Indian Central Bank Calls Stablecoins an Existential Threat

Stablecoins an existential threat according to Indian Central Bank

Rabi Sankar, the Deputy Governor of the Reserve Bank of India, expressed at an event that stablecoins pose a significant risk to policy autonomy and are only beneficial for a handful of nations, as reported by local media, The Hindu. Sankar argued that due to the issues regarding stablecoins, central bank digital currencies (CBDC) offer a more "stable solution" for every nation.

The second-in-command at India's central bank explained that stablecoins could be advantageous for economies like the U.S. and Europe, as they might be tied to their currencies. However, in a country such as India, stablecoins could potentially substitute the rupee's use in the domestic economy. This is partly because of the shifting of profits made from government currency issuance to private entities, added Sankar.

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Terra Co-Founder Daniel Shin prepares for trial

Co-founder of Terraform Labs, Daniel Shin, is steeling himself for trial, armed with a formidable team of 30 defense attorneys, amidst charges of fraud, embezzlement, and violation of South Korea’s Capital Markets Act. As co-founder Do Kwon awaits extradition in a Balkan prison, Shin stands in a South Korean courtroom, accused of undisclosed sale of pre-issued Luna tokens resulting in $104 million profits.

Despite the delays in proceedings, Shin's trial continues to be a highly anticipated event in the crypto world, highlighting the precarious balance between innovation and legality in the blockchain ecosystem.

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Ark investment dumps Coinbase shares

On Tuesday, Ark Invest offloaded 135,152 Coinbase Global stocks, coinciding with the day the shares rose by 9.78% due to positive sentiment surrounding Bitcoin ETFs. The Ark Innovation ETF, managed by Cathie Wood, lessened its stake in Coinbase shares for the first time since July 26 of the previous year, as per the data gathered by Bloomberg.

As per the fund's website, the ETF now possesses Coinbase shares valued at $711.24 million, which makes up 8.25% of its overall holdings.

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European Union announces Web4 strategy

The European Union (EU) has leapfrogged over web3 to introduce a strategy for "web4 and virtual realities." The European Commission (EC) declared its strategy on Tuesday, intending to establish "web4 and virtual environments that mirror the values and principles of the EU."

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Offline trials for digital Yuan commence in China

The Bank of China, a major state-controlled financial institution, is presently experimenting with a unique offline payment system linked to SIM cards. This payment approach has been tailor-made for the digital yuan, China's own centralized digital currency.

The bank made an announcement on July 10, unveiling its collaboration with telecom companies China Telecom and China Unicom and stated its plans to start the trial the following day.

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Other breaking news

• Arbitrum-based leveraged farming protocol Rodeo exploited
• Algorand-based lending protocol Algofi winding down
• Russia greenlights digital ruble
• BTC liquidations drops to April lows
• Singapore wealth fund Temasek to stop crypto investments

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Wrapping up

As we conclude this edition of the Datawallet newsletter, it's clear that the crypto world continues to be a dynamic landscape of progress, innovation, and regulatory challenges. From the Reserve Bank of India's concerns on stablecoins, Terra co-founder Daniel Shin preparing for trial, to Ark's decision to dump Coinbase shares, the EU's push towards Web4, and China's trials of an offline digital yuan payment system, we see a multitude of forces shaping the future of cryptocurrencies.

Stay tuned for more updates in the ever-evolving crypto saga and continue making informed decisions in your investment journey.