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CBDC Emerges as a Key Talking Point in the Presidential Race
The US presidential election is just a year and a half away, but the debate about the role of central banks and the Federal Reserve System in introducing CBDC is already intensifying. Some presidential candidates have made their stance clear, unequivocally stating that they will not tolerate the introduction of digital dollars. 
Chinese Banks Ride the Cryptocurrency Wave in Hong Kong
China's banks show interest in collaborating with Hong Kong's crypto companies as the city aims to become a leading hub for digital assets. As we reported earlier, Hong Kong plans to legalize cryptocurrencies and related trading from June 1, 2023. 
According to the March 2023 reserve report , a total of 8.7 billion USDC is being held in six banks. However, three of these banks – Silvergate, Signature, and Silicon Valley Bank – are currently experiencing liquidity and solvency issues. The situation is especially dire for Silicon Valley Bank, which held 3.3 billion USDC and has been forced to close by the California Department of Financial Protection and Innovation.
The USDC price has dropped by 15%, to $0.86, in response to these developments. Additionally, the DAI stablecoin has fallen by 10%, as up to 50% of its collateral is held in USDC.
Currently, US Treasury bills account for 77% of the USDC reserves. The remaining 23% is held in cash at various banking institutions. The fate of these funds will depend on the outcome of the bankruptcy process for the affected banks and the amount of funds that can be recovered. 
Two of the world's leading crypto hubs join forces!
In a recent assembly in Abu Dhabi, the central banks of Hong Kong and the United Arab Emirates (UAE) unveiled plans to amplify their collaborative efforts, specifically in the domain of cryptocurrency regulations. The joint endeavor will take shape in the form of a collaborative working group. Commercial English Banks Could Be Denied Access to CBDCs
Andrew Bailey, the Governor of the Bank of England, recently spoke in Washington about the challenges facing the financial system, as well as potential solutions and the overall state of the economy. During his speech, he also discussed topics such as cryptocurrencies, stablecoins, and CBDCs. Bitcoin Gets a Boost Amid First Republic Bank's Bankruptcy
The crisis plaguing American regional banks intensifies. First Republic Bank (FRB) bankruptcy has become the second-largest in U.S. history, after the collapse of Washington Mutual Inc. in 2008. As of the end of April, FRB's shares plummeted by 73%. 
The charismatic founder of BitMEX has revealed his vision for the market. Spoiler: he moves liquid fiat money from treasury bills to cash and intends to invest it all in high-risk assets (bitcoin and other crypto, of course).
Key takeaways from Arthur Hayes' post:
? S&P500 is up 40% in 3 months;
? Fed balance sheet will drop $100 billion every month;
? The market will get an extra $500 billion out of the Treasury General Account (TGA), which will accelerate inflation;
? When the money runs out (sometime in July), Congress will vote to increase the debt ceiling;
? The market will end up flooded with unbacked debt liabilities;
? The world's banks will be forced to resort to printing more money (this process has already begun).
"The party has begun!", Arthur concludes.