The third full week of June was an exciting time for most traders. This is because the largest digital asset by market capitalization Bitcoin crossed $30,000 for the first time since April.
This came about as a result of the extensive mileage Bitcoin Exchange Traded Funds (ETFs) received over the period and this is the reason why the flagship cryptocurrency reached a monthly high price of $31,389.54 on Friday, June 23.
JPEX also previewed the 2023 Cage Boxing Finals which will be happening at the Taipei Arena on July 5.
While BTC led a resurgence of the crypto market, the International Monetary Fund (IMF), JP Morgan, Credit Agricoles, and Binance made headlines around the globe.
Below is a review of the best news that made rounds during the period.
Interest in CBDCs Continued to Pick Up in Latin America and Caribbean Countries
The International Monetary Fund (IMF), a financial agency of the United Nations, as well as an international financial institution, has disclosed that the use of central bank digital currencies (CBDCs) has been soaring in Latin American (LATAM) and Caribbean countries over the past year.
Per the agency, The Bahamas started the use of national digital currencies by introducing the Sand Dollar in 2020. Jamaica and the Eastern Caribbean Currency Union (ECCU) have also done the same. Brazil which is an integral member of BRICs is in the advanced Proof-of-Concept (PoC) stage.
IMF believes if CBDCs are well-designed, they could improve global remittance costs by lowering them which will be invaluable in the path towards creating financial inclusion worldwide.
El Salvador has been leading the global adoption of digital currencies and has even made BTC a legal tender. Aside from El Salvador, Ecuador, Colombia, Argentina, and Brazil are ranked among the top twenty (20) countries in the adoption of crypto assets worldwide.
Despite the progress, IMF sees the unregulated nature of virtual assets as dangerous since it poses several risks and challenges, especially, for countries with extensive informal sectors, mired by corruption issues, substantial capital flows, low institutional credibility, and macroeconomic instability.
Only time will tell if LATAM and Caribbean countries will have a comprehensive regulatory framework such as the Markets-In Crypto Assets (MiCA) which will be implemented fully by the European Union (EU) in 2024.
JPMorgan Bank Brings Into Play JPM Coin for Euro-Denominated Payments
JPMorgan, an American multinational financial services company has extended its blockchain-based payment system into traditional banking, Bloomberg reported on Friday, June 23.
According to the financial news portal, the JPM Coin blockchain platform has been expanded from the United States Dollar (USD) to Euros (EUR). Basak Toprak, Head of Coin Systems for Europe said that Euro transactions went live on Wednesday, June 21.
Siemens, a German conglomerate is rumoured to be the first company to process euro-denominated payments using JPM Coin.
JPM Coin was launched in 2019 as a live application that provides an alternative payment rail running on the possibilities of blockchain technology.
Through this application, JPMorgan has processed around $300 billion of transactions using the coin.
Binance Ordered to Cease Operations in Belgium
Within the week, the Financial Services and Markets Authority of Belgium ordered Chanpeng Zhao’s Binance, the largest digital asset exchange by daily trading volume to stop services in the country. According to the regulatory body of Belgium, companies and people governed by the laws of the country that are not members of the European Economic Area (EEA) do not have the liberty to provide exchange services between legal currencies and virtual currencies or custody wallet services.
“We are reviewing the details of their notice and will continue to work collaboratively with regulators in Belgium and around the world in compliance with our obligations,” a Binance spokesperson said.
Binance has been going through a lot of heat in the past months. The exchange has been charged by the Securities and Exchange Commission (SEC) of the United States for misleading customers due to what the agency termed as operating an unregistered exchange.
Aside from problems in the US, Binance called it quits in Canada as it blamed new rules for their departure in May.
Crédit Agricole’s CACEIS Secures Crypto Custody Registration in France
Credit Agricole and Santander’s asset servicing arm is called CACEIS, a financial institution that provides services to asset managers in private equity, pension funds, and insurance.
Within the week, CACEIS was accepted and registered to provide crypto custody services by regulators in France.
On Tuesday, June 20, the Financial Markets Authority (AMF) registered CACEIS BANK. CACEIS has more than $5 trillion in assets under custody and has been pursuing a crypto-regulatory status since 2021.
The latest development sees CACEIS join others such as AXA Investment Managers and Societe General’s Forge in receiving regulatory authority from the AMF.