What has been happening around Blockchain Technology and Cryptocurrencies this week? The most relevant local and international developments as well as appealing background reports in a pointed and compact way in retrospect in our weekly review.
In conjunction with the U.S., the U.K., Canada, South Korea, and Japan, members of the EU are also working to regulate the crypto market in a more harmonized and uniform manner. The market has reached a stage of adoption that is pushing authorities to address regulatory issues quickly. As part of the European Commission's consultation on supervisory convergence, France's Securities and Exchange Commission (AMF) published proposals to bring more regulatory authority to the crypto market. In its recommendation, the regulator identifies four action points. Among them is the creation of centralized supervision for new unregulated activities within the European Securities and Markets Authority (ESMA). This is intended to ensure a level playing field while minimizing the possibility of "regulatory arbitrage."
The European Central Bank (ECB) is officially starting a project for the introduction of a digital euro (CBDC). During its two-year period, key design and distribution issues will be addressed. The ECB will be collaborating with the European Parliament and other European policymakers in its endeavor. The design of the digital currency is supposed to be based on user preferences and technical consultation from retailers and intermediaries. According to the central bank, the digital euro will be a risk-free, accessible and efficient form of digital central bank money. Furthermore, the project will shed light on the amendments that will be required to the EU regulatory framework.
Since the emergence of the Crypto Valley in 2013, an institutional and regulated digital asset infrastructure has evolved in Switzerland, which is also internationally perceived as pioneering. Today, the ecosystem counts more than 50 companies offering services around digital assets on an institutional level and providing professional investors with the choice they need. Investors have entered the digital asset space at a rapid pace in 2021. In recent months in particular, record-breaking funding rounds, innovative product launches and growing interest in new financial products have dominated global news cycles. The "Swiss Digital Asset & Wealth Management Report", published for the first time, provides an interesting overview of the Swiss "digital asset" ecosystem.
Tokenization is democratizing the investing world and opening up new opportunities for retail savers. For the first time, ownership rights to a Picasso artwork are being transferred to the blockchain by a regulated bank. Swiss-based Sygnum Bank and art specialist Artemundi have teamed up to fragment the ownership rights to Picasso's painting "Fillette au béret" into so-called Art Security Tokens (ASTs). The tokens are recognized under Swiss law which means that the property rights are protected accordingly.
In addition: The "London Hard Fork" of Ethereum is expected to be implemented into the blockchain network on the August the 4th. With the frequently themed EIP-1559 renewal, the upgrade also involves an update to the economic structure of the underlying cryptocurrency Ether (ETH). A new fee structure aims to "burn" some of the base fees. Accordingly, the supply side of the cryptocurrency will be reduced over time, which may lead even to a deflationary effect. In addition, the upgrade is expected to reduce network congestion through more effective use of block capacity while also improving the user experience.
Selected articles in the weekly review:
As part of the European Commission's consultation on regulatory convergence, France's Securities and Exchange Commission (AMF) is submitting proposals for a standardized crypto market regulation.
https://cryptovalleyjournal.com/focus/legal-and-compliance/french-financial-authority-publishes-potential-crypto-regulation-proposals/
The ECB reinforces a digital euro rollout with the launch of a two-year project phase.
The "Swiss Digital Asset & Wealth Management Report", offers interesting insights into the sector.
By purchasing tokens, investors can acquire a stake in a Picasso artwork for the first time.
Is ETH turning into a deflationary asset with the EIP-1559 upgrade?
What is EIP-1559 and can it help Ethereum become deflationary?
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