Hello, Asia. Here is what is news on the markets:
In the accounting of the Blockchain of Seoul’s Blockchain, discussions on a stablecoin won Korean were among the main stories.
The idea has a political weight, positioning local currencies as digital alternatives to the US dollar. However, despite enthusiasm, most Asian currencies are hampered by capital controls that make them unsuitable for global traffic. This leaves the Hong Kong dollar as the only really usable stablecoin base in the region.
In Korea, a bill aimed at legalizing the stablecoins made its way through the country’s legislative organizations. The legislators are clear that the initiative is not intended to globalize the on; Offshore use is impossible due to Korea rules after 1997 aimed at preventing capital flight. The overhaul of South America via the USDT is an example of something that legislators in Korea do not want.
Instead, it is presented as a defense of monetary sovereignty against a dollar tokens. The head of the Korean central bank says that he is not against the stable -co -won, but that concerns about foreign convertibility.
But the same restrictions that preserve sovereignty also block international utility. The Won of Korea cannot circulate offshore without triggering the same risks of Flight capital which marked the economy in 1997.
Without carving out a special jurisdiction or a sandbox where such a token could circulate freely, effectively imitating the Hong Kong SAR status, a stablecoin KRW will remain confined to the domestic market.
The paradox extends to other Asian currencies. The new Taiwan Taiwan dollar is locked inside its borders. The renminbi is only partially convertible, restricted on the capital account, which is why Beijing is based on the CNH offshore market. In each case, the local stablecoin proposals serve an internal policy program, but cannot evolve on a global scale.
Hong Kong stands out. Its dollar is fully convertible, supported by a currency board which places it in the US dollar (in a negotiation strip) through large reserves.
The capital flows are not restricted and the HKD is already widely used internationally on the bond markets and for the cross -border colonies. A tokenized HKD would be the only Asian stable coach capable of circulating on a global scale, by meeting the needs in domestic policy with international liquidity.
The irony is that capital controls designed to protect monetary sovereignty ultimately strengthen the domination of the stablescoins supported in dollars. Unless regional governments are willing to liberalize, the HKD remains the only local currency which can dispute USDT and USDC in a plausible way on a world scene.
But what is it for? With its ankle, HKD is a facto US Dollar stable already.
Market movements
BTC: Bitcoin is traded at $ 112,000 while ETF flows become negative. Investors drew $ 363 million from ETF BTC at the start of the week, according to data organized by Sosovalue.
ETH: The ETH underperforms the BTC in the short term, because the speculative demand softens and that the feeling of risk is weakening, even if the long-term drivers such as the development and the challenge remain favorable.
Gold: Gold climbs to new peaks, fueled by the expectations of rate drops, a lower dollar and the demand for a safe refuge in the middle of macro uncertainty.
Nikkei 225: The markets in Asia-Pacific fell on Wednesday, Japan Nikkei 225 down 0.33% while the shares in the region followed their American counterparts.
S&P 500: Us Stock Futures was held stable Tuesday evening after the S&P 500 ended a three -day victories sequence and withdrew from the record heights.
Elsewhere in crypto:
- US CFTC moves to the involvement of stablecoins in the tokenized collateral thrust (Coindesk)
- Morgan Stanley will allow Bitcoin, Ethereum and Solana trade via e * trade (Decrypt)
- The co-founder of Binance, Changpeng Zhao, refutes the Yzi laboratories which will face the external capital (the block)
