Jan. 23rd: World Economic Forum Develops CBDC Framework

This Week in Crypto

Quick Take

  • Amun launched “21Shares Short Bitcoin ETP (SBTC),” enabling traders to short bitcoin.

  • BitMEX announced the launch of an XRP-USD quanto swap.

  • Gemini passed the SOC type 2 security compliance examination conducted by Deloitte.

  • Pornhub adds support for Tether (USDT) via the TRONlink wallet.

  • The World Economic Forum developed a framework for central bank digital currencies (CBDCs).

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Amun Launches Inverse Bitcoin ETP

Digital asset issuer Amun has listed a new Inverse Bitcoin Exchange Traded Product (ETP) on the Swiss Stock Exchange (SIX). The so-called 21Shares Short Bitcoin ETP (SBTC), tracks bitcoin’s price movements inversely, enabling traders to short bitcoin.

When compared to entering short trade positions on bitcoin via crypto derivatives, Amun’s Short Bitcoin ETP does not require loaned capital. Positions also reset at the end of each trading day and performance is not rolled over to the next day.

Amun holds over $50 million in assets under management and has 10 crypto-based ETP products on the Swiss Stock Exchange (SIX). The company recently received approval from the Swedish Financial Supervisory Authority (SFSA) to extend its offering into the EU, in which it plans to add listings on least two European exchanges by end of 2020.

BitMex To Launch XRP Swaps

BitMEX has announced the launch of an XRP-USD quanto swap, a derivative in which the underlying asset is denominated in one currency, but the instrument itself is settled in another currency at some rate. When the contract expires, the notional amount gets settled in cash at a pre-defined exchange rate. This kind of swap can be beneficial for speculators in search of liquidity.

The move coincides with the delisting of existing BitMEX UP and DOWN contracts. A DOWN contract allows buyers of the contract to participate in the potential downside of the underlying instrument and a UP contract allows sellers of the contract to participate in the potential upside of the underlying instrument. BitMEX says the contract details will be available on Testnet beginning Friday, with a launch date set for Feb. 5th.

Gemini Passes Security Exam By Deloitte

Gemini has passed a second-level security compliance test conducted by Deloitte. Gemini claims it is the world’s first crypto exchange and custodian to have completed the SOC Type 2 examination. The exchange passed the Type 1 examination in January 2019.

Yusuf Hussain, head of risk at Gemini, stated “We believe this kind of assurance, in addition to other safeguards we have implemented, such as digital asset insurance, helps protect our customer’s data and cryptocurrency,”

Hussain added to say that Gemini will be completing a SOC Type 2 examination on an annual basis. The System and Organization Controls (SOC) examinations asses an organization’s cybersecurity risk management and were first introduced in April 2017 by The American Institute of Certified Public Accountants (AICPA).

WEF Issues CBDC Framework 

The World Economic Forum has developed a framework for central bank digital currencies (CBDCs) in an attempt to help policy-makers understand whether deploying a CBDC would be advantageous. The CBDC Policy‑Maker Toolkit provides information on retail, wholesale, cross-border and “hybrid” CBDCs, for all sizes of emerging and developed countries.

The WEF said it neither advocates nor is against the implementation of CBDC in any country. However, it wants to help central banks to “confidently” evaluate whether CBDC is the right fit for their economy. The WEF collaborated with regulators, central bank researchers, international organizations, and financial institutions to develop the framework.

Pornhub Adds Tether To Payment Options

PornHub added Tether (USDT) to its payment options for performers via the TRONlink wallet. TRON first became a partner in June 2018, when Pornhub started accepting its TRX token for buying content.