Weekly Update #18: Stablecoins in France and NFT in Microsoft

Dominik Olech
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We have another week behind us, so it’s time for Weekly Update! Maybe it wasn’t full of breaking news, but some interesting announcements have been made.

In the previous episode, we talked, among the others, about the implementation of the blockchain in France. And this week, we continue this topic.

Euro-backed digital currency in France…

Last time, we told you about plans of the Banque de France to use blockchain technology for better adjusting to the ever-changing market situation. According to a new announcement, those plans are even more far-reaching. According to the governor of this institution, François Villeroy de Galhau, the digital euro project will go into testing by the end of the first quarter of 2020.

Just to be clear: the incoming project will be targeted only for the private financial sector and won’t include retail payments. It is also likely to be a response for the incoming wave of stablecoins, like Libra or Chinese DCEP.

US dollar-backed digital currency on the British Virgin Islands…

But French digital euro isn’t the only one digital currency announced in the last week. A blockchain company called LifeLabs announced the cooperation with the British Virgin Islands. The goal of their partnership is to issue a digital currency called BVI~LIFE. US dollar-backed stablecoin. The project is a part of an ongoing initiative aimed to improve the fintech sector on the archipelago. 

… and no yen-backed digital currency in Japan

However, not every news about new digital currencies this week is positive. Haruhiko Kuroda, the governor of Bank of Japan, announced that there is no public demand for issuing the central bank digital currency. In his last speech, he stated that the current economic situation in Japan doesn’t require any change. However, Kuroda admitted that the Bank of Japan doesn’t see a problem in some existing stablecoins denominated in Japanese yen, and it will support such initiatives. As for foreign currencies like Libra, it will be watching them closely.

EU worries about stablecoins risky

Concerns about digital currencies pegged in fiats also come from the European Union, despite the positive approach of France, one of the EU’s most influential members. The Council of the European Union and the European Commission stated that stablecoins bring far more risks and challenges that positive features. According to the statement, the full adoption of stablecoins could endanger the monetary sovereignty of fiat currencies.

Anti-crypto congressman in charge of Subcommittee on Investor Protection

From other bad news for crypto: Brad Sherman, known anti-crypto congressman of the United States, got elected as Chairman of the Subcommittee on Investor Protection, Entrepreneurship and Capital Markets. Sherman is known for his negative attitude toward Bitcoin, seeing in cryptocurrencies a threat to the American dollar.

Now, he will be responsible for reviewing the laws related to, among others, stock exchanges and investors. This may influence the cryptocurrency market since, despite the lack of legal definition, crypto exchanges bear the closest resemblance to the entities mentioned above.

NFT by Microsoft Azure

We frequently mentioned about non-fungible tokens (NFT) on BlockChain24.co – for example, in the context of gaming in yesterday’s article. Microsoft Azure project has also appeared in our articles. It is a Redmond giant’s cloud platform that also supports blockchain technology. The project is highly community-oriented, and Microsoft is going to use NFT to reward Azure’s contributors.

So-called “Azure Heroes” are collectible rewards for positive behavior among the Azure’s community. Token was created on the Ethereum network, in the cooperation with blockchain gaming startup Enjin, and is available in the US and some elected Western European countries. Apparently, the collaboration with Microsoft is very lucrative for Enjin since it causes a significant growth in the price of its coin, ENJ.

Blockchain for copyrights management

As for blockchain implementation of the week, the winner is the Italian Society of Authors and Publishers. The institution responsible for the observance of copyrights joined forces with the blockchain company Algorand to provide a suitable solution for this goal. The developed ecosystem is based on Algorand new platform, which uses Proof-of-Stake (PoS) to ensure network stability and security. This way, the organization not only provides a decentralize and secure system for copyrights management but also proved another successful usage of blockchain technology.

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