The CBUAE (Central Bank of the United Arab Emirates) has revealed its strategy for introducing the UAE CBDC. The CBUAE will likely launch its digital currency by mid-2024.

On March 23, the CBUAE released an [official statement](https://www.centralbank.ae/media/lpoilyue/cbuae-launches-the-central-bank-digital-currency-strategy-the-digital-dirham-en.pdf) regarding its strategy for the digital Dirham. The statement mentioned that the CBUAE has signed an arrangement with the [R3](https://r3.com/) and [G42 Cloud](https://www.g42cloud.com/) firms to launch its CBDC. 

## UAE CBDC: The three pillars of the first phase

The announcement further stated that the first stage for implementing the digital Dirham would likely be concluded in the next 12 to 15 months. The central bank has set three main pillars or goals for the first stage.

Firstly, the CBUAE is aiming for the soft launch of its pilot project, mBridge. It is a cross-border payment with several central banks and authorities. They include the Bank for International Settlements (BIS), the Bank of Thailand, the Hong Kong Monetary Authority, and the Digital Currency Institute of the People's Bank of China. 

The second goal of the CBDC's first stage is to collaborate with India for virtual currency bridges. India is among the UAE's top trading allies. The two countries will work on a bilateral virtual coin bridge to facilitate trade. Meanwhile, India itself is implementing its [digital Rupee](/news/article/reserve-bank-of-india-cbdc).

Lastly, the Proof of Concept work will also be implemented for the domestic Dirham. It is to facilitate the wholesale and retail uses of the currency.

## Financial infrastructure transformation

Introducing a digitized version of the Dirham is a key step toward financial infrastructure transformation in the country. The FIT program in the UAE is looking to catch up on the global trend of introducing CBDCs.

Many countries, including India, [Russia](/news/article/putins-blockchain-payment-system), [Iran](/news/article/iran-accepting-crypto-payments), the UK, and others, are working on their virtual fiat currencies. Therefore, the digital currency of the UAE can be a significant step toward a transformation in the country's financial system.


Yellow image of UAE flag in front of Dubai skyline

UAE CBDC to Complete First Phase by 2024 

A week after [Signature Bank closed](/news/article/why-signature-bank-fell-so-fast), Flagstar Bank, a New York Community Bank subsidiary, has agreed to purchase a huge chunk of the failed institution in a $2.7 billion deal.

According to the Federal Deposit Insurance Corporation (FDIC), all of Signature Bank's 40 branches will operate as Flagstar Bank beginning Monday. Customers won't need to make any changes to conduct business with the new bank. 

## Flagstar bid excluded $4 billion crypto deposits

FDIC's 19 March [press statement](https://www.fdic.gov/news/press-releases/2023/pr23021.html) didn’t address the fate of the much larger [Silicon Valley Bank](/news/article/silicon-valley-bank-uk-to-be-bought-by-hsbc) (SVB) that the regulator took over two days before taking over Signature Bank.

The takeover deal includes purchasing Signature Bank's assets worth $38.4bn. SVB had $209 billion in assets compared to Signature Bank's $110.36 billion.

Per the announcement, the Flagstar takeover bid, which includes a $60 billion loan portfolio, excluded $4 billion associated with Signature's crypto banking business. Accordingly, crypto deposits will remain with the agency in receivership, and FDIC will provide [them directly to the customers](https://twitter.com/nic__carter/status/1637609420929597440) concerned.

The shutting down of Signature Bank came hot on the heels of the fall of the crypto-friendly [Silvergate Capital](/news/article/silvergate-bank-crisis-sees-crypto-tank) earlier in March and the 12 March closure of SVB, which previously caused [Circle’s](/news/article/circle-usdc) USDC to stumble and lose its peg to the US dollar. Commenting during a previous press interview, Circle's Chief Strategy Officer [Dante Disparte](https://forkast.news/video-audio/circles-disparte-crypto-banking-risks/) opined that the ongoing fallout was a stress test for traditional finance and emerging cryptocurrencies, presenting an opportunity for them to "weather the storm side by side".

## Traditional banks introducing risk to the crypto space

The unwillingness of Flagstar Bank to take over all of Signature Bank's assets, including the crypto-related ones, indicates that banks are becoming wary of taking on risk due to the spreading banking crisis.

The ongoing banking failures demonstrate that, contrary to what everyone else might have thought, traditional banks are now introducing risk to the crypto space. The current state of affairs is the opposite of the "travel risk" regulators routinely offered to would-be crypto investors on the risk that crypto would introduce to banking.

The back-to-back failure of Silicon Valley Bank and Signature sparked a nationwide fear that it could kick off a more significant crisis of confidence within the US banking system.

FDIC is looking to step in and save the situation by brokering sales to pay back the failed banks' depositors to more vital financial institutions.


Flagstar to Buy Signature's Non-Crypto Assets 

The collapse of crypto-friendly Signature Bank happened so fast that it qualifies to become a textbook case of a classic bank run. Together with Silvergate and [Silicon Valley Bank](/news/article/silicon-valley-bank-uk-to-be-bought-by-hsbc) (SVB), the trio that have been the go-to financial institutions involved in crypto banking suffered massive operational blows within less than a week.  

Startled by the sudden collapse of SVB, customers had a run on Signature Bank last Friday, March 10. They withdrew more than $10 billion in deposits, leading to the third-largest bank failure in the history of the US. Regulator Federal Deposit Insurance Corporation (FDIC) [announced last Sunday](https://www.fdic.gov/news/press-releases/2023/pr23017.html) that it was taking over Signature to protect depositors and help stabilize the US financial system.  
  
## Customers had a run on Signature Bank

The sudden move has shocked the New York-based institution, which has deep ties with not only the crypto but also the legal and real estate industries and boasts more than 40 branches, deposits of $88.59 billion, and assets worth $110.36 billion by the end of 2022. 

Trouble for US banks associated with crypto and tech startups reached a crescendo last week with the announcement of the winding down of the crypto-friendly Silvergate Bank. 

While [Silvergate’s demise was imminent](/news/article/silvergate-on-verge-of-collapse), it ignited panic about uninsured customer deposits in institutions. That led to Venture capital investors and founders draining their accounts at SVB Thursday last week and its subsequent seizure by midday Friday. The ensuing worries must have spread to Signature, First Republic, and others that now risk a similar fate out of fears that uninsured deposits could be locked up or lose value. Both situations could be fatal to startups.

## Decision not directly related to crypto

According to New York’s [financial regulator](https://www.reuters.com/business/finance/signature-banks-closure-had-nothing-do-with-crypto-new-york-regulator-2023-03-14/), the decision to seize Signature Bank wasn’t directly related to crypto but rather a “crisis of confidence” in the institution’s leadership following the SVB crisis. 

Signature has been an integral institution for the crypto industry and hosts tools that facilitate digital transactions for mainstream crypto companies. The bank is part of a small group of mainstream banks serving the crypto industry.  

Federal regulators will now most likely shine their spotlight on other banks offering crypto services, while traditional banks could think twice before dipping their toes. Considering the volatility of the crypto market and the cost of maintaining compliance, there may be a need for players within the crypto space to work harder to retain the growing interest in banks experimenting with crypto and related blockchain technology.


Why Signature Bank Fell So Fast

Giant banking firm HSBC Holdings Plc (HSBA) is planning to buy Silicon Valley Bank's British unit. According to the [filing](https://www.londonstockexchange.com/news-article/HSBA/hsbc-acquires-silicon-valley-bank-uk/15871682) released on 13 March, 2023, HSBC will acquire the firm for £1.

SVB UK collapsed, reeling from severe losses. The finance company had total debts of around £5.5 billion and had deposits of more than £6.7 billion until 10 March.

## UK Government facilitated the Silicon Valley Bank sale

On Monday, the Bank of England also released an [official statement](https://www.bankofengland.co.uk/news/2023/march/statement-on-silicon-valley-bank) regarding the matter. As per the statement, a number of other UK authorities were also involved. These included HM Treasury, the Prudential Regulation Authority, and the Financial Conduct Authority.
  
HSBC itself is regulated by the [FCA](/news/article/fca-crypto-regulation) and PRA, a fact which is likely help SVB UK recover from the losses. The statement issued by the Bank of England said that the step was taken to strengthen and stabilise the banking system of the United Kingdom. 

The central bank statement added that the move would ensure the continuity of banking services, minimise disruption to the country's tech sector, and support.

The Bank of England also guaranteed that all depositors' funds with the collapsed bank would be secured after its sale to HSBC.

## PM Rishi Sunak on the decline of SVB

The Bank of England released the official statement detailing plans for the sale of SVB UK just after [Britain's Prime Minister Rishi Sunak](/news/article/rishi-sunak-crypto-believer-uk-pm) assured the nation about the "sound" financial system of the country.

In talks with the media regarding the US bank's subsidiary's downfall, the Prime Minister said, "There's nothing to worry about."

He went on to add further reassurance that the country's financial health is "resilient" and would not be affected by the decline of SVB. The PM is currently in San Diego, where he will likely meet President Joe Biden.


silicon valley bank branch with red filter and money falling

Silicon Valley Bank UK to Be Bought by HSBC 

In a recent [podcast episode](https://open.spotify.com/episode/2iBhhDShX30sfdKOiU2agw) of The Scoop, The Block's Frank Chaparro and Kraken Chief Legal Officer Marco Santori discussed the crypto exchange's plan to launch a bank.

Kraken's ultimate goal is to support other crypto companies finding it difficult to establish a relationship with banks.

## US banks hesitant to accept crypto firms as new clients

Given increased crypto regulatory actions in the US, banks are hesitant about taking on cryptocurrency firms as new clients. The US Securities and Exchange Commission (SEC), led by Chair Gary Gensler, believes that most crypto assets offered by cryptocurrency companies are securities, thereby [subject to regulation.](/news/article/sec-probe-giving-advice-for-crypto-trading)

Following the unceremonious decline of major industry [players such as FTX](/news/article/ftx-funds-political-donations-to-be-recovered) and BlockFi, the SEC has put the US-based segment of the industry under the microscope. Following a [reported SEC probe of the Kraken](/news/article/crypto-exchange-kraken-faces-sec-probe) crypto exchange over unregistered securities, the cryptocurrency trading platform agreed to pay a $30M fine.

This resulted in the Kraken [suspending its staking operations](/news/article/crypto-tumbles-as-kraken-suspends-staking) with retail investors. This decision by the SEC did not go well with the community, investors, and even politicians.

That said, there is a silver lining for Kraken, and it is in the form of a [recent incident involving Silvergate](/news/article/silvergate-bank-crisis-sees-crypto-tank). In early March 2023, Silvergate 'missed' the deadline for 10K filings. This led the SEC to warn the bank about its capacity to carry on as a "going concern".

As a result, Ledger, Circle, Paxos Trust Company, Coinbase, and several other high-end industry clients publicly cut ties with the cryptocurrency bank. This led Kraken crypto exchange to decide to launch its own bank and support cryptocurrency firms.
 
Scrolling to the bottom of Kraken's [website](https://www.kraken.com/bank), you will see the Kraken Bank option. The facility has yet to be launched, but you can sign up for updates by filling out a short form.

According to the website, Kraken is "planning a phased launch in 2022". This may be a typing error, or the webpage needs to be updated with the latest content. It should be noted that the trading platform is the first cryptocurrency firm to be handed a US state banking charter.

Operating as an independent affiliate of the Kraken network of products, the “[Bitcoin bank](/news/article/crypto-banks-access)" will be based out of Wyoming, with a forward-facing regulatory framework. Good news may follow later this year.


Kraken Crypto Exchange Plans Bank Launch 

One of the most popular US banks for cryptocurrency transactions, Silvergate Capital, is in danger of collapse. The firm is examining its position to decide whether it can continue its operations.

On 1 March, the bank reported to the US financial watchdog, the Securities and Exchange Commission (SEC), that it would not file its annual activities report on the deadline. It also reported to the SEC that it is deliberating its options to survive the crisis.

## Silvergate facing bankruptcy due to FTX contagion

Silvergate Capital is a bank that deals in crypto lending. It has become the first conventional finance house affected by the FTX contagion. Reportedly, it lent almost all its funds to the exchanges. Due to this, when the [FTX crypto exchange crashed](/news/article/curve-finance-leverage-ftx-crash), the California-based finance company suffered severe losses. 

Meanwhile, the [collapse of Sam Bankman-Fried's](/news/article/sam-bankman-fried) firm has affected several crypto-lending firms since November 2022. Some of the most prominent names are [BlockFi](/news/article/blockfi-bankrupt-court-documents), [Genesis](/news/article/genesis-bankruptcy-crypto-meltdown-continues) Global, and [Gemini Exchange](/news/article/gemini-crypto-exchange-falls-prey). 

In addition, many prominent lending partners are pulling out after the news of the bank's potential bankruptcy. The firms that have withdrawn include big names like [Coinbase Global](https://www.coinbase.com/price/global-cryptocurrency), [Galaxy Digital Holdings](https://www.galaxy.com/), [Crypto.com](https://crypto.com/), and [Paxos Trust](https://paxos.com/). The company will also have to deal with this loss of business.

## Silvergate shares plunged 

After the bank reported to the SEC about its financial situation, its share value plummeted. On Thursday, the firm's share value dropped by more than 55%. The overall stock price in the year has decreased by 67%.

Furthermore, [Silvergate has experienced losses](/news/article/silvergate-bank-loses-assets) of more than $1 billion in the past three months. Although many other firms also saw significant losses, Silvergate’s collapse could leave a lasting effect on the market. The main reason is that the firm is a traditional bank, which could likely shake investors' trust in the crypto market.


Silvergate Capital on Verge of Collapse

US payment goliaths Visa and Mastercard are pausing the launch of certain [crypto-based services and products](/news/article/visa-crypto-wallet-plans-outlined) in the wake of numerous high-profile collapses in the crypto industry, such as [FTX](/news/article/ftx-funds-political-donations-to-be-recovered) and BlockFi.

The bankruptcies/shortcomings of several major players in the industry, current market conditions, and [increased regulatory scrutiny](/news/article/imf-crypto-regulation-g20-summit) have led Visa and Mastercard to change their plans with immediate effect.

## Why have Visa, Mastercard pushed back the launch of crypto services and products?

Over the past few years, card giants such as Visa and [Mastercard explored partnerships](/news/article/mastercard-start-path) with leading crypto firms. They set up dedicated teams to survey and potentially integrate blockchain technology into their products and services.

In April 2022, Mastercard and Nexo teamed up to launch the world’s first [crypto-backed payment card](/news/article/nexo-card-or-binance-card).

In October 2022, [Visa announced](/news/article/visa-crypto-consulting) global debit card agreements with disgraced cryptocurrency exchange FTX as part of an expanded partnership. Following the downfall of the crypto trading platform a few weeks later, Visa terminated the partnership in November.

In 2021, American Express said it would consider using cryptocurrency to redeem reward points.

An unnamed American Express spokesperson said that while the organisation continues to explore the significant use cases of blockchain technology, crypto will not replace their "core payment and lending services", "in the near term".

While Visa and Mastercard have put a halt to [crypto service and product](/news/article/visa-bitcoin-debit-card-review) rollout at the time of writing, they are optimistic about the future of blockchain technology. Their cryptocurrency-centric strategy and focus remain unchanged.

In a conversation with [Reuters](https://www.reuters.com/), a Visa spokesperson said the high-profile failures seen recently in the sector act as "an important reminder" that there is a long way to go before cryptocurrency is "part of mainstream payments and financial services".

Talking to Reuters, a Mastercard spokesperson commented on how the company intends to continue to apply blockchain technology to “build more efficient systems” that “help address current pain points”.
It should be noted that the delayed launch of cryptocurrency services and products by massive payment corporations like Visa, Mastercard, and American Express and the halt on the forging of new partnerships is not a poor reflection of blockchain technology. Instead, it is a sign of the times.

With [global crypto regulatory frameworks](/news/article/australia-crypto-regulation) being built as we speak, it makes the utmost sense to explore blockchain technology further and play the waiting game while the market settles and consumer/investor confidence rebuilds itself.


visa and mastercard cards with red filter

Visa, Mastercard Pause Crypto Services Launch 

Yaya Fanusie, a cryptocurrency researcher and former CIA analyst, believes the slow start on US CBDC ([Central Bank Digital Currency](/news/article/uk-sought-cbdc-head)) development could lead to a loss of control over the global financial system. 

Fanusie, currently the policy head at the Crypto Council for Innovation, noted in a Bloomberg interview on 28 February that sanctioned states seek to transact on financial infrastructure that isn't heavily influenced by the US to move funds more freely across borders.

Further, he suggests that if the US [CBDC adoption](/news/article/central-bank-of-kazakhstan) continues to lag, it may result in unforeseen geopolitical implications and trouble over time. According to him, the state-issued central bank digital currencies could be a crucial element in the global adoption of such infrastructure. He also warned that the US could lose its influence over developing new standards in this area, negatively impacting its economic statecraft.

However, the US Federal Reserve has recently made progress in the US CBDC project, known as the [Digital Dollar Project](https://digitaldollarproject.org/wp-content/uploads/2023/01/Digital-Dollar-Project-White-Paper-2.0_2023.pdf), with the release of its latest whitepaper on 18 January. Nevertheless, the Federal Reserve has yet to receive approval from the US government to move forward with this project.

## China's advantage on early adoption of CBDC  

Fanusie, in the [Bloomberg interview](https://www.youtube.com/watch?v=BCRvX9s7xMA), noted China's advantage in the early adoption of CBDC since 2014 and the launch of the pilot version of its digital yuan (e-CNY) on 4 January, 2022. According to him, the e-CNY has already processed millions of transactions across millions of wallets.

Further, he added that an array of pilots are currently testing smart contracts to introduce programmability into CBDCs. Additionally, China is assisting other nations in adopting similar standards and collaborating for their CBDC to CBDC transactions. Fanusie noted that countries might have an unspoken "race" to gain a geopolitical advantage in the CBDC realm.

## Opponents' viewpoint

Some critics of central bank digital currencies believe governments leverage blockchain-backed CBDCs to retain financial oversight over their populace.

One such instance of this resistance occurred in the United States, where Congressman Tom Emmer, an advocate of cryptocurrency, put forward the CBDC Anti-Surveillance State Act to safeguard the financial confidentiality of American citizens against potential intervention by the Federal Reserve.


red image of US building and crypto coins

Delayed US CBDC Adoption Could Spell Trouble 

According to the documents filed in bankruptcy court by Genesis Global and its associated organizations, the parent company, Digital Currency Group (DCG), owes its subsidiaries more than $1. 65 billion.

The holding firm Genesis Global Holdco (GGH), the lender Genesis Global Capital (GGC), and Genesis Asia Pacific are the three organizations that have sought protection under bankruptcy laws (GAP).

## DCG owes subsidiaries more than $1.65 billion

[A declaration](https://www.coindesk.com/business/2023/01/20/digital-currency-group-owes-subsidiary-genesis-global-over-165b/) was filed at the end of January with the bankruptcy court of the Southern District of New York (SDNY) by Paul Aronzon, a member of a special committee of the board of directors of GGH, the holding company of the Genesis Global entities. It said that DCG's debt to Genesis includes loans of $575 million, due in May of this year, and a $1.1 billion promissory note due in June 2032.


The special committee is investigating the lending operations between GGC and DCG to evaluate whether or not the defunct companies have any legitimate claims against DCG connected to these transactions that could benefit the restructuring process.


Lev Dassin, a former acting US Attorney for New York's Southern District, is in charge of the investigation by the legal firm Cleary Gottlieb Steen & Hamilton LLP, which also represents Genesis in the proceedings.


To be more specific, the investigation is looking into the lending of "approximately $850 million in unsecured loans to the DCG entities, the DCG (promissory) note, various transactions that restructured the $850 million in unsecured loans in November 2022, and DCG's purported exercise of a $52.5 million set-off in November 2022.


Additionally, the committee is looking at potential avoidance actions and the different types of actions that can be taken around DCG entities, Gemini Trust Company, LLC, and other Genesis lenders.


When a debtor takes action to avoid or annul certain fund transfers before filing for protection under Chapter 11, this is known as an avoidance action. The January filings are another chapter in a series of high-profile failures that have shaken the cryptocurrency industry over the past year.


These failures include the implosion of the Terra cryptocurrency exchange and the collapse of the FTX cryptocurrency exchange. Genesis became entangled in the failures of the hedge fund Three Arrows Capital and FTX. Both of these businesses eventually went bankrupt. Genesis was compelled to restrict withdrawals in its lending unit shortly after FTX filed for Chapter 11 bankruptcy in November. 

Gemini, [the cryptocurrency exchange](/news/article/crypto-exchange-gemini-cuts-staff) owned by Cameron and Tyler Winklevoss, was a key customer of Genesis's lending business and was one of the reasons for the suspension. Since then, CEO Cameron Winklevoss has been running an open campaign against Genesis, DCG, and the company's CEO, Barry Silbert.

Before it filed for protection under Chapter 11, Genesis Global had attempted to obtain new cash or negotiate a settlement with its creditors. According to the documents filed in the bankruptcy case, the corporation owed $3.5 billion to its top 50 creditors.

genesis global logo over red image of man in debt

Genesis Global: A Closer Look

The US Federal Reserve has again rejected an application by Custodia Bank for membership of the Reserve System.

Despite the request for reconsideration, the central bank [upheld its decision](https://www.federalreserve.gov/newsevents/pressreleases/orders20230223a.htm), citing the application's inconsistency with the necessary legal requirements. Meanwhile, a district court has permitted the lawsuit between this crypto firm and the Federal Reserve to proceed.

In January, the central bank denied Custodia's membership application, which it had submitted in 2019. The board allows rejected applicants to request a review of their membership status.

The Fed stated that the Custodia Bank management framework was "inadequate" when it denied the application. Furthermore, the Fed issued [a joint declaration](https://cointelegraph.com/news/us-federal-agencies-release-joint-statement-on-crypto-asset-risks-and-safe-practices) with the OCC (Office of the Comptroller of the Currency), alongside the FDIC (Federal Deposit Insurance Corporation), stating that [cryptocurrencies](/news/article/cryptocurrency-adoption) are inconsistent with safe banking practices. 

This firm seeks to join the central system to be regulated under the same rigorous standards that traditional banks must adhere to and to pave the way for other [crypto banks](/news/article/crypto-banks-access) seeking to meet these heightened standards.

Upon its first refusal, it was stated that the operational strategy entailed notable challenges to its security and stability and asserted that the company lacked an excellent system for managing risks.

## Deadline for Custodia's amended complaint set for 1 March

Firm representative Nathan Miller stated on 17 February that the central legal issue being questioned is whether the Fed had the authority to make decisions regarding master accounts and that the crypto bank had attempted to find a sensible solution before being pressured by the Fed. The judge has instructed Custodia to submit its initial amended complaint to the court before 1 March.

On 22 February, a Wyoming District Court judge denied a motion by the Fed board to dismiss a lawsuit from Custodia. The case was filed due to the central bank's delay of more than two years in providing this crypto bank with a master account.

With a master account, it could access the Federal Reserve payment systems without involving a third-party bank. The Fed rejected the master account application in January 2020, which had been submitted two years earlier in October 2018.


custodia bank logo with red background and US federal reserve logo

Custodia Bank Application Denied by the Fed 

Visa Bitcoin debit cards allow users to withdraw cash from ATMs or make purchases using Bitcoin, even if the merchants or ATMs do not accept cryptocurrency directly.

The cardholder preloads their debit card with a certain amount of crypto coins, which are then converted to the local currency at the time of the transaction, eliminating the need for exchanging cryptocurrencies.

## Top 5 Visa Bitcoin Debit Cards

1. Coinbase
Coinbase is a highly recommended option for a [Bitcoin debit card](https://www.investopedia.com/best-bitcoin-debit-cards-5114761#:~:text=supports%2015+%20currencies-,Overview,as%20the%20best%20for%20cashback.). It can be used at any location that accepts Visa, supports multiple cryptocurrencies, and has solid security measures.

It allows users to make purchases and withdraw cash from ATMs worldwide using cryptocurrency stored in their Coinbase wallet without the need to maintain a balance in fiat currency. It has added security and convenience features, including a mobile wallet app, two-factor authentication, instant card freeze, and spending tracking.

2. Blockcard
Blockcard offers competitive pricing, with a $10 activation fee and a $5 monthly administrative fee (waived if non-cash transactions exceed $750 per month). It also has no deposit, exchange, or withdrawal fees and a low cost of $3 for domestic ATM cash withdrawals ($3.50 for international withdrawals).

To use Blockcard, users must acquire Ternio's native token, TERN, using USD or other [cryptocurrencies](/news/article/the-future-of-crypto-in-the-next-5-years), which are then converted to fiat currency at the time of purchase. It supports more than 14 cryptocurrencies and offers up to 6.38% back in cryptocurrency.

3. Wirex
Wirex offers numerous benefits for its cardholders, including cashback of up to 8%, complimentary withdrawals from ATMs, and the potential to earn interest on fiat and cryptocurrencies. 

Wirex Visa card offers no fees for standard delivery, maintenance, or reissue and free ATM withdrawals up to $400/month. They also have a new [X-Accounts](https://community.wirexapp.com/t/faqs-x-accounts/23302) feature that allows users to earn up to 16% interest on fiat and up to 10% on BTC and ETH.

4. BlockFi
If you're searching for a Bitcoin credit card with a high cash back rate, BlockFi may be a good option with 1.5% cash back, increasing to 2% after reaching $30,000 in annual spending.

[BlockFi](/news/article/blockfi-withdrawals-could-resume) launched the first Visa Bitcoin credit card in July 2021. It offers 1.5% cash back per purchase in Bitcoin with bonus Bitcoin rewards, making it an attractive option for cash back. Unlike other cards, it does not draw on the cardholder's Bitcoin holdings.

In addition to its cashback program, BlockFi provides incentives such as 0.25% back in Bitcoin for eligible trades (capped at $500 per month) and a $10 Bitcoin reward for each successfully referred client.

5. Crypto.com
If you want a card that can handle a variety of cryptocurrencies, then a Crypto.com card is a great choice. It supports more than 80 cryptocurrencies and over 20 fiat currencies. Crypto.com's Ruby Steel card, their most popular and budget-friendly option, offers 1% cash back on every purchase, a yearly Spotify subscription refund, and no ATM withdrawal fees for up to $400 per month.

Customers who are hesitant to spend $400 on a Visa card can opt for Crypto.com's Midnight Blue card, which offers no ATM fees for withdrawals up to $200 per month.


Visa Bitcoin Debit Card Review 

## Wells Fargo: Bear market rally ends

Chris Harvey of Wells Fargo & Co has declared the end of[ the bear market rally](https://www.marketwatch.com/story/a-different-animal-the-bear-market-is-over-but-that-doesnt-unleash-bulls-to-send-stocks-on-a-2023-tear-according-to-wells-fargo-9e7fb65a) that wiped out up to $12 trillion in US equity values. 

According to the equity analyst, the recent pullback in investment-grade corporate bond yields does not align with the prevailing fear that the S&P 500 will renew a selloff and reach its October lows. Additionally, healthy balance sheets at the corporate and consumer levels indicate a subdued level of systemic risk, indicating that the catalyst for an extended market downturn is largely absent.
Harvey predicts that downtrends often end with sharp tightenings and healthy issuance, similar to what we have experienced over the past few months.

In a note on Monday, he stated that when downtrends progress to the "next level," we typically see spreads widen, not tighten, as we have observed today. He further supports this view on systemic risk by pointing to IG spreads.

## Wells Fargo report declares bear market rally ends

In a recent research note, Wells Fargo, America's fourth-largest bank, announced that the downtrend is over, but there is no uptrend in store. The report acknowledged a [new market trend](/news/article/bull-and-bear-markets) that is not explicitly bullish but indicates that the bear market is behind us.

![wells fargo chart of cryptocurrency market](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/wells_Fargo_382710a917.webp)

  
"The [bear market](/news/article/crypto-bear-market-survival) is over, but it is not the great regulation," stated Harvey, adding he sees neither a bear nor a bull market, "just a market". While investors may expect a sharp reversal, the report predicts a "giveback" that is not likely to be immediate.

Wells Fargo's current analysis suggests that mid-cap growth stocks present the best risk/reward potential. The report recommends pharmaceutical equities as a preferred defensive play.
Furthermore, the S&P 500 has increased by 7% in 2023, rising to nearly 4,092 in Monday trading. This number is close to Wells Fargo's S&P 500 price target of 4,200 for the year.



blue image of bears and bitcoins on rally track

Bear Market Rally Over Says Wells Fargo 

PayPal has revealed it held massive crypto holdings for its customers totalling $604 million as of December 31, 2022. According to an [annual report](https://d18rn0p25nwr6d.cloudfront.net/CIK-0001633917/b562e712-8266-493c-8ae8-e28f93404d2f.pdf), the global payment giant filed with the US Securities and Exchange Commission (SEC), Bitcoin (BTC) and Ether (ETH) comprised more than 60% of PayPal crypto reserves.

The $604 million worth of crypto holdings the firm held at the end of 2022 is slightly lower than the [$690 million](https://d18rn0p25nwr6d.cloudfront.net/CIK-0001633917/bef30744-49c8-4913-a5d8-a2cf9bfaa429.pdf) held as of September 2022. The significant drop could have resulted from unstable crypto prices and dwindling user trust associated with the [devastating collapse](/news/article/ftx-exchange-under-investigation) of the FTX cryptocurrency exchange. 

## PayPal crypto reserves are 67% of its financial liabilities

The $604M worth of crypto comprised $291 million in Bitcoin (BTC) and $250 million in ether (ETH), with Litecoin (LTC) and Bitcoin Cash (BCH) making up the balance of $63 million. Per the report, PayPal crypto reserves account for 67% of its $902 million total financial liabilities. The filing further indicated that PayPal’s total financial assets were $25 billion.  
    
The global payment giant introduced a crypto buy and sell service for its US-based customers involving only specific cryptocurrencies in October 2020. Nonetheless, following the SEC's requirement via Staff Accounting Bulletin No. 121 ([SAB 121](https://www.sec.gov/oca/staff-accounting-bulletin-121)) in March last year, [PayPal](/news/article/paypal-news-transfer-crypto) only recently started disclosing specific holdings of different cryptocurrencies in its SEC filings. While the company's crypto service has existed since 2020, it was only in June 2021 that the firm allowed users to withdraw crypto from the platform.

## Used a third-party custodian

While acknowledging the specific technological, legal, and regulatory risks associated with dealing in cryptocurrencies, the fact that a PayPal crypto asset safeguarding liability reflected its obligation to protect its customers’ assets wasn’t lost to the company.

The company, therefore, revealed in the filing that it used a third-party custodian to store the customers' digital assets. Nonetheless, PayPal reiterated that it contractually required the custodian to segregate its customer assets to prevent such assets from being considered a part of the custodian's estate should bankruptcy or insolvency occur.       
 
PayPal Vice President Richard Nash indicated recently that the company was taking measures to reduce operational costs due to the ongoing market rout. The company was recently said to have reduced its workforce by at least 2,000 people to "strengthen" and "reshape" due to a "challenging macro-economic environment".

As a way of integrating blockchain and PayPal cryptocurrency services into the platform, the firm introduced a hold-and-sold Bitcoin service for its US-based customers in November 2020. The offerings would also include [central bank digital currencies ](/news/article/cbdc-bank-of-england)(CBDC).


PayPal crypto reserves reach $604 million

Fiat-to-crypto on-ramp service provider Juno bank has resumed offering the core services it paused in early January following “uncertainty” with its cryptocurrency custodian partner Wyre. The crypto firm has acquired the services of a new crypto custodian, Zero hash.

Juno halted its crypto services in early January as a form of “preemptive action” in the interest of their customers as its former custodian Wyre became another victim of the meltdown caused by the [FTX saga](/news/article/ftx-bankrupt-who-to-blame). According to a [statement](https://juno.finance/blog/Introducing-our-new-crypto-partner) by Juno CEO and co-founder Varun Deshpande, the firm promises its clients a more secure experience on the new platform following the 2022 debacle and is committed to building compliance on its on-ramp product. 

## Juno bank has reinstated most of its former services

Taking to [Twitter](https://twitter.com/JunoFinanceHQ/status/1610639365595860992), Juno advised its customers to choose between selling their crypto assets for cash or self-custody as the firm worked to migrate to a new custodian. The decision was necessitated by Wyre's preparation to wind down operations in the aftermath of the FTX debacle. This happened after [news emerged](https://www.axios.com/2023/01/03/wyre-shutdown-crypto-winter) that Wyre was shutting down and laying off employees. Juno bank said they would switch custodians in preparation for potential challenges with Wyre.  

While Juno has reinstated most of its former services, it has yet to reinstate L2 withdrawal and deposits, as well as crypto paycheck services. On the brighter side, though, the crypto firm has introduced additional features such as the support of more than 35 additional cryptocurrencies, including SOL, ADA, SHIB, and DOGE. Also, users can now enjoy a zero-trading-fee incentive and a rewards program per dollar traded when they trade in non-stablecoins.

## The industry will weather the storm

As the crypto sphere struggles to remain afloat amidst a historic shock caused by a severe crypto winter and exacerbated by the [FTX bankruptcy](/news/article/ftx-funds-political-donations-to-be-recovered), there are essential lessons for the industry to learn. Overall, the digital asset industry has undergone a transformational shift beginning in the latter half of 2022, spurring a serious industry cleanup in the wake of numerous high-profile bankruptcies.

In the meantime, the conversation surrounding the regulation of cryptocurrencies around the globe continues as actors demand stringent laws akin to traditional banks and financial institutions.

This latest development by Juno bank is a clear signal that even after being dealt a severe blow by the ongoing FTX contagion, the crypto industry will weather the storm, and things will eventually improve. That’s because the way up usually begins at the point where governance-free conduct leads a sector.


blue image of bank cards and juno bank logo

Crypto Firm Juno Bank Bounces Back

According to an investor update seen by Moni Talks, [UK-based Monzo bank](https://monzo.com/) experienced a record 250% revenue in 2022 and is on track to attain annual profitability by the end of this calendar year.

![monzo.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/monzo_8465c9275b.png)
 
Source: [Monzo](https://monzo.com/)

The digital bank recorded an annualised revenue of £440m in 2022 (January to December) and expects to break even in 2023 - a feat not many European neobanks have achieved. According to the investor update, the neobank has been "cash flow positive", with ingoings outpacing outgoings.

## Monzo bank turns it around

In the digital bank's annual report for 2020-21, Monzo bank reported £114M in pre-tax annual loss - a similar loss rate to 2019-2020.

Monzo's accountants posed grave concern over the future of the neobank, stating that there was "significant doubt" regarding Monzo's ability to continue.

Fast forward to today, and Monzo has nearly doubled its customer base from 3.9M in February 2020 to 7M, generated record revenue in 2022, and may obtain profitability in 2023 - comeback kings indeed.

[Starling was the first European neobank](/news/article/starling-bank-bans-crypto) to attain annual profitability, in July 2022. Revolut CEO Nik Storonsky 'claims' that they have been profitable for two years, but Moni Talks cannot substantiate these claims. Revolut has missed the deadline to file accounts twice now.

If we compare Monzo to these industry stalwarts, Starling has 3.5M UK customers, while Revolut has 5.75M UK customers. The potential is clear to see.

The neobank claimed its personal account sign-ups averaged around 150k monthly in 2022. These numbers are likely to bode well for the company in the near future.

## What is Monzo?

Monzo is a [UK-based digital bank](/news/article/which-uk-banks-allow-cryptocurrency-purchases) enabling you to open a full UK bank account within 15 minutes from the comfort of your phone. You can earn up to 3.55% gross fixed/AER interest on your savings, set spending budgets, and obtain loans and overdrafts, amongst several other stellar features.

Its programs include Premium, Plus, Abroad, and Flex - take your pick.

At the time of writing, the company's revenues are heavily focused on its famous coral-pink cards.


Monzo Bank Achieves Twofold Revenue

Beginning on February 1, 2023, SWIFT will no longer handle the transfer of fiat money from bank accounts to cryptocurrency exchanges if [the value of the transaction is less than $100,000](https://techstory.in/swift-will-no-longer-process-fiat-currencies-transactions-below-100k-to-crypto-exchange/). This action will prevent crypto access for hundreds of thousands, if not millions, of clients.

Binance, the world's biggest cryptocurrency exchange in terms of the volume of cryptocurrency trading, was one of the first crypto exchanges to tell its users of the development that occurred this week.

## Binance announces impact of SWIFT crypto restrictions

Binance has stated that this decision will impact only Signature Bank customers. The statement on the SWIFT crypto development was issued to Asia Markets. It said that one of the fiat banking partners, Signature Bank, had informed Binance that as of February 1, 2023, they would no longer support any cryptocurrency exchange customers who bought or sold an amount less than $100,000.

[Binance said that as a direct consequence of this change](/news/article/binance-news-dea-uses-exchange-to-track-cartels), certain customers would no longer be allowed to utilize SWIFT bank transfers to buy or sell cryptocurrency with or for USD for sums less than $100,000.

The previous week, Signature Bank disclosed that it would be taking steps to lessen its exposure to several cryptocurrencies. Concerns about restricting access to cryptocurrencies are becoming more widespread.

Although it is the largest and most important financial network in the world, SWIFT, or Society for Worldwide Interbank Financial Telecommunication, is somewhat of a secretive Belgian-based cooperative.

SWIFT is responsible for the daily settlement of trillions of dollars’ worth of international money transactions. Following the commencement of hostilities in Ukraine in 2014, the US and its allies disconnected Russia from the SWIFT network.

This development brought SWIFT back into the news cycle. Due to the gravity of the situation, the French finance minister likened the decision to shut off Russia's access to SWIFT to the use of a nuclear financial option.

It is, however, still a mystery why institutions involved in stopping SWIFT transfers have moved to release what would become a crypto-nuclear option for millions of people who do not have a minimum of $100,000.

The European Central Bank (ECB) is planning to begin testing a digital currency this year, with the possibility of a complete deployment by 2026. One idea suggests this could be a precursor to central bank digital currencies.


Yellow image of phone doing crypto payment with Swift logo overlayed

SWIFT Crypto Restrictions Leave Users in Dark

Over the last decade, the popularity of cryptocurrencies has grown. Increased interest in the nascent asset class has led to new exchanges popping up, making it easier to purchase crypto. But how do you buy crypto with Amex?

Payment options to purchase cryptocurrencies have expanded. Methods like bank transfers, cash, debit, and credit cards have grown in acceptance.

Despite this, major credit card issuers in the US, like TD Bank, Capital One, and PNC Bank, have blocked crypto transactions. They claim that they're risky assets for their customers. Other financial service providers, like American Express, have maintained support for buying crypto through their credit cards. This is not without caveats, however.

## The American Express Crypto Broker

American Express has maintained a cordial relationship with crypto. It allows customers to deposit money using their Amex card to fund their crypto account. This means that American Express provides the services of a broker that acts as a middleman, allowing you to execute trades while charging small fees.

It is simple to purchase cryptocurrencies on the market with credit cards that permit the transaction. According to a [LendEDU poll](https://lendedu.com/blog/bitcoin-and-credit-cards/), 18.15% of Bitcoin investors claim to have funded their accounts with credit cards.

However, you must find a third-party cryptocurrency exchange that accepts American Express if you want to purchase Bitcoin and other cryptocurrencies using it. First, open an account and then fund it with a credit card.

## What you must know before you buy crypto with Amex

### Brief History

The headquarters of American Express is located in New York City's Three World Financial Center. The company was established in 1850 in Buffalo, New York, as an express mail service. Later, it expanded its offerings to include credit cards, traveller's checks, and money orders. More than 130 countries are served by American Express.

American Express is governed by state banking regulations in the United States and has a license from the US Department of Treasury Financial Crimes Enforcement Network to operate as a money transmitter. American Express is also a Federal Deposit Insurance Corporation (FDIC) member.

### What to know

Credit card issuers are generally still wary of crypto. Hence, there are caveats surrounding Amex's facilitation of crypto purchases.

First, most exchanges limit large purchases of crypto assets when using a credit card. This is to protect users from possible fraud and not allow them to max out their credit cards by funding their account.

Amex limits users to $200 worth of Bitcoin daily and up to $1,000 per month.

Second, credit cards like Amex also offer an additional level of security that other modes of payment don't provide. 

Safeguards like [fraud protection](/news/article/crypto-scam) and the ability to call and reverse purchases help customers secure their funds.

Third, the cost of purchasing crypto with credit cards differs from exchange to exchange. You will pay a transaction fee of 3.5% of your purchase plus $0.15 when using 247Exchange. When you consider that Coinbase charges 3.99% and Coinmama comes in at almost 6%, this is one of the lesser fees. However, CEX.io only charges 0.2%, but using the exchange requires a time-consuming verification process.

American Express transaction fees might be as high as 4%. When you buy crypto with Amex, it may result in a higher fee because American Express charges merchants a larger fee than other payment processors.
An annual fee can be associated with your card, depending on which Amex card you choose. Amex can also charge you for currency conversion fees, returned payments, and late payments.

Furthermore, before deciding to buy crypto with Amex, potential customers should consider the speed, ease of use, and reputation of the intended exchanges.

## Where can you buy crypto with Amex?

All major exchanges accept credit cards as a payment method for crypto. Here are some exchanges to consider:

1.	Paxful: 
Paxful allows users to trade crypto directly with one another. It's an open marketplace where users can quickly buy the crypto of their choice with less hassle. Amex works [seamlessly](https://paxful.com/buy-bitcoin/american-express-card/?paymentMethod=american-express-card&countryIso=NG&hasScroll=true) on the platform.

2.	CEX.io: 
This crypto exchange is one of the pioneer exchanges in the market. It dates back to 2013, when it was established in London. It supports virtually all countries around the globe.
It's registered with [FinCEN](https://en.wikipedia.org/wiki/Financial_Crimes_Enforcement_Network) in the US. In the UK, it's listed as a Money Service Business. The exchange says it's never lost user funds.

3.	eToro: 
This company was established in 2008 as a social trading platform. It caters to CFDs, stocks, indices, currencies, commodities, and cryptos.

Amex is an accepted broker on the platform.

## How to buy crypto with Amex

1.	Choose your preferred exchange: 
The first step is to look for an exchange that allows you to buy crypto with American Express. Though Amex is not as widely accepted as Visa and MasterCard, all the exchanges listed above accept Amex.

Also, confirm the processing fees, trading fees, and withdrawal fees.

2.	Registration and KYC: 
Once you've been able to choose a preferred exchange, you have to set up your account.
Hit the sign-up button and provide any personal information required. Regulated platforms will ask for complete KYC, including a photo ID.

3.	Deposit funds: 
Once you're done with registration, select the "deposit funds" option. Enter your deposit amount, then choose "credit card" as your preferred payment method. Enter the Amex card details required to connect your card. Then make a deposit.

4.	Buy crypto: 
When your deposit reflects on the exchange, you can begin purchasing the crypto of your choice.

## Bottom Line

The pros of using the Amex credit card to buy crypto cannot be overstated. Users enjoy fast processing of their deposits and industry-standard fraud protection.

Though Amex is plagued by high transaction fees and a limited purchase size, its crypto-friendly stance has made it a more widely accepted method of payment on crypto exchanges.


blue image of american express credit card with pile of bitcoins

How to Buy Crypto with Amex 

This next quarter, the central bank in Russia will start looking into two different potential cross-border CBDC settlement models.

There are continuous sanctions against Russia due to its invasion of Ukraine. Yet, reports indicate that Russia's central bank is about to begin building a cross-border settlement system using a central bank digital currency (CBDC).

[According to a report published on 9 January by media outlet Kommersant](https://cointelegraph.com/news/russia-to-begin-work-on-cbdc-settlement-system-in-q1-as-sanctions-endure-report), the digital rubble plans are expected to progress in the first quarter of 2023. Russia's central bank will study two possible cross-border settlement models before moving forward.

## CBDC Russia future: Bilateral agreements or hub-based platforms

In the proposed plan’s first version, different countries will integrate their CBDC systems by entering into separate bilateral agreements with Russia. 

Each agreement would be crafted to ensure that asset conversion and transfer between the nations would be compliant with the rules outlined in the other agreements.

The second, more complicated approach suggests establishing a single hub-like platform on which Russia and other countries can engage, sharing common protocols and standards to make it easier for connected countries to make payments to one another.

Roman Prokhorov, the Financial Innovations Association (AFI) board of directors' head, expressed his opinion that the first model was less promising for bilateral interactions between countries, but was easier to implement.

While the first model was simpler to implement, the second was more complex. The other choice was deemed more "advanced," and its proponent evaluated the possibility of implementing an initial two-way system.

He viewed China as the most likely partner in this scenario due to the country's "technical and political readiness". [According to reports from September,](/news/article/russia-approves-cross-border-crypto) Russia's plans to use digital currency for settlements with China may only occur sometime in 2023. Others, however, believe that technological limitations rather than political ones will support the CBDC Russia proposes.

## CBDC Russia will not improve political situation - claim

Alexey Volkov, the vice president of the Association of Banks of Russia, stated that the introduction of a digital ruble will not change or improve the global political situation of the country and that trials for the Russia CBDC platform can only be undertaken with countries that are friendly with the Russian government and are technologically ready.


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