Good morning, Asia. This is what news is doing in the markets:
Welcome to Asia Morning Briefing, a daily summary of the main stories during the US hours and an overview of the movements and market analysis. To obtain a detailed description of the US markets, see Cryptokook from Coindesk America.
In 2021, the Central Bank of China warned that global stable could bring risks and challenges to the “international monetary system, payment and compensation system, monetary policies, [and] Cross-border capital flow management. “That appointment, from the White Paper of the Popular Bank of China on its E-CNY project, reflected the deep skepticism of PBOC towards the digital currencies of the private sector, particularly the Facebook pound.
As a result, Libra never launched. But Stablecoins such as the USDT and the USDC of Tether’s Circle are now deeply within the financial plumbing worldwide, especially in Asia, which makes processes such as the financing of the supply chain more efficient than ever.
As a result, Beijing’s precaution in Stablecoins is giving way to an emergency feeling. They are on the agenda because they are seen as another way in which the US dollar is consolidating in Asia’s financial pipes, and that is not something that the Chinese authorities are happy.
The president of the Animoca Group, Evan Ayuang, said in an interview with COINDESK that China’s interest in Stablecoins has been accelerating. It has been like that for a while, but now it is only increasing as they become the Wall Street current.
“At this time, Stablecoins is returning to those in charge of formulating policies and interested emitters. The question is why?” He told Coindesk. “It really has to do with Trump’s presidency … all the signs that the United States is coming out and giving, are actually pressing China to act much faster.”
Animou is a Hong Kong -based web3 background that has its hands in everything related to cryptography.
The pressure point, argues, is the recently promulgated genius law that, for the first time, provides federal regulatory clarity of the United States on the status backed by Fiat and consolidates its role in the global financial system. Indeed, it could be seen as a digital extension of hegemony in dollars, one that China cannot afford to ignore.
Animoca has its own interests of Stablecoin. It is part of a consortium that includes an standard bank Chartered Bank and Hong Kong Telecom that work in a stable of Hong Kong Dollar (HKD).
“When China looks at Genius law, the way they look at it is that the United States goes after space,” said Auyang. “And if [the] Dollar at this time is the dominant reserve currency … it is always these regular stables that flow in the financial system to resolve the currency in the light of commercial tensions and direct bilateral trade agreements. That matters. “
There is a clear contrast with the tone of the White Book 2021 of the PBOC, which portrayed the stables as destabilizers and speculative, grouping them along with volatile cryptocurrencies. But, as Auyang pointed out, the conversation has changed.
Beijing now sees the need to compete in Blockchain rails, particularly through regulated and high seas (CNH), which could help make the country’s currency: the reminue (RMB) or, colloquially, the yuan.
“If you are trying to make RMB more internationalized, but in a controlled way, this is all. The CNH on the high seas is all,” said Auyang. “That stablecoin is the way to internationalize it that allows you to have currency control even in its place, but allows you to have on the high seas.”
A regulated stable, whether HKD or CNH, can be connected to Chinese land assets that could be placed in public blockchains, thus creating new and important financial rails for the country. While E-CNY use cases have typically revolved around the central banks and institutions. The HKD or CNH Stablecoin, issued in Hong Kong OA through Blockchain’s public infrastructure, offers a vehicle to internationalize the currency and at the same time respect Beijing’s capital controls.
Another option could be the liquidity groups in Hong Kong that provide places so that HKD, CNH and E-CNY transactions are resolved. Of course, said Beijing has its eye at HKD Stablcoins as the city, with its autonomous legal framework, is China’s sandbox.
“At some point, it will be the stablecoin,” he said, predicting that even international company payments will favor the Fiat Tokenized on digital currencies (CBDC) of the central banks (CBDC).
And this change is not limited to China.
“Everyone will do this after the United States passes the genius law. Each country will have to think about this. Each country will have a regulated stable at some point,” he said.
It is not about overthrowing the dollar, which is an impossible task taking into account the liquidity it has.
“When I am trading with my partners in Southeast Asia, there is sufficient liquidity in stablecoin not USD for that trade to happen,” he said.
The White Book 2021 of the PBOC framed the stable as threats. Four years later, Beijing seems to be heating the idea that they have a role to play in the financial order of the future.
Market movements
BTC: Bitcoin is consolidating around $ 118,000 after the historical maximum of $ 123,000 of $ 123,000 last week, with analysts that warn about a possible fall to $ 115,000 in the middle of a fragile feeling, taking profits and lower low signs, although Ochain’s data suggests that the upward trend could soon be resumed.
ETH: ETH remains in a strong upward trend above key mobile averages, quoting $ 3,619 after a rally that pushed prices about $ 3,800, with $ 3,300 now acting as a key support to maintain the upward structure.
Gold: Gold prices fell 0.6% to $ 3,410.26 on Wednesday, since a commercial agreement between the United States and Japan relieved the fears of the commercial war and the demand for safe refuge, although long -term support remains of the de -drainage and purchase of the Central Bank.
Nikkei 225: The Nikkei 225 increased 1.09% on Thursday, extending profits as optimism on trade agreements with the USA. UU. And potential progress with Asia-Pacific markets raised from the EU.
S&P 500: US actions increased solidly on Wednesday, promoted by optimism on the commercial agreement between the United States and Japan, with the Dow more than 1%, the S&P 500 won more than 0.75%and NASDAQ added around 0.6%.
In another part of Crypto:
- CEO of Tether: entry into the US market
- Some tokenization is only ‘Games of chance,’ says Prometheum co-zo (decrypt)
- The market has ‘excessively excited’ by Stablecoins, says Hong Kong’s financial regulator (Coendesk)
