guide
The Digital Dollar Foundation and the multinational consulting firm Accenture jointly released a 50-page digital dollar (US CBDC) white paper, which has attracted worldwide attention.
Summary
Summary
Topic: The release of the digital dollar white paper aims to maintain and expand the currency hegemony of the US dollar. Since 2020, in the face of the impact of Libra and the digital renminbi DC/EP, the Federal Reserve has become more open to the central bank's digital certificate and has begun research. It is very likely that the digital dollar will be adopted in the future to further consolidate the global leadership of the US dollar.
Market: The token market fluctuates upwards. This week, the total market value of digital tokens was US$281.41 billion, up 4.0%; the average daily trading volume was US$102.33 billion, up 1.8%; the average daily turnover rate was 36.4%, down 2.0%. The current price of BTC is US$9,666, with a weekly increase of 2.4%; the average daily trading volume is US$29.9 billion, and the average daily turnover rate is 16.7%. The current price of ETH is 241.2 US dollars, with a weekly increase of 9.3%, the average daily trading volume is 12.1 billion US dollars, and the average daily turnover rate is 45.0%. This week, the BTC balance on the exchange was 2,413,300, an increase of 93,000 from last week. The balance of ETH on the exchange was 13.83 million, a decrease of 901,700 from last week. Among the BICS secondary industries, the market value of retail e-commerce has grown significantly.
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Risk warning: regulatory policy risk, market trend risk
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1 The digital dollar surfaced, and DC/EP ushered in a strong enemy
1.1 Release of White Paper of Digital Dollar Project
The Digital Dollar Project (Digital Dollar Project) was initiated by former CFTC chairman Christopher Giancarlo and CFTC former head of the Financial Technology Office Daniel Gorfin and Accenture, aiming to encourage open discussions on the central bank's digital dollar and promote the Federal Reserve to develop, test and adopt digital dollars. Dollar.
The digital dollar adopts the same two-tier operating system as DC/EP. Compared with JPM Coin and Libra, which are issued by companies to anchor digital tokens, the Digital Dollar Foundation proposes that the Federal Reserve issue digital dollars, which will then be distributed to commercial banks and regulated financial intermediaries, and then distributed to individuals. and enterprise digital wallets. Although the Federal Reserve has no plans to issue a digital dollar, it is possible for the Federal Reserve to directly incorporate the digital dollar into the U.S. dollar system when the time is right in the future.
1.2 DC/EP threatens the international status of the US dollar
U.S. dominance in the global financial industry is largely due to the SWIFT network, which handles the transfer of information between banks regarding payment instructions, with the U.S. banking network acting as an intermediary for the execution of international payments. Most cross-border payments — nearly $5 trillion a day — are sent via SWIFT, and a significant portion of them are sent through U.S. bank agents. Sharing information with these agencies allows U.S. authorities to detect illegal activities such as money laundering and terrorist financing.
The more important role of the SWIFT system is to give the United States the privilege of imposing economic sanctions on other countries. Over the past few decades, the United States has implemented economic sanctions by cutting off the connection between sanctioned countries and SWIFT as a routine foreign policy. Many countries, including U.S. allies, are exploring ways to move away from the U.S. dollar’s transnational transfer system. The emergence of digital tokens makes it possible to circumvent the SWIFT system for cross-border payments and transfers.
At this stage, the application scenarios of DC/EP are mainly in China, and there is still a lot of work to be done before it can be put into cross-border use. However, compared with the digital dollar, which is still in the white paper stage, DC/EP has a greater first-mover advantage. In May, employees of various district-level agencies, enterprises and institutions in Xiangcheng District, Suzhou City can already receive transportation subsidies issued in the form of DC/EP through digital wallets.
In the future, in addition to applying the digital renminbi DC/EP domestically, with the improvement of relevant infrastructure, China can also apply DC/EP to trade with other countries, especially with partners of the “Belt and Road Initiative”, thereby promoting digitalization "The Belt and Road" construction. By using DC/EP for settlement with trading partners, the utilization rate of digital renminbi will be increased, thereby improving the level of renminbi internationalization, and even weakening the influence of the US dollar in the global economy.
1.3 The digital dollar aims to consolidate the global currency hegemony of the US dollar
As Libra and DC/EP are getting closer, the Federal Reserve is more open to the central bank's digital certificate. In February, Federal Reserve Governor Lyle Brainard stated that the Federal Reserve is studying the central bank's digital certificate.
The digital dollar white paper clarifies the four major goals of the digital dollar: (1) Consolidate the status of the US dollar as an international reserve currency; (2) Reduce costs and improve efficiency; (3) Make the US dollar more widely circulated and used around the world; (4) ) as an alternative to physical cash in an increasingly digital world.
It can be seen from the digital dollar plan that the United States will not sit idly by and watch the dollar hegemony decline. In the global competition of central bank digital certificates, the United States has actively prepared to deal with threats from other central bank digital certificates.
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2 Market: The token market fluctuates upwards
2.1 The overall market: a slight increase in volume
This week, the ChaiNext Digital Asset 100 Index closed at 869.85 points, up 3.9%. The ChaiNext Digital Asset 100X Index closed at 2260.97 points, up 7.9%.
The total market value of digital tokens this week was US$281.41 billion, an increase of US$10.86 billion or about 4.0% compared to last week. The market has been choppy and up all week.
The average daily trading volume of the digital token market was US$102.33 billion, an increase of 1.8% from last week, and the average daily turnover rate was 36.4%, a decrease of 2.0% from last week.
The market value of USDT is 9.22 billion US dollars, an increase of 390 million US dollars from last week. The enthusiasm for funds entering the market has slightly decreased, and the USDT premium has increased slightly.
2.2 Core token: BTC fluctuates upward
2.2 Core token: BTC fluctuates upward
The current price of BTC is $9,666, with a weekly increase of 2.4% and a monthly increase of 4.3%. This week, the average daily trading volume of BTC was 29.9 billion US dollars, and the average daily turnover rate was 16.7%.
The current price of ETH is 241.2 US dollars, with a weekly increase of 9.3% and a monthly increase of 18.2%. The average daily trading volume of ETH this week was US$12.1 billion, and the average daily turnover rate was 45.0%.
This week, the volatility of mainstream digital tokens has risen slightly, and the price fluctuations have become more severe than last week. The monthly volatility of BTC increased by 2.5% from last week; the monthly volatility of ETH increased by 3.3% from last week.
2.3 BICS industry: the market value of retail e-commerce has grown significantly
Among the top five BICS (Blockchain Industry Classification Standard, Blockchain Industry Classification Standard) secondary industries, the market value of the payment and settlement industry dropped from 70.9% to 70.1%. The growth rate of the market capitalization ratio is relatively high.
This week, the BICS secondary industries with a more obvious increase in the number of tokens are data & storage and wallet & transaction, while the decline is more obvious for banking services and professional services.
2.4 Market view: BTC failed to stand firm at the 10,000 yuan mark, and the volatile market continued
After the BTC callback is in place, it is expected to continue to hit the 10,000 yuan mark. Market sentiment is still cautiously optimistic, and it is still expected to hit US$10,000 after short-term adjustments.
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3 Output and popularity: BTC and ETH computing power increased significantly
This week, according to Google Trends, the search popularity of the term Bitcoin is 13, which is an increase compared with last week, and the search popularity of the term Ethereum is 15, which is an increase compared with last week.
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4 Industry News: Giants Actively Carry Out Digital Token Research
4.1 Several Japanese banking giants and companies set up digital token research groups
On June 3, three Japanese banking giants including Mitsubishi UFJ and Mizuho Bank and 10 companies including JR East jointly established a digital token research group. The Japan Financial Services Agency, the Ministry of Economy, Trade and Industry, and the Bank of Japan will also participate as observers. The group will consider allowing the mutual use of digital tokens and e-money among Japanese banking giants and businesses such as the East Japan Railway Company.
4.2 More than 30 institutions such as Microsoft, IBM and Nasdaq have formed an alliance to build an international standard for tokenization
On June 2, Microsoft, IBM, Nasdaq, Hyperledger and other technology and financial institutions announced the formation of the InterWork Alliance (IWA), which plans to develop a token classification framework, an InterWork framework and an analysis framework for the tokenized ecosystem .
Note:
Note:
Due to some reasons, some nouns in this article are not very accurate, mainly such as: general certificate, digital certificate, digital currency, currency, token, crowdsale, etc. If readers have any questions, they can call or write to discuss together.
