What we’ve noticed: As the crypto payments market gains steam, lawmakers and regulators across the globe are trying to figure out how to regulate digital currencies effectively to ensure safety and legitimacy—a debate that took on a new sense of urgency after El Salvador became the first country to accept Bitcoin as legal tender.
Asia-Pacific leads the way: Here are the latest crypto payment moves from two of the biggest global markets.
The bigger picture: When it comes to digital currencies, countries like CBDCs because they have parity with corresponding fiat currencies and can fit within the global banking system: Just days after international financial institutions called for global collaboration to make CBDC interoperable, central banks of Singapore and France successfully tested a cross-border network involving multiple CBDCs supported by JPMorgan’s blockchain infrastructure, Onyx. Bitcoin, on the other hand, faces an uphill climb toward being accepted as a currency amid concerns about its high volatility and utility as a payment method, but payment players are nevertheless diving into the space—signaling the asset may be able to overcome this skepticism. But for CBDCs and broader crypto payments to break into the mainstream, continued work toward interoperability will be key to ensure payment utility and enable cross-border transactions.