China Says State Cryptocurrency Set To Rival Bitcoin Is ‘close’ To Launch

Many interpreted China’s announcement last spring as a part of its distraction tactics amid the global furore over the pandemic, which allegedly started in Wuhan. We are looking forward to working closely with the consortium to drive competition in the market, make EY solutions more accessible to clients locally and help organizations implement efficient blockchain strategies.” with a future extension to a controlled access version of the Ethereum network across the globe when it becomes available. Once deployed, all services will be available through blockchain.ey.com.cn. Whether it’s Bitcoin, Diem, Ethereum or Ripple, Monero, Litecoin, Dash or NEM, we’ve got it covered. Breaking news from each site is brought to you automatically and continuously 24/7, within around 10 minutes of publication. Relevance is automatically assessed so some headlines not qualifying as crypto currency news might appear.

While Inner Mongolia certainly houses a lot of the world’s mining outfits, the most popular region for Bitcoin mining in China is Xinjiang Uyghur. That’s the nominally autonomous region which reportedly accounts for 36 percent of the country’s hash rate. All cryptocurrency mining efforts in the region will be shutdown by April, a draft plan posted to the Inner Mongolia Development and Reform Commission details . The fintech arm of JD.com, JD Digits, will issue around 20 million digital yuan ($3 million) in total as part of a lottery for residents of the city of Suzhou. Winners will receive a “red packet” via a mobile app that contains 200 yuan of the digital currency that can then be spent through JD.com’s online shopping portal. This area of the ADVFN.com site is for independent financial commentary.

Our Privacy Notice explains more about how we use your data, and your rights. The company also said that it is “evaluating the feasibility of integrating blockchain technologies to its various overseas businesses” including possibly launching Ethereum-based apps. The stimulus announcement wasn’t the only piece of good news this weekend.

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• All of this provides great returns for both e-Yuan and Chinese technology stock investors.
• If the new currency is to be rolled out on any significant scale, it will need to be able to cope with massive transaction volumes.
• I see this as a key step forward in connecting the world’s largest economies through blockchain technology.”
• But Crypto is good because it keeps wildly fluctuating in value (400%) for no underlying reason and is useless as currency.
• As for the US, it is grudgingly joining the party, with Treasury department and Fed officials openly discussing the possibility of a digital dollar.

Few details about China’s cryptocurrency have been revealed, though the new system could theoretically reduce the costs of circulating traditional paper currency, as well as speed up and add security to digital transactions. China has traditionally been resistant to decentralised cryptocurrencies like bitcoin, despite the country being home to some of the world’s largest cryptocurrency mining facilities. China’s central bank has revealed it will soon launch its own state-backed cryptocurrency following five years of research. China’s interest in the space appears to have had a positive impact on already established cryptocurrencies like bitcoin, which some say add legitimacy to the cryptocurrency industry. It is understood that the new law will precede the launch of China’s state-backed cryptocurrency, which is expected to be unveiled early next year. No specific dates have been given but in August a senior official at China’s central bank said it was “close to being out”.

In late 2019, the Bank for International Settlements surveyed 66 central banks on the topic. It found that 80 per cent were engaging in some sort of study on central bank digital currencies. They may include Sweden’s Riksbank, which is believed to be near to launching its own ‘e-krona’. Bloomberg today reported that the autonomous region within the People’s Republic of China recently banned cryptocurrency mining in an effort to reduce its power consumption in 2021. In a meeting of the BRICS countries in 2019, policymakers and executives from Brazil, Russia, India, China and South Africa discussed the launch of a common cryptocurrency as an alternative to the dollar. Such a system would help these countries skirt the international payment mechanism SWIFT, through which the US imposes sanctions on rogue states.

China Warning: Beijing’s Plan To Abolish Cash Will Help Xi Jinping ‘take Control Of Money’

China could force participant countries to accept loans in digital yuan to boost its adoption. Once this is done, and teething issues are addressed, it can look forward to blending this with its BRI programme,” Loh said.

At least until the bubble bursts and those left holding onto them who didn’t cash out early end up losing lots of money. Those who did, on the other hand, can be happy that they profited from what will likely amount to a scam at the expense of others. It’s largely just a speculative market with no particularly useful product behind it, after all. Maybe a few will manage to stabilize and survive in the long term, albeit with heavy government oversight controlling them, removing their main selling point, but most are destined to fail as an actual currency system.

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However, it is yet unclear to what extent China will include the cryptocurrency in its financial system as international skeptics argue that the currency will never be fully decentralized. The Agricultural Bank of China has equipped a number of ATMs with the means for customers to deposit and withdraw the central bank’s new digital currency.

While neither of these deadlines have come to pass, it’s clear that China is gearing up to release DCEP as soon as possible, according to presentations by Mu Changchun, the head of the Chinese central bank’s digital currency research institute. In these presentations, Mu has elucidated a vision of a sovereign digital currency, one that stands in stark contrast to the decentralised aspirations embedded into existing cryptocurrencies such as bitcoin. Fintech companies have pioneered digital products that are used by large swathes of the population. They might see their role reduced, from trailblazers to mere research labs for central authorities. Clipping the wings of big fintech companies and putting the state in charge might be an important step towards central control of the financial sector. Alipay and WeChat Pay have been challenged by the introduction of the central bank’s digital currency/electronic payment system. The two juggernauts have been allowed into the DC/EP trial phase through their banks, MYBank and WeBank.

Central banking (i.e. private money creation) was practically forbid by U.S. constitution if I remember correctly. , since 1913 it creates ever increasing amount of debt, essentially transferring wealth to those who own the printing machines . While cryptocurrencies would eventually eat all the energy we produce, private money creatinon will eat all of the land, resources, energy. But Crypto is good because it keeps wildly fluctuating in value (400%) for no underlying reason and is useless as currency. And as is typical of cryptocurrencies, Bitcoin’s price is at nearly $48,000 after dropping below $44,000 during the past week, down from its high of $58,000 on February 21. A study published by Nature in 2018 estimated that, on an electricity-used-to-dollars-earned basis, cryptocurrency mining required more energy than rare earth mining. A more recent estimate said Bitcoin mining alone uses more power than Argentina.

Also, do you have dedicated agents in the UK who will have the Crypto (E – Yuang ) on their platform?. After the e-Yuan announcement, Chinese technology stocks have been steadily reaching new record heights with Foreigners recently spending over $26.99 Billion on technology stocks listed on the Shenzen stock exchange. All of this provides great returns for both e-Yuan and Chinese technology stock investors. It is yet unclear whether the currency will be backed by any physical assets. China is known for recently purchasing large amounts of gold to back it’s fiat currency Yuan. It is likely that if the value if e-Yuan falls, the government would step in to provide physical asset backing in order to stabilize prices in investors’ favor. The bank has also established a ‘digital renminbi innovation laboratory’ in Shenzhen to carry out innovation and pilot projects in new areas.

Elvira Nabiullina, who heads the country’s central bank, has said that it could be used to settle trade transactions with other countries. In the current climate of debased fiat currencies, stablecoins, namely digital currencies backed by stable assets, are emerging as a safe asset. “A gold-backed CBDC offers a compelling solution to slowing economic growth and rising inflation that many markets around the world are experiencing,” Hernandez said. As for the US, it is grudgingly joining the party, with Treasury department and Fed officials openly discussing the possibility of a digital dollar. One reason for this Damascene conversion is that commercial banks have embraced the blockchain, the technology underpinning cryptocurrencies, with leading banks such as JPMorgan Chase using it for cross-border payments and settlement. One such venture is Project Ubin, a project designed by Singapore’s central bank that aims to provide a global payments platform for central banks.

Also, because it is released by the government and pegged to the valuation of the yuan, it won’t be traded in fractions. It is likely to be seamless; most consumers won’t really notice a huge difference between using DCEP and existing digital payments platforms. Miners, who use heavy-duty processors to solve the difficult computational problems necessary to string together transactions in clusters, or “blocks”, which constitute the “chain”, are rewarded for their efforts with coins. By forcing miners all over the world to compete for coins by algorithmically contributing to the blockchain, the ledger for transactions is both decentralised and unhackable. Meanwhile financial analysts have suggested the dramatic development could enable China’s currency to challenge the dollar in the future – but could also be used a “spying mechanism” by the authoritarian regime. The Chinese government believes their digital currency, previously known as the Digital Currency Electronic Payments , will enable it to maintain control over the domestic financial system, the South China Post reported last week.

But China has also been experimenting with market financing and private innovation, most notably in the fintech sector. The result of this was increased stock market volatility, fraud, massive profits and colossal losses. 67% of retail clients lose money when trading CFDs with this provider. Although cryptocurrency has gained more media attention this year, we have yet to see whether China will decide to soften its regulations against cryptocurrency or not. Chinese cryptocurrency exchange app that relocated to Singapore after the crackdown in China from , was trending on China’s iOS app store.

This is the first study to systematically investigate key cryptocurrency industry sectors by collecting empirical, non-public data. The study gathered survey data from nearly 150 cryptocurrency companies and individuals, and it covers 38 countries from five world regions. The study details the key industry sectors that have emerged and the different entities that inhabit them. In 2020, regulators embarked on an overhaul of internet finance platforms, encompassing asset management, insurance, cryptocurrency and foreign exchange trading. This included major moves, such as the closure of all peer-to-peer lending platforms and scrutiny of Ant Group, the owner of Alipay, eventually leading to the cancellation of its initial public offering.

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Mr Miller stated as it was still in the “early stages of the adoption cycle”, volatility will always come with the currency. Yet, others – including value investor Bill Miller – claim the currency will only get stronger, as the price of Bitcoin rises. Although the technology is now beginning to dominate discussions in nations such as China, tech expert George Gilder told the Mind Matters podcast how Bitcoin was still ahead of the game. Google’s “quantum supremacy” was then mirrored by experts in Beijing, a nation which remains aggressive towards decentralised cryptocurrencies like Bitcoin. When you subscribe we will use the information you provide to send you these newsletters. Sometimes they’ll include recommendations for other related newsletters or services we offer.

Cryptocurrencies are a highly volatile unregulated investment product. But while China pushes back on bitcoin adoption, the PBC has been researching the potential of its own cryptocurrency since 2014. A senior official at the People’s Bank of China said the cryptocurrency was “close to being out” at an event held by China Finance 40 Forum, according to separate reports in Reuters and Bloomberg, though failed to provide a specific date for its unveiling. “As digital natives, Chinese welcome further convenience and integrated infrastructure into their lives,” says Chloé Reuter, founding partner of Reuter Communications, a marketing agency based in Shanghai. The two largest digital payments platforms in the country, run by Ant Financial and Tencent respectively, already handle trillions of dollars of payments per quarter.

They labelled what the fintechs were doing illegal fund raising activity, which needed to be cleaned up. Established banks wanted to play on a level playing field with fintechs. They numbered around 10,000 in 2015, decreasing to only 600 four years later and now vanishing altogether. Their demise will be missed by SMEs which have been badly hit by Covid-19, though government measures have partly alleviated this. Any time now, China’s last P2P platform will disappear, regulated out of existence. These platforms were initially celebrated as a technological and financial innovation, allowing millions of small savers to invest and millions of small- and medium-sized enterprises to borrow small amounts of money.

The cryptocurrency can be used to buy products and services, in in 2018 a company in Northern Ireland started to accept Bitcoin as a way of payment to buy a house. There are various apps to help track bitcoin value (Photo Illustration by Omar Marques/SOPA Images/LightRocket via Getty Images)Bitcoin was first released in 2009 and its value has fluctuated over the last ten years, reaching its peak in December 2017. Bitcoin is a cryptocurrency that is used internationally and is stored completely online as a computer file. That’s just one cryptocurrency, and one not often powered by graphics cards.