Posts from the 'Op-Ed' Category

Leading the charge: APAC’s comprehensive approach to digital transformation

Leading the charge: APAC’s comprehensive approach to digital transformation

The Asia-Pacific (APAC) region is emerging as a leader of digital transformation, spearheading initiatives that are reshaping industries and societies. From artificial intelligence (AI) to blockchain, central bank digital currencies (CBDCs), drones, and quantum computing, APAC countries are harnessing cutting-edge technologies to construct digital nations. I will try to share my views on the current state of these technologies in the region, offering a comprehensive analysis of their implementation, challenges, and future prospects.

Blockchain: Revolutionising finance and beyond

Blockchain technology is revolutionising the financial sector in APAC, particularly in Singapore, where it is being utilised to streamline processes and introduce innovative products. DBS Bank, a prominent financial institution in Singapore, has adopted blockchain to enhance its operations. By integrating blockchain, DBS has improved its reconciliation and reporting processes, reducing costs and increasing efficiency. This move is part of a broader trend among financial institutions (FIs) in the region to adopt blockchain for its potential to offer faster and more affordable means of storing and transferring data.

The future of enterprise blockchain in APAC looks promising as businesses seek to become more resilient. A PwC report has mentioned that blockchain could boost the global economy by $1.76 trillion by 2030, with APAC expected to benefit significantly. The technology’s ability to provide transparency, security, and efficiency makes it an attractive option for various sectors beyond finance, including supply chain management, healthcare, and government services.

CBDC: Leading the charge in digital currency

Central Bank Digital Currencies (CBDCs) are gaining traction in APAC, with countries like China, Thailand, and Indonesia leading the charge. These nations are breaking new ground with pilot programs and research initiatives that are maturing quickly. China, for instance, has been at the forefront with its digital yuan, which has been tested in several cities and is poised for broader adoption. The People’s Bank of China has reported that the digital yuan has been used in over 360 million transactions, totaling more than $13.68 billion.

Singapore and Cambodia are also making significant strides in CBDC development. Singapore’s Project Ubin, a collaborative project with the Monetary Authority of Singapore (MAS), has explored the use of blockchain for clearing and settlement of payments and securities. Meanwhile, Cambodia’s Bakong system, a blockchain-based payment system, has been operational since 2020, facilitating transactions in both Cambodian riel and US dollars.

The adoption of CBDCs in APAC is driven by the need for more efficient payment systems, financial inclusion, and the desire to reduce reliance on cash. However, challenges remain, including regulatory hurdles, cybersecurity risks, and the need for robust infrastructure.

AI: Transforming manufacturing and beyond

Artificial intelligence is transforming industries across APAC. Many would touch on AI being a good productivity tool but I would like to highlight the manufacturing sector being a prime example instead. Companies are leveraging AI to enhance predictive maintenance, optimise supply chains, and improve quality control. In Japan, for instance, Toyota has implemented AI-driven systems to predict equipment failures, reducing downtime and maintenance costs.

McKinsey also shared that AI could add $13 trillion to the global economy by 2030, with APAC poised to capture a significant share of this growth. The region’s strong manufacturing base, coupled with government support for AI research and development, positions it well to capitalize on AI’s potential.

The widespread adoption of AI also raises concerns about job displacement and ethical considerations. Governments and businesses must work together to address these challenges, ensuring that AI is used responsibly and that workers are equipped with the skills needed for the jobs of the future.

Quantum Computing: A new frontier

Quantum computing represents a new frontier in digital transformation, with APAC countries like Singapore and Japan leading the way. Singapore has announced plans to invest close to S$300 million over the next five years to boost quantum technology research and talent. This investment is part of the country’s broader strategy to build a quantum-safe network infrastructure, positioning it as a leader in the field.

In Japan, Mitsui & Co., Ltd has partnered with Quantinuum to deliver quantum computing solutions in the region. This collaboration aims to accelerate the development and deployment of quantum technologies, which have the potential to revolutionize industries such as pharmaceuticals, finance, and logistics.

Despite its promise, quantum computing is still in its early stages, with significant technical challenges to overcome. The potential benefits are immense, and APAC’s commitment to advancing this technology underscores its importance in the region’s digital transformation journey.

Drones and Autonomous Vehicles: Shaping smart nations

Drones and autonomous vehicles are integral to APAC’s vision of building smart nations. In Singapore, drones are being used as part of the Smart Nation strategy to capture high-quality, precise 3D digital models of buildings. This technology is enhancing urban planning and infrastructure development, making cities more efficient and sustainable.

Autonomous vehicles (AVs) are also gaining traction in the region. In China, Baidu’s Apollo Go robotaxi service is leading the way, with plans to deploy 1,000 AVs in Wuhan by the end of the year and expand to 100 cities by 2030. This initiative highlights the potential of AVs to provide mobility and independence for the disabled and elderly, as well as significant opportunities for freight and logistics.

In Malaysia, the government is considering a new legal framework to govern AVs, reflecting the growing interest in this technology. The deployment of AVs also presents challenges, including regulatory issues, safety concerns, and the need for robust infrastructure.

Conclusion: Building digital nations in APAC

The digital transformation initiatives in APAC are reshaping the region, driving economic growth, and improving the quality of life for its citizens. From blockchain and CBDCs to AI, quantum computing, drones, and autonomous vehicles, these technologies are building the foundation for digital nations.

The journey is not without challenges. Regulatory hurdles, cybersecurity risks, and ethical considerations must be addressed to ensure that these technologies are implemented responsibly and sustainably. Governments, businesses, and society must work together to navigate these challenges, ensuring that the benefits of digital transformation are realised for all.

As APAC continues to lead the way in digital transformation, it serves as a model for other regions, demonstrating the power of technology to drive innovation and progress. The future is digital, and APAC is at the forefront of this exciting journey.

 

Source: https://ciosea.economictimes.indiatimes.com/blog/leading-the-charge-apacs-comprehensive-approach-to-digital-transformation/114570268

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Market Makers in Crypto: Heroes or Villains?

Market Makers in Crypto: Heroes or Villains?

Cryptocurrency has taken the financial world by storm, offering new opportunities and challenges. Among the many facets of this digital revolution is market making, a practice that ensures cryptocurrencies remain liquid and tradable. However, recent legal actions by the Securities and Exchange Commission (SEC) have brought to light the ethical and regulatory dilemmas that accompany this essential function.

What Exactly Is Market Making?

Imagine trying to buy or sell a cryptocurrency, only to find that there are no buyers or sellers. This is where market makers come in. They act as intermediaries, always ready to buy or sell, which keeps the market moving smoothly. Quoting both buy and sell prices helps reduce the gap between what buyers are willing to pay and what sellers want to receive, known as the bid-ask spread. This is crucial in the world of cryptocurrencies, where prices can swing wildly in a matter of minutes.

In traditional finance, market making is a well-established practice, governed by clear rules and regulations. It helps maintain market stability and efficiency, which benefits everyone, from small investors to large institutions. But the world of cryptocurrency is different—less regulated, more volatile, and often shrouded in mystery. This environment can sometimes blur the lines between legitimate market making and unethical manipulation.

The SEC’s Crackdown: A Wake-Up Call

Recently, the SEC charged several companies and individuals, including ZM Quant, Gotbit, and CLS Global, with market manipulation. The allegations are serious. These entities are accused of creating a false sense of activity in the market, misleading investors about the true demand for certain crypto assets. Practices like wash trading—where the same asset is bought and sold repeatedly to inflate trading volumes—are at the heart of these charges. Such tactics are illegal in traditional markets and undermine trust in the financial system.

Wash trading gives the illusion of liquidity and demand, enticing unsuspecting investors to jump in. Another tactic, known as spoofing, involves placing large orders with no intention of executing them, misleading traders about market conditions and unfairly influencing prices. These manipulative strategies have long been outlawed in traditional markets, but the relative novelty and complexity of cryptocurrencies have made them easier to exploit.

The ethical landscape of cryptocurrency market making is complex. Transparency and honesty are crucial for maintaining trust and fairness. Market makers should clearly disclose their trading activities, strategies, and any potential conflicts of interest. This transparency allows other market participants to make informed decisions and helps regulators keep an eye out for manipulative practices.

Conflicts of interest are another significant concern. Market makers might have stakes in specific projects or hold large positions in the assets they trade. These conflicts can skew their trading decisions, potentially harming clients and the broader market. To mitigate these risks, market makers should implement strict policies to separate their market-making activities from other trading operations and disclose any potential conflicts to clients and regulators.

The Regulatory Landscape: A Work in Progress

Regulating cryptocurrency market making is a challenge, with different countries taking varied approaches. In the United States, the SEC and the Commodity Futures Trading Commission (CFTC) have started to regulate cryptocurrency markets, especially when digital assets are classified as securities or derivatives. These agencies have issued guidelines and taken enforcement actions to curb manipulative practices and protect investors.

Elsewhere, countries like Japan and South Korea have introduced specific licensing requirements for cryptocurrency exchanges and market makers. These regulations aim to enhance transparency, protect investors, and promote market integrity. However, the global and decentralized nature of cryptocurrencies presents significant challenges for regulators. The lack of a central authority and the pseudonymous nature of transactions make it difficult to monitor and enforce compliance effectively.

Additionally, the cross-border nature of cryptocurrency trading means that market makers may be subject to different regulations in different jurisdictions, leading to potential regulatory arbitrage.

To address these challenges, regulators and market participants must collaborate to develop a more unified and coordinated approach to cryptocurrency market regulation. This could involve creating international standards and best practices, as well as leveraging advanced technologies like blockchain analytics tools to monitor and enforce compliance.

Looking Ahead: The Future of Market Making

As the cryptocurrency industry continues to grow and mature, the role of market makers will remain crucial in ensuring liquidity and stability. However, the industry must address the ethical and regulatory challenges that have emerged. Market makers must adhere to high ethical standards, promoting transparency and fairness in their operations. Regulators, on the other hand, need to develop comprehensive frameworks that protect investors while fostering innovation.

The convergence of regulatory standards with those of traditional financial markets is likely to happen as the cryptocurrency industry matures. This will require market makers to adapt to evolving regulations and ensure that their practices align with principles of fairness, transparency, and investor protection.

In conclusion, while market making is a legitimate and necessary practice in cryptocurrency trading, it is essential to distinguish between ethical market making and manipulative practices. The recent SEC charges serve as a reminder of the potential for abuse in this space and underscore the need for robust regulatory frameworks and ethical standards. By addressing these challenges, the cryptocurrency industry can continue to thrive, offering new opportunities for investors and market participants alike.

 

 

 

Source: https://news.shib.io/2024/10/28/market-makers-in-crypto-heroes-or-villains/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

US Elections 2024 and Crypto: How Will Trump or Harris Shape Regulations?

US Elections 2024 and Crypto: How Will Trump or Harris Shape Regulations?
  • Donald Trump wants to become the first “Bitcoin President,” while Kamala Harris promised crypto innovation.
  • A Trump victory could lead to a continuation of the deregulatory approach, but a Harris administration would likely prioritise consumer protection and financial stability.

As the United States gears up for another significant presidential election, the intersection of politics and cryptocurrency has emerged as a critical area of focus. The candidates, former President Donald Trump and Vice President Kamala Harris, offer contrasting visions for the future of digital currencies and blockchain technology. This divergence is not only shaping the political landscape but also influencing financial markets, particularly the rapidly growing cryptocurrency sector.

The Crypto Landscape Amidst Political Uncertainty

Cryptocurrency, once a niche interest, has evolved into a major financial force. Its decentralized nature and potential for high returns have attracted a wide range of investors, from tech-savvy millennials to institutional giants. However, the regulatory environment remains uncertain, with policymakers grappling with how to integrate these digital assets into the existing financial system.

In this context, the upcoming U.S. presidential election could be a turning point. The candidates’ differing approaches to cryptocurrency regulation and adoption could have profound implications for the industry. As such, the election is not just a political contest but a referendum on the future of digital finance.

Wall Street’s Bet on Trump

Wall Street’s apparent preference for a Trump victory is rooted in his administration’s historical approach to regulation and taxation. Trump’s presidency was marked by a deregulatory agenda, which many investors believe could benefit the cryptocurrency industry. Lower taxes and fewer regulations could create a more favorable environment for crypto businesses, potentially spurring innovation and growth.

This sentiment is reflected in the behavior of prediction markets, where Trump’s odds of winning have surged. Platforms like Polymarket and PredictIt have seen significant bets placed on a Trump victory, with some investors wagering millions of dollars. These markets, which allow users to bet on the outcome of events using cryptocurrency, have become a barometer of investor sentiment.

The enthusiasm for Trump among crypto investors is not surprising. During his previous term, Trump expressed skepticism about cryptocurrencies but refrained from implementing harsh regulations. His administration’s focus on economic growth and deregulation aligns with the interests of many in the crypto community, who view excessive regulation as a barrier to innovation.

Harris and the Promise of Innovation

In contrast, Vice President Kamala Harris represents a more cautious approach to cryptocurrency. While she has not been as vocal about her stance on digital currencies, her campaign has emphasized the importance of innovation and technology. Harris has promised to encourage the development of emerging technologies, including artificial intelligence and digital assets while ensuring consumer protection and financial stability.

Harris’s approach reflects a broader Democratic strategy of balancing innovation with regulation. Her administration would likely prioritize consumer protection and financial stability, potentially leading to stricter regulations on cryptocurrencies. This could include measures to prevent fraud, protect investors, and ensure the stability of the financial system.

Despite these potential challenges, Harris’s focus on innovation could also benefit the crypto industry. By fostering a supportive environment for technological development, her administration could encourage the growth of blockchain technology and digital assets. This could lead to new opportunities for entrepreneurs and investors, even if it means navigating a more complex regulatory landscape.

The Role of Prediction Markets

The divergence between traditional polls and prediction markets highlights the unique dynamics of this election. While many polls show a close race between Trump and Harris, prediction markets have consistently favored Trump. This discrepancy can be attributed to several factors, including the influence of large investors, or “whales,” who have placed substantial bets on a Trump victory.

These markets, which operate on blockchain technology, offer a decentralized platform for betting on the outcome of events. They have gained popularity in recent years, particularly among crypto enthusiasts who appreciate their transparency and accessibility. However, their predictions should be interpreted with caution, as they reflect the views of a specific subset of investors rather than the broader electorate.

The influence of prediction markets on media coverage is also noteworthy. As these platforms have gained prominence, their odds have been cited as evidence of Trump’s growing lead. This has contributed to a narrative that may not fully align with traditional polling data, underscoring the complex relationship between media, markets, and public perception.

The Future of Cryptocurrency Regulation

The outcome of the election will have significant implications for the future of cryptocurrency regulation in the United States. A Trump victory could lead to a continuation of the deregulatory approach that characterized his previous administration. This could create a more favorable environment for crypto businesses, potentially attracting investment and fostering innovation.

On the other hand, a Harris administration would likely prioritize consumer protection and financial stability, potentially leading to stricter regulations. While this could pose challenges for the industry, it could also provide a more stable and secure environment for investors, ultimately benefiting the market’s long-term growth.

Regardless of the outcome, the election will serve as a critical juncture for the cryptocurrency industry. As digital currencies continue to gain traction, policymakers will need to strike a balance between fostering innovation and ensuring the stability and security of the financial system. This will require collaboration between regulators, industry leaders, and other stakeholders to develop a regulatory framework that supports the growth of digital finance while protecting consumers and maintaining financial stability.

Conclusion: A Pivotal Moment for Crypto

The U.S. presidential election is a pivotal moment for the cryptocurrency industry. The candidates’ differing approaches to regulation and innovation will shape the future of digital finance, influencing everything from market dynamics to investor sentiment. As such, the election is not just a political contest but a referendum on the future of cryptocurrency.

For investors and industry leaders, the stakes are high. A Trump victory could lead to a continuation of the deregulatory approach that has benefited the industry, while a Harris administration could introduce new challenges and opportunities. Regardless of the outcome, the election will serve as a critical juncture for the cryptocurrency industry, shaping its trajectory for years to come.

As the election approaches, the crypto community will be watching closely, eager to see how the outcome will impact the future of digital finance. Whether through deregulation or innovation, the next administration will play a crucial role in shaping the future of cryptocurrency, influencing everything from market dynamics to investor sentiment. In this context, the election is not just a political contest but a referendum on the future of digital finance.

 

Source: https://www.financemagnates.com/cryptocurrency/us-elections-2024-how-will-trump-or-harris-administration-shape-crypto-regulations/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j