Crypto & CBDC - The crypto industry suggests that the origins of cryptocurrency may be linked to a long-term government plan [1] - The crypto industry views Central Bank Digital Currencies (CBDC) as a potential "authoritarian nightmare" [1]

CBDC Regulation - U.S House of Representatives added a CBDC ban to the defense policy bill [1] - The ban blocks the Federal Reserve from creating a digital dollar [1]

Digital Currency & Blockchain - Industry notes that digital euro stablecoin plans are accelerating in the EU, potentially rolling out on Ethereum or Solana blockchain [1] - Industry observes the digital euro could be perceived as a CBDC surveillance coin, raising privacy concerns [1] - Industry points out the digital euro stablecoin could exist on every chain, similar to USDC/USDT [1]

Digital Euro & Blockchain - EU is considering a stablecoin on a public blockchain instead of a CBDC [1] - Ethereum (ETH) or Solana (SOL) are potential blockchain candidates [2] - A euro stablecoin backed by a state actor changes the landscape compared to private stablecoins like Tether & Circle [1] Implications for Blockchain Networks - Launching a digital euro on Ethereum or Solana would transform them into critical financial infrastructure [1] - Currently neutral chains, ETH & SOL would require Europe to actively secure and develop them [1] - Europe would need to run validators, stake at scale, secure the network, and contribute to resilience via public funding [2] Global Competition - The EU's move could trigger a global race for ETH/SOL if other countries like China and Japan launch their own stablecoins on public chains [1] Regulatory Context - The "Genius Act" influenced EU officials to rethink plans for the digital euro [2]

Regulatory Landscape - US House includes CBDC ban in defence spending bill [1] Cryptocurrency & CBDC - The document suggests potential regulatory challenges for Central Bank Digital Currencies (CBDCs) in the US [1]

Regulatory Landscape - The EU is reportedly reconsidering its plans for a central bank digital currency (CBDC) [1] - This reconsideration is linked to the passage of the "Genius Act" [1] Potential Technology Shift - The EU is considering a stablecoin on a public blockchain as an alternative to a CBDC [1] - Ethereum or Solana are mentioned as potential blockchain platforms [1]

Market Volatility & Investment Strategy - Market volatility is expected to return, potentially leading to an asset price explosion in the second half of the year, advising strategic positioning [2][4][6] - Historically, volatility was seen negatively, but now it's part of digitalization and financialization trends [3] - The VIX (Volatility Index) is at its lowest point in 2025, suggesting an imminent increase in market volatility [5] Tariff Revenue & US Investment - Tariff income is projected to exceed 1% of GDP, surpassing the initial estimate of $300 billion [7][8] - Private industry is committing over $10 trillion in investments into the United States [8][9] - The US is gaining advantage in the geopolitical trade realm, potentially disadvantaging those betting against it [10] Geopolitics & Trade Negotiations - The US employs a multi-lever, non-linear strategy in trade negotiations, leveraging military operations, diplomacy, economic sanctions, and oil markets [22][23][28] - Disbanding of the Klepto Task Force and discussions on Arctic routes were potential incentives offered to Russia during negotiations [30][31][32] - Arctic shipping routes are emerging as a significant geopolitical factor, influencing trade and logistics [34][35] Cryptocurrency & Digital Assets - The US government and the Chinese government are among the largest holders of Bitcoin, holding the 3rd and 4th position respectively [40] - China is seriously considering launching a yuan-backed stablecoin, potentially from Hong Kong [42] - Governments recognize the growing demand for digital assets, leading to a complex dynamic between supporting these assets and safeguarding legacy systems [44][45]

Tokenization and Real World Assets (RWAs) - Tokenized value on chain is nearly $26 billion, and is expected to grow [3] - BlackRock is heavily involved in tokenization, with almost $3 billion on chain through its USD Institutional Digital Liquidity Fund [9] - BlackRock believes the next step is tokenization of financial assets, including stocks and bonds, on a general ledger with individual investor identification [11] - BlackRock CEO Larry Fink sees tokenization as a technological transformation for financial assets, enabling instantaneous settlement and customized strategies [12] Digital Identity and Control - A coordinated digital identity verification system is considered necessary for the tokenization revolution [19] - The financial services industry is focusing on building a zero-trust framework for identification, raising concerns about digital IDs [23] - The combination of tokenization and digital IDs could enable tracking of all transactions [25] CBDCs and Stablecoins - Stablecoins are viewed as a way to circumvent the ban on Central Bank Digital Currencies (CBDCs) in the US, effectively functioning as CBDCs [6][7] - Stablecoins are becoming increasingly significant, making up over 1% of the global M2 supply [9] Fourth Industrial Revolution and WEF - Tokenization and blockchain are part of the Fourth Industrial Revolution, supported by organizations like the World Economic Forum (WEF) [20][21] - BlackRock is a partner of the WEF and is actively pushing tokenization [22] Regulatory Landscape - SEC Chair Paul Atkins supports tokenization as an innovation and aims to make regulations transparent to foster innovation in the marketplace [27][28] - The SEC is seen as shifting towards supporting tokenization to enhance efficiency and certainty in trade settlement [29][30] Potential Risks and Concerns - Big players may be weaponizing tokenization technology [1] - Universal basic income and digital IDs are linked to the acceleration of AI and automation [5] - Cyber security challenges, particularly digital verification, pose a significant obstacle to the widespread adoption of tokenization [18]

Project & Initiative - Brazil's DREX initiative's second phase involves Chainlink, Banco Inter, Microsoft, and 7COMm [1] - The initiative uses Chainlink CCIP to connect Brazil's CBDC with a foreign central bank [1] Technology & Solution - Chainlink powers a cross-border trade finance solution [1] - The solution enables tokenized settlement of agricultural exports across currencies and platforms [1] Application - The solution triggers payments via supply chain data [1]

Market Overview - The cryptocurrency market performed exceptionally well in July, driven by interest rate cut expectations, regulatory openness, and institutional buying frenzy, with Bitcoin reaching a high of $123,000 and Ethereum surging over 60% [1][9] - The passing of three major cryptocurrency bills, including the Stablecoin Genius Act, established a strategic foundation for cryptocurrencies in the U.S., marking a shift towards mainstream, institutional, and political integration of crypto with traditional finance [1][9] - The macroeconomic policies, particularly U.S. monetary policy, are expected to increasingly influence the cryptocurrency sector [1][9] Policy Direction - In mainland China, two new blockchain policies were introduced, focusing on standardizing blockchain applications and copyright protection for emerging industries [2] - In Hong Kong, the Monetary Authority expressed concerns over the overheated stablecoin market and announced a cautious approach to issuing licenses for stablecoin issuers, with a regulatory framework set to take effect on August 1, 2025 [2][19] Investment and Financing - In July, there were 85 blockchain investment events, with total financing reaching 37.684 billion yuan, a 87.67% increase from the previous month, marking the highest monthly investment record ever [3][10] - The digital currency sector dominated the investment landscape, accounting for 94.20% of total financing, while other areas like blockchain application and foundational technology saw significant declines [3][10] Application Development - 华夏基金 (China Asset Management) launched two tokenized money market funds in July, extending the reach of tokenized funds to major currencies like USD and RMB, although the funds remain conservative in their approach [4][10] - As of July 2025, Hong Kong has 11 licensed virtual asset trading platforms and 42 brokerages with upgraded licenses to provide virtual currency trading services [4][10] CBDC Developments - The U.S. House of Representatives passed the Anti-CBDC Surveillance Act, which restricts the Federal Reserve from issuing retail CBDCs, signaling the end of retail CBDC initiatives in the U.S. [5][10] - This legislation reflects a broader ideological struggle regarding digital currencies, positioning the U.S. against global CBDC initiatives while potentially hindering the development of next-generation financial infrastructure [5][10]