Daily News | PayPal Launched A US Dollar Stablecoin PYUSD, Monetary Authority of Singapore Supports Innovation in Web3 Industry; BTC Volatility Dropped to Historical Lows

2023-08-08, 03:41

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## Crypto Daily Digest: The Monetary Authority of Singapore has invested $110 million in innovation in industries such as Web 3.0, and PayPal has launched a US dollar stablecoin PYUSD
Yesterday, the Monetary Authority of Singapore promised to provide up to S $150 million for technology and innovation in the financial sector, including Web 3.0. According to the New Financial Sector Technology and Innovation Plan (FSTI 3.0) of the Monetary Authority of Singapore (MAS), up to S $150 million (approximately $110 million) will be invested within three years.

FSTI 3.0 aims to accelerate and strengthen innovation by supporting projects using cutting-edge technologies or regional connections while doubling MAS's commitment to promoting a vibrant technology ecosystem for the financial sector.

According to Bloomberg, PayPal (PYPL.O) has launched US dollar stablecoin for transfers and payments. Paxos Trust Co. issues PayPal USD (PYUSD) and is fully supported by US dollar deposits, short-term treasury bonds, and similar cash equivalents. It is pegged to the US dollar and will gradually open up to PayPal's customers in the United States. This token can also be transferred to compatible third-party wallets outside the PayPal network.

PYUSD is designed to be readily convertible into US dollars and other cryptocurrencies available on the PayPal network. It can be used to fund purchases and will soon be available on PayPal's popular payment application, Venmo. Users will eventually be able to send their tokens between PayPal and Venmo wallets. PayPal stated that starting in September, Paxos will release monthly reports detailing the assets supporting PYUSD. Paxos will also release third-party certification from accounting firms for PYUSD reserve assets.

Yesterday, the BitVol (<a href="/th/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> Volatility) index, launched by financial index company T3 Index in collaboration with Bitcoin options trading platform LedgerX, fell to 37.08, a historic low of 0.96% compared to August 5.

The BitVol index measures the 30-day expected implied volatility derived from tradable Bitcoin option prices. Implied volatility refers to the volatility implied by the actual option price. It uses the B-S option pricing formula to calculate the actual price of the option and divide it by volatility σ—the volatility derived by substituting other parameters into the formula.

The actual price of options is formed by competition among numerous option traders, therefore, implied volatility represents market participants' views and expectations of the market's future, and is considered the closest to the true volatility at that time.

Bitcoin has achieved volatility that has fallen to historical lows, proving that the current stage is the most calm period in the market since March 2020. Furthermore, historically, such low volatility is consistent with the re-accumulation stage after a bear market.

According to CoinShares' latest weekly report, the total outflow of funds from digital asset investment products last week was $107.4 million. Bitcoin's net outflow reached $111.4 million, the largest weekly outflow since March. <a href="/th/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> investment products have a net outflow of $5.9 million. <a href="/th/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a>'s investment products have a net inflow of $9.5 million, reaching a new high in net inflows for a single week since March 2022. The weekly trading volume of investment products is 36% lower than the year-to-date average, but it is more affected by the trading volume on a wider exchange market, which is 62% lower than the year-to-date average.

From a regional perspective, the outflow of funds is mainly concentrated in two ETP providers in Germany and Canada, with outflows of $71 million and $29 million respectively.

## Today’s Main Token Trends
### BTC
![](https://gimg2.gateimg.com/image/article/1691473101BTC.png)
Continuing to converge at the terminal, awaiting a turning point for directional decision. Aggressive long entry strategy: $28,550 USD; Aggressive short entry strategy: $27,950 USD, with a continued view towards the $26.5K USD level.

### UNIBOT
![](https://gimg2.gateimg.com/image/article/1691473119UNIBOT.png)
The 4-hour chart exhibits an upward convergence pattern, briefly surpassing the key neckline at $157.56 USD. Short-term attention is recommended, conservative long strategy advises waiting for a breakthrough of the previous high, subsequently targeting $213.81 USD, $290.16 USD, and $335.56 USD.

### YGG
![](https://gimg2.gateimg.com/image/article/1691473142YGG.png)
Achieved the $0.97786 USD daily target yesterday, followed by a significant pullback to the $0.33290 USD level, involving 7 market makers. Market dynamics suggest active participation in the contract market, recommending profit-taking for those who have gained in the short term.
 
## Macro: Hawkish and dovish mixed, the probability of the Fed raising interest rates in September is still very low
Washington is brewing a new fiscal showdown that could complicate the Fed's policymaking and reinforce the warning from Fitch that the harm caused by the US itself is damaging its position in the global economy.

The US Congress adjourned in August but did not resolve the escalating conflict over spending and hot social issues, which increased the risk of a government shutdown due to the depletion of federal funds after September 30. This is the latest case of "brinkmanship" in the US budget. Similar events continue to unfold, prompting Fitch to cancel the AAA rating of US treasury bond bonds last week. This landmark decision made Wall Street and Washington despair.

On the other hand, the Fed chairmen are partly hawkish and partly dovish, actively infiltrating information into the market. Currently, we have repeatedly emphasized the probability of a rate hike in September, but in terms of market sentiment, the probability of a rate hike is almost zero.

So we no longer need to worry about the impact of continued interest rate hikes in September on the market. Let's take a look at what the Fed chairpersons have said.

New York Fed Chairman John Williams stated that interest rates are expected to decrease with inflation, and it is not ruled out that there is a possibility of lowering interest rates in early 2024, but the specifics depend on economic data. It is expected that the unemployment rate will rise to over 4% next year.

Fed Governor Michelle W. Bowman continued to "hawk," stating that further interest rate hikes are expected to be needed to reduce inflation to target levels. When making decisions, evidence of a sustained and meaningful decline in inflation will be sought.

Atlanta Federal Reserve Chairman Raphael Bostic stated that there is no need to raise interest rates again in September and there is no need to lower rates before the second half of next year.

<div class="blog-details-info">
<div>Author:**Byron B.**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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