Talking points
🥇 Zimbabwe Gold-Backed Digital Tokens?
📜 Singapore stablecoin regulation inbound
🏷️ Dubai offers 90% discount for Web3 and AI companies
GM! It seems the positive news is pouring in for crypto again...
So, buckle up and let's jump into it 👇
👀 Quick market update
We saw a slight drop on the market recently but what are we expecting next?
Well... the market isn't exactly looking strong but there is still hope for a push upwards.
There is also the news of the 'famous shorter' Michael Burry who entered into some short positions on the stock market. While this doesn't indicate anything significant, it will be a worry for some and is definitely something to keep an eye on.
But there are also some positives in this portfolio too, it appears the shorts are mostly on tech stocks.
In summary, he is long bulk shippers, oil and gas companies, prisons, banks, media companies and short tech.
2,068
Now let's jump into some insight into what to expect next from Bitcoin and the market 👇
Back to where we started it seems. Looking for us to hold the EQ here and will look to short if we produce a breakdown .. For now just sat waiting for something to happen
Again it seems like a waiting game but there is increasing pressure on Bitcoin dropping as opposed to hitting higher into the $30K area.
As usual, be prepared and have a plan for either situation.
🥇 Zimbabwe Gold-Backed Digital Tokens?
In an impressive stride towards financial innovation, the Reserve Bank of Zimbabwe (RBZ) has revealed its strategic plans to introduce Gold-Backed Digital Tokens (GBDTs) for retail use.
This announcement comes on the heels of the notable success of GBDTs among investors, a triumph that the Bank lauded as "commendable" in a recent report.
During the presentation of the Mid-Term Monetary Policy Statement (MPS) on August 9, RBZ Governor John Mangudya shared that the Bank is in the advanced stages of launching GBDTs as a medium of transactions. Mangudya stated that GBDTs are set to be scaled up for public use in everyday transactions.
"The Bank is at an advanced stage in preparing for the eventual rolling out of GBDT for transactional purposes in Phase II of the project under the code or name ZiG, which stands for Zimbabwe Gold,” he explained. He further elaborated that the transactional phase would involve GBDTs complementing the use of the US dollar in domestic transactions.
Governor Mangudya also unveiled plans for comprehensive nationwide awareness campaigns aimed at educating the public about the manifold benefits of GBDTs.
Remarkably, GBDTs are positioned as the foundational digital instrument for the country's upcoming central bank digital currency (CBDC), closely aligning with the characteristics of the CBDC model. The Mid-Term Monetary Policy Statement underscored the ongoing significance of Gold Coins as a monetary policy tool, serving as the backing for GBDTs. Up until July 14, 2023, over ZW$35 billion had been absorbed from the sale of 36,059 coins.
The inaugural maturity following the 180-day vesting period was observed on January 25, 2023. Impressively, only 769 gold coins (accounting for 2% of total sales) were redeemed, underscoring their role in retaining their value.
The central bank said that this gold token will form the basis for the development of a central bank digital currency
Gold serving as the foundation?
Who would have thought
Unveiling Gold-Backed Digital Tokens (GBDTs) as Zimbabwe's Solution to Inflation.
As an endeavor to complement physical gold coin sales, enhance the divisibility of investment instruments, and widen public accessibility, the Bank introduced Gold-Backed Digital Tokens (GBDTs) on May 12, 2023.
According to the Mid-Term Financial Report, by July 21, the Bank had successfully executed 11 GBDT issuances, eliciting 590 applications for tokens amounting to ZW$50.50 billion (equivalent to US$7,794.87). Consequently, the Bank issued a total of 325,024,524 milligrams, translating to 325.02 kg of gold.
The inception of these tokenized digital coins is poised to bolster the national currency and offer an alternative investment avenue, diverging from the prevailing practice of pursuing US dollars on the parallel market.
These GBDTs are set to serve as a medium of exchange for both individuals and businesses, playing a pivotal role in stabilizing the Zimbabwean dollar and effectively addressing the pressing concern of inflation.
Given Zimbabwe's history of adeptly managing inflation, there exists a palpable confidence in the implementation of GBDTs. In the backdrop of a daunting 175.8% inflation rate in June, a series of strategic governmental and banking interventions, including exchange rate liberalization and local currency payments for duties and taxes, have successfully curtailed inflation. This concerted effort led to a significant reduction in monthly inflation from a peak of -15.3% in July 2023.
In sync with this positive trajectory, annual inflation, which soared to 175.8% in June 2023, demonstrated a marked reversal, dropping to 101.3% by July 2023. This promising trend is expected to persist as the impact of these proactive measures continues to take effect, further mitigating the risks associated with the adoption of GBDTs for local transactions.
As Zimbabwe takes determined steps towards embracing the GBDT framework, this pioneering move underscores the nation's commitment to innovation, economic stability, and its resilience in addressing critical financial challenges and is definitely another positive for the crypto and web3 space.
📜 Singapore stablecoin regulation inbound
Singapore's financial regulator has announced the finalization of rules governing stablecoins, positioning the country as a frontrunner in this emerging landscape.
This move solidifies Singapore's commitment to fostering innovation in the digital currency realm while ensuring transparency and accountability.
Stablecoins, a form of digital currency designed to maintain a steady value against fiat currencies, have gained prominence in recent years. Many stablecoins assert their value through backing from real-world assets such as cash or government bonds. The stablecoin market boasts an estimated valuation of $125 billion, with dominant players like Tether's USDT and Circle's USDC accounting for around 90% of the total market capitalization.
Despite their growing prevalence, stablecoins have operated in a regulatory gray area worldwide. In response, the Monetary Authority of Singapore (MAS) has established a comprehensive framework that outlines key requirements for stablecoin operations:
Reserve Backing: Stablecoins must be backed by low-risk and highly-liquid assets, which must consistently match or exceed the circulating value of the stablecoin.
Redemption Process: Stablecoin issuers are mandated to return the par value of the digital currency to holders within five business days of a redemption request.
Transparency: Issuers must provide users with "appropriate disclosures," including the results of audits on reserves.
These regulations are applicable to stablecoins issued in Singapore that mirror the value of the Singapore dollar or any G10 currency, including the U.S. dollar. Stablecoins fulfilling these requirements will be officially recognized as "MAS-regulated stablecoins," distinguishing them from their unregulated counterparts.
Singapore's aspirations to become a prominent digital currency hub have been evident in its efforts to attract foreign firms, especially against the backdrop of concerns over the regulatory environment in the United States. Stablecoins like USDT and USDC have significantly contributed to the cryptocurrency trading ecosystem, enabling seamless conversions between different digital assets without the need for fiat currency intermediaries. Their versatility extends to applications such as remittances.
However, transparency concerns surrounding the reserves backing stablecoins have spurred regulatory attention. Singapore's framework seeks to address these concerns by providing clarity and structure to the industry.
"This framework provides a clearer structure and establishes a well-defined path for conducting stablecoin operations in Singapore, while ensuring transparency and accountability," commented Paolo Ardoino, CTO of Tether.
Both Tether and Circle, the issuers of USDT and USDC respectively, have welcomed the new regulations, acknowledging Singapore's role in shaping a forward-looking regulatory landscape for stablecoins.
As the collapse of algorithmic stablecoin UST highlighted regulatory challenges, Singapore's proactive approach sets it among the vanguard of jurisdictions implementing stablecoin rules. While the U.K. passed a law in June granting regulators authority over stablecoins, Hong Kong is currently engaged in public consultations with plans to introduce stablecoin regulations in the coming year.
Singapore's stablecoin framework stands as a testament to the nation's commitment to balancing innovation and customer protection. By providing a well-defined framework, Singapore positions itself as a trailblazer in navigating the complexities of the evolving digital currency ecosystem.
🏷️ Dubai offers 90% discount for Web3 and AI companies
The Web3 space seems to have been given a big boost, as Dubai has unveiled an impressive 90% registration subsidy for companies operating in the realms of web3 and Artificial Intelligence (AI) seeking operational licenses within the city.
This bold move is a part of Dubai's strategic vision to establish itself as the premier pro-tech hub in the expansive Middle East and North African Region (MENA).
Dubai to issue commercial licences to help AI and Web3 companies set up businesses
Licences are 90% subsidised and will support the emirate's push to become a digital society
Termed the Dubai AI and Web3 Campus, this visionary initiative outlines the city's commitment to nurturing a thriving tech ecosystem. The endeavor has already enticed a spectrum of web3 enterprises, including digital asset exchanges and innovative NFT creators, by offering them an array of incentives aimed at catalyzing innovation throughout the region.
Under the auspices of the Dubai International Financial Center (DIFC), the subsidization of licenses underscores Dubai's continued dedication to attracting top-tier industry talent. Recent months have witnessed the city successfully drawing in leading professionals through its conducive regulatory environment and vibrant innovation scene.
Central to the allure of the AI campus is its cutting-edge AI systems and laboratory innovations that can comfortably accommodate the burgeoning influx of companies eager to establish their presence in Dubai. Moreover, the campus has been thoughtfully structured to provide comprehensive training opportunities for young innovators aspiring to carve out a career in AI and the dynamic realm of cryptocurrency. To facilitate this, the campus offers a wealth of supporting hardware, equipment, and essential funding.
Commenting on this pioneering move, Mohammed Alblooshi, CEO of the DIFC Innovation Hub, highlighted their strategy of attracting global talent and investment through an ingenious blend of skills, incentives, and innovation. Alblooshi stated, "We are confident that by granting these licenses, we will attract more global talent and investment to the region and create a culture of collaboration and innovation."
According to projections from the hub, the AI-focused initiatives are poised to generate nearly 200,000 job opportunities in the Middle East by 2025, coinciding with the projected global growth of the industry. Dubai's ambitious AI and web3 campus initiative aims to contribute significantly to this job market by creating approximately 3,000 jobs over the course of the next five years, fueled by an impressive investment exceeding $300 million.
The city's inaugural AI and web3 campus, introduced earlier this year, has garnered significant praise for its forward-thinking approach and rapid achievements within a matter of months. It aligns seamlessly with Dubai's overarching objectives, a prime example being the Virtual Asset Regulatory Authority (VARA) which has been actively granting licenses to numerous digital asset exchanges. This includes the recent issuance of a Minimum Viable Product license to the global giant Binance, thereby enabling it to provide an array of digital asset services to a host of financial institutions and consolidating its foothold in the Middle East.
In a recent development this month, the financial regulatory body granted a license to the virtual asset arm of Nomura, Laser Digital Middle East, allowing them to offer cryptocurrency-based brokerage services and associated digital asset investment solutions within the country.
Dubai's forward-looking vision extends beyond the realms of AI and web3. The city is resolutely pushing ahead with a comprehensive metaverse strategy, with the goal of attracting around 1,000 metaverse firms and blockchains, thereby generating over 40,000 job opportunities by the close of the decade.
As Dubai continues its determined journey towards becoming the MENA region's premier tech haven, these strategic initiatives underscore its commitment to innovation, collaboration, and establishing itself as a global technology powerhouse... what are we to see next?
📊 Stats of the week
As you can see, the total crypto market cap has taken a dip over the last week. The 7D high was $1.223T and the lowest point was $1.204T, which is a $19B drop.
As you can see, even with the drop in market, we still have some nice gains. Coming in at first place for the week, we have $RUNE with a 57.7% gain which is by the most impressive. Next up is $TON with a 16.9% rise and then with the bronze medal... we have $XRD which saw a climb of 11.1%.
Then last but not least, we have the losers of the week. In the least wanted position, we have $KAS who saw a 14.3% dip. Next we have $GMX with a 13.2% loss and then closely followed we have $OP with a 13% drop.
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Written by Lewis 🕵️
Authors of All Things Flooz newsletter own cryptocurrencies and stocks. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions.