Last Week in Global Markets: Apr 10-16, 2023
Good morning, and happy Monday.
The focus last week was on central bank digital currencies (CBDCs) with an upcoming global discussion among G-7 countries and plans to release a CBDC handbook by the International Monetary Fund (IMF). India is also taking action to encourage retail adoption of its CBDCs, aiming to reach 1 million users within 3 months.?
Elsewhere, governing bodies in the US, France, and Hong Kong took action to propose regulation on Decentralized Finance (DeFi) platforms, with the US SEC looking to put DeFi and CeFi exchanges in the same category.
This, and more from last week.
Let's dive in.
CBDCs get the global spotlight
G-7 countries are prioritizing helping developing nations introduce central bank digital currencies (CBDCs), and addressing associated risks during a meeting in mid-May, which will also focus on increasing business transparency and consumer protection.
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Concurrently, the International Monetary Fund (IMF) is in the works to release a handbook on CBDCs to meet the high demand for guidance from almost 30 countries that requested assistance in the past two years.
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Elsewhere, the Reserve Bank of India aims to reach one million users for its CBDCs within three months, prioritizing the challenge of creating an offline version. So far, over 100,000 users have already participated in the country's CBDC pilot since December 2022.
US, France, HK are looking at regulating DeFi
The US Securities and Exchange Commission (SEC) has reopened public comment on its plan to expand the definition of an "exchange" to include decentralized cryptocurrency platforms, after crypto firms criticized the plan for being vague and aimed at roping in decentralized finance platforms.
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The plan by Chair Gary Gensler also drew criticism from SEC Commissioner Hester Pierce, saying it is overly broad and potentially undermines fundamental First Amendment protections.
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Elsewhere, the French central bank examined DeFi regulation and suggested regulation through certification, DAO incorporation, and control over intermediaries, stating that current regulations are insufficient, and stablecoin regulation is necessary for DeFi.
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Shortly after, Hong Kong's SEC stated that DeFi projects may be subject to licensing and regulatory requirements, as long as the activity falls within the scope of the Securities and Futures Ordinance.
Ethereum rises after Shanghai upgrade
The Ethereum (ETH) Shanghai upgrade successfully went live last Wednesday, enabling validators to withdraw their staked ETH. This also marks the official completion of Ethereum's transition to Proof-of-Stake.
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Following the upgrade, the price of Ether climbed 6% and 7% over Thursday and Friday respectively, to an 11-month high of $2,123.35. According to Flipside Crypto, users have been withdrawing their rewards instead of their entire stakes, accounting for 96% of the withdrawal volume.
Web3 adoption in Africa
Web3 firm Fonbnk has partnered with merchant network platform Tanda to launch an airtime trading marketplace across East Africa, enabling African micro-entrepreneurs to participate in DeFi-based financial inclusion and increase liquidity and earning opportunities without requiring bank accounts or cards.
That's a wrap. See you next week.
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