According to Mati Greenspan, the chief of crypto research firm Quantum Economics, US regulators have been unfriendly to crypto “since the beginning.” Some suggest that the recent collapses of crypto and startup-friendly banks, such as Silvergate, Silicon Valley Bank, and Signature Bank, are part of a larger scheme by regulators to “un-bank” the crypto sector, which has been dubbed “Operation Choke Point 2.0.”

Meanwhile, a March 20 economic report from the White House was highly critical of the merits of crypto assets, spending almost an entire chapter debunking their “touted” benefits. However, as more people begin to use crypto for cross-border remittances globally, there are concerns that a crackdown on crypto in the US could actually have the opposite effect on the dollar. By isolating the US further, it could weaken the dollar’s position as the global reserve currency.

Greenspan suggests that the White House should instead review the practices in the banking industry, rather than targeting the crypto sector. The recent action against Coinbase has been described as part of an “adversarial environment for the crypto industry” in the US, which could drive jobs, investment, and future innovation offshore to countries like Singapore, Hong Kong, and Australia.

Despite the concerns raised by industry experts, the exact reasons for the SEC’s targeting of Coinbase remain unclear. The SEC has declined to comment on the matter, leaving many in the crypto community uncertain about what the future holds for the industry in the US.

The panel was moderated by Moojan Ashghari, co-founder of Thousand Faces Web3 investment club. Ashghari opened the discussion by stating that the ethical framework or standard of technology will always lag behind the introduction of the technology. He emphasized that the biggest challenge of ethics is determining the right questions to ask in order to ensure that the technology does not harm us in the near or far future.

The panelists unanimously agreed that innovation typically comes before any ethical standard is implemented. Margaux Frisque, co-founder of and legal adviser to the Women in Web3 Association, highlighted the upcoming Markets in Crypto-Assets (MiCA) framework in the European Union as an example of turning ethics into law to protect people and innovation.

Frisque explained that the MiCA framework was inspired by feedback from past operations and will soon oblige businesses to segregate the funds of their clients from other bank accounts. She praised this as an example of good behavior that has been turned into hard law to protect people and innovation.

Paris Blockchain Week also hosted an entire panel discussion on the upcoming MiCA regulations, during which industry experts and regulators discussed the implications of European lawmakers’ proposals. While the proposal has faced several delays, it is set for a final vote in April 2023.

Loic Brotons, CEO of Galeon, echoed the sentiment that behavior influences ethics. He pointed out that “mixing innovation and ethics is a bit complicated” and that innovation typically comes first. He used the FTX scandal as an example, where the lack of verification led to problems. He stated that exchanges are now providing proof-of-reserves so that people can follow the money and verify their trust.

In conclusion, the Ethics of Web3 panel at Paris Blockchain Week highlighted the importance of implementing ethical frameworks in the Web3 ecosystem to protect people and innovation. The MiCA framework in the European Union was cited as an example of turning ethics into law to achieve this goal. As the Web3 ecosystem continues to grow and evolve, it is crucial to consider the ethical implications of new technologies to ensure their responsible and sustainable use.

The first phase of the CBDC strategy involves the soft launch of “mBridge,” a platform that facilitates CBDC transactions for international trade. The CBUAE is also working on proof-of-concept projects for bilateral CBDC bridges with India, as well as domestic CBDC issuance for both wholesale and retail use. These initiatives are expected to be completed within the next 12 to 15 months, according to the CBUAE’s announcement.

The digital dirham has been in development since 2019, with the CBUAE conducting extensive research and analysis to ensure the successful implementation of the CBDC. The CBUAE has also engaged with various stakeholders, including financial institutions, merchants, and other entities, to gather insights on the requirements and potential benefits of a CBDC.

The digital dirham is expected to bring numerous benefits to the UAE’s economy and financial system. One key advantage is the increased efficiency and speed of domestic and cross-border payments, which will enhance the country’s competitiveness in the global marketplace. The digital dirham is also expected to boost financial inclusion by providing greater access to financial services for underserved populations, such as low-income individuals and small businesses.

Moreover, the digital dirham is expected to reduce the cost and complexity of financial transactions, thereby promoting innovation and entrepreneurship in the UAE. The digital dirham’s transparency and security features will also help combat financial crime and money laundering, which are key priorities for the UAE’s government and financial regulators.

The CBUAE’s partnership with G42 Cloud and R3 is a significant step forward in the development of the digital dirham. G42 Cloud is a leading provider of cloud and artificial intelligence (AI) services in the UAE, while R3 is a global blockchain software firm. The collaboration between the three entities is expected to leverage their respective expertise and technologies to ensure the successful implementation of the digital dirham.

In conclusion, the UAE’s central bank is making significant progress towards the launch of its digital dirham CBDC. The implementation of the digital dirham is expected to bring numerous benefits to the UAE’s economy and financial system, including increased efficiency, financial inclusion, and innovation. The CBUAE’s partnership with G42 Cloud and R3 is expected to be a key driver of the digital dirham’s success, and the future looks promising for the UAE’s digital currency.