BIS Prioritizes Digital Currencies in 2024; Nexo Seeks $3B from Bulgaria; Bitcoin ETFs Soar; Telefónica Adopts Blockchain
Summary:
The Bank for International Settlements (BIS) has prioritized Central Bank Digital Currencies (CBDCs) and tokenization in 2024, launching the second phase of technology testing. Meanwhile, Nexo is seeking a $3 billion compensation against the Bulgarian government for discontinued criminal investigations. In other news, nine Bitcoin ETFs have bought over 100,000 BTC within a week of their launch, while JPMorgan has downgraded Coinbase's stock citing the falling Bitcoin price. Telefónica has also partnered with the Helium Network in Mexico to implement blockchain-based mobile infrastructure. Despite core restructuring and clearing a $400 million debt, crypto mining company Core Scientific's shares plunged more than 30% over a trading day.
The Bank for International Settlements (BIS) ranks digital currencies of central banks (CBDCs) and tokenization as top keypoints for the year 2024. On January 23, the BIS launched the second stage of its tests for new technologies, highlighting the growing merge between crypto-based solutions and traditional banking. Six fresh projects centered around cybersecurity, financial crime, CBDCs and green finance feature on the BIS's agenda. A collaborative endeavor named Project Promissa, joined by the Swiss National Bank and the World Bank, intends to develop a digital means of dealing with tokenized promissory notes, and is projected to finalize its proof-of-concept by early 2025.
Crypto-lending firm Nexo is also in the spotlight, seeking $3 billion in reparations from the Bulgarian government following halted criminal inquiries. An arbitration claim was lodged with the International Centre for Settlement of Investment Disputes in Washington, D.C. by Nexo on January 24. The action follows the Bulgarian authorities' decision to drop their suit against Nexo in December 2023 due to lack of substantial evidence to back allegations against four individuals post a raid on Nexo’s premises.
In other news from the cryptocurrency sector, nine spot Bitcoin ETFs bought over 100,000 BTC within seven days post launch, while Coinbase’s stock was downgraded by JPMorgan. Telefónica has partnered with Helium Network in Mexico, among other updates. JPMorgan has downgraded Coinbase stock to "underweight", justified by fluctuating Bitcoin prices and the exchange of spot BTC ETF shares. As Bitcoin price dips below $40k, JPMorgan predicts a potential deflation in cryptocurrency ETF enthusiasm, potentially driving down token costs, trading volumes, and secondary revenue possibilities for companies like Coinbase.
On the other hand, in just a week after their opening, nine spot Bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund bought 102,613 BTC. This volume, tracked by Cointelegraph, amasses more than half of all Bitcoin accumulated by market titan MicroStrategy over the past three years, who reported holding 189,150 BTC in December 2023.
Mobile infrastructure in Mexico is now blockchain-based, thanks to a collaboration between Telefónica and Nova Labs, the originators of the Helium Network. This partnership, focused on decreasing infrastructure expenses and improving mobile coverage, involves deploying Helium Mobile Hotspots in Mexico City and Oaxaca. Thus, Telefónica covers greater ground, especially in faraway regions, via Helium’s decentralized network. Users changing networks for superior connectivity would be validated via their SIM cards.
Finally, following the completion of a 13-month restructuring, crypto mining behemoth, Core Scientific, re-listed its stocks on Nasdaq on January 24. Even though the firm cleared a $400 million debt, its shares, dubbed CORZ, fell over 30% throughout the day. Core's restructuring outline converted debt owed to equipment lenders and note holders into company equity while planning to convert the remaining debt into equity and use cash as part of their bankruptcy blueprint.
Published At
1/27/2024 12:30:00 AM
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