ALBAWABA- This week in crypto news, MicroStrategy significantly increased its Bitcoin holdings, Binance Australia experienced sudden debanking, and the Swiss National Bank announced a trial project for a wholesale central bank digital currency (wCBDC). You know the drill, let's deep dive together!
MicroStrategy Expands Bitcoin Portfolio, Surpassing $4.5 Billion in Value
MicroStrategy, the renowned business intelligence firm, has recently announced its acquisition of an additional 12,333 Bitcoin on June 28, amounting to a substantial $347 million investment. This latest purchase has propelled MicroStrategy's total Bitcoin holdings to an impressive 152,333 BTC, which is currently valued at a staggering $4.52 billion. Notably, the average purchase price per coin stands at $29,668, reflective of the company's strategic approach in navigating the cryptocurrency market.
During the period between April 27 and June 27, MicroStrategy executed its strategic Bitcoin purchases, partially financed by the issuance of new stock. Undeterred by the crypto bear market, MicroStrategy has consistently pursued its Bitcoin acquisition strategy, often disregarding price fluctuations. This unwavering commitment to building their cryptocurrency holdings has yielded remarkable results.
In a significant development, MicroStrategy reported its first profitable quarter since 2020 in Q1 2023, primarily driven by a one-time income tax benefit. This positive financial outcome underscores MicroStrategy's adeptness in capitalizing on emerging opportunities in the cryptocurrency realm. As the company continues to embrace the potential of Bitcoin, its growing portfolio exemplifies MicroStrategy's unwavering faith in the long-term value of digital assets.
Binance Australia Left Stranded as Banking Services Abruptly Halted
In a shocking turn of events, Binance Australia found itself severed from the country's banking system without any prior notice, consultation, or avenues for resolution. During the dead of night, the Binance Australia team received the jarring news that they would be entirely "cut off" from accessing the local banking infrastructure. Ben Rose, the regional manager of Binance, disclosed the details of this debanking incident during the Australian Blockchain Week on June 26, shedding light on the sudden disruption.
This disheartening development followed Binance's announcement in May that its dollar services had been suspended due to the actions taken by its payments provider, Zepto, who was instructed to discontinue support for Binance. Consequently, approximately 1 million customers based in Australia were adversely affected by this decision, facing challenges in managing their transactions and finances on the platform. As a result, Binance now finds itself in the arduous task of seeking an alternative payment provider to restore its services and accommodate the needs of its Australian user base.
The debanking of Binance Australia serves as a stark reminder of the regulatory hurdles and uncertainties that cryptocurrency exchanges encounter in their operations. With the sudden disruption of services, customers are left grappling with the need to find alternative solutions for their payment needs. As Binance navigates these challenges, the incident underscores the importance of establishing robust and reliable banking relationships within the cryptocurrency industry, in order to ensure seamless operations and uninterrupted access for users around the world.
Swiss National Bank Embarks on Trial Project for Wholesale CBDC
In a significant development, the leader of the Swiss National Bank (SNB) has announced the commencement of a trial project for a wholesale central bank digital currency (wCBDC), as reported in a recent publication. Thomas Jordan, the chairperson of the SNB, revealed during the Point Zero Forum in Zurich on June 26 that the project would soon be launched.
The wCBDC will be issued through the Swiss SIX digital exchange, which is managed by the SIX Group, responsible for operating Switzerland's largest stock exchange. The trial project aims to facilitate real transactions with market participants, as the wCBDC will represent actual money equivalent to bank reserves.
Notably, the SNB had previously integrated a wCBDC into the backend systems of five banks in early 2022 under Project Helvetia, following a successful proof of concept. This progress marks a significant shift in the SNB's stance, as its chief economist, Carlos Lenz, who once deemed blockchain unsuitable for CBDC and stated that Switzerland had no plans to issue one, has now adjusted his position.
While expressing caution regarding retail CBDC, Thomas Jordan stated that the SNB remains somewhat conservative for now but does not entirely rule out the possibility of introducing it in the future. In a separate event at the Point Zero Forum, SNB governing board member Andréa Maechler emphasized that the central bank does not foresee the replacement of physical cash within the country. Last year, Maechler had highlighted the SNB's concerns about the risks outweighing the benefits of a retail CBDC.
With the initiation of this trial project for a wholesale CBDC, the Swiss National Bank joins the ranks of central banks globally exploring the potential of digital currencies. The outcome of this project will likely provide valuable insights into the feasibility and implications of integrating CBDCs into the financial landscape.
