Singapore, China to Begin Piloting Digital Currency in Tourism Spending Push

Singapore’s regulatory body the Monetary Authority of Singapore (MAS)  plans to begin piloting the digital currency “E-CNY” – also known as the digital yuan, in collaboration with China to encourage tourism spending.

The two countries first signed a Memorandum of Understanding to work together back in 2020. No timeline was given for when the digital currency would be trialled.

The digital currency project is developed by the People’s Bank of China, MAS and the Digital Currency Institute of the People’s Bank of China– the digital currency will allow travellers from both countries to use E-CNY for tourism spending in both Singapore and China, said the regulatory body in a press release.

The discussions around the E-CNY took place at the 19th Joint Council for Bilateral Cooperation in Tianjin earlier today – the event was co-chaired by Singapore’s Deputy Prime Minister and Minister for Finance, Lawrence Wong, and the People’s Republic of China Executive Vice Premier of the State Council, Ding Xuexiang.

What is the “E-CNY”

The digital currency is China’s digital version of the yuan and it is not a decentralized currency – It is designed mainly for domestic retail payments at present. The new digital currency meets the public’s demand for cash in the digital economy era, according to the BIS – it will support the development of retail payment infrastructures and aims to improve payments.

Over the years China has been trailing the currency domestically – eventually, the country plans to explore pilot cross-border payment programmes.

Singapore Sees No Future For Private Crypto 

Recently Singapore’s central bank’s managing director, Ravi Menon, emphasized that private cryptocurrencies falling short of fundamental financial service tests will eventually fade from the monetary scene – He outlined his vision for the future monetary system, highlighting three key components: central bank digital currencies (CBDCs), tokenized bank liabilities, and well-regulated stablecoins.

21Shares COO Departs, CEO Hany Rashwan Reassures Firm

Switzerland-based exchange traded product (ETP) provider 21Shares has confirmed its chief operating officer Lucy Reynolds, has left the firm.

Before joining 21Shares Reynolds was head of product management at WisdomTree and joined 21Shares in 2020 – Reynolds was unavailable for comment on her departure from the firm.

Hany Rashwan the CEO of 21Shares told Cryptonews.com there is no change in senior management or cause for concern and that Lucy’s departure was “a mutual decision and has been in the works for at least six months so we’re just following the transition plan we designed together.”

At one point 21Shares reached $2 billion in assets under management with products listed on several European exchanges the provider continues to dominate the market. In March this year, 21Shares closed six of its crypto ETPs due to limited investor demand.

Ark 21Shares Bitcoin ETF approval decision coming in January

21Shares is collaborating with Cathie Wood’s Ark Invest and has a spot Bitcoin exchange-traded fund (ETF) application in the pipeline.

The US Securities and Exchange Commission (SEC) has delayed deciding to approve a spot Bitcoin ETF and has been inundated with filings from approximately a dozen issuers, including BlackRock, Fidelity, and Invesco.

On November 20 the S-1 filing for the Ark 21Shares Bitcoin ETF was amended regarding custody arrangements and asset valuation. Market watchers took the change as a positive sign as it indicated ongoing discussions with the SEC to bring the application in line with the regulator’s expectations. The updated filing also revealed the fee for the ETF will be 80 bps, the same as the fee proposed by BlackRock for its iShares Bitcoin Trust.

NFT Giant OpenSea Keeps Options Open for Potential Acquisition

The collapse of the non-fungible token (NFT) market last year dealt a blow to OpenSea, raising questions about its once staggering $13.3 billion valuation.

Now, the popular NFT marketplace is at the center of acquisition discussions, with CEO and co-founder Devin Finzer expressing an open-minded approach to potential deals, including the possibility of being acquired itself.

“We think that if the right partnership comes along, then that’s something we should certainly consider,” Finzer said in a recent interview. 

However, he clarified that OpenSea is not actively seeking a suitor and has no immediate plans to be acquired.

Despite being overtaken by rival platform Blur, which has achieved greater trading volume, OpenSea remains focused on building a brand that prioritizes user safety and removes fraudulent or problematic collections.

The decline in OpenSea’s trading volume has been significant, plummeting by 96% since January 2022, according to data from Dune Analytics.

Blur, on the other hand, has gained momentum by employing airdrops of its token and now boasts a daily trading volume five times greater than OpenSea’s, although OpenSea still has a larger user base.

OpenSea enjoyed substantial support from venture capitalists during the NFT boom in 2021, with Andreessen Horowitz, Paradigm, Coatue Management, and actor Ashton Kutcher all participating in fundraising rounds.

However, Coatue Management reportedly devalued its stake in OpenSea by 90% to $13 million in November.

While rumors about OpenSea’s potential initial public offering persist, Finzer remained tight-lipped on the matter.

OpenSea Has Done its Share of Deals

In terms of deals, OpenSea has already made some moves, acquiring NFT aggregator tool Gem in 2022, as well as early crypto wallet Dharma and Mintdrop, a platform that facilitates quick market entry for creators.

Finzer emphasized that talent is a crucial factor in their acquisition strategy, seeking entrepreneurial-minded individuals who may have started their own projects but are now seeking opportunities elsewhere.

“Some of the most passionate individuals are those who go to start their own project, those sort of entrepreneurial-minded people. Maybe they didn’t get the level of traction that they wanted in their own startup, and they’re looking for home elsewhere.”

OpenSea is also actively engaging with luxury brands to develop bespoke NFT initiatives, reflecting the growing interest of fashion houses and other content-based companies in the NFT space.

In October, NFT trading volume surged by $99 million, reaching $405 million, signifying levels of sales not seen since August.

Likewise, sales of NFTs on the Bitcoin (BTC) network reached a new milestone in December 2023, surpassing $881 million for the first time ever. 

NFT sales on the Bitcoin chain reached $881,223,753.92 last month, setting the highest single-month sales record to date.

This included 111,713 buyer addresses and 98,744 seller addresses, both setting the highest single-month records to date.

Ethereum, the second-largest blockchain, trailed behind with NFT sales totaling $364.79 million.

BTC-focused NFT sales outperformed ETH’s by a significant margin, being 2.34 times greater in December.

Solana secured the third spot with approximately $325.14 million in NFT sales, experiencing a remarkable 312% increase from the previous month.