Today in crypto, Bitcoin and the broader cryptocurrency market remained resilient despite hotter-than-expected US inflation data, with the Consumer Price Index recording its largest monthly increase since 2022. Hong Kong has issued its first stablecoin licenses, approving Anchorpoint Financial and HSBC’s local banking arm under its new regulatory framework. Meanwhile, a researcher has proposed a method to make Bitcoin transactions quantum-resistant, though the solution is currently costly and likely temporary.
Inflation spikes, rate-cut hopes fade
US consumer prices accelerated sharply in March — the first full month reflecting the energy surge following the closure of the Strait of Hormuz — though crypto markets remained largely unfazed.
According to the Bureau of Labor Statistics, the Consumer Price Index rose 0.9% month over month, marking the largest increase in nearly four years. On an annual basis, inflation came in at 3.3%, slightly below expectations.
Bitcoin (BTC) traded above $73,000 following the report, while Ether (ETH) climbed toward $2,300.
Still, the hotter inflation print has all but eliminated the likelihood of a rate cut at the upcoming Federal Open Market Committee meeting, with futures markets pricing in less than a 2% chance of easing in April. Markets are divided on whether the Fed’s next action will be a rate cut or a rate hike as policymakers struggle to contain inflation.
Hong Kong grants first stablecoin licenses to Anchorpoint and HSBC
Hong Kong has granted its first stablecoin issuer licenses, approving Anchorpoint Financial and the Hongkong and Shanghai Banking Corporation under a new regulatory framework overseen by the Hong Kong Monetary Authority (HKMA).
The HKMA announced the initial batch of licensees on Friday, marking the first approvals under its stablecoin regime.
Anchorpoint Financial is the stablecoin joint venture formed by Standard Chartered Bank (Hong Kong), Animoca Brands and Hong Kong Telecommunications. The Hongkong and Shanghai Banking Corporation Limited is HSBC’s Hong Kong-based banking entity and one of the city’s three note-issuing banks.
The first approvals highlight Hong Kong’s cautious approach, with regulators appearing to favor bank-linked and institution-backed issuers in the regime’s opening phase.
The announcement comes after weeks of unconfirmed reports about potential licensees and a missed March timeline, marking a cautious start to Hong Kong’s stablecoin licensing rollout. HKMA Chief Executive Eddie Yue said in February that a very small number of issuers would be licensed in March, a timetable the HKMA ultimately missed before granting the first approvals.
Bitcoin can be quantum-safe without a protocol upgrade: Researcher
A Bitcoin researcher has come up with a way that could immediately make Bitcoin transactions quantum-safe without the need for a soft fork.
In a proposal published Thursday, StarkWare chief product officer Avihu Levy proposed a Quantum Safe Bitcoin (QSB) transaction scheme that he said would remain secure “even against an adversary with a large-scale quantum computer running Shor’s algorithm.”
He added that the scheme requires no changes to the Bitcoin protocol and operates entirely within the existing legacy script constraints. The downside is that it is costly and likely is not useful for everyday transactions, he said.
The Bitcoin community has been split on how to tackle the quantum problem. QSB presents a temporary solution while a long-term approach is ironed out.
The scheme’s main feature is replacing the proof-of-work signature-size puzzle with a hash-to-sig puzzle.
Instead of relying on elliptic curve math that quantum computers can break, the spender must find an input whose hash output randomly happens to resemble a valid ECDSA (elliptic curve digital signature algorithm) signature, requiring brute-force work that even a quantum computer cannot shortcut.
