Investment Education

According to Cointelegraph, Taiwan is advancing institutional cryptocurrency adoption as local regulators plan to pilot crypto storage services through local banks. The Financial Supervisory Commission (FSC) of Taiwan is preparing to launch an institutional trial of crypto custody services, as reported by the Central News Agency on October 8.While the FSC expects to start collecting applications in the first quarter of 2025, three private banks in Taiwan have already shown interest in piloting a crypto custody business. The FSC has specified that financial institutions applying for the trial must detail the types of assets they will store for clients, such as Bitcoin (BTC), Ether (ETH), or Dogecoin (DOGE). Additionally, institutions must provide information about their target users, whether they are professional or general investors, crypto-asset platforms, or others.FSC’s director of the comprehensive planning division, Hu Zehua, mentioned at a press conference that the authority plans to publicly release information on the upcoming trial at least 15 days before starting to accept applications. The FSC will also collect public feedback on the proposed trial and revise the process accordingly. This is a developing story, and further information will be added as it becomes available.

According to Odaily, the U.S. dollar experienced an increase ahead of the release of the Federal Reserve's meeting minutes. Last month, the Federal Reserve cut interest rates by 50 basis points, and the upcoming minutes may provide insights into future policy measures. Chris Turner, an analyst at ING, noted in a report that the market has already reduced the Federal Reserve's 2024 easing cycle by about 30 basis points over the past few weeks. However, he also questioned whether investors are currently inclined to reprice the Federal Reserve's aggressive easing cycle.Turner further mentioned that the Consumer Price Index (CPI) data, scheduled for release on Thursday, could indicate that the core inflation rate in the U.S. remained high in September. This could potentially support the dollar. The market's focus remains on the Federal Reserve's next steps and the implications of the CPI data on the broader economic outlook.

According to Odaily, the minutes from the Federal Reserve's September meeting will be released this Thursday at 2:00 AM UTC+8. SEB, a Swedish bank, noted that apart from the rate cuts discussed in the September meeting, new economic forecasts were also provided. These forecasts indicate that by 2026, the U.S. economy is expected to achieve a soft landing with an economic growth rate of around 2% and inflation nearing target levels. The interest rate predictions suggest two 25 basis point cuts before the end of this year and a 100 basis point cut in 2025.The minutes will offer interesting insights into the pace of future rate cuts and the factors that might trigger faster reductions. Given that the rate-cutting cycle has already begun, discussions on long-term rates, including when and at what level they are expected to bottom out, will also be of significant interest.

According to Odaily, the Reserve Bank of New Zealand has reduced its interest rate by 50 basis points to 4.75%. This move aligns with market expectations and marks the second consecutive rate cut.

According to Odaily, JPMorgan CEO Jamie Dimon has expressed support for the Federal Reserve's decision to slow down the pace of rate cuts by 50 basis points. Dimon believes that long-term interest rates may remain at their current level or slightly increase. He also noted significant concerns among the public regarding the United States' fiscal and monetary policies.

According to BlockBeats, on October 8, market sources reported that Ray Dalio, the founder of Bridgewater Associates, does not anticipate significant interest rate cuts in the near future.

According to Odaily, UBS economist Brian Rose stated in a report last Friday that the Consumer Price Index (CPI) for September will be a critical data point. If prices rise faster than expected, coupled with strong labor data, the likelihood of the Federal Reserve holding steady at its November meeting will increase. Based on data from the CME FedWatch tool, following the release of the September employment report, the probability of the Federal Reserve cutting interest rates by 50 basis points next month has dropped from 33% to zero. Traders are now not even fully pricing in a 25 basis point rate cut. Therefore, Thursday's CPI reading has gained significant importance for the Federal Reserve's next move.

According to Odaily, Dutch banks ABN AMRO and Rabobank have participated in the issuance of digital commercial paper. This paper was tokenized on Deutsche Börse's Clearstream D7 DLT platform. The transaction is part of the European Central Bank's distributed ledger technology experiment for wholesale settlement using central bank money. ABN AMRO has expressed a preference for issuing digital bonds on public blockchains, utilizing Ethereum, Stellar, and Polygon.

According to BlockBeats, on October 8, the President of the Federal Reserve Bank of St. Louis, Musalem, expressed his support for the Federal Reserve's decision to cut interest rates by 50 basis points last month. However, he emphasized his preference for further rate cuts to be implemented gradually. Considering the current economic conditions, Musalem believes that the cost of easing too early and too much outweighs the cost of easing too late and too little. Over time, a gradual reduction in policy rates may be appropriate. He also predicted that the Federal Reserve's preferred inflation measure, the Personal Consumption Expenditures Price Index (PCE), will converge to 2% over the 'next few quarters.'

According to Cointelegraph, a European Central Bank (ECB) official has proposed the creation of a 'European ledger,' a unified blockchain platform for digital assets and money across the continent. This initiative aims to enhance efficiency and synergy within European digital markets. ECB executive board member Piero Cipollone highlighted the fragmentation and unharmonized legislation in Europe’s traditional capital markets, suggesting that a digital capital markets union could address these issues.Cipollone noted that over 60% of banks in the European Union are exploring or experimenting with distributed ledger technology (DLT), with another 22% already utilizing it. However, he emphasized that while DLT offers opportunities for financial integration, it does not guarantee it. He pointed out that non-interoperable technological ecosystems shaped by different national regulatory regimes have created isolated pools of asset liquidity, further entrenching fragmentation.Currently, DLT is primarily used for issuing assets, but extending its use to negotiation, settlement, and custody on a single platform could reduce costs and enable round-the-clock operations. Cipollone stated that investors would benefit from the broader use of DLT, but central banks also have a vested interest in ensuring that central bank money remains a cornerstone of stability in a token-based capital market.The concept of a unified ledger, where cash and assets coexist on the same platform, has garnered support from the Bank for International Settlements and various central banks. Institutions like SWIFT and JPMorgan have also shown interest. However, Cipollone cautioned that while a European ledger could promote financial stability and integration, it might also stifle innovation, particularly for specific use cases. He suggested that traditional finance might benefit more from the flexibility offered by competing DLT platforms.As these discussions continue, the ECB is exploring ways to settle DLT transactions with central bank money, despite concerns that relying on existing interoperability solutions in the long term could perpetuate inefficiencies.