World Bank Financial News

Euroclear has launched a digital securities issuance service and settled a 100-million-euro ($106 million) digital World Bank bond. This is the first step in the Brussels-based settlement house’s digital infrastructure strategy, it said.

According to its forecasts, its baseline case is for oil prices are expected to average $90 a barrel in the current quarter before declining to an average of $81 a barrel next year as global economic growth slows.

Belgium-based bank Euroclear has launched the first digital native security on the Luxembourg Stock Exchange together with the World Bank.

International Finance Corp (IFC), a World Bank affiliate, told Reuters on Wednesday it is backing a blockchain-enabled platform to trade carbon offsets, aiming to attract more support from institutional investors for climate-friendly projects in emerging markets.

Bitcoin (BTC) kept crypto traders, investors, and enthusiasts guessing as a July 15 relief rally registered a high of $21,140. Bitcoin continues to trade in the $20,000-22,000 range. The US CPI data that pegged its quarterly inflation at 9.1%, the highest in 40 years, seems to not have affected the markets as yet. BTC and other crypto assets are following the global stock indices which have been in the green in the second half of the week. On a weekly basis, however, BTC is down by 4.7% and by more than 50% compared to a year back. Celsius Network’s bankruptcy plea dampened the spirits at the start of the week though there have been some positive developments along the way. The story of the week could well be that South Africa is all set to regulate crypto as a financial asset. We discuss this and other stories of the week below. South Africa’s crypto cue for India

Reserve Bank Governor Shaktikanta Das on Thursday described cryptocurrencies as «clear danger» and said that anything that derives value based on make believe, without any underlying, is just speculation under a sophisticated name. The government is in the process of finalising a consultation paper on cryptocurrencies after gathering inputs from various stakeholders and institutions. Reserve Bank of India (RBI) has been flagging concerns about cryptocurrencies, which are seen as a highly speculative asset. In the foreword to the 25th issue of the Financial Stability Report (FSR) released on Thursday, Das also said that as the financial system gets increasingly digitalised, cyber risks are growing and need special attention.

The World Bank has signalled its concerns over the Central African Republic (CAR) adopting Bitcoin (BTC) as a legal currency and says it won’t support the newly announced “Sango” crypto hub.

Sitharaman pitched for a global framework to regulate the crytpo tokens, particularly their use in money laundering and terror financing. Speaking in a discussion hosted by the International Monetary Fund (IMF) in Washington DC, Sitharaman said, «I think the biggest risk for all countries across the board will be the money laundering aspect and the aspect of currency being used for financing terror.» The crypto industry is echoing the similar voices and said that global regulations are the need of the hour as no country can handle this alone. However, it will not be a cakewalk, they warned.

India has pitched for a global framework to regulate crypto currencies identifying their use in money laundering and terror financing as the biggest risks for all countries. «I think the biggest risk for all countries across the board will be the money laundering aspect and also the aspect of currency being used for financing terror,» finance minister Nirmala Sitharaman said at a discussion on “Money at a Crossroad” hosted by the International Monetary Fund (IMF) in Washington DC. The minister added that no country could handle these alone and they can be only regulated when countries come on board together.

El Salvador’s historic embrace of Bitcoin (BTC) could have negative consequences on the country’s sovereign credit outlook, according to Moody’s Investors Service.