Financial Institutions in Cambodia Embrace Cryptocurrencies, Bitcoin Market Metrics Signal Shift

Cambodia Embraces Stablecoins While Bitcoin Metrics Signal A Market Shift

In a significant policy shift, the National Bank of Cambodia (NBC) has authorized commercial banks and payment institutions to offer services related to Category 1 crypto assets, including secured stablecoins. Meanwhile, Bitcoin metrics are indicating a notable change in market dynamics.

The National Bank of Cambodia (NBC) has made a surprising move by allowing commercial banks and payment institutions to provide services involving Category 1 crypto assets, which include secured or stablecoins, but not unsecured cryptocurrencies such as Bitcoin. This unprecedented decision marks a significant policy shift, allowing the country’s financial institutions to engage with these digital assets.

On another front, Bitcoin metrics have taken an unexpected turn. Spot exchange reserves and netflows have turned positive, with a net addition of 15.8K BTC after weeks of decline. The sudden change in this data raises questions about market sentiment. Is it a sign of increased caution, profit-taking, or preparation for a potential correction? Historically, rising reserves often lead to heightened volatility and short-term price pressure.

In related news, Bitwise has announced plans to launch the Bitcoin Standard Company ETF. This fund will focus on companies holding Bitcoin as part of their corporate reserves. To qualify for the index, companies must meet stringent criteria: holding a minimum of 1,000 Bitcoins, a market valuation of at least $100 million, an average daily liquidity of $1 million, and a public free float of at least 10%.

Source: nulltx.com