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All major messaging services using cryptocurrency, introducing it to the world
Mikomatsumara, August 31, 2019, https://cointelegraph.com/news/us-china-trade-war-and-its-effect-on-cryptocurrencies, US-China Trade War and Its Effect on Cryptocurrencies
But Libra is not alone in this space — South Korea’s messenger Kakao has launched a similar project based on a public blockchain called Klaytn. Telegram (which raised $1.7 billion) is launching TON, which is tied to its messenger that claims over 200 million users. And in the Japanese market, the dominant messenger, Line, has partnered with Visa and promises to bring its user base of over 200 million users onto the blockchain. With the announcement of Libra by Facebook, every player in the game no longer has to guess what the table stakes are, and it’s time for the players to put their antes in. The People’s Bank of China reportedly added nongovernmental organizations to its network. “Inspired by Libra” and by the work South Korea’s Klaytn is doing with its governance council, the PBoC has certainly mirrored what Facebook has done with the Libra Foundation. With billions of messenger users and bank customers being introduced to blockchain-based payment solutions, we can be sure that every major organization in the world will have to craft a response to this unprecedented situation. And the competition between nations and ideologies — such as China vs. the West — can actively accelerate the delivery of solutions that will form the basis for mass adoption of cryptographic assets.
Cryptocurrency will dethrone the dollar
Bangkok Post, 9-1, 19, https://www.bangkokpost.com/business/1740507/could-cryptocurrency-dethrone-the-dollar-, Could cryptocurrency dethrone the dollar?
LONDON: Bank of England governor Mark Carney has suggested that a virtual currency, modelled on Facebook’s Libra, could one day replace the dollar as king of the foreign exchange market. The BoE chief aired vague proposals for a so-called “Synthetic Hegemonic Currency” at the recent Jackson Hole Symposium of central bankers. Here is a brief assessment of why the greenback is losing its lustre and the outlook for Carney’s proposed new digital currency, which would be supported by major central banks around the world. Why dollar dominance? – The dollar has been the world’s reference currency since the Bretton Woods agreement in 1944, when various key units were fixed to the value of the greenback. It has retained its global supremacy ever since, thanks to the economic and political clout of the United States. “The dominant currency is always that of the world’s biggest political power,” noted Philippe Waechter, head of research at Ostrum Asset Management. The dollar accounted for almost 62% of global foreign exchange reserves in the first quarter of 2019, according to the International Monetary Fund. The European single currency was second with 20.2%, while China’s yuan comprised only 2% despite the country’s rise to the rank of the world’s second biggest economy behind the US. Why is greenback losing appeal? Although the dollar has lost its sparkle owing to globalisation and the changing world economic order, gyrations in the US unit still impact economies elsewhere. “US developments have significant spillovers onto both the trade performance and the financial conditions of countries even with relatively limited direct exposure to the US economy,” Carney said at the recent bankers’ meet in Wyoming. When the greenback appreciates, so do repayments for many emerging nations because their debts tend to be denominated in dollars. The BoE chief, who steps down in January, added: “In the longer term, we need to change the game.”
China’s government launching its own cryptocurrency, will be available by November 11
Cryptoconfidential, 8-31, 19, https://www.forbes.com/sites/cryptoconfidential/2019/08/31/bitcoin-sinks-to-2-month-low-china-moves-forward-with-state-backed-cryptocurrency/#71b4cc5f11a6, Forbes, Bitcoin Sinks To 2-Month Low; China Moves Forward With State-Backed Cryptocurrency
Forbes confirmed this week that China’s central bank will launch a state-backed cryptocurrency and issue it to seven institutions, including Alibaba and Tencent, in the coming months. It could be available as soon as November 11, China’s busiest shopping day, and may eventually be available to spenders internationally in the Western world. “China’s strategic plan is to integrate more closely with the rest of the world. Cryptocurrency is just one of the means to have a more internationalized renminbi. It’s all strategic,” says Charles Liu, chairman of private equity firm HAO International.
China’s cryptocurrency enables surveillance
Anthony Cubtherson, August 28, 2019, https://www.independent.co.uk/life-style/gadgets-and-tech/news/china-cryptocurrency-binance-bitcoin-banks-a9085161.html, CHINA’S NEW BITCOIN RIVAL TO DISPLACE BANKS AND BOOST STATE SURVEILLANCE, REPORT SAYS
China’s plans for a state-backed cryptocurrency could eliminate the need for bank accounts, new research has suggested. A report published by Binance, the world’s largest cryptocurrency exchange, gave an overview of what China’s central bank digital currency is expected to look like and how it will compare to bitcoin and Facebook’s forthcoming Libra currency. Based on details provided by central bank-related entities, the digital currency would be backed by reserves of traditional currency and would allow people to transfer funds even if they did not have a bank account. ADVERTISING inRead invented by Teads Earlier this month, a senior official at the People’s Bank of China (PBOC) said the cryptocurrency was “close to being out”, though no specific dates have been given for its unveiling. Deputy director of the PBOC, Mu Changchun, said the new digital currency would use a two-tier system, with the first tier connecting the PBOC with commercial banks and the second tier connecting the commercial banks to the retail market. The report also explained how the as yet unnamed digital currency could be used to support and improve China’s already expansive surveillance network. 0:00/0:00 “The PBOC aims to improve the effectiveness of its monetary policy, while mapping out a more comprehensive picture of all individuals and businesses across China,” the report noted. “Unlike privacy coins, central authorities would be able to gather information. Eventually, identities would likely be tied to respective individual wallets, hence making it fully non-anonymous, unlike bitcoin.” For it to work on any significant scale, the new currency’s payment infrastructure will need to be able to process and handle a huge volume of transactions. The report suggests this would be somewhere in the region of 300,000 transactions per second, though currently no blockchains are capable of supporting such a high volume. The cryptocurrency would also presumably require users to own smartphones, even if they don’t have bank accounts. Current estimates suggest that only around half of China’s 1.4 billion inhabitants own smartphones. Like Facebook’s Libra, China’s new cryptocurrency is designed to bring key financial services to those without bank accounts. Watch more Bitcoin ‘inventor’ ordered to pay billions The PBOC first started researching the potential of a new cryptocurrency in 2014, however according to Binance’s report, the development of the cryptocurrency was fast-tracked after Facebook first announced its plans for Libra earlier this year. “Digital currencies are coming into the mainstream and international competition is heating up. Economies risk being disadvantaged if they are left behind,” Don Guo, CEO of Broctagon Fintech Group, told The Independent. “China’s new currency could even rival Facbook’s notorious proposed cryptocurrency, Libra. This is largely because Facebook is not permitted in China, giving the government a potential monopoly over the market.”