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Digital currency transactions soar while authorities caution about potential systemic dangers

Digital currency transactions soar while authorities caution about potential systemic dangers

Bitget-RWA2025/11/03 02:44
By:Bitget-RWA

- Global cross-border payments are accelerating via digital currencies and blockchain, with Citi and Coinbase partnering to enable institutional fiat/digital asset transactions across 94 markets. - IQAX and CargoNPay launched an AI-blockchain eBL platform in China, digitizing shipping documents and reducing freight processing times from days to hours. - Hong Kong expanded e-CNY adoption to 400+ retail outlets, with Bank of China (HK) enabling cross-border conversions to HKD, signaling growing CBDC integrat

Digital currency transactions soar while authorities caution about potential systemic dangers image 0

Digital currencies and blockchain are fueling a rapid evolution in global finance, as both established players and emerging companies join forces to simplify cross-border payments and boost transaction security. Recent trends point to a growing embrace of decentralized technologies, increased regulatory attention, and the practical use of tokenized assets in real-world scenarios.

Citi has joined forces with the crypto platform

to broaden digital asset payment offerings for institutional customers. This partnership merges Coinbase’s digital infrastructure with Citi’s extensive payments network, which covers 94 countries, according to . The initial phase will center on fiat deposits and withdrawals, facilitating Coinbase’s services that bridge traditional and digital finance, as well as payment management. Debopama Sen, Citi’s head of payments, noted that this collaboration fits the bank’s “network of networks” strategy, supporting seamless international transactions. This initiative comes after Citi connected its blockchain-based Token Services with its USD Clearing platform, aiming to lower funding needs and provide round-the-clock cross-border payment capabilities.

In logistics, IQAX and CargoNPay have introduced an AI-powered electronic Bill of Lading (eBL) solution, digitizing trade documentation in China, as reported by

. The system leverages CargoNPay’s AI to extract data from shipping paperwork and IQAX’s blockchain-based eBL platform to issue legally recognized digital bills of lading. By automating data entry and reducing document processing from days to just hours, the solution tackles inefficiencies in traditional freight operations. IQAX CEO George Guo described the collaboration as a “milestone for digital transformation,” while Edward Ma of CargoNPay emphasized the development of a “fully integrated online service” linking freight forwarders and carriers.

Hong Kong is quickly embracing China’s digital yuan (e-CNY), with nearly 400 convenience stores and vending machines now accepting the currency, according to PA NewsLab. Bank of China (Hong Kong) has upgraded payment systems for Circle K and FreshUp, allowing e-CNY payments that are instantly converted to Hong Kong dollars for cross-border settlement. This rollout highlights growing trust in digital currencies for daily transactions, especially as regulators consider ways to incorporate tokenized deposits, stablecoins, and central bank digital currencies (CBDCs) into the financial system.

Despite the pace of innovation, regulators remain vigilant. The People’s Bank of China (PBOC) has cautioned that stablecoins could threaten monetary sovereignty and financial stability, pointing to shortcomings in anti-money laundering (AML) controls and customer verification, as reported by Coinotag. Governor Pan Gongsheng reaffirmed ongoing efforts to curb domestic crypto activity and closely observe international stablecoin projects, including Japan’s JPYC and South Korea’s KRW1. These warnings echo global concerns, with the Financial Stability Board (FSB) noting that stablecoin circulation surpassed $150 billion by mid-2025.

The intersection of blockchain, digital assets, and institutional finance is transforming cross-border payments. While initiatives like the Citi-Coinbase platform and IQAX-CargoNPay’s eBL system showcase improved efficiency, regulatory policies will be crucial in shaping how quickly these solutions are adopted. As Hong Kong and other markets experiment with digital currency integration, industry participants must carefully balance innovation with regulatory compliance to minimize systemic risks.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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