[Comparative to Zaobao] Sweden tests central bank digital currency e-krona; Russia will ban the use of cryptocurrencies as a means of payment; Morgan Stanley buys crypto-friendly company E*Trade for $13 billion

Blockchain news you need to know every morning:

[Crypto market collectively declined, Bitcoin fell below $9,600]

Over the past 24 hours, the cryptocurrency market has collectively declined. Bitcoin, the cryptocurrency with the highest market capitalization, fell below $9,600. The current total market capitalization of the cryptocurrency market is $269,699,894,346, and the 24-hour trading volume is $103,545,135,532. Bitcoin accounts for 63.65% of the market. In the past 24 hours, 1 of the top 20 cryptocurrencies by market capitalization has risen, and 4 of the top 100 cryptocurrencies by market capitalization have risen. The overall cryptocurrency market is in a downward trend. The top 3 increases were THETA (3.25%), DxChain Token (2.57%), and Decred (2.5%). The top 3 declines were Lisk (-22.16%), Decentraland (-20.66%), and WAX (-19.69%).

[Sweden begins testing the world's first central bank digital currency e-krona]

The Swedish National Bank (Riksbank) said on Thursday that it has begun testing e-krona, taking the country one step closer to creating the world's first central bank digital currency. The bank's official statement said that if this digital currency eventually enters the market, it will be used for daily banking operations, such as making payments, deposits, and withdrawals from digital wallets such as mobile apps. The Bank of Sweden said, “The purpose of this test project is to show the public how to use e-krona.” The Riksbank said on its website that paying with an e-krona would be “as easy as sending an SMS”. However, the central bank said it has not yet made a final decision on whether to issue an e-krona. This test will be carried out by Accenture and will simulate the use of e-krona in an “isolated test environment.”

[Russia will ban the use of cryptocurrencies as a means of payment]

Russian Deputy Prime Minister Dmitry Chernyshenko said in a letter to President Putin that the Russian Federal Security Service (FSB) has reached an agreement with the Russian Central Bank to ban the use of cryptocurrencies as a means of payment within Russia, as reported by the local Russian website Baza. The FSB did not previously specify whether to allow or prohibit the use of cryptocurrencies such as Bitcoin as a means of payment. The FSB and the country's central bank have been debating how to regulate digital currencies. Although the Bank of Russia is adamant that all cryptocurrencies should be banned, the FSB remains open to legalizing crypto and has endorsed a regulatory framework favorable to miners. The letter also said that the FSB will incorporate proposals involving encryption into Russia's digital financial assets bill, which is likely to be passed by Parliament in the spring of this year.

[Morgan Stanley buys crypto-friendly brokerage firm E*Trade for $13 billion]

Morgan Stanley buys crypto-friendly brokerage firm E*Trade for $13 billion. According to the Wall Street Journal, this is the biggest takeover by a major US bank since the 2008 crisis. E*Trade is also a crypto-friendly brokerage firm. There is unconfirmed news that E*Trade is preparing to launch Bitcoin and Ethereum trading services. Since the merger of E*Trade's two main rivals, Charles Schwab and TD Ameritrade in November, the outlook has been uncertain. Following the acquisition, E*Trade will bring 5 million personal customers, $360 billion in assets, and an online bank to Morgan Stanley.

[Spain approves fintech sandbox for blockchain and crypto companies]

The Spanish government has approved a fintech sandbox plan that will allow blockchain and crypto-related companies to use controlled testing platforms before putting their products on the market. According to Criptonoticias, the regulatory sandbox may officially open sometime this year and will be jointly overseen by the country's Ministry of Finance, the Central Bank of Spain, and two financial regulators. The government began reviewing plans for a regulatory sandbox as early as 2017, and initially hoped to open the testing platform in October of last year. The approval and proper execution of this regulatory sandbox will be a huge opportunity for Spain. Not only for fintech (FinTech) companies trying to enter this field, but also for RegTech (RegTech) companies, InsurTech (InsurTech) companies, etc., now these companies will have the opportunity to innovate in Spain to provide security and transparency to users.

[Paxos is involved in blockchain equity settlement business, and Credit Suisse and Nomura Securities are its customers]

Stablecoin issuer Paxos has officially entered the blockchain-based equity settlement business. Paxos officially announced the news on Thursday. The company said Credit Suisse (Credit Suisse) and Instinet, a subsidiary of Nomura Securities (Nomura), were the first two companies to use its settlement services, and the services provided by Paxos can help its customers settle US-listed stock transactions. The service runs on private and licensed networks. A Paxos spokesperson said, “This is the first time blockchain has been used in a real environment. This is the first time that US stocks have been settled outside of DTC/NSCC (Deposit Trust Company/National Securities Clearing Company System).”

[Head of the Bank for International Settlements Innovation Center: Cryptocurrency requires fiat currency as part of its support]

Benoit Coeure, head of the Bank for International Settlements Innovation Center, believes that cryptocurrencies still require fiat money as part of their support to ensure the stability of the system. In an interview with CNBC, Coeure said that even if digital currency comes out, central bank currency will still be the core of the system. He said, “(fiat currency) will be part of the support as this is necessary for the stability of the system.” He emphasized that the prerequisite for maintaining the stability of the financial system is that fiat currency can be obtained in it. He also pointed out that the central bank's currency needs to be developed to maintain its central position, and tokenization may be one of the possible solutions. Coeure said, “Fiat money may have to be developed as part of the support. It can be tokenized or take a different form, but it will remain at the core of the system.”

Author Xiu MU

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