A recent study conducted by the analytics company Juniper Research estimated that payments via central bank digital currencies (CBDCs) could reach $213 billion by 2030, Crypto Potato reports. 

The firm believes governments across the globe will use the product to boost financial inclusion and improve the monetary condition of emerging economies.

Juniper Research experts analyzing the fintech and payments market believe CBDC transactions could skyrocket from $100 million in 2023 to $213 billion by 2030 (a staggering 213,000% increase). 

The specialists said the financial product is still in its early days, adding that global centralized authorities will focus on it to improve digital settlements and enable additional monetary services. However, they might also use it to obtain control over the consumers’ finances and supervise their activities.

The research further determined that by 2030, 92% of the total value transacted via CBDCs will be paid locally. At a later stage, the tool could start settling cross-border settlements.

More than $1 billion of ether (ETH) has been permanently lost due to software bugs and human error. The revelation comes from a study by Conor Grogan, Coinbase’s director of product strategy and business operations.

The report revealed that 636,000 ether, or about $1.15 billion at current market prices, has been rendered inaccessible. This represents 0.5% of total ETH supply. Per Grogan, the lost ether includes coins sent to incorrect addresses and those lost due to smart contract bugs and other programming issues.

Most of the lost coins, or 513,746 ETH, were lost during the 2017 Parity wallet issue. The flaw was triggered by a user and led to a loss of $280 million at that time.

Over 85,000 ETH became inaccessible due to buggy smart contracts, which automate transactions and agreements on the Ethereum network. They have been responsible for many high-profile losses in the past.

Moreover, some 24,000 ETH were sent to Ethereum’s so-called “burn address,” a destination for which no one holds the private key. This can occur when users mistakenly send coins to an incorrect address or when smart contracts are programmed with errors.

The remaining lost ether is distributed among various bugs, mishandled transactions, and wallet issues. Despite advances in wallet software and user education, human error remains a significant factor in the loss of cryptocurrency.

The Central Bank of UAE launched the CBUAE Central Bank Digital Currency (CBDC) Strategy, one of the nine initiatives of the CBUAE’s Financial Infrastructure Transformation (FIT) Programme, Gulf News reports.

CBDC is a risk-free form of digital money issued and guaranteed by the central bank and serves as a secure, cost-effective and efficient form of payment and a store of value. As part of the UAE's digital transformation, CBDC will address the challenges of domestic and cross-border payments, enhance financial inclusion and the move towards a cashless society.

The first phase of the strategy, which is expected to complete over the next 12 to 15 months, comprises three major pillars, the soft launch of mBridge to facilitate real-value cross-border CBDC transactions for international trade settlement; proof-of-concept work for bilateral CBDC bridges with India; and proof-of-concept work for domestic CBDC issuance covering wholesale and retail usage.

Bitcoin price surged on March 19 to surpass the $28,000 zone, marking a 16% boost in value in the past seven days, according to Cointelegraph’s MarketPro data. 

At the time of writing, the leading cryptocurrency was trading at $28,063, a 2.4% increase in the past 24 hours. The price reached $28,459 at its highest point during the day before trading at $26,877 during the day’s low.

Overall this week, Bitcoin has gained over 37% against the U.S. dollar. Bitcoin’s market capitalization added $194 billion in 2023, representing a 66% gain year-to-date, outperforming Wall Street banks stocks, especially with fears of a global banking crisis rising. Bitcoin is up about 65% so far this year, versus the S&P 500’s 2.5% gain and Nasdaq’s 15% decline in 2023.

Source: Cointelegraph 

Bitcoin is up 50% this year despite the collapse of major crypto-focused banks, beating major stock indexes and commodities, CNBC reports. 

On Jan. 1, bitcoin began trading at just over $16,500. On Wednesday, it was hovering around the $25,000 mark, thanks to a rally that began on Sunday.

The surge in price this year comes after bitcoin crashed 65% in 2022 after a number of major collapses of projects and hedge funds, bankruptcies, liquidity issues and the failure of FTX, one of the world’s biggest cryptocurrency exchanges.

The recent rise has come as somewhat of a surprise, given the closure of Silvergate Capital and Signature Bank, two of the biggest lenders to the crypto industry. And Silicon Valley Bank, viewed as the backbone of the technology startup industry, also failed.

Read full article on CNBC.com. 

UAE legal experts have issued a report analysing the regulations for virtual assets in the UAE, Arabian Business reports. 

The report, titled “Virtual Assets Regulatory Framework: An Evolving Landscape”, comes as the MENA region has been identified as the world’s fastest growing cryptocurrency market.

As per a 2022 report by Chainalysis, MENA users received $566bn in cryptocurrency from July, 2021 to June, 2022. It represents a 48% increase compared to $272bn cryptocurrency value received in the previous year.

Within the MENA region, UAE is the fifth largest cryptocurrency market. Dubai has become a hub for virtual asset service providers that serve customers across Asia and Africa, not just in the Middle East.

The growth of the crypto market within UAE has acted as a driving force for the UAE regulators to take significant steps towards developing a regulatory framework for the digital assets sector.

KARM Legal Consultants, a law firm specialising in blockchain, cryptocurrency, Web3 and fintech in the UAE has, in collaboration with prominent legal experts from Hess Legal Counsel, MME and Nagele Attorneys, published a report analysing the regulatory landscape for virtual assets in various jurisdictions.

As the use of blockchain technology and its use cases continue to grow, so does the need for regulation. In the past few years, several positive regulatory developments for the virtual assets sector have been witnessed, as many jurisdictions globally have started to recognize virtual assets services.

With overall favourable regulatory ecosystems the UAE has cemented its position as a leading virtual assets friendly jurisdiction.

Read full article on Arabian Business

Two of the banks that were friendliest to the crypto sector and the biggest bank for tech startups all failed in less than a week. While cryptocurrency prices rallied Sunday night after the federal government stepped in to provide a backstop for depositors in two of the banks, the events sparked instability in the stablecoin market.

CNBC report explains that  Signature and Silvergate were the two main banks for crypto companies, and nearly half of all U.S. venture-backed startups kept cash with Silicon Valley Bank, including crypto-friendly venture capital funds and some digital asset firms.

The federal government stepped in on Sunday to guarantee all deposits for SVB and Signature depositors, adding confidence and sparking a small rally in the crypto markets. Both bitcoin and ether are nearly 10% higher in the last 24 hours.

According to Nic Carter of Castle Island Ventures, the government’s willingness to backstop both banks signifies that it’s back in the mode of providing liquidity, rather than tightening, and loose monetary policy has historically proven to be a boon for cryptocurrencies and other speculative asset classes.

But the instability once again showed the vulnerability of stablecoins, a subset of the crypto ecosystem investors can typically rely on to maintain a set price. Stablecoins are supposed to be pegged to the value of a real-world asset, such as a fiat currency like the U.S. dollar or a commodity like gold. But unusual financial conditions can cause them to drop below their pegged value.

Read more on CNBC.com 

The cryptocurrency-focused US lender Silvergate is to wind down its operations after it was hit by customer withdrawals following the collapse of crypto exchange FTX, The Guardian reports. 

The California-based bank had warned last week it was “less than well capitalised” after depositors demanding their money back, adding that it was evaluating its ability to operate as a going concern.

Silvergate said a voluntary liquidation of the bank was “the best path forward” in light of “recent industry and regulatory developments”. The failure of FTX sparked renewed volatility in the crypto markets. Silvergate also revealed it was being investigated by the US Department of Justice.

Its wind-down and liquidation plan includes full repayment of deposits, the bank added. Silvergate reported a $1bn (£840m) loss for the fourth quarter of 2022 after investors raced to withdraw more than $8bn in deposits, forcing it to incur losses as it sold assets to cover the cost of the withdrawals.

A online cryptocurrency scam in Egypt defrauded thousands of investors of around $620,000, Al Jazeera reported on Monday, citing state media.

Authorities have arrested 29 people, including 13 foreign citizens, in connection with the fraudulent platform known as "HoggPool."

The scheme first appeared in Egypt in August, promising investors large profits from crypto mining and trading.

Crypt trading in 2018 was declared forbidden in Egypt under Islamic law. While that religious decree was not legally binding, a de facto ban has been in place thanks to prohibitive banking laws introduced in 2020.

Source: CoinDesk 

UK banks are getting tougher on customers using crypto. In the past week, two of the country’s biggest banks—Nationwide and HSBC—cracked down by applying daily limits for buyers or restricting credit cards from making crypto purchases, Decrypt reports. 

These two banks aren’t the only ones: a number of banks over the past year have got tougher. Some took a tougher stance following the collapse of mega digital asset exchange FTX back in November. 

Major high-street bank Nationwide this week said it was setting up new restrictions to “help protect you and to try and keep your money safe.” Customers can no longer buy crypto with credit cards and with debit cards, and there are daily limits of £5,000 ($5,965). 

Read the full article to find our which banks allows customers to buy crypto. 

Ras Al-Khaimah, in the United Arab EMirates, on Monday announced plans to launch a free zone for digital and virtual asset companies to be known as the Digital Assets Oasis, reports Arab News.

Sheikh Mohammed bin Humaid bin Abdullah Al-Qasimi, chairman of RAK ICC, commented: 

We are proud to further the UAE’s position as a primary destination for innovation with the launch of RAK Digital Assets Oasis. We are building the free zone of the future for the companies of the future,

“As the world’s first free zone solely dedicated to digital and virtual asset companies, we look forward to supporting the ambitions of entrepreneurs from around the world with our progressive, supportive and quick-to-adapt approach, and our innovation-enabling environment.”

According to a statement released by the government on Monday, the Digital Assets Oasis will be the first example in the world of a “purpose-built, innovation-enabling free zone for nonregulated activities in the virtual assets sector.”

Cryptocurrency should, in general, not be granted legal tender status, the International Monetary Fund’s (IMF) Executive Board said in a statement Thursday.

The board – 24 directors elected by the IMF’s member countries – earlier this month had been presented with a staff paper that warned of the risks crypto poses to monetary policy, tax collection, financial stability and consumer protection.

Directors generally agreed that crypto assets should not be granted official currency or legal tender status in order to safeguard monetary sovereignty and stability,

the statement said, calling for countries to clarify tax treatment and align with global standards.

Source: CoinDesk

Hong Kong rolled out the red carpet for crypto businesses to help revitalize the embattled financial hub. Signs are now emerging the push has under-the-radar backing from Beijing, providing impetus for mainland Chinese firms to return, Reuters reports.

Representatives from China’s Liaison Office and other officials have been frequent guests at the city’s crypto gatherings over the past months, swapping business cards and WeChat details, said people familiar with the matter, who asked not to be named discussing private information.

On Feb. 20, Hong Kong’s Securities and Futures Commission officially released a statement outlining its plan to allow retail investors to trade cryptocurrencies like Bitcoin and Ethereum. However, only exchanges that are licensed by the agency will be able to facilitate the same. Investor protection is one of the key focus areas of the SFC, and exchanges will have to be wary of the exposure limits, risk profiles, etc.

Banco do Brasil has announced that citizens can now pay their taxes with cryptocurrency. According to a post on their official website, Brazil’s oldest bank stated that this financial development is possible via a partnership with Bitfy, a popular blockchain solutions company with investment in BB’s Corporate Venture Capital Program (CVC).

Through this collaboration, Brazilians holding cryptocurrencies with Bitfy can now easily pay their taxes, fees, and governmental obligations using their assets. The mechanism behind this service is similar to customers paying for a ticket by capturing a barcode. Using the Bitfy app, taxpayers need only select their preferred cryptocurrency for payment and then scan a barcode before going on to confirm payment.

United Arab Emirates Central Bank has launched a Financial Infrastructure Transformation (FIT) program which intends to enhance the pace of digital transformation of the financial services sector. Specifically, this initiative aims to promote digital transactions and encourage innovation in the space. This, in turn, will sharpen UAE’s prospects to become the financial and digital payment hub.

Explicitly, the program has nine initiatives and launching a central bank digital currency is one among them. According to the official statement, the CBDC will be launched to cater to the gaps and hindrances associated to international payments. Additionally, it will “help drive innovation for the domestic payments,” according to the statement.

The CBDC will be launched for both cross border and domestic use.

Read full press release.