6.11 AI Daily The crypto assets market has potential risks and opportunities coexisting, and regulatory attitudes may become a key variable.

1. Headline

1. The SEC requires Solana ETF issuers to modify application documents, or approval may be granted within 3-5 weeks.

The U.S. Securities and Exchange Commission (SEC) recently issued a notice to several asset management firms, requiring them to submit updated Solana ETF registration documents (S-1 form) within 7 days. The SEC specifically requested revisions to the terms regarding "physical redemption" and "staking mechanism," and hinted that it might allow the Solana ETF to include staking yield features.

This development is interpreted by the market as a shift towards a more positive regulatory attitude. A source estimates that the Solana ETF is expected to be approved within three to five weeks, and several traditional institutions are vying to launch the ETF. Previously, the SEC had a cautious stance on cryptocurrency regulation, and after approving Bitcoin and Ethereum spot ETFs, the industry had pessimistic expectations regarding the approval of other public chain ETFs.

If the Solana ETF is approved, it will provide more investment channels for institutional investors and is expected to promote the development of the Solana ecosystem. However, some analysts believe that the ETF approval process is slow, and the cryptocurrency market is changing rapidly, which may lead investors to prefer direct investment in tokens. In addition, the SEC may hold an open attitude towards other public chain ETFs, triggering increased competition in the industry.

2. Meta invests $14.8 billion to acquire Scale AI, data labeling becomes a new track in AI.

Meta announced a $14.8 billion acquisition of nearly half of the shares of artificial intelligence company Scale AI, drawing industry attention to the important role of data labeling in AI development. Scale AI focuses on manually labeling data to provide high-quality datasets for training AI models.

Data annotation is regarded as a key link in the development of AI. High-quality datasets can improve the accuracy and generalization ability of AI models, but there is still a lack of efficient data annotation solutions. Meta's recent expensive acquisition aims to enhance its AI capabilities and reflects the strategic value of data annotation in the AI era.

Analysis indicates that data labeling may become a new track for AI development. Compared to computing power aggregation, data labeling can provide primary support for AI models and has higher value. Companies like Anthropic and Sahara Labs are exploring decentralized data labeling solutions, which are expected to promote the democratization of AI.

However, data annotation also faces challenges such as privacy and ethics. How to efficiently annotate data while protecting privacy will be a difficult problem that data annotation companies need to solve. Overall, data annotation is becoming a new focus of AI development, leading to the enhancement of AI capabilities.

3. The "war of words" between Musk and Trump escalates, capital markets sense investment opportunities.

Tesla CEO Elon Musk and former U.S. President Donald Trump engaged in a "war of words" on social media, with both sides accusing each other of issues related to U.S. debt, inflation, and more, drawing market attention.

The incident was triggered by Musk criticizing the Trump administration's fiscal policies on social media, believing they exacerbated inflation and debt issues. Trump countered Musk by saying he was "talking big" and warned that if Musk supported the Democratic Party, he would face serious consequences.

Analysts believe that the "war of words" reflects Musk's concerns about the financial situation in the United States. As an entrepreneur, he hopes the government maintains fiscal discipline to create a favorable environment for businesses. At the same time, Musk may also be using this as a way to hype himself up and increase his influence.

From the perspective of the capital market, this event may present investment opportunities. Morgan Stanley warns that if the "Tesla competition" continues to escalate, Tesla's stock price will face more severe fluctuations, but it will also create a large number of trading opportunities. Overall, this event reflects that tech giants are beginning to intervene in the power struggle of political discourse.

4. The relaxation of OP_RETURN limits for Bitcoin has sparked intense debate within the community.

The Bitcoin Core development team plans to relax the OP_RETURN data limits in version 30, sparking intense debates in the community about blockchain bloat, node burden, and the core value of Bitcoin, impacting developer confidence.

OP_RETURN is a Bitcoin script opcode that allows for the storage of a small amount of non-transactional data within Bitcoin transactions. Currently, each transaction can store a maximum of 80 bytes of data, with plans to relax this limit to 4MB in version 30.

Supporters believe that this change will promote the application of Bitcoin in fields such as We and enhance its programmability. However, opponents are concerned that excessive data will lead to unrestricted expansion of the blockchain, increasing the burden on nodes and going against the original intention of Bitcoin as "peer-to-peer electronic cash."

The analysis points out that this controversy reflects the divergence in the Bitcoin community regarding its development direction. Conservatives wish for Bitcoin to focus on value storage, while the open-minded faction hopes to enhance programmability and expand application scenarios. How to seek a balance between the two will be a major test for the development of Bitcoin.

In addition, fierce internal disagreements have also shaken developers' confidence. Some "old OGs" threaten to sell off and exit the industry, reflecting the risk of community fragmentation. Whether Bitcoin can smoothly advance its evolution will determine its future position in the cryptocurrency space.

5. We Social is regarded as the next Mass Adoption track, with innovative directions yet to be explored.

At the Solana Ecosystem Conference Breakpoint, entrepreneurs engaged in a heated discussion about whether We Social can become a mass adoption track for blockchain products.

We social is regarded as a new track with imaginative potential. Compared to the centralized social of Web2, We social is expected to bring users a brand new social experience through decentralization, data ownership, and other features.

However, We social is still in the exploratory stage. Entrepreneurs need to explore how to design new models like "Connect to Earn" in an interesting way without disrupting the ecological economy. At the same time, attracting users and building an active community is also a major challenge.

Analysis points out that We social needs innovative business models and customer acquisition methods. The traditional "issue coins - go to exchange" route is no longer feasible and requires more innovative attempts. At the same time, We social also faces challenges such as privacy and regulation, which need to be addressed in a timely manner.

Overall, We Social is seen as a strong track for the mass adoption of blockchain products, but the direction of innovation still needs further exploration. It is believed that with the joint efforts of industry participants, We Social will eventually give birth to new business models and user experiences.

2. Industry News

1. Bitcoin breaks through the $110,000 mark, triggering a market rebound.

Bitcoin has broken through the $110,000 barrier in the past 24 hours, reigniting momentum across the entire cryptocurrency market. This move signals a growing strength of bullish forces, injecting new vitality into a recently relatively sluggish market.

Analysts believe that Bitcoin's breakthrough of this key psychological price level is mainly driven by the continued influx of institutional investors and ETF funds. Despite certain risks, most experts predict that Bitcoin is expected to reach a price range of $180,000 to $200,000 by the end of the year. Investors need to closely monitor changes in inflation data and regulatory policies, as these factors may have a significant impact on the market.

Meanwhile, Ethereum has also performed remarkably in this round of market, returning above $2800. The ETH/BTC exchange rate is attempting to break through the daily Vegas resistance level, and the ETH ETF has achieved net inflows for 15 consecutive working days, with optimistic sentiment in the capital market stimulating the rise in ETH prices.

The altcoin sector has also seen a widespread rebound, and market sentiment is high. However, analysts remind investors to pay attention to market risks and data changes, and to maintain rational investment.

2. The SEC may approve the Solana spot ETF, causing SOL price to surge.

According to informed sources, the U.S. Securities and Exchange Commission ( SEC ) has requested that the issuers proposing to launch a Solana spot ETF submit a revised S-1 form within the next week. This development is interpreted by the market as a shift towards a more positive regulatory stance, and one insider estimates that the Solana ETF is expected to be approved within 3 to 5 weeks.

As soon as the news broke, the price of SOL surged, breaking through the $165 mark, with a 24-hour increase of 2.5%. Several traditional institutions are vying to launch this ETF, and if it can be listed in the United States, it will further broaden investors' adoption of the Solana ecosystem.

Analysts believe that since the Solana ETF submitted its registration documents in May, it reflects an increasing embrace of the Solana ecosystem by institutions. As an innovative Layer 1 ecosystem known for its excellent performance and practicality, if Solana can be listed in the United States, it will mark another significant breakthrough in the institutional field.

3. XRP sidechain will be compatible with the Ethereum Virtual Machine, attracting 87 new contributors.

At APEX 2025 in Singapore, Ripple announced that XRP's EVM-compatible sidechain will go live this quarter. The sidechain testnet has grown rapidly since its launch at the beginning of the year, with development firm Peersyst showing that 87 new entities have participated in the ecosystem, covering areas such as infrastructure, application development, and user growth.

EVM compatibility will enable this sidechain to seamlessly run Ethereum-based decentralized applications and smart contracts. After the mainnet launch, users can achieve returns through DeFi applications such as liquidity pools.

Analysts say that XRP's trading volume has exceeded 3.3 billion, and the number of global wallets has surpassed 6 million. Ripple's move not only helps attract more developers but will also further enhance the interoperability of XRPL with the Ethereum ecosystem, providing institutions with broader blockchain application scenarios.

4. The Ethereum funding rate has soared, with leveraged trading dominating this round of increase.

Data shows that the funding rate for Ethereum has surged to 13.7%, reaching a new high since February of this year. This is usually interpreted by the market as a bullish signal, likely to attract more inflow of funds into Ethereum ETFs.

However, a more concerning indicator is that the open interest in futures contracts is approaching the historical high of December 2024, showing that the main driving force behind this round of price increase is not spot buyers, but leveraged futures traders.

Compared to Bitcoin, which is still dominated by spot demand, Ethereum's trend shows divergence. Recently, there has been a surge in bullish options buying, coupled with the gamma hedging effect, which poses a significant gap risk for ETH. The market is becoming increasingly fragile and is sensitive to changes in momentum.

Analysts warn that despite favorable funding conditions, investors should be wary of the risks associated with leveraged trading. A significant negative event could trigger a liquidity crisis and exacerbate price volatility.

5. As inflation data approaches, Bitcoin's volatility drops to 200 ATR.

On the eve of the release of US inflation data for May, Bitcoin volatility has dropped to 200 ATR. Analysts said that if the inflation data is stronger than expected, it could cool the market and reduce the likelihood of a near-term interest rate cut by the Federal Reserve, which could put pressure on the price of bitcoin.

On the other hand, if the inflation data meets or falls below expectations, it is expected to further boost risk assets and bring a new round of upward momentum for Bitcoin. However, due to the divergence in market expectations regarding the inflation outlook, investors should remain cautious and closely monitor market reactions following the data release.

Overall, inflation data will become an important barometer influencing the trends of the cryptocurrency market. Analysts advise investors to manage their risk exposure and prepare for various possible scenarios.

6. Cryptocurrency Analyst: Dogecoin price needs to break above $2.28 to continue rising.

Famous cryptocurrency analysts conclude that Dogecoin needs to break through the critical resistance level of $2.28 in order to continue its upward trend, based on their study of the coin's cyclical performance.

Analysts point out that if Dogecoin can successfully break through this key level, it will open up upward space, with the potential to rise to around $0.4 in the coming weeks. However, if it fails, it could trigger a pullback, with prices possibly falling back to around $1.8.

Overall, Dogecoin is currently at a critical turning point. Investors need to closely monitor price movements and seize the right opportunities. At the same time, they should be aware of the risks, as altcoins tend to have significant volatility and carry a degree of uncertainty.

3. Project News

1. Sui Network: The new star of the Move ecosystem continues to make strides, attracting the attention of developers and institutions.

Sui Network is a brand new layer one blockchain developed by Mysten Labs, aimed at providing high-performance, low-cost decentralized applications. Sui uses the Move programming language and promotes the development of the Move ecosystem alongside projects like Solana and Aptos.

Recent Updates: Sui Network has garnered significant attention during the TOKEN2049 conference in Singapore, with its token SUI experiencing a dramatic price surge. Additionally, Grayscale Trust and Circle have launched Sui trust products and native USDC respectively, injecting new momentum into the Sui ecosystem. Several institutions, such as Canary Capital and VanEck, have also successively launched investment products on Sui.

The innovation of Sui Network lies in the adoption of a new "consensus composability" architecture, which separates state objects and transactions, achieving high parallelism and composability. This allows Sui to support large-scale concurrent transactions while maintaining high security and scalability.

The project is expected to bring new development opportunities to the Move ecosystem. The Move language is concise and efficient, similar to the Rust language, which is conducive to attracting more developers to join. Analysts believe that Sui is likely to become another star project in the Move ecosystem after Solana.

However, the Sui ecosystem is still in its early stages, with relatively few investable assets. Its future development will require more quality application incubation and continuous user attention.

2. Humanity Protocol acquires MoonGate, advancing We identity verification implementation.

Humanity Protocol is a decentralized identity solution designed to provide trusted identity verification for the We era. Recently, the project announced the acquisition of the We event infrastructure platform MoonGate to accelerate the application of identity verification technology.

As a decentralized identity platform, Humanity Protocol allows users to manage and control their identity data autonomously. Users can selectively share identity information and gain corresponding permissions and access in different scenarios.

After acquiring MoonGate, Humanity Protocol will collaborate with it to promote the application of decentralized identity in We activities and communities. Both parties will launch pilot projects and flagship events to showcase the application scenarios of decentralized identity.

Analysts believe that with the development of the We ecosystem, identity verification will become a key infrastructure. Traditional centralized identity systems pose privacy and security risks, while decentralized identity solutions are expected to provide users with a better experience.

However, identity authentication technology still faces many challenges in practical application and needs continuous optimization and improvement. The acquisition by Humanity Protocol is expected to provide more application scenarios and accelerate the implementation of the technology.

3. The Algorand Foundation released a TVL research report, warning about the "gamification" risks associated with TVL.

The total locked value ( TVL ) is an important indicator for measuring the development of the DeFi ecosystem. However, recent studies have pointed out that TVL may be subject to manipulation risks, raising concerns in the industry.

The Algorand Foundation recently released a research report on TVL, pointing out the risks of "gamification" in TVL. The report suggests that some projects may manipulate TVL artificially through methods such as airdrops and high APY mining to attract more funds, which could lead to distorted TVL data.

The report analyzes the TVL data of multiple ecosystems and finds a significant amount of short-term capital inflows and outflows, leading to drastic fluctuations in TVL. This "hot money" effect may distort the TVL data, affecting its reference value as a measure of DeFi development.

In addition, the report also pointed out that the TVL data lacks standardization, and there are discrepancies in the data from different statistical agencies, which also affects the credibility of TVL as an industry indicator.

Analysts say that TVL, as an important indicator, has crucial data quality and reliability. The industry needs to establish a more transparent and standardized way of calculating TVL to avoid manipulation and distortion. At the same time, TVL should not be overinterpreted; it needs to be assessed in conjunction with other indicators for a comprehensive evaluation of the DeFi ecosystem's development.

4. The board approves investment in Bitcoin, traditional institutions continue to embrace crypto assets.

The cryptocurrency exchange announced that its board has officially approved the investment of a portion of its funds into Bitcoin, marking a continued embrace of crypto assets by traditional financial institutions.

As a publicly traded company, this decision is a milestone for the company. The board of directors believes that investing some of the cash reserves in Bitcoin will enhance the company's asset return rate and create long-term value for shareholders.

Bitcoin, as the flagship asset of cryptocurrencies, has continuously gained institutional recognition in recent years. Data shows that as of May this year, nearly 200 listed companies worldwide hold Bitcoin.

Analysts believe that this move reflects a changing attitude of traditional financial institutions towards crypto assets. An increasing number of institutions are starting to include digital assets such as Bitcoin in their portfolios to seek new investment opportunities and value growth.

However, there are also views that institutional investment in Bitcoin may involve potential risks and requires careful assessment. Bitcoin prices are highly volatile, and investment requires long-term patience. At the same time, changes in regulatory policies may also affect institutions' investment decisions.

Overall, the company's approach once again confirms the influence of Bitcoin in the institutional sector, and the trend of integration between traditional finance and crypto assets is likely to continue.

5. Pyth Network has launched over 100 major ETF real-time price data sources.

Pyth Network is an emerging blockchain data feed protocol designed to provide high-quality on-chain data for DeFi applications. Recently, Pyth Network announced the launch of real-time price data sources for over 100 major ETFs.

As a decentralized data network, Pyth Network aggregates multiple trusted data sources to provide on-chain applications with price data and other off-chain information. Its data sources include well-known institutions such as BlackRock and Vanguard.

The newly launched ETF real-time price data source will enable DeFi applications to access data from these leading companies, improving the accuracy of financial tools and reducing reliance on expensive data feeds.

Analysts believe that reliable on-chain data is crucial for the DeFi ecosystem. Currently, DeFi applications have limited channels for obtaining off-chain data, and the quality of data varies significantly, which restricts the development of applications. The rise of decentralized data networks such as Pyth Network is expected to bring new momentum for the development of DeFi.

However, ensuring data quality requires continuous effort. The Pyth Network needs to continually expand credible data sources and optimize aggregation mechanisms to ensure the accuracy and reliability of the data, truly realizing its value.

4. Economic Dynamics

1. U.S. May inflation data exceeded expectations, increasing interest rate hike expectations.

Economic Background: The US economy faced the dual pressures of high inflation and a rate hike cycle in 2022. At the beginning of 2023, the inflation rate eased somewhat, but it remained above the Federal Reserve's target level of 2%. The unemployment rate stayed at a low level, with a steady pace of economic recovery.

Important Event: Data released by the U.S. Bureau of Labor Statistics on June 11 shows that the Consumer Price Index (CPI) for May rose 4.9% year-on-year, higher than the market expectation of 4.7%, and also higher than April's 4.9%. The core CPI increased by 5.3% year-on-year, exceeding the expected 5.2%. This data breaks the trend of inflation falling for two consecutive months, raising market expectations for an interest rate hike by the Federal Reserve.

Market reaction: The US stock market fell after the data was released, with the S&P 500 index down 0.38%. The US dollar index rose slightly, reflecting the market's increasing expectations for a Federal Reserve interest rate hike. The yield curve of US Treasury bonds further inverted, with the gap between the 10-year and 2-year Treasury yields widening to negative 0.8 percentage points, indicating an increased risk of economic recession.

Expert view: Goldman Sachs chief economist Jan Hatzius said that the May inflation data means that the probability of a 25 basis point rate hike by the Fed in June increases. He expects the Fed to raise rates again later this year and start cutting rates in early 2024. Michael Feroli, chief economist at JPMorgan Chase & Co., believes that the inflation data is stronger than expected, and the Fed may need to raise interest rates above 6% to effectively curb inflation.

( 2. Progress has been made in the China-US economic and trade consultations, and trade tensions are easing.

Economic Background: China and the United States are the two largest economies in the world, and the development of their bilateral trade relations is crucial for the global economic landscape. In recent years, the two countries have experienced differences and frictions in areas such as trade and technology, creating uncertainties for the global supply chain and investment environment.

Important Event: On June 11, the first meeting of the China-U.S. economic and trade consultation mechanism was held in London, UK. Both sides reached a framework agreement on trade issues and submitted the framework for review by the leaders of both countries. The Chinese side reiterated that both sides should move towards each other, with commitments to action and results, to jointly maintain the hard-won dialogue achievements. The U.S. side stated that the meeting achieved positive results and will work towards the Chinese side as per the requirements of the leaders' phone call.

Market reaction: Progress has been made in China-U.S. trade negotiations, helping to ease trade tensions between the two countries and injecting certainty and stability into the global economy. U.S. stocks rose after the announcement, with the S&P 500 index up 0.92%. The dollar index dipped slightly. Chinese concept stocks collectively surged, with companies like Alibaba and JD.com seeing their stock prices rise over 5%.

Expert Opinion: Wang Tongsan, Vice President of the Chongyang Institute for Financial Studies at Renmin University of China, stated that the China-U.S. economic and trade consultations have achieved phased results, which are beneficial for alleviating trade frictions and creating favorable conditions for the next round of consultations. However, the differences between the two sides remain significant and further negotiations are needed. Bloomberg economist Andrew Hughes believes that the easing of China-U.S. trade tensions will benefit global economic recovery, but the uncertainty of trade policies remains a major risk factor.

) 3. The Bank of Japan maintains ultra-loose monetary policy, raising concerns over yen depreciation.

Economic Background: The Japanese economy was hit by the dual impact of the pandemic and the Russia-Ukraine conflict in 2022, leading to weak economic growth. The inflation rate saw a decline in early 2023 but remained far below that of other developed economies. The Bank of Japan has long implemented an ultra-loose monetary policy to stimulate economic growth.

Key Event: The Bank of Japan decided to maintain its ultra-loose monetary policy at the policy meeting held on June 16-17, in line with market expectations. Specific measures include keeping the short-term interest rate at the extremely low level of -0.1% and maintaining the target for the 10-year government bond yield at around 0%.

Market reaction: After the Bank of Japan decided to maintain its ultra-loose policy, the yen fell to a 7-month low of 139.39 against the dollar, down nearly 1% from before the meeting. The Nikkei 225 index in Japan rose slightly. The bond yield curve flattened, reflecting a cooling of market inflation expectations.

Expert Opinion: Osamu Takashima, a foreign exchange strategist at Citibank, stated that the Bank of Japan's adherence to an ultra-loose policy is contrary to the tightening policies of other major economies and will exacerbate the depreciation pressure on the yen. Kazuki Nozaka, chief foreign exchange strategist at Nomura Securities, believes that the depreciation of the yen benefits Japanese export companies, but will also increase inflationary pressure and weaken real household income.

4. The EU approves a new round of sanctions against Russia, impacting the energy sector.

Economic Background: After Russia launched the war against Ukraine in 2022, Western countries imposed multiple rounds of economic sanctions on Russia. Russia is a major energy supplier to the EU, and the sanctions have impacted energy supplies in Europe, driving up energy prices.

Important event: On June 23, the European Union officially approved a new round of sanctions against Russia, which includes a ban on the import of Russian crude oil and restrictions on Russian banks' operations in the EU. This is the tenth round of sanctions imposed by the EU since the outbreak of the Russia-Ukraine conflict on February 24.

Market reaction: International oil prices rose slightly after the announcement. Brent crude futures prices rose by as much as 1.2% to $117.5 per barrel. European natural gas futures prices increased by nearly 3% to €53 per megawatt hour. The Russian ruble fell by more than 2% against the US dollar.

Expert Opinion: Jim Reid, a macro strategist at Deutsche Bank, stated that the new round of sanctions will further hit the Russian economy but will also exacerbate the energy crisis in Europe. He predicts that the EU may need to further reduce its dependence on Russian energy. Goldman Sachs analysts pointed out that Russian oil exports could decrease by about 1.5%, but the decline in production may be offset by increased output from other OPEC+ member countries.

V. Regulation & Policy

1. The CLARITY Act in the United States has passed the House Agriculture Committee review, and is expected to clarify cryptocurrency regulation.

The CLARITY Act is an important bill introduced in the U.S. Congress to clarify cryptocurrency regulation. The bill was jointly proposed by Representatives Glenn Thompson and Darren LaHood, aiming to provide clearer guidance for the regulation of cryptocurrency assets.

The bill passed the review of the House Agriculture Committee on June 11. The main content of the bill includes:

• Bring cryptocurrency assets under the regulation of the Commodity Futures Trading Commission ### CFTC ###, granting the CFTC regulatory authority over the cryptocurrency spot and derivatives markets.
• Require the CFTC to coordinate with other regulatory agencies such as the Securities and Exchange Commission ( SEC ) to clarify the regulatory jurisdiction of different types of crypto assets.
• Establish regulatory frameworks for cryptocurrency exchanges, brokers, and other intermediaries, including registration, capital requirements, and investor protection measures.

The passage of this bill aims to provide a more transparent and orderly regulatory environment for the cryptocurrency industry in the United States, encouraging institutional investors and businesses to participate, and promoting healthy industry development.

The market reacted positively, with the prices of mainstream cryptocurrencies like Ethereum rising after the bill was passed. Investors generally believe that clear regulation will help attract more institutional funds into the crypto market. However, some analysts are concerned that excessive regulation could stifle innovation.

Faryar Shirzad, Chief Policy Officer of the cryptocurrency exchange Coinbase, stated that the CLARITY Act is a step in the right direction but still requires further refinement. He urged lawmakers to maintain close communication with the industry to develop a regulatory framework that balances regulation and innovation.

( 2. The governor of the Bank of Korea will meet with the heads of commercial banks to discuss issues related to stablecoins.

The Governor of the Bank of Korea, Lee Chang-yong, will meet with the heads of commercial banks at the Bank Hall in Jung-gu, Seoul, on June 23. It is reported that this meeting is expected to discuss the issuance of stablecoins based on the Korean won.

Stablecoins are a type of cryptocurrency that is pegged to fiat currencies or other assets, designed to maintain price stability. In recent years, the application of stablecoins in cryptocurrency trading and decentralized finance )DeFi### has become increasingly widespread.

The Bank of Korea had previously taken a cautious stance on the issuance of won stablecoins by non-bank sectors, citing concerns over potential impacts on the effectiveness of monetary policy and risks to financial stability. However, with the rapid development of stablecoins globally, the Bank of Korea is also reevaluating its regulatory position.

The meeting will be held with the accompaniment of Vice President Park Jong-woo, who is responsible for monetary policy and financial markets. Analysts expect that the meeting will discuss the regulatory framework for stablecoins, issuance conditions, and risk management measures.

Market participants have high hopes for this meeting. Stablecoin issuers like Terra and Up are hoping to obtain permission to issue a Korean won-pegged stablecoin to meet the needs of domestic and international users. However, some experts are concerned that excessive relaxation of regulations could bring financial risks.

Financial analyst Park Si-yeon stated that regulation of stablecoins needs to balance innovation and risk, creating a fair competitive environment for enterprises while protecting investors' interests and maintaining financial stability. He suggested that central banks consider adopting a prudent regulatory approach, starting with pilot programs and gradually loosening regulations.

( 3. The Bank of Japan calls for increased efforts to promote the development of digital currencies in order to transition to a "cashless society".

Officials from the Bank of Japan have recently intensified their calls for Japan to keep pace with the rapid development of digital currencies, which could accelerate the country's shift from a "cash is king" mentality to a cashless payment system.

According to data from the Japanese government, the proportion of cashless payments in the country rose from 13.2% in 2010 to 42.8% in 2024, exceeding the government's target of 40% a year earlier. Although Japan lags behind the world in payment technology, the increase in cashless transactions is forcing policymakers to ensure they are prepared to adapt to the public's changing preferences for payment and settlement methods.

Kazushige Kamiyama, Executive Director of the Bank of Japan, stated: "Although the issuance of banknotes in Japan remains high, the use of banknotes may significantly decline in the future due to the rapid development of digitalization. Therefore, Japan must consider what measures can be taken now to ensure that its retail settlement system is convenient, efficient, widely available, while also being safe and resilient."

The Deputy Governor of the Bank of Japan, Shinichi Uchida, also stated that the central bank digital currency ) CBDC ### could become a "key component of the infrastructure" shaping the future of Japan's payment and settlement systems, but he emphasized that the demand for cash in Japan is not expected to disappear in the short term.

Market participants believe that the Bank of Japan's call reflects its emphasis on digital transformation. Some experts expect that Japan may launch pilot projects for CBDC in the coming years. However, some analysts are concerned that pushing too hastily may bring technical and operational risks.

Koji Tanaka, the CEO of Japanese fintech company Monex Group, stated that Japan should learn from the experiences of other countries and gradually promote the development and application of digital currencies, ensuring safety and efficiency. He believes that the government, central bank, and private enterprises need to work together to drive Japan's transition to a cashless society.