20 September

“A Russian Finance Ministry official has provided new details about a bill on digital currencies that is currently being drafted. The bill provides local infrastructure for settlements and regulation on mining, but will leave many details for businesses to work out on their own.

We give businesses the opportunity with this bill to pay with cryptocurrency, but in terms of what cryptocurrencies will be used, how to negotiate with counterparties, with which countries it will operate — all this we are leaving to entrepreneurs.

On Sept. 13, Russian Prime Minister Mikhail Mishustin ordered the Finance Ministry and the Central Bank of Russia to come to a consensus by Dec. 19 on legislation regulating the issuance, circulation, mining and the use of cryptocurrency in international settlements.”

“As directed by the President of the United States, Joe Biden, the Office of Science and Technology Policy (OSTP) submitted a report analyzing the design choices for 18 central bank digital currency (CBDC) systems for possible implementation in the US.

The technical analysis of the 18 CBDC design choices was made across six broad categories — participants, governance, security, transactions, data and adjustments. The OSTP foresees technical complexities and practical limitations when trying to build a permissionless system governed by a central bank, adding:

It is possible that the technology underpinning a permissionless approach will improve significantly over time, which might make it more suitable to be used in a CBDC system.

However, the analysis assumed there is a central authority and a permissioned CBDC system. The technical evaluation for a US CBDC system highlighted the report’s inclination toward an off-ledger, hardware-protected system.

Other important factors OSTP wants policymakers to consider include cryptography and secure hardware (for security), signatures, transaction privacy, offline transactions and transaction programmability (for transactions), data model and ledger history (for data) and fungibility, holding limits and adjustments on transactions and balances (for transactions).

See Also: US Treasury plans to ask public if crypto-related regulations are ‘no longer fit for purpose’

“The SEC and Ripple both filed motions for summary judgment in the Southern District of New York, asking District Judge Analisa Torres to make a ruling based on the arguments filed in accompanying documents.

The parties have filed various discovery motions over the past two years, without really litigating the actual underlying issue – whether Ripple violated securities law by selling XRP. The motions for summary judgment mean the parties are asking the court to actually decide whether either the SEC or Ripple has provided enough to prove one way or another whether there was a violation.”

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Australian politician Andrew Bragg wants to prepare the country for the widespread use of China’s central bank digital currency. China is currently running cross-border trials of a digital version of its sovereign currency. Lawmakers in major economies around the world are cautious of the implications of a widely used digital yuan.

Bragg’s draft “Digital Assets (Market Regulation) Bill 2022” identifies seven Chinese banks, including the Agricultural Bank of China and the Bank of China, that have branches in Australia and can potentially facilitate the use of a digital yuan in the country. The bill establishes disclosure requirements for those designated banks including reporting the number of Australian businesses that have accepted payments using digital yuan facilitated by the bank, and the total amount of digital yuan held in digital wallets by Australian customers of the designated banks.

Australia needs to be prepared for the widespread use of a digital yuan in the Pacific, or even within Australia, because it would give the Chinese state enormous power, economic and strategic power that it doesn’t have today.”

“The Ministry of Science and ICT (MSIT) of South Korea revealed plans to move away from imposing traditional video gaming laws on the Metaverse. The MSIT identified that imposing older regulations serve as a deterrent to the growth of new ecosystems.

We will not make the mistake of regulating a new service with existing law.

Previously, on Sept. 1, members of the National Assembly supported an official proposal for the enactment of the Metaverse Industry Promotion Act to support the Web3 industry.”

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The highlight of the economic calendar this week will be Wednesday’s Federal Open Market Committee (FOMC) meeting and its expected interest rate decision. Markets are ascribing an 80% chance that the Fed funds rate will increase by 75 basis points and a 20% chance that it will increase by 100 basis points, or 1%. Rates have not increased by 1% in over 40 years.

The Dow Jones Industrial Average (DJIA), tech-heavy Nasdaq composite and S&P 500 increased by 0.6%, 0.8%, and 0.7%, respectively.”

See Also: Goldman’s Bullish Stance on ‘Real Bond Yield’ Spells Bad News for Crypto

A red notice is a request for law enforcement worldwide to locate and arrest the named individual and hold that person until extradition proceedings can begin. The notice is sent to police forces in 195 countries worldwide.

Last week, South Korean prosecutors issued an arrest warrant for Kwon on charges of fraud.”