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The U.S. Treasury Department recently released a strategy aimed at promoting financial inclusion for Americans, notably leaving cryptocurrency on the sidelines. While the digital assets industry has long argued that crypto can provide accessible and inclusive financial solutions, the Treasury’s latest 35-page report mentions cryptocurrency only once, and not as a tool for inclusion. Instead, it highlights crypto-related risks, underscoring the department’s cautious stance on digital assets.

Crypto’s Limited Mention in Treasury’s Strategy

The Biden administration’s approach to financial inclusion, led by the U.S. Treasury Department, is built around expanding access to affordable financial products and services. Treasury Secretary Janet Yellen emphasized this commitment, stating that safe financial services play a crucial role in empowering Americans toward financial security. However, the report’s only reference to cryptocurrency came in the form of a warning, referencing a previous study on the “risks related to digital assets.”

As Vice President Kamala Harris advocates for economic inclusion on her campaign trail, her stance has shown more openness to crypto’s potential role in the economy. This nuanced difference highlights the divide within the administration over digital assets, as her approach appears to contrast with the caution expressed by the Treasury Department.

Financial Inclusion and the Role of Crypto

Crypto proponents argue that digital assets represent a low-barrier entry to finance, especially for underserved populations lacking access to traditional banking. Remittances and peer-to-peer transactions, for example, are often cited as real-world applications of crypto that can benefit communities with limited banking options. Advocates within the cryptocurrency sector suggest that blockchain technology’s decentralized nature can reduce costs and make financial services more accessible on a global scale.

Despite these arguments, organizations such as the Center for American Progress and the Brookings Institution are skeptical. They contend that crypto’s benefits for financial inclusion have been overstated, pointing to the volatility and lack of regulatory oversight as concerns that could, in fact, harm those the industry claims to help.

A Broader Political Landscape

The administration’s position on cryptocurrency is taking shape within the broader 2024 presidential election context. Both Vice President Kamala Harris and former President Donald Trump, a key contender, have voiced support for cryptocurrency in different ways. Harris has alluded to crypto’s economic potential, although her campaign hasn’t fully outlined how it would fit into her financial policy if elected. Trump, on the other hand, has openly embraced digital assets, which contrasts with his administration’s handling of crypto regulation, such as the SEC’s lawsuit against Ripple, a major crypto project, during his presidency.

The Treasury’s focus on traditional financial systems over digital assets also appears to support a more cautious, incremental approach to inclusion. While the strategy does not directly address digital currency, the choice to mention crypto only as a potential risk signals a likely continuation of regulatory caution in the near term.

Implications for the Crypto Sector

The Treasury Department’s cautious stance creates a challenging regulatory environment for crypto companies that hope to position themselves as solutions for financial inclusion. For example, firms like Ripple, which provides blockchain-based payment services, may face an uphill battle in convincing regulators of their utility for underbanked populations.

In fact, the broader cryptocurrency ecosystem may feel pressure from this strategy, as it signals a preference for traditional financial infrastructure and regulated institutions to address financial inclusion. With only a brief mention of crypto’s potential risks, the Treasury’s report sidesteps the argument that digital assets could complement conventional financial systems by offering decentralized, cost-effective alternatives.

Looking Ahead: The Future of Crypto and Inclusion

As the crypto sector continues to evolve, the lack of endorsement from the Treasury may encourage digital asset advocates to push harder for recognition as a legitimate part of the financial system. This strategy report also leaves room for future administrations to either uphold or revisit crypto’s role in financial inclusion.

Despite its omission from the U.S. Treasury’s inclusion plan, digital assets may find a foothold through other channels if enough institutional and political support coalesces around their potential. As the 2024 election unfolds, cryptocurrency’s place in the broader conversation about financial inclusion and regulatory policy is likely to become a significant point of debate, potentially shaping the sector’s future in the U.S.

For now, the U.S. Treasury Department’s strategy represents a conservative approach, favoring tested financial mechanisms while keeping the digital assets industry at a distance.

Featured Image: depositphotos @ EdZbarzhyvetsky

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RD InnoTech Targets Future Stablecoin Launch with HashKey Exchange, Advancing Cross-Border Payment Ambitions

Written by CryptoCurrencyNews on October 28, 2024. Posted in Cryptocurrency. Leave a Comment

This post was originally published on this site

HONG KONG, Oct. 28, 2024 /PRNewswire/ — RD InnoTech Limited (RD InnoTech), a subsidiary of RD Technologies Group, is steadily advancing the issuance of its HKDR stablecoin. From the outset, RD InnoTech has focused on ensuring HKDR complies with rigorous regulatory standards while preparing for seamless market entry to support international payments and cross-border transactions. On July 18, 2024, RD InnoTech was admitted into the Hong Kong Monetary Authority (HKMA) stablecoin issuer sandbox, establishing a crucial framework for future compliant operations.

RD InnoTech plans to roll out its HKDR stablecoin on Ethereum in the future. RD InnoTech has selected Ethereum for its strong global liquidity and established ecosystem, proven stability, and secure, decentralized infrastructure—ensuring reliable, large-scale financial operations.

Hash Blockchain Limited (HashKey Exchange) Partnership: Driving Growth and Market Access

RD InnoTech plans to launch on Hashkey Exchange, the largest^* licensed virtual asset trading platform approved by the Hong Kong Securities and Futures Commission (SFC), marking a pivotal step towards realizing its vision of enabling seamless, more efficient and compliant global payments through stablecoin integration.

Ms. Rita Liu, CEO of RD Technologies Group, highlights the strategic value of working with HashKey Exchange:“We are very excited to be working with HashKey Exchange because they bring critical components we need to launch HKDR successfully: regulatory credibility, vast institutional relationships, and deep liquidity. Their compliance with Hong Kong’s VATP regulatory regime reinforces trust with partners and regulators.”

Ms. Rita Liu adds that Hong Kong’s role as a gateway between East and West strengthens stablecoins’ potential for capturing Asia’s growing demand in leveraging stablecoins for facilitating cross-border trade and payments: “Stablecoins can eliminate friction in global transactions by synchronizing information and asset flows. We are building a compliant, stable digital currency that unlocks speed and affordability for businesses across borders.”

“We are excited to make a significant breakthrough in the Hong Kong stablecoin market and the global cross-border payment sector through our close collaboration with RD InnoTech. HKDR will not only lower transaction costs but also improve the efficiency of fund flows, providing global enterprises with a compliant and stable currency. This initiative will greatly enhance global trade and strengthen financial connectivity. As the largest licensed virtual asset exchange in Hong Kong, HashKey Exchange is fully committed to supporting this innovation, ensuring that professional investors can easily access this compliant stablecoin, backed 1:1 by the Hong Kong dollar^{^}. Moving forward, HashKey Exchange will act as the ‘nerve center’ to continuously drive the development of compliant stablecoin operations,” said Mr. Livio WENG, CEO of HashKey Exchange.

By combining regulatory rigor, strategic partnerships, and blockchain innovation, RD InnoTech aims to position HKDR as a key enabler of the future global payment landscape. The partnership with HashKey represents a critical step toward this goal, aligning with Hong Kong’s ambition to become a global digital asset hub and setting the foundation for stablecoin adoption across Asia and beyond.

About RD Technologies Group:

RD Technologies Group (RD Technologies) is the financial platform that bridges the Web2 and Web3 worlds. It deploys innovative fintech to build a business world interconnected by trust. Based in Hong Kong and connected with the global community, RD Technologies was born out of a mission to enable businesses to gain easier access to financial services, enhance trade efficiency, and promote the development of Hong Kong as a trade hub in Asia and an international financial centre. For details: https://rd.group

Secure and innovative solutions managed by subsidiaries under RD Technologies include:

RD Wallet:
RD Wallet Technologies Limited (RD Wallet) is a licensed Stored Value Facility in Hong Kong (licence number: SVF0016). It enables global businesses to open multi-currency fiat accounts on mobile anytime, anywhere. RD Wallet is committed to facilitating cross-border trade and payments through efficient, secure, and innovative payment solutions for businesses, and contributing to the development of Hong Kong as a trade and financial hub in Asia. For details about RD Wallet: https://rd.group/products/wallet/
For media inquiries, please contact: lucy.long@rd.group
HKDR Stablecoin (HKDR):
HKDR Stablecoin (HKDR) is a trusted and transparent Hong Kong Dollar stablecoin 1:1 backed by the Hong Kong dollar, with high-quality and highly liquid assets safekept in segregated custody accounts with licensed financial institutions. Details of the reserves will be available to the public through regular independent attestation reports. In July 2024, RD InnoTech Limited, the issuer of HKDR, was among the first batch of entities to be admitted to the stablecoin issuer sandbox by the Hong Kong Monetary Authority. RD InnoTech Limited will abide stringently by the regulatory requirements for the launch of HKDR to contribute to the continuous development of Hong Kong as a global Web3 and virtual asset hub. For details about HKDR: https://rd.group/hkdr

^*Note: As of October 20, 2024, HashKey Exchange ranking 9th on CoinGecko’s global exchange list, making it the largest licensed virtual asset exchange in Hong Kong.

^{^}Referenced from the HKDR official website introduction.

About HashKey Exchange

HashKey Exchange is committed to setting new benchmarks for virtual asset exchanges in terms of compliance, fund security, and platform safety. HashKey Exchange is one of the first licensed retail virtual asset exchanges in Hong Kong. It has been approved by the Securities and Futures Commission (SFC) and holds licenses for type 1 (securities trading) and type 7 (providing automated trading services) under the Securities and Futures Ordinance, as well as operating a virtual asset trading platform under the Anti-Money Laundering Ordinance, operating a virtual asset trading platform in compliance. As the flagship business of HashKey Group, HashKey Exchange provides one-stop virtual asset trading services for professional investors (PI) and retail investors. HashKey Exchange has obtained ISO 27001 (information security) and ISO 27701 (data privacy) management system certifications.

HashKey Exchange does not service users from Mainland China, United States and certain other jurisdictions in compliance with laws and regulations.

Information may become outdated, due to new plans, regulations, or market changes.

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