Today in crypto: Bolivia moves to integrate crypto and stablecoins into its financial system. The UK’s financial watchdog tests new disclosure rules with top exchanges, and Robinhood has tipped prediction markets as its fastest-growing product line.
Bolivia to integrate crypto, stablecoins into the financial system
The government of Bolivia will integrate cryptocurrencies and stablecoins into the financial system in a push to modernize the country’s economy, Bolivia’s economic minister, Jose Gabriel Espinoza, announced on Tuesday.
Banks will be allowed to custody crypto on behalf of clients, enabling digital currencies to function as a legal tender for savings accounts, credit products, and loans, according to Reuters.
“You can’t control crypto globally, so you have to recognize it and use it to your advantage,” Espinoza said.
Bolivia, like other countries in Latin America, suffers from high fiat currency inflation, prompting some residents to turn to stablecoins as a store of value and a medium of exchange.
The rush by nation-states to integrate cryptocurrencies into the financial system reflects the high-stakes game theory cited by analysts, who say that a fear of missing out (FOMO) is the primary force driving nation-state adoption of crypto.
FCA trials crypto transparency templates as UK shapes new rulebook
The UK FCA has approved regulatory technology (RegTech) company Eunice to run experiments in its sandbox, which offers one of the clearest indications yet of how the country intends to build its forthcoming crypto rulebook.
On Wednesday, the FCA announced that Eunice will test a set of standardized crypto disclosure templates with major exchanges, including Coinbase, Crypto.com and Kraken. The company will test whether the templates improve transparency when used in real-world settings.
The FCA also highlighted that its regulatory sandbox is still accepting applications from companies looking to test their ideas. “We encourage any firm to apply who are looking to test a similar solution to help inform our regulatory approach to cryptoassets,” said Colin Payne, the head of innovation at the FCA.
By testing industry-led tools rather than relying on theoretical policy, the FCA signals that future crypto rules will be shaped through practical trials and real-world feedback.
Cointelegraph reached out to Eunice for comments, but had not received a response by publication. Eunice co-founder and CEO Yi Luo said the sandbox provides a space where regulators and industry members can work together to strengthen the foundations of the UK's crypto markets.
Prediction markets are Robinhood’s fastest-growing money maker
Trading platform Robinhood says prediction markets have emerged as one of its fastest-growing product lines in terms of revenue, amid plans to expand its business with a futures and derivatives exchange and clearinghouse.
Since launching its prediction markets in March in partnership with prediction market platform Kalshi, nine billion contracts have been traded by more than one million users, Robinhood said in a statement on Tuesday.
JB Mackenzie, the general manager of futures and international at Robinhood, said the platform is “seeing strong customer demand for prediction markets, and we’re excited to build on that momentum.”
Robinhood said it is also planning to grow its investment in prediction markets, with a futures and derivatives exchange and clearinghouse, to deepen “our investment in Prediction Markets.”
“Our investment in infrastructure will position us to deliver an even better experience and more innovative products for customers,” Mackenzie added.