1. Cross-border inefficiency
2. Stablecoins as a tool for enterprise
3. Bank of Japan rate hike topples Bitcoin

Datachain, a blockchain startup focused on interoperability, announced the launch of Project Pax, a stablecoin platform to facilitate cross-border business settlements.

Cross-border inefficiency

The $182 trillion global cross-border payments market faces substantial inefficiencies in speed, accessibility, and cost despite remaining a primary focus for financial institutions. According to the post, the G20 identified these inefficiencies alongside the need for 'significant improvements' to transparency.

Stablecoins as a tool for enterprise

Project Pax aims to address the inefficiencies highlighted by the G20 by integrating stablecoins into the international business settlement process. The initiative seeks to change the limited adoption of fiat-pegged cryptocurrencies for traditional business operations by using stablecoins as an enterprise payment tool. According to the post, the stablecoin platform will 'utilize Swift’s existing API framework for banks to instruct Progmat to settle on blockchain.'

Bank of Japan rate hike topples Bitcoin

As of Sept. 3, Bitcoin (BTC) price had fallen 6.5% with no sign of slowing. Traders attributed the downtrend to statements issued by the Bank of Japan (BoJ), rekindling fears of recession. In a document issued to a government panel, BoJ Governor Kazuo Ueda stated the central bank’s policy decision in July, indicating that the regulator would continue to hike interest rates. The statement prompted traders with a stark reminder of late July, when the benchmark rise saw an unwinding of Japanese Yen carry trades and the destabilization of risk assets, like BTC.

Datachain's Project Pax has the potential to significantly improve cross-border business settlements. Support from Japan’s largest banks and the use of existing infrastructure solutions could make this initiative a key step in the development of the global financial market.