Tokenization for $5 trillion and a competitor of cryptocurrencies from the IMF

Binance managed to move back from the brink due to the SEC lawsuit. Positive news about the fate of the largest platform for trading digital assets pushed the crypto market up. And the activation of large financial players, who one after another began to declare their interests in building a digital financial system, further accelerated the recovery of prices for cryptocurrencies, reports the correspondent of the Kapital.kz business information center.

CoinDesk experts, citing a report by asset manager Bernstein, said that over the next five years, assets are expected to be tokenized for a total of $5 trillion, which will be approximately 2% of the global money supply. Company analyst Gautam Chhugani noted that they expect a significant increase in the use of stablecoins and central bank digital currencies as a means of payment, especially in connection with the Chinese CBDC program. In his opinion, income generation opportunities in “decentralized markets” will compete with traditional bank deposits as a tool for investment or accumulation of funds. Gautam Chkhugani also acknowledged that there is a problem of regulatory uncertainty. He is convinced that the success of the tokenization process will depend on how politicians can appreciate the benefits of blockchain and understand the role of crypto tokens in decentralized systems. Otherwise, “the lack of clear rules can frustrate all plans for the tokenization of assets and level the growth points.”

The International Monetary Fund (IMF) appears to be looking in the same direction and is developing a platform for cross-border transactions with central bank digital currencies (CBDCs), Reuters reported. The head of the IMF, Kristalina Georgieva, noted that CBDCs should not be limited only to national proposals, and independent systems that unite countries and ensure compatibility are needed to achieve more efficient and fair transactions. This is the main reason why the IMF stepped up the creation of a global platform for national cryptocurrencies. And the fund’s specialists are striving to harmonize a single regulatory framework for the Central Bank of Central Banks on the part of issuers in order to ensure full operational compatibility. Kristalina Georgieva added that the inability to reach agreement on a common approach would create a vacuum that would likely be filled by cryptocurrencies.

According to her, 114 central banks are at various stages of the study of the Central Bank of Central Banks, and about 10 of them have already almost completed this process, and if countries develop CBDCs only for domestic use, then they do not fully use the potential of these assets. According to the head of the IMF, digital currencies of central banks can help expand access to financial services and reduce the cost of remittances, thereby freeing up and making significant financial resources work for the benefit of the global economy. She recalled that the average commission for such money transfer operations is 6.3%, and the total amount of fees reaches $44 billion annually. Kristalina Georgieva stressed that CBSS should be fully backed by assets, similar to other aggregate states of cash. At the same time, fiat cryptocurrencies are simply “speculative investments,” the speaker added.

And, perhaps, the main news of the week: the US Securities and Exchange Commission (SEC) has reached an agreement with the Binance cryptocurrency exchange. It concerns the restriction of access of Binance employees to the assets of Binance.US clients, CoinDesk said. As agreed between the parties, Binance.US will provide detailed information on its business expenses in the coming weeks, and Binance International staff will completely lose access to the private keys of wallets and other tools of the American division of the platform.

Recall that on June 6, 2023, the SEC filed an application to freeze Binance.US digital assets, but on June 14, the court ordered the regulator and the American crypto exchange to find a compromise that would ensure the protection of clients’ assets and allow the platform to continue its activities. During the hearing, a Binance.US spokesperson noted that the company should be able to fund its normal expenses as the asset freeze could be “misinterpreted by banks.” Binance.US has committed not to transfer assets or make payments to any entity within the Binance Corporation without the permission of a judge.

On June 5, the SEC filed a lawsuit against Binance and its founder, Changpeng Zhao. The lawsuit brought 13 charges, including the illegal sale of securities. Binance responded by issuing a statement declaring its readiness to “resolutely defend itself.” Binance.US later announced a suspension of USD deposits and recommended that clients withdraw their fiat funds by June 13th. Ultimately, Judge Amy Berman Jackson approved the agreement and denied the SEC’s motion to freeze Binance.US assets. The decision contributed to growth in the digital asset market.

According to the results of the past seven-day reporting period, the total capitalization of the cryptocurrency market showed an increase. As of Wednesday evening, June 21, 2023, it amounted to $1.105 trillion, which is 5.14% higher than the values ​​recorded at the end of the last seven-day reporting period.

1. Bitcoin (BTC). On Wednesday evening, June 21, 2023, the cost of “digital gold” rose to $28,006. The market capitalization of bitcoin during this period increased by $43 billion, amounting to $543 billion. The share of the “first cryptocurrency” in the total market capitalization increased by 1.26 percentage points and at the end of the reporting period amounted to 48.93%.

2. Ethereum (ETH). On Wednesday evening, June 21, 2023, the cost of “ether” dropped to $1785. “Ether” in comparison with the value at the end of last week showed an increase, which amounted to 2.82%. The share of Ethereum (ETH) in the total capitalization of the cryptocurrency market during this time decreased by 0.5 percentage points, to 19.36%.

3. Binance Coin (BNB). As of Wednesday evening, June 21, 2023, BNB was valued at $244. According to the results of the past seven-day period, the price of this cryptocurrency added 2.95%. The share of Binance Coin (BNB) in the total cryptocurrency market capitalization lost 0.07 percentage points, amounting to 3.44%.

4. Ripple (XRP). As of Wednesday evening, June 21, 2023, Ripple (XRP) was valued at $0.489. “Banking cryptocurrency” compared to the values ​​at the end of last week fell in price by 4.49% amid increased expectations of investors about the speed of a court ruling in the SEC case against Ripple. The share of “banking cryptocurrency” in the total capitalization of the cryptocurrency market fell by 0.24 percentage points and reached 2.29%.

5. Cardano (ADA). As of Wednesday evening, June 21, 2023, Cardano (ADA) was worth $0.266. The price of the asset following the results of the last reporting period decreased by 2.56%. The share of ADA in the total capitalization of the cryptocurrency market decreased by 0.07 percentage points and amounted to 0.84%.