuckerberg’s Stablecoin Ambitions Unravel With Diem Sale Talks

The Meta Platform-backed Diem Association is reportedly in discussions with investment bankers about how best to sell its intellectual property and find a new home for the engineers who developed the technology, cashing out whatever value remains in its once-ambitious Diem stablecoin venture. The Association struck an arrangement with Silvergate Capital to issue Diem, but resistance from the U.S. Fed apparently dealt the effort a final blow. [Read more]

ADB to Develop Prototype for Blockchain-Based Cross-Border Securities Transaction System

The Asian Development Bank (ADB) has launched a project to develop ways to directly connect central banks and securities depositories in the ASEAN+3 region within a blockchain network. The region consists of the Association of Southeast Asian Nations plus Japan, the People’s Republic of China, and the Republic of Korea. The project will also examine systems interoperability and the viability of central bank digital currency (CBDC) in the region. [Read more]

Thailand to regulate cryptocurrency as payment method

Thailand’s Securities and Exchange Commission, Ministry of Finance and The Bank of Thailand plan to issue regulations that would “limit the widespread adoption of digital assets as a means of payment for goods and services. However, technologies and digital assets that do not pose [price volatility, cybertheft, personal data leakage and money laundering] risks would be supported with appropriate regulatory frameworks to drive innovation and further benefit for the public.” [Read more]

Indonesia’s Regulator Prohibits Financial Firms From Facilitating Crypto Trading

Indonesia’s Financial Services Authority has prohibited financial firms from using, marketing, and/or facilitating crypto-asset trading. In addition, the financial regulator reminded the public to always beware of fraudulent Ponzi schemes under the guise of crypto. The OJK does not supervise or regulate crypto-assets. The regulation and supervision of crypto assets in Indonesia are carried out by the Commodity Futures Trading Authority and the Ministry of Trade. [Read more]

IMF Urges El Salvador to Discontinue Bitcoin’s Legal Tender Status

The IMF’s Executive Board recommended that El Salvador discontinue the use of Bitcoin as legal tender in in the country due to the financial risks and liabilities created. IMF directors “stressed that there are large risks associated with the use of Bitcoin on financial stability, financial integrity, and consumer protection, as well as the associated fiscal contingent liabilities.” Directors also “urged the authorities to narrow the scope of the Bitcoin law by removing Bitcoin’s legal tender status. Some Directors also expressed concern over the risks associated with issuing Bitcoin-backed bonds.” [Read more]

SEC Delays Decision on Bitcoin-Related ETFs From Ark 21 Shares, Teucrium

The U.S. Securities and Exchange Commission (SEC) has again delayed decisions on whether to approve or reject the Ark 21 Shares Bitcoin ETF and Teucrium Bitcoin Futures Fund, this time until April 3 and 8, 2022, respectively. [Read more]

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DC3 Conference – From Cryptocurrencies to CBDCs

The International Telecommunication Union (ITU) “DC3 Conference – From Cryptocurrencies to CBDCs” is currently underway and runs to tomorrow (January 27). The Digital Currency Conference is organized by the Digital Currency Global Initiative (DCGI) which is a joint collaboration between the ITU and the Future of Digital Currency Initiative at Stanford University. Tomorrow, I’ll be part of a “fireside chat” on the DCGI’s digital currency ontology work. [Register here]