On Monday, the [Bank of Canada](https://www.bankofcanada.ca/) released a [Staff Analytical Note](https://www.bankofcanada.ca/2022/12/staff-analytical-note-2022-20/) on fiat-referenced digital assets. It discusses the risks and the potential benefits of [stablecoins](/news/article/what-are-stablecoins). 

It further analyses the working mechanism of these crypto assets and explores how they should be distributed. However, the most critical point that staffers discussed is [stablecoin regularisation](/news/article/euroc). 

## Bank of Canada on the usage of fiat-pegged crypto assets

The report says that the global market of fiat-backed cryptocurrencies has seen a 30-fold growth in the past two years. Currently, the estimated value of this market stands at $161 billion. Yet, these coins have limited usage.

It points out that these assets are primarily used on trading platforms as payment options. However, they may have various other use cases for different users. For instance, they can also be adopted as a payment option for goods and services. 

However, the authors emphasised that it is only possible with “well-designed and appropriately regulated” stablecoins. The note adds that stablecoins could benefit payment services because of their efficiency. They can also help shape a digitised economy, but safeguarding is essential to eliminate the risk of instability, it says.

## The identified risks

The analytical note identified several risks that can cause instability in the financial system. They include run, contagion, concentration, consumer and investor protection, and accountability risks.

Run can happen when fiat-referenced coins lose their peg and cannot be redeemed. A run incident occurred in the market when the [Terra-Luna ecosystem](/news/article/terra-luna-collapse) collapsed in May.  

Similarly, there is a contagion risk because 50% of the trades in the crypto market happen in stablecoins. Most centralised/decentralised exchanges and DeFi platforms are affiliated with these assets. So, if a run happens for a stable asset, the market will likely feel disruption.

Concentration is another issue that can be problematic for investors. The report says that around 90% of the market is dominated by only three stable assets. Only 1% of investors hold more than 90% of these assets.

There are accountability and investor protection issues too. These problems can cause an imbalance in the digitised economy, which is why [regulatory measures](/news/article/g7-crypto-2022) seem inevitable.


Bank of Canada Highlights Stablecoin Regulation

The Central Bank of Kazakhstan has recommended rolling out its in-house CBDC in 2023. The expansion will be done in phases with the goal of introducing it into commercial operations by the end of 2025.

Kazakhstan, the world’s third-biggest [Bitcoin mining](/news/article/how-to-mine-bitcoin-cash) hub, is now all set to launch its Central Bank Digital Currency, or CBDC, which is a digital tenge. The central bank revealed plans for the launch after the second testing phase was completed.

## Central Bank reveals initial studies on the CBDC

Changpeng “CZ” Zhao, CEO of [Binance](/news/article/guide-to-binance-uk), also revealed that Kazakhstan's CBDC will be integrated with BNB Chain, [the blockchain](/news/article/what-is-blockchain) built by the crypto exchange. Kazakhstan's primary motive for conducting studies and launching its CBDC is to improve financial inclusion in the country, promote competition, encourage innovation in the payment industry, and increase the nation's overall global competitiveness.

The initial studies conducted by Kazakhstan's central bank focused mainly on programmability and offline payment methods. It was then recommended that market participants and infrastructure players be included in different scenarios and clarified language be used by the country's regulators. The latest [research paper](https://nationalbank.kz/file/download/85770) on the matter reveals that the CBDC is recommended to roll out in phases due to the potential for infrastructure preparation, technological improvements, the development of an operating model, and a regulatory framework.

As Russian citizens continue to pour into neighbouring countries due to the war, Kazakhstan has announced its plans to legalise mechanisms for converting crypto into cash.

During the international forum Digital Bridge 2022, Kassym-Jomart Tokayev, President, stated that the country is ready to go further with the crypto-to-cash mechanism and even give it full legal recognition, given that the financial instrument continues to show its relevancy and security.

In addition, the neighbouring country, Georgia, also has plans to introduce new crypto regulations to become a global crypto hub.


yellow image of kazakhstan with central bank of kazakhstan logo in foreground

Central Bank of Kazakhstan CBDC Rollout

The Bank of Spain aims to launch a wholesale central bank [digital currency](/news/article/which-uk-banks-allow-cryptocurrency-purchases) programme and has requested bids from financial institutions and technology suppliers by 31 January.

The selected proposals must be completed in at least nine months, beginning on 3 April, with a completion date of 29 December, 2023. According to the selection process paper, they can offer an extension depending on many circumstances.

## CBDC programme aim, according to the Bank of Spain

According to an [official statement](https://www.bde.es/f/webbde/GAP/Secciones/SalaPrensa/NotasInformativas/Briefing_notes/es/notabe051222.pdf) from the financial institution, the initiative aims to imitate the usage of a CBDC in wholesale transactions. In wholesale transactions, monies transfer between banks and financial institutions. 

The bank claims the [wholesale CBDC](/news/article/reserve-bank-of-india-cbdc) initiative is unrelated to the European Union's study on a retail digital euro. Separately, Banque de France announced two studies in September to evaluate the feasibility of a wholesale CBDC.
 
According to a translated 5 December announcement, it would use the programme to experiment with financial asset liquidation, simulate money movement, and assess the merits and downsides of incorporating a wholesale CBDC into its present procedures and infrastructure.

While a retail [CBDC](https://finance.yahoo.com/news/spain-central-bank-opens-call-174249256.html?guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAJJPnYxvXtv0yecmihYLiCclqtZ_YZnB-kJYsxLfIQm1jiSb5dIREbPFcJxBwVc4aS-0gMBYy0dbGQsBohlMMORhi92GPbxcavqroNpkM-nn9OlnzxFMqpZi2y-W8lRLendbL9TJ7k2yDHAxEj4cMLZ_qUF8mljP4vJWpI7zU4C2) is available to the general public, a wholesale CBDC is a digital currency primarily used by financial institutions to keep reserves with a central bank.

The programme is unique to the BDE and is unrelated to work being done in the European Union to investigate the usage of a [digital euro](https://www.ecb.europa.eu/paym/digital_euro/html/index.en.html).

## Reason for undertaking study

In justifying the initiative, the BDE stated that studying CBDCs can assist in assessing how much they can contribute to adapting to the requirements and expectations of an increasingly digital society. 

CBDCs are also being "analysed and experimented" within various jurisdictions, with the primary focus being retail use. However, it claimed that more corporations are venturing into those of a wholesale or interbank kind".


Bank of Spain Proposes CBDC Project

[The UK's](/news/article/uk-crypto-tax-regulations) Starling Bank has tightened its grip on crypto trading, [announcing a ban on all crypto transactions](https://twitter.com/StarlingBank/status/1595095825884930050?t=8EiBd2taolnSd4Wb8VbUvw&s=19) for users, describing the activity as "high risk and heavily used for criminal purposes"'.

Following the collapse of the [FTX exchange](/news/article/ftx-bankrupt-who-to-blame) earlier this month, banks have stressed the need for crypto regulation.

## Starling Bank customers woke up to bad news

Starling Bank crypto customers received a text message stating, "we view the crypto activity as high risk".
The bank said it had decided to halt all card payments to cryptocurrency merchants and "impose additional limitations on outgoing and incoming transfers".

It comes just two weeks after [Santander imposed new limits on Bitcoin and Ethereum](/news/article/santander-uk-news) transactions and warned of the potential consequences of investing in crypto assets.

As of 15 November, Santander's mobile and online banking customers were limited to a £1,000 limit per cryptocurrency transaction and a £3,000 cap on transactions made over a rolling 30-day period. While payments will still be allowed from the cryptocurrency exchange, including Binance, payments sent to Binance will remain blocked.

## Starling is not backing off

A representative of Starling Bank said the institution has had restrictions on cryptocurrency transactions of varying degrees for a long time.

The purpose of this communication, he continued, was to ensure that this was understood by clients who had previously completed such transactions.

He added that while the cutting-edge technology that underlies cryptocurrencies has significant advantages, the high risk and widespread criminal use meant the organisation could no longer support them.

## More banks restrict crypto transactions

The Starling Bank crypto stance is the latest [bank](/news/article/crypto-friendly-banks-uk) move to restrict customer crypto activity. Lloyds, [Barclays](/news/article/barclays-crypto), and RBS have implemented various new measures, such as blocking transactions with cryptocurrency exchanges.

According to finder.com, 47% of UK banks forbid customers from communicating with cryptocurrency exchanges.


Starling Bank Bans Crypto Trading

Reserve Bank of India will launch the retail central bank-backed digital currency ([CBDC](/news/article/india-cbdc-launch) pilot next month. It will be interoperable with existing payment systems.

On [1 November](https://www.reuters.com/article/india-cenbank-digital-rupee-idUSKBN2RQ0WO), RBI debuted the wholesale segment pilot for the digital rupee. According to the RBI, the digital rupee will increase market efficiency by lowering settlement transaction costs.

The settlement of secondary market transactions involving government securities has been the primary use case of the Reserve Bank of India CBDC.

## Reserve Bank of India CBDC to debut

[According](https://economictimes.indiatimes.com/news/economy/policy/rbi-in-final-stages-of-retail-cbdc-pilot-rollout/articleshow/95598347.cms?from=mdr) to the Economic Times of India, the RBI is reportedly finalising plans to launch the retail digital rupee pilot. The participating [banks](/news/article/which-uk-banks-allow-cryptocurrency-purchases) are the State Bank of India, HDFC, Union Bank of India, Bank of Baroda, ICICI, Kotak Mahindra, Yes, and IDFC First Bank.

The report stated that the pilot would include all commercial banks currently operating in the country and that the National Payments Corporation of India would host the [CBDC](/news/article/cbdc-uk) platform. It will be similar to the instant real-time payment system formed by NPCI, the unified payments interface (UPI) system.

According to the report, the digital rupee is not intended to replace existing widely used payment systems, but to supplement them. The retail CBCD will be compatible with other payment systems and function similarly to UPI.

Each participating bank will test the CBDC on 10,000 to 50,000 users. The banks will work with the PayNearby and Bankit platforms to implement the new payment option, and the NPCI will be in charge of the CBDC infrastructure.

Customers and merchants will both need to download the CBDC-specific wallets. The retail CBDC of India will initially be offered as a stand-alone product, with the final version integrating with existing mobile and internet banking services.

Plans to launch the CBDC were revealed in February 2022 by Indian Finance Minister Nirmala Sitharaman, who claimed that a digital rupee would give India's economy a "big boost". The Reserve Bank of India then suggested a three-step graded rollout strategy, aiming for little or no disruption to the traditional economic system


Reserve Bank of India CBDC Pilot

Cryptocurrencies are becoming increasingly popular, though there are some legitimate concerns about the industry. As a result, it is not every bank, including UK banks, which will allow customers to make cryptocurrency purchases.

They don't want to risk losing money from customers, primarily if they could be held accountable for allowing it to happen.
If you want to trade crypto, you should reconsider who you bank with. Let's look at the crypto world and the UK banks that allow crypto.

## Is cryptocurrency legal in the United Kingdom?

In the United Kingdom, it is legal to own and trade cryptocurrencies. They are not currently classified as a currency but as a property asset, even though there is no tangible asset to own.

Any cryptocurrency exchange in the UK must be registered with the Financial Conduct Authority, which regulates the industry to prevent money laundering. The [FCA](/news/article/fca-crypto-regulation) is adamant that any trading platform must be able to demonstrate compliance with anti-money laundering regulations.

## Which UK banks allow cryptocurrency purchases?

Here's a list of some banks to consider if you're interested in trading cryptocurrencies:

1.      The Royal Bank of Scotland 
RBS generally supports cryptocurrencies and trading. Customers usually have no trouble buying and selling crypto using a debit or credit card. However, the group restricts access to certain exchanges that are deemed riskier, so you will not have complete freedom.

2.    Revolut
[Revolut](/news/article/revolut-bank-uk-crypto) is one of the more comprehensive banking apps. It offers stock and share trading through its platforms. It is well-known for its positive attitude toward cryptocurrencies, and customers of the bank face no trouble in dealing with exchanges regardless of account level. You also have the advantage of being able to trade cryptocurrency and manage your banking in the same app.

3.      Nationwide
Nationwide claims to have systems to prevent suspicious or unusual member payments. Customers can usually make payments to [crypto exchanges](/news/article/best-crypto-exchange-uk-reddit) using their credit or [debit cards](/news/article/crypto-debit-card-uk). If you have any issues, you should be able to resolve them with the bank and gain access to the trading platforms.

4.      Barclays
[Barclays](https://home.barclays/) has had a tumultuous relationship with cryptocurrency, having formed a partnership with Coinbase only to cancel it in 2019. Despite this reversal, the bank generally accepts payments to and from cryptocurrency exchanges.

5.      Monzo
[Monzo](https://monzo.com/) has declared itself a crypto-friendly bank, stating that customers can use their accounts to buy and sell cryptocurrency on crypto exchanges. However, they state that they will review trading platforms and, if necessary, block access to some if they are deemed too risky.

## Bottom line

Some large financial institutions still regard crypto transactions as highly risky, if not criminal. On the other hand, many progressive banks want to embrace new trends and assist their clients with cryptocurrency transactions.

We believe traditional banks will probably eventually support crypto-related services, particularly as soon as the regulatory clarity improves. Until then, you can use the [crypto-friendly banks](/news/article/crypto-friendly-banks-uk) mentioned in this article to service your customers, make deposits, and lock in profits without fear of an account freeze or ban.


which uk banks allow cryptocurrency purchases

Which UK Banks Allow Cryptocurrency Purchases?

The UK's Financial Conduct Authority (FCA) recently approved the crypto-friendly financial app Revolut to conduct its digital asset business in the country. The licensing means that startups of any size [within the European Economic Area (EEA)](/news/article/revolut-news-approved-eea) can now buy, hold and sell cryptocurrencies from their Revolut business accounts. 

## Crypto for cross-border payments

A [2021 study](https://markets.businessinsider.com/news/currencies/multinationals-cryptocurrencies-bitcoin-ether-study-cross-borders-transactions-pymnts-2021-11 30, November 2021) showed an increasing demand for diverse payment methods offering speed and convenience as B2B [cross-border payments](/news/article/russia-approves-cross-border-crypto) were expected to exceed $35 trillion. Per the study, at least 37% of the multinationals involved in the study used at least one type of cryptocurrency. 

Revolut has introduced a business account to disrupt the traditional business banking models that are shackled with astronomical charges when sending payments abroad. Revolut business offers users a 'digital alternative to big banks'. While standard cross-border payments take an average of three to five days, with potential errors and delays as part of the deal, crypto-based payments occur in real time due to fewer negotiators in the blockchain.    

## Revolut rewriting the rules

As business goes global and consumers demand additional payment options, Revolut is facilitating seamless cross-border crypto transfers. The London-based fintech firm allows its account holders to access cryptocurrencies like Bitcoin, Ethereum, Litecoin, and other digital currencies alongside over 28 fiat currencies through its mobile app.

The business account from Revolut is rewriting the rules of engagement between small startups and large businesses and their local and global customers. Whether they’re sending payments or getting paid via crypto, account holders have access anytime, anywhere to manage their entire businesses with no hidden fees. Any company with a physical presence EEA is eligible for an account.   

## How it works 

Opening a Revolut business account is simple and takes less than ten minutes to complete, with the application process taking one to seven days. Users can choose between corporate or freelance accounts.   

Pros:

•	Fast and easy setup.

•	Different pricing options.

•	Exceptional price for international transfers.

•	Easy-to-use mobile app.

Cons: 

•	No cash deposits.

•	ATM withdrawals earn a fee.

## Conclusion 

Revolut offers freedom and flexibility for startups whose customers demand alternative payment methods. Its competitive pricing might be a good choice for companies conducting transactions in different cryptocurrencies.




Revolut Business - A new way to make crypto payments

[Revolut](https://www.revolut.com/) is a new virtual bank with millions of customers. It is an "alternative to traditional banks" because it provides free and instant financial services to people who travel internationally or want to live a global lifestyle. But is it good for crypto?

While the worldwide banking system has remained unchanged for centuries, Revolut is bringing about positive change by allowing you to avoid the time-consuming and bureaucratic bottlenecks of traditional banking. The platform provides you with financial flexibility, allowing you to take control of your finances.

## Revolut: The banking app

[Revolut](/news/article/revolut-bank-uk-crypto) is a banking app that allows you to spend and transfer money worldwide in real-time. It is licenced in two countries: Lithuania and Australia. The platform operates in Poland, Lithuania, Bulgaria, Croatia, Estonia, Cyprus, Greece, Latvia, Malta, Romania, Slovakia, and Slovenia.

Revolut, founded in July 2015 by Nikolay Storonsky (a former trader at Credit Suisse), aims to provide mobile and online banking, allowing clients to avoid the high fees charged by traditional banks. The platform includes a pre-paid card that can be topped up with bank transfers or an existing credit/debit card. Users can also send money instantly or request payments from their accounts.

## Revolut crypto fees

Paying Revolut fees for your cryptocurrency asset activities can become very expensive, especially if you trade cryptocurrencies frequently.

As stated in the company’s cryptocurrency terms, when you purchase cryptocurrencies through the app, it will exchange them at a partner exchange (such as [Coinbase](/news/article/coinbase-singapore-approval) or Bitstamp).

You can exchange cryptocurrencies on these partner platforms without a middleman (Revolut). However, when we dig deeper and look at cryptocurrency fees on these exchanges, we find that they are still higher than on eToro.

In short, such a structure increases Revolut's costs and raises safety concerns if something unexpected occurs. You may have to pay multiple fees per transaction depending on the amount you want to exchange: 

1.	A fair usage fee.
2.	A transaction fee.
3.	A Bid-Ask spread.

## Can you move cryptocurrency from Revolut to a wallet?

Sending crypto from [Revolut](/news/article/revolut-news-approved-eea) to a wallet gives you more control and protection over your crypto assets, especially if you keep them in a cold wallet like Ledger or Trezor. 

However, Revolut crypto transfer to a wallet is not yet available to all users. The availability of withdrawals is determined by your location and the type of paid plan you have. 

Assume you live in a country where crypto withdrawals are permitted (i.e., the UK). You should know some fees and limits when using the app to withdraw cryptocurrency.

1.	Crypto withdrawal fees: The platform charges a "Network fee" and a "Service fee" when withdrawing cryptocurrencies. You can view the estimated total costs on the confirmation page before the withdrawal.

2.	Limits on crypto withdrawals: There are currently restrictions on the total amount you can withdraw from the platform. £500 is the daily cap, and £1,000 is the monthly cap.

## Is Revolut good for crypto?

Revolut is not a good option for cryptocurrency because of the high fees, absence of the withdrawal feature (in most countries), and limited selection of crypto assets. 

The 1.99% fee for purchasing and the 1.99% fee when selling cryptocurrencies are way too high, an overall of 4% at least for one trade. By switching to the [eToro](/news/article/etoro-fees) platform, you can drastically reduce the amount of fees you pay.

Although there is a possibility to upgrade your account type to Premium or Metal and pay lower fees, it is still more expensive.



Is Revolut Good for Crypto?

Cryptocurrency trading bot [Bitcoin Bank](https://the-bitcoin-bank-pro.com/) attempts to increase traders' accuracy and, consequently, their chances of profiting from the market. By spotting market patterns and assisting traders in taking advantage of them, the bot focuses on increasing the trader's success rate.

It was created to assist traders in identifying the ideal times to enter and exit trades, focusing on speed and accuracy. However, the robot's flexibility has also been praised as a critical aspect by its creators. The development team asserts that it offers both manual and automatic trading possibilities. As a result, novice and seasoned traders should find the bot quite helpful.

## How does the Bitcoin Bank function?

The bank bot uses artificial intelligence and machine learning to manage trades throughout its platform. It aims to identify market data patterns and suggest when to enter and quit trades.

It is important to note that the platform uses Contracts for Difference (CFDs) while trading. These financial derivative instruments allow you to buy certain assets, like Bitcoin, at a later time and for a specific price.

The cryptocurrency trading bot aims to ease the process and make it less complicated for users to navigate the market. The platform's creators boast a 60% success rate for their high-frequency trading system with AI and machine learning drive. 
The platform collaborates with a network of crypto brokers concerning day trading cryptocurrencies. These brokers are in charge of trade management, execution, and position size, among other things.

## Minimum deposit for the Bitcoin Bank

The minimal deposit amount is $250. This cost is comparable to that of other [cryptocurrency trading](/articles/learn-moni/cryptocurrency-trading-strategies) bots.

Also, note that the demo trading tool is subject to this minimum deposit requirement. Thus, you must pay the $250 first deposit if you intend to use the [Bitcoin](/news/article/bitcoin-price-uk) Bank robot and evaluate its feature set.

## Customer support

The bot's creators assert that they have a customer service number that users may call if they encounter any issues. However, we cannot confirm that this support line is functional. We advise you to check out the support options on Bitcoin Bank when you join up, as most crypto trading bots include phone and email service.

Also, get in touch with them before you start trading. You should choose a [cryptocurrency exchange](/news/article/best-exchanges-for-crypto-uk) platform that is accessible whenever you need it. You must approach this bot carefully as a novice trader. Given how volatile cryptocurrency trading is, you should only invest money at your own risk with proper study and investigation.

## Review analysis

Look up its reviews on the internet. You'll find many websites praising it without any proof, testimonies, or genuine reviews. 

Also, it's tough to find it getting accreditation from any credible sources. Now, we don't say it's a scam. However, there is always room for paid promotions in the form of review articles. This is just speculation; you should take every piece of information with a pinch of salt if it concerns your money.



Bitcoin Bank: Should You Use the Trading Bot?

Santander said in an emailed statement on Friday that it will prohibit UK clients from transferring real-time payments to cryptocurrency exchanges beginning next year as part of steps to safeguard customers from fraudsters.

## When will the block begin?

The bank will implement a plan meaning all payments made to cryptocurrency exchanges via telephone banking and in-branch payments will be blocked, as well as internet and mobile banking, at an unspecified point in 2023.

The bank will follow in the footsteps of other UK retail banks in restricting client transfers to cryptocurrency exchanges. For transfers to crypto exchanges via mobile and online banking, its users will face restrictions of 1,000 pounds ($1,123) per transaction and 3,000 pounds overall in any rolling 30-day period. Last year, the [Natwest Group](https://www.reuters.com/technology/natwest-caps-transfers-crypto-exchanges-including-binance-over-fraud-concerns-2021-06-29/) in the United Kingdom set a daily limit for consumers to transmit to bitcoin exchanges. 

Customers will still be able to receive crypto [exchange](/news/article/best-exchanges-for-crypto-uk) payments into their accounts. [According to a note](https://www.santander.co.uk/personal/support/fraud-and-security/cryptocurrency) on the bank's website, there has been a significant increase in the number of UK clients who have become victims of cryptocurrency fraud in recent months. Global regulators have warned of the risks of scams and fraud in the primarily unregulated realm of cryptocurrency trading.

A spokeswoman for Santander stated that securing our clients from cryptocurrency fraud is a primary concern. "We want to further safeguard clients by barring all faster payments we find from Santander accounts to cryptocurrency exchanges - this will come into play in 2023".

## Faster Payments in the UK that Santander News refers to

Faster Payments is the infrastructure that enables real-time bank transactions for most UK bank accounts. Pay UK, which owns the respective company, stated in an email that it is working with authorities and the [payments](/news/article/russia-approves-cross-border-crypto) sector to create and implement more robust protection for fraud victims. 

Santander said it would continue to prohibit all payments to the cryptocurrency exchange Binance, a policy implemented in July 2021 in response to a warning from the UK's financial authority regarding the exchange. Binance did not reply immediately to a request for comment.




Santander UK news - Crypto transfers blocked

Germany's Nuri bank has become another victim of the crypto winter. It has notified its 500,000 customers to withdraw assets from their accounts as the company heads to close and liquidate the business.

In August, Nuri first reported liquidity issues after revealing that it had declared bankruptcy due to the economic strains of crypto winter. At the time, it announced that operations would go on as usual while it worked on a restructuring strategy and secured a buyout. However, an acquisition did not take place.

Nuri CEO Kristina Mayer stated in an 18 October [blog post](https://nuri.com/blog/letter-from-ceo/) that the company could not continue operations despite its best efforts.

## Nuri urges users to withdraw funds before 18 December

Nuri asked its customers to withdraw all of their funds before the deadline of 18 December. By contrast, bankrupt cryptocurrency lender [Celsius](/news/article/celsius-bankruptcy-protection) halted user fund withdrawals before everything went down.

The [bank](/news/article/crypto-friendly-banks-uk) assured its customers that all funds would be accessible and available for withdrawal until the specified date. Users' account's assets are all secure and unaffected by Nuri's bankruptcy. According to the post, trading will be available until 30 November, 2022.

Mayer stated that the challenges of 2022 were "insuperable" due to a tough economic and political environment and that this had prevented Nuri from raising new funds or finding a buyer.

While Mayer did not name its business partner, Celsius seems to be the most likely candidate because it had partnered with Nuri to offer Bitcoin interest accounts to its customers. When Celsius declared bankruptcy, these accounts were frozen.

Mayer also stated that the company remains enthusiastic about the potential of blockchain-based financial services.

She said Nuri is "convinced" that blockchain, cryptocurrency, and decentralised finance will offer opportunities that "add true value to the lives of people".

## The adverse effect of crypto winter

The term "crypto winter" refers to an underperforming cryptocurrency market. There have previously been several crypto winters. For instance, cryptocurrency prices dropped and remained well below previous peak prices from late 2017 to December 2020.

But the 2022 crypto winter is different. Many renowned businesses have been closed in the year 2022 because of liquidity issues.

Nuri bank joins a growing list of cryptocurrency companies that have had to halt trading and withdrawals due to unfavourable market volatility, including [Voyager Digital](/news/article/crypto-lending-platform-voyager), [Freeway](/news/article/freeway-crypto-halts), [Celsius](/news/article/celsius-data-breach) Network LLC, and Babel Finance.


Nuri Bank Asks 500k Users to Withdraw Funds

[Santander](https://www.santanderbank.com/) is one of the largest networks of banks in the world, with its headquarters in Spain. In August, it announced that it would be launching the [Santander cryptocurrency trading](/news/article/santander-crypto) feature in Brazil. Now, the firm has proposed using the Brazilian CBDC (central bank digital currency), Digital Real, to tokenise assets. 

The firm intends to facilitate trading real estate properties and cars for crypto users in Brazil. For this reason, it will be working with the [FinTech ParFin](https://parfin.io/en/), which can assist in tokenising ownership rights and controlling the exchange of assets or currencies. 

## Santander cryptocurrency trading project for LIFT Challenge

The proposal for the tokenisation of real estate properties and vehicles through CBDCs is for the LIFT Challenge program. The Central Bank of Brazil initiated the program to promote the use of CBDC, Digital Real, in the country. The coin could be launched in 2024.

Along with Santander, several other institutions became part of it, including the [Mercado Bitcoin Exchange](https://www.mercadobitcoin.com.br/), [Itau Unibanco](https://www.itau.com/), and Visa do Brazil. Because of this initiative from the central bank, various use cases of the upcoming digital currency came forward.   

## Digitising real-world assets

The banking institution is looking to build an infrastructure that can digitise real-world assets. It will provide a complete platform to the users where they can easily buy or sell properties, vehicles, or other assets via virtual currency. 

According to a local news agency, the bank's Executive Superintendent of Open Finance, Jayme Chataque, [said](https://livecoins.com.br/santander-projeto-real-digital-ompras-de-carros-e-casas/) that the tokenisation would allow the users to leverage [smart contract](/news/article/smart-contracts-blockchain) and blockchain technology for making deals for their houses, cars, or other assets. 

Meanwhile, the CTO of ParFin, Alex Buelau, stated that the firm has built a permissioned blockchain, ParChain, which will be used for digitisation for this project. Also, he mentioned that the blockchain could provide enhanced security through Multi-Party Computation technology.



Santander Cryptocurrency Services Expand

The Fidelity crypto division will have 500 staff members in total within the first three months of 2023, according to a spokesperson.

In sharp contrast to the recent squeezing out of crypto talent, $4.5 trillion asset management company Fidelity Investments is to employ another 100 individuals to support the firm's developing digital assets division. 

## Search for live jobs related to the Fidelity crypto division 

A [search](https://jobs.fidelity.com/job-search-results/?keyword=digital%20assets) on the bank's job board showed 74 active results for digital asset-related roles covering blockchain technology, business analysis, customer support, finance and accounting, product development, and corporate services such as compliance. 

Most of the current listings are from the United States, with the bulk originating from its offices in Boston, New York, Texas, Colorado, and Utah. According to Bloomberg, the new positions will be in the US, UK, and Ireland.

## What has caused the increase of staff at Fidelity? 

Fidelity's recruiting drive came after BlockFi, Coinbase, Gemini, and Crypto.com, among the top [crypto-native entreprises](/news/article/how-maiar-exchange-leverages-elrond), laid off 20%, 18%, and 10% of their staff, respectively. The mass layoffs appear to have created a new pool of digital asset talent for conventional corporations like Fidelity [to recruit](https://www.fnlondon.com/articles/fidelity-hiring-crypto-jobs-blockchain-20221019).

## Crypto division to increase digital assets offering

Fidelity has begun to provide more extensive [digital asset](/news/article/best-crypto-card-uk)-related services as investor interest in digital assets grows. 

A bank representative recently revealed to a cryptocurrency news outlet that the bank would begin offering [ETH](https://en.ethereumworldnews.com/fidelity-digital-assets-to-allow-clients-to-purchase-ethereum/) custody and trading services to institutional clients on 28 October, 2022.

In September, industry observers speculated that the company would soon "transition" towards offering Bitcoin trading services to its 34 million retail consumers. 

At the time, the company did not confirm the rumours, merely stating that extending its capabilities to provide further access to digital content remains an area of attention.

The company has previously established a tool that allows holders of 401(k) retirement savings accounts to invest directly in Bitcoin (BTC).


Fidelity crypto department to increase by 25%

One of the leading names among credit card companies, [Mastercard](https://www.mastercard.com/global/en.html), has announced plans to enter the crypto space. On Monday, the company [revealed](https://www.mastercard.com/news/press/2022/october/mastercard-to-bring-crypto-trading-capabilities-to-banks/) that it would be working to offer cryptocurrency trading services to its customers. The program is named Crypto Source and is aimed to facilitate digital asset trading between banks and investors. 

[Mastercard](/news/article/mastercard-crypto-asia) will be deploying a suite for the banks that will allow them to introduce secure trading services. It will likely incorporate transaction monitoring, analytics, AML compliance, biometric verification, and formidable cybersecurity.

## Paxos join forces with crypto Mastercard 

[Paxos Trust Company](https://paxos.com/) is an eminent name for providing infrastructure for cryptocurrency trades. Also, it is the first firm licensed by the Department of Financial Services of New York. The firm has joined forces with the crypto Mastercard to assist its trade program. 

Paxos will be playing the role of a broker and custodian for the banks. On the other hand, the credit card company will use its infrastructure to connect the banks' interfaces with these services. The companies say they will develop a seamless experience for buying and selling digital currencies.

## Why is the credit card giant entering the crypto space?

The company observed in its [new payments index](https://www.theblock.co/post/163036/awareness-of-crypto-is-high-but-trust-needs-to-be-built-mastercard-research-finds) that around 29% of the participants were cryptocurrency holders. Also, it was discovered that 65% of them would prefer virtual asset services from a trusted financial firm. 

This is one of the reasons the company has introduced its trade program with Paxos.
 
President of Cyber and Intelligence at Mastercard, Ajay Bhalla, said while sharing his thoughts on the program, "We are announcing today a connected approach to services that will help bring users safely and securely into the cryptocurrency ecosystem."

For the security of this program, the company has unique technology to build trust. However, it is not the first such initiative.

Previously, it introduced products like Ekata and CipherTrace, which are quite prominent for their security. 

Partnering with Crypto App, the company also launched its first [NFT debit card](/news/article/crypto-app-mastercard-nft) last month. This lets users personalise their NFT avatars with cards and spend fiat and digital assets.



Crypto Trading Services offered by Mastercard

The Reserve Bank of India is about to launch India CBDC, or Central Bank Digital Currency, aimed at specific use cases.

According to the Reserve Bank of India (RBI), "multiple technological options will be tested, and the final architecture will be decided based on the results." The Indian Central Bank recently published a report titled "[Concept Note on Central Bank Digital Currency](https://rbi.org.in/Scripts/PublicationReportDetails.aspx?UrlPage=&ID=1218)."

The RBI clarified that the concept note's goal is to raise awareness about CBDC and the characteristics of the digital rupee. It explains the objectives, options, benefits, and risks of CBDC in India.

It discusses technology and design choices, potential uses of the digital rupee, issuance mechanisms, and the effects of CBDC implementation on the banking system, monetary policy, financial stability, and privacy concerns.

## India CBDC

[CBDC](/news/article/cbdc-uk) will be a payment medium, legal tender, and safe store of value for all citizens, businesses, governments, and others who can convert cash into digital rupees. It aims to speed up transactions while lowering costs.

It will be consistent with RBI monetary policy and appear on the central bank's balance sheet as a liability. It is a fungible legal tender that does not require holders to have a bank account.

Digital currency will be introduced gradually, with appropriate phase-out strategies. This means that the launch will proceed through various stages of pilots, followed by a final launch.

In addition, there will be concurrent use cases that can be implemented with little to no disruption.

## RBI on CBDC

The Reserve Bank of India has also been analysing the idea of "implementing account-based CBDC in the wholesale segment and token-based in the retail segment via a graded approach." 

The RBI has also expressed concern about the recent rise in the popularity of cryptocurrency. It is concerned that the proliferation of crypto assets will pose significant risks in terms of money laundering and terrorism financing.

"The unabated use of crypto assets may pose a threat to monetary policy objectives because it may result in the creation of a parallel economy and will likely undermine monetary policy transmission and domestic currency stability," it said.

The RBI stated that developing the CBDC could provide the public with a risk-free digital currency that will provide them with lawful benefits without the risks associated with dealing in private virtual currencies. 






RBI to launch India CBDC

Bahrain is set to trial its first Bitcoin payment solution. The Central Bank of Bahrain (CBB) approved [OpenNode’s](https://www.opennode.com/) proposal for setting up a BTC payment infrastructure in the country. It is a BTC payment processor testing its infrastructure at the CBB’s [Regulatory Sandbox](https://www.cbb.gov.bh/fintech/). 

Lately, this gulf state has been working on transitioning its economy to rely more on blockchain and crypto. This move may further help its economy to reap [cryptocurrency benefits](/news/article/impact-of-cryptocurrency-on-society) and provide a better environment for doing business via cryptocurrencies.
  
## OpenNode to test BTC framework at Central Bank of Bahrain

On Tuesday, in a formal [press release](https://www.prnewswire.com/news-releases/opennode-to-test-bitcoin-payments-in-bahrain-301622510.html), the company announced that it would be providing a payout solution for Bitcoin in the country through the Central Bank of Bahrain. In 2017, CBB set up a regulatory sandbox for FinTech startups to bring regularised financial innovation to the country. Now, OpenNode will be using it to test its Bitcoin payment framework. 

According to the press release, the company identified no solution for BTC processing in the Middle East. However, there is a ‘growing interest’ in crypto among the investors in the region. 
The firm decided to establish its infrastructure in Bahrain to strengthen its economy further. Moreover, the firm intends to prove how Bitcoin means ‘better business’.

## Remarks from OpenNode’s CEO

Afnan Rahman is the Chief Executive Officer and the co-founder of the firm. While sharing his views on this trial, he declared it a “watershed moment for the people of Bahrain, the Middle East, and the Bitcoin Economy as a whole.”
Further, Rahman mentioned that his company is a leading solution for Bitcoin infrastructure, serving different governments, countries, and financial institutions to embrace BTC settlements for business. Also, he claimed that their framework provides a standard lightning network for transactions. 

## From petroleum-reliant economy to crypto economy

The Kingdom of Bahrain is a Persian Gulf state whose economy mainly relies on oil and gas. However, it aims to transform its economy through tourism and technological innovation. This also includes relying on blockchain technology and cryptocurrencies. 

Previously, the country made several attempts to reshape its economy into a crypto-friendly one. This included registering several exchanges like [Binance](/news/tag/binance-tag). It also listed CoinMENA, a crypto exchange compliant with the Sharia laws.
  
Moreover, its regulatory sandbox is attracting many FinTech companies. This also includes [JPMorgan’s](/news/tag/jpm) crypto firm Onyx. With these steps, the country is seeking to become a pioneer in crypto and blockchain technology in the Middle East. 



Central Bank of Bahrain to get BTC payment solution

The Federal Reserve has made it easier for progressive financial organizations to access their master accounts and participate in the international monetary system. This appears to be a step towards the [US Federal Reserve granting crypto banks direct access to the Fed's funds](https://99bitcoins.com/bitcoin-news-summary-aug-22-2022/), eliminating the need for these institutions to work with traditional financial intermediaries.

## U.S. Federal Reserve eases access to central banking for crypto banks

The U.S. Federal Reserve announced it would release the final rules governing how [alternative financial institutions](/news/article/crypto-friendly-banks-uk) may gain access to its "master accounts," which are required to participate in the international monetary system.

The Federal Reserve seems to be moving closer to providing Wyoming's special purpose depository institutions (SPDIs) like Custodia (previously Avanti) and Kraken Bank access to these accounts, eliminating the need for intermediate banks. In 2017, the Fed initiated the guidance proposal process by issuing a request for comments.

After almost 300 people commented, the second round of public feedback was held earlier this year. Fed Vice Chair Lael Brainard released a statement in which she said, "The new guidelines establish a consistent and transparent process to consider requests for Federal Reserve accounts and access to payment services to ensure a safe, inclusive, and creative payment system."

[The new regulations are essentially in line with proposals from 2021](https://www.coindesk.com/policy/2022/08/15/us-fed-opens-pathway-for-crypto-banks-to-tap-central-banking-system/), which will establish a tiered approach that will allow the Fed to tailor its vetting process for providing access based on the type of financial institution making the request. There is a progressively more thorough evaluation procedure at each tier.

The recommendations would make Tier 1 banks eligible for FDIC insurance. "Subject to prudential supervision by a federal banking regulator," but not "federally insured." Companies in the third tier are "not federally insured and nor subject to prudential supervision by a federal banking institution," which describes the Wyoming crypto banks.

The Fed received feedback after issuing its initial proposed guideline in 2021 and its modified the guidance earlier this year, as stated in the press release.

Many comments suggested that the Proposed Guidelines make it more difficult for institutions with unusual charters to open accounts and use services.

Regardless of the institution's operations, many commenters felt that the Proposed Guidelines should hold all financial institutions and crypto banks to the same standards as federally insured depository institutions.
 


Central banking access eases for crypto banks

The Cyprus Securities and Exchange Commission (CYSEC) has given digital banking firm Revolut permission to offer cryptocurrency services throughout the European Economic Area (EEA).

A fresh report claims that Revolut has been granted cryptocurrency-asset service provider (CASP) status by the island nation's governing body. The company has been on a hiring binge lately, despite the sluggish economy.

## Acceptance of crypto in Cyprus

The new license will allow the business to serve its 17 million European Economic Area customers from its newly established crypto center in Cyprus. After looking into various EU nations, Revolut ultimately decided on Cyprus as its base of operations.

[Famous exchanges including eToro](/news/article/etoro-fees), Crypto.Com, CMC Markets, and Bitpanda all call the country home. The app's representative said that the latest action was due to the sophisticated and tough regulatory regime of the CYSEC agency. He added also that "We heartily accept the European Parliament's clear goal to foster innovation while mandating robust customer protection safeguards to avoid any form of market abuse, and we applaud the new EU-wide law.

Revolut has obtained a license from the Central Bank of Spain and the Monetary Authority of Singapore, in addition to Cyprus (MAS). Over the next six months, the British fintech firm plans to increase the number of employees by 20% across the United Kingdom, the United States, and Europe. In previous Revolute news, the company has hired an additional 43 people so far this year. 

After over two years of debate, the Markets in Crypto Assets (MiCA) framework will be implemented by the end of 2023. It's a key component of the European Union's plan for the future of digital money.

To this end, MiCA seeks to establish a solid legal framework for the digital assets under its purview that have been excluded from the scope of existing financial services legislation in order to guarantee legal certainty.

It will aim to safeguard market players from the dangers connected with digital assets while also encouraging innovation and level playing fields. In addition, it will deal with threats to economic security.


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