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We are just one week into the new year, and already lots of companies, investors, and governments are throwing their support and capital at the future of money. Lets take a dive in.
Top Stories of the Week
Apple Pay and Google Pay move to Binance
According to Binance, users can now use Apple Pay and Google Pay to buy crypto on their platform. However, Binance will not manage these payment options, due to their decentralization. This is yet another example of Binance attempting to bridge the gap with more users through centralization. For all the FUD going around Binance continues to impressively build.
Hong Kong Government lobbies for CBDC
Despite certain regulatory and political challenges, Hong Kong continues to position itself at the forefront of Fintech innovation. Representative Wu Jiezhuang, a member of Hong Kong’s Legislative Council, wants Beijing to green-light development of a central bank digital currency (CBDC), and eventually a stablecoin. The Hong Kong Monetary Authority is already conducting trials for this CBDC, the e-HKD, in order to stay competitive with rival central banks. Jiezhuang echoes the sentiment, shared by many in Hong Kong, that moving traditional fiat currency onto the blockchain will enable Hong Kong to remain competitive. As a hub for TradFi, let’s see how serious their pivot into DeFi will be.
Animoca Brands aims to raise $1B for its Metaverse Fund
Animoca is planning a $1B raise for metaverse/web3 initiatives. The Hong Kong firm perceives themselves as well situated to benefit from a general pro-government view on crypto. During the annual Fintech Week in October, the Hong Kong government announced supporting digital assets, whitelisting retail participation, and licensing ETFs. Hong Kong continues to benefit from vulturing firms from Mainland China, as well as a robust investment appetite in Asia.
Stablecoins Seek to Regain Stability in 2023
In an industry marred by volatility, Stablecoins were always a source of, well, stability. Even that was brought into question however, when darlings like Terra effectively dissolved overnight. Before it was enough to be pegged in value to something consistent, like the $USD. Now financials and fundamentals are more important than ever to ensure users and investors alike don’t come out shirtless. Sam Kazemian, founder of Frax Finance said, “We have no idea where the market is headed…So we have to be prepared for truly the worst and make sure our peg, our products, and our protocol excels in the most vicious of environments.”
December DeFi exploits were the lowest in 2022
2022 has had plenty of scrapes, among them being exploits. Fortunately, December was the lowest month of the past year, totaling $62M. So long as there are technical vulnerabilities, there will be people seeking to exploit them. However, hopefully 2023 will be the year where that becomes less prevalent.