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A new Bank of America (BOA) research study has found that both central bank digital currencies (CBDCs) and private digital currencies hold “a lot of potential” for increasing financial inclusion in developing countries. In the report, the bank also argues that such “digital currencies could reduce transaction costs and allow more economic activities in emerging market economies.”

Digital Currencies and Financial Inclusion

Still, the study findings show that while digital currencies are likely to “boost economic growth” in developing countries, their adoption will carry some risk. In addition, the study also finds that the rise of digital currencies “could lead to inflation and dollarization.”

Meanwhile, a separate report quotes David Hauner, the BOA’s head of emerging market cross-asset strategy and economics for EMEA, explaining why digital currencies could be pivotal in emerging market countries where more than 50% of adults lack a bank account.

“Digital currencies have the potential to address many practical constraints on financial services in poor countries,” said Hauner.

The report also lists the reduction of cross-border payment costs as well as the reduction of corruption and other illegal activities as some of the constraints that can be addressed by digital currencies.

Risks to Physical Currency

The BOA research study found that the rise of digital currencies could potentially “undermine a country’s physical currency,” however. Expanding on these findings, Hauner stated:

Easier access to alternative digital currencies is also likely to increase the volatility of domestic money supply and the exchange rate. Easier access to alternatives also raises the risks of rapid shifts of liquidity out of (or into) the currency and the banks which can magnify macro volatility in already less stable countries. Higher macro volatility would then reduce the effectiveness of policies and undermine the long-term rate of growth.

Despite these risks, Hauner suggests that more central banks are “likely to issue a general purpose CBDC in the next three years.” As previously reported by Bitcoin.com News, several countries — including a few in Africa — are currently at different stages of developing or piloting their digital currencies. Several more countries are likely to join the race as more studies show that digital currency benefits outweigh the risks.

Source Credits: Bitcoin.com

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Tezos launches world’s first Uranium marketplace on blockchain

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Tezos blockchain has become the foundation for the world’s first uranium trading marketplace, marking a significant milestone in the integration of blockchain technology with critical commodities. Announced on Nov. 21, the platform aims to bring transparency and efficiency to the global uranium market, which has traditionally operated with limited visibility and complex supply chains. The initiative is spearheaded by major industry players seeking to modernize uranium trading.

The blockchain-based marketplace will enable buyers and sellers to transact securely while providing an immutable ledger of all transactions. This innovation is expected to address long-standing challenges in the uranium sector, including traceability, regulatory compliance, and pricing opacity. By leveraging Tezos’ smart contract capabilities, the platform offers automated processes for contract execution and ensures a transparent record of ownership and origin.

Industry leaders have praised the project as a game-changer for the nuclear energy supply chain, which relies heavily on uranium. The marketplace is designed to support global efforts to enhance sustainability and safety, aligning with the increasing focus on responsible sourcing of critical materials. The move could also attract new participants to the market by lowering barriers to entry and fostering trust through blockchain’s verifiable data.

This development underscores the expanding role of blockchain in transforming traditional industries beyond finance. By addressing inefficiencies in one of the world’s most regulated markets, Tezos demonstrates how decentralized technologies can drive innovation and transparency. As the uranium marketplace gains traction, it could serve as a blueprint for blockchain adoption in other critical resource sectors.

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LimeWire adds decentralized file sharing feature with BNB Greenfield

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LimeWire, the iconic file-sharing platform from the early 2000s, has made a comeback, reimagined for the Web3 era. Announced on Nov. 21, the platform now operates as a decentralized file-sharing network, leveraging blockchain technology to enable secure and transparent peer-to-peer sharing of digital assets. The relaunch aims to blend nostalgia with innovation, introducing LimeWire to a new generation of users while embracing the principles of decentralization.

The updated LimeWire platform integrates blockchain to provide content creators with greater control over their work, including tools for licensing and monetization. Users can share files, such as music, videos, and other media, while ensuring ownership and royalties are preserved through smart contracts. LimeWire also features its own native token to facilitate transactions within the ecosystem, including tipping creators and accessing premium content.

LimeWire’s revival reflects a broader trend of Web2 platforms transitioning into the Web3 space. The platform’s focus on decentralization aligns with the growing demand for alternatives to centralized file-sharing services, which have faced criticism over censorship and lack of user privacy. By adopting blockchain, LimeWire seeks to address these issues while empowering both creators and consumers with greater transparency and fairness.

As LimeWire re-enters the digital landscape, its success will depend on user adoption and the platform’s ability to compete with established Web3 content-sharing solutions. With its nostalgic branding and commitment to innovation, LimeWire’s evolution into a decentralized platform positions it as a potential leader in reshaping how digital content is shared and monetized in the blockchain era.

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Coinbase Expands Trading Options for New York Users with Four New Tokens

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Coinbase, one of the largest cryptocurrency exchanges in the United States, has announced the addition of four new tokens to its trading platform for users in New York. The newly listed tokens—NEAR Protocol (NEAR), AERGO (AERGO), VeThor Token (VTHO), and PayPal USD (PYUSD)—are now available for trading in the state, offering more choices to New York-based investors.

This move is part of Coinbase’s ongoing effort to expand its offerings and provide a wider range of assets to its user base. The inclusion of NEAR, AERGO, VTHO, and PYUSD reflects the growing demand for diverse digital assets in the crypto market.

NEAR Protocol is known for its developer-friendly blockchain, AERGO offers a hybrid blockchain for enterprise solutions, VeThor Token is used within the VeChain ecosystem, and PayPal USD is a stablecoin backed by PayPal, aimed at facilitating digital payments.

New York, known for its strict regulatory environment regarding cryptocurrencies, has often seen a more limited selection of tokens available for trading. Coinbase’s expansion to include these tokens indicates a growing acceptance and regulatory clarity around these assets in the state.

The exchange continues to enhance its platform, ensuring that it meets the evolving needs of its users while complying with local regulations.

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