One of Singapore’s top commercial banks, OCBC, has announced a new partnership with metaverse green exchange (MVGX) to launch tokens related to eco-friendly tech firms. Part of the agreement terms states that firms can offset their carbon footprint by purchasing a portion of the carbon credit tokens issued under this collaboration between these two firms.
All earnings from these token sales will be reinvested in reforestation, renewable energy, and other eco-friendly projects. MVGX’s distributed ledger will be used to generate the tokens. Also, all purchases and green project investments will be recorded on blockchain technology.
The primary target audience for this project is steel-making, shipping, energy firms, and other high-carbon companies. Any of these firms can buy green tokens to offset their carbon footprint.
The First Foray Into Crypto
Even though the commercial bank has previously shown interest in blockchain technology, the official announcement of this partnership is the bank’s first foray into the crypto world. Last year, OCBC considered owning a crypto exchange due to the increasing growth rate of Singapore’s crypto space.
However, it is yet to disclose whether it would bring the idea to reality. Also, a few months ago, there were multiple reports that OCBC was looking to hire crypto and blockchain experts. As more digital lenders expand their operations, OCBC has created a 3-year plan to ensure that it isn’t over-run by the competition. Many crypto firms are flocking to the Asian nation as it is one of the most-friendly crypto climes.
Crypto Is Also Eco-Friendly
While many authorities often deride the crypto space for not being environmentally friendly, this partnership shows that those claims are false. Many legislative members and some potential crypto investors have alleged that crypto mining is not only high-energy intensive they also pollute the environment.
Today is the day set aside by the New York state legislature to decide whether to outlaw crypto mining completely. The EU made similar attempts a couple of months ago, but the proposal didn’t receive enough votes to be passed into law. However, many crypto advocates claim that most crypto mining operations will soon become low-energy intensive as most networks based on the pow mechanism are gradually switching to a PoS mechanism.
Singapore Passes Stricter Crypto Bill
Singapore authorities recently passed the FSM bill, making it mandatory for any VASP in Singapore to have an additional operating license before providing its service outside Singapore.
Many industry experts in the nation argue that this bill might make Singapore less friendly for crypto firms as many of them had fled unfriendly crypto climes to settle in Singapore. Based on this policy, Singapore’s monetary authority (MAS) is taking an ant-crypto stance like many other nations.
Despite this new policy, Eurosports Global (a popular luxury car firm based out of Singapore) has announced that it now supports crypto payments for car purchases from its car lot. The company stated that the many benefits of using crypto payments for transactions in their business could no longer be discarded. Eurosports global added that FOMO pay would provide tech support that would enable it to accept crypto payments. Popular stablecoins (USDT) and the leading crypto (BTC) are among the cryptos supported.