1 June

The former head of the digital currency initiative at the People’s Bank of China (PBoC) said central bank digital currencies (CBDCs) are set to become more “smart” and could one day operate on blockchain networks like Ethereum.

Yao led the central bank’s digital currency research lab from its inception until he left the PBoC in 2018, moving to the China Securities Regulatory Commission at the end of 2019. He is cited as author or co-author on many of the central bank’s patent applications relating to CBDC technology.

Yao [stated] that the number of security incidents arising from smart contract vulnerabilities shows the technology still needs to mature. Further, there are concerns over the legal status of digital contracts, he said. As such, central banks should take a cautious approach, starting with simple smart contracts and building complexity as security and legality become more assured.

Layered operations can enable the central bank’s digital currency to better benefit groups without bank accounts and achieve financial inclusion.”

Chinese investors remain active in the crypto market, bypassing regulatory oversight by taking bets on domestic and foreign over-the-counter (OTC) desks. According to a Bloomberg report published Monday, activity on OTC desks has picked up since the Communist Party reiterated its long-held ban on crypto services on May 18.

These trades happen in two stages, as Bloomberg noted. The first involves matching orders on OTC desks, and the second involves payment of yuan to the seller through a different platform or a fintech company like Ant Group. As a result, authorities struggle to monitor the transactions.

The recovery [in CNY/USDT] signals the worst of the sell-off may be over and points to a rise in yuan-denominated trades.”

See Also: China’s Traders Aren’t Concerned With the Government’s Crypto Crack Down

In a relief for the crypto community, the Reserve Bank of India (RBI) issued a clarification on Monday stating the commercial banks cannot quote its now-invalid April 2018 crypto banking ban to deny services to customers involved in digital assets dealings.

In view of the order of the Hon’ble Supreme Court, the circular is no longer valid from the date of the Supreme Court judgement, and therefore cannot be cited or quoted from.

The RBI’s clarification comes amid reports that country’s top lenders – State Bank of India and HDFC Bank – are sending reports to certain clients, inquiring about their virtual currency transactions and warning of cancellation or suspension of their cards.”

As Bitcoin’s price shows new signs of bullish momentum, data from various on-chain indicators suggests that the current sell-off is reaching an end.

One of the most interesting themes holding Bitcoin’s bullish bias intact is witnessing long-term holders and accumulation addresses stacking more BTC during the recent price dip. Furthermore, a metric known as the “Bitcoin Entity-Adjusted SOPR” (spent output profit ratio) shows that the market is no longer selling Bitcoin at a loss on aggregate.

Meanwhile, on-chain data shows that exchanges saw a decline in their reserves, a signal that traders have been withdrawing their digital assets to cold wallets or depositing them into decentralized finance (DeFi) liquidity pools for more lucrative returns.”

See Also: DeFi Tokens Rally As Ethereum Jumps 11%

“Multinational Singapore-based bank DBS has issued a S$15 million (US$11.3 million) digital bond in its first security token offering (STO). The DBS Digital Bond, issued via its Digital Exchange (DDEx), has a sixth-month expiry and a coupon of 0.6% per annum.

The listing demonstrates the bank’s ability to provide integrated solutions across the digital-asset value chain. The bank expects tokenization to become more mainstream as its clients start to embrace STO issuance as part of their capital fund-raising exercise.”