China and Russia express varied opinions on CBDCs while Aptos collaborates with Microsoft for digital payments
- China and Russia have assorted opinions about CBDC, with the former pushing towards while the other showing utter disinterest.
- The Chinese use the digital Yuan to pay taxes while most Russians have shown distrust for the digital Ruble.
- Microsoft and Aptos have entered a partnership exploring the latters’ innovative solutions using AI technology around CBDCs and digital payments.
Central Bank Digital Currencies (CBDCs) have become mainstream in the cryptocurrency realm, as countries transition to digital currencies. These assets are issued by the central banks of individual governments as they look for cryptocurrency alternatives with fixed values and hence less risk-prone. This explains why many governments are developing CBDCs, with some already implementing them.
Contrasting views around CBDCs but Aptos and Microsoft forge on
CBDCs are a popular subject in China, with the Hunan Province actively using digital renminbi (RMB), the country’s digital currency. Based on recent reports, the province was able to use the CBDC for tax settlements, totaling 6 million Yuan. The report tabulates 794 CBDC-related transactions totaling 3 million Yuan at the Hunan Branch of Postal Savings. The number of digital Yuan-related transactions has been on a steady rise, facilitated by citizens’ willingness to adopt the digital Yuan.
While China is embracing CBDCs, the case is different for Russia where a survey revealed that around 34% of the population considers the digital Ruble to be a scam. Citing one of the respondents:
This is some kind of deception. You have to be on your guard.
Notwithstanding, the conflicting stances by the two significant members of BRICS (Brazil, Russian, India, China, and South Africa) have not stopped Aptos and Microsoft Inc. from venturing into the space. Based on recent reports, the Layer-1 (L1) Proof-of-Stake (PoS) blockchain has signed a collaboration with the American multinational technology corporation.
CBDCs bring Aptos and Microsoft together
CBDCs and digital payments have brought the two powerhouse names on a joint mission to explore Aptos’ innovative solutions around Web3. Specifically, Aptos will leverage Microsoft’s framework to introduce a new chatbot dubbed Aptos Assistant to answer customer queries.
Aptos Labs CEO, Mo Shaikh, commented on the partnership, lauding CBDCs and digital assets for their role as “generational breakthroughs that profoundly impact the evolution of the internet and shape society.”
Further, the partnership will explore blockchain technology-related financial services solutions, including asset tokenization examination among other payment methods like CBDCs. This is all geared towards expanding the reach of blockchain technology. As such, Aptos will serve as a validator through Microsoft’s Azure for enhanced network security.
Aptos price shoots up 10% as network enters an agreement
Aptos (APT) price is up 10% in the last 24 hours, testing the 50-day Moving Average (MA) at $7.2246 as bulls push for more gains. With the Relative Strength Index (RSI) heading north and the Awesome Oscillator (AO) histograms flashing green, growing momentum could see Aptos price extend north, potentially flipping the 50-day MA hurdle to support.
In a highly bullish case, Aptos price could leap an additional 25% to tag the $9.1789 resistance level, last seen around June 4.
APT/USDT 1-day chart
Conversely, if sellers overpower APT bulls, Aptos price could pull back toward the range low at $5.2682, or in the dire case, move further south to the $.1250 support level. Such a move would constitute a 60% price drop from current levels.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
