Seeds of Wisdom RV and Economic Updates Tuesday Morning 11-19-24
Good Morning Dinar Recaps,
PHILIPPINES TO DISTRIBUTE TOKENIZED GOVERNMENT BONDS VIA GCASH WALLET, PDAX CRYPTO EXCHANGE
The Philippines government is about to embark on the next phase of its government bond tokenization path. Last year it tokenized bonds targeting institutional investors. That was followed by releasing 90 day Treasury Bills available to retail investors.
Now the Bureau of the Treasury is planning to distribute longer term tokenized Treasury Bonds, or GBonds, in December targeting consumers.
Its primary distribution mechanisms will be via GCash and PDAX. GCash is the wallet app that has been used by 94 million people and was recently valued at $5 billion.
Ant, the owner of Alipay owns around a third of GCash parent Mynt and MUFG owns 8%. PDAX is a cryptocurrency exchange with around four million users that has already been distributing the Treasury Bills, with a minimum investment of 500 pesos ($8.52).
“We envision a future where investing in government bonds is no longer a luxury but a new normal for Filipinos — with just a few swipes away and as easy as ordering their favorite food delivery,” said Ralph Recto, the Philippines Secretary of Finance. “This empowers our people to effortlessly secure their future, all from the comfort of their homes.”
The government news agency said Recto called for GCash and PDAX to speed up the launch.
The country already has retail government bonds, but the minimum investment is ten times higher at 5,000 pesos. PDAX, who we suspect is providing the tokenization technology, says one of the key benefits is reducing the administration costs to support the smaller denominations.
In 2020, the government first explored using blockchain for retail government bonds and launched the Bonds.PH app in collaboration with UnionBank. Back then, the bank also partnered with PDAX for the blockchain aspect.
Other tokenized government bonds
Issuing tokenized government bonds as digital twins, or natively digital bonds, is becoming increasingly popular, although most still target institutions. Slovenia became the first European state to issue a digital bond, and the UK is planning one in the next two years. The largest digital government bod so far was a multicurrency green bond issuance worth $756m by Hong Kong.
@ Newshounds News™
Source: Ledger Insights
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IOTA announces network upgrade for more real-world adoption
The IOTA Foundation has announced a sweeping upgrade to its blockchain network, aiming to improve scalability, decentralization, and real-world use cases.
Dubbed “IOTA Rebased,” the proposal will transition IOTA’s Layer 1 network to a Move-based object ledger, introducing programmability and enabling tens of thousands of transactions per second.
If approved by token holders, the upgrade will mark a shift to a delegated proof-of-stake mechanism with 150 permissionless validators to secure the network.
This move will replace IOTA’s (IOTA) existing architecture with a decentralized structure, allowing for faster and more secure transactions.
The proposal also incorporates the Move programming language, enabling smart contracts directly on the Layer 1 network.
This feature is designed to expand IOTA’s application in industries such as supply chain tracking, asset tokenization, and digital identity systems, according to the company.
IOTA has created a governance post so the community can discuss and debate the protocol upgrade. The vote will officially go live on December 2.
In August, IOTA introduced a blockchain-based tool to simplify music rights management in the film industry. Developed under the European Blockchain Pre-Commercial Procurement initiative, the tool aims to streamline negotiations and secure intellectual property rights.
Move ecosystem merge
Joining the Move ecosystem alongside platforms like Sui and Aptos, IOTA aims to leverage MoveVM’s capabilities while becoming the first Layer 1 network to adopt this architecture.
The IOTA Foundation has launched a Move-based testnet to showcase the upgrade’s potential, accompanied by tools for developers, including a browser wallet extension and updated documentation.
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The economic model under the proposed system introduces staking rewards and a dynamic token supply. Validators and delegators will earn newly minted IOTA tokens with an initial annual inflation rate of 6-7%, translating to a projected 10-15% annual return for stakers, according to the company release.
This model aims to incentivize network participation while maintaining fair tokenomics through mechanisms like fee burning.
“This upgrade could significantly accelerate our adoption efforts by introducing programmability and full decentralization to IOTA. We believe this proposal has the best chance of delivering value for the IOTA ecosystem.” — Dominik Schiener, Co-Founder and Chair of the IOTA Foundation.
With the Rebased proposal, IOTA seeks to strengthen its position as a leading blockchain infrastructure, focusing on bridging decentralized technology with practical, real-world applications.
@ Newshounds News™
Source: Crypto News
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