China’s “Over-Obsessive Control” is the Main Motivation for Its DCEP Digital Currency Initiative

  • The launch of DCEP “is more about politics than technology”

After five to six years of research, China’s central bank revealed few specifics of its Digital Currency Electronic Payment (DCEP) project while a Chinese official finally stated that the People’s Bank of China (PBoC) is likely to be the world’s first central bank to launch a digital currency.

Digital Currency Electronic Payment will be powered by blockchain tech and sent to user digital wallets just like Facebook’s Libra, but would also have features allowing the central bank to use analytics to track just how the currency moves from wallet to wallet. Essentially giving them the power to supervise transactions.

Motivation: Control of Money and Money Supply

According to experts, this is not just financial innovation but also a way to have fail-safe control over its cash economy.

Recently, Huang Qifan, Vice President of China Center for International Economic Exchanges stated that the significance of DCEP is in the replacement of money.

Market observers say the main motivation behind the project is to protect its capital borders in the face of fears.

“There’s a consensus around the world among central bank governors and governments at large that they want to have control of money and money supply and the seigniorage that comes along with it,”

said Keyu Jin, professor of economics at the London School of Economics on the sidelines of a forum in Singapore.

“But over-obsessive control and governance is probably more unique to China than anything else.”

DCEP launch is “More about Politics than Technology”

However, there is no fixed timeline for when the digital currency will be launched.

In the country, there have been few public reactions on the central backed digital currency and a few public discussions on Chinese social media platforms like Weibo have mixed views.

While some say it could prevent corruption others are concerned about their safety and freedom to build wealth.

“Theoretically, with digital currency, you could do away with bank accounts,” a Union pay official told Reuters. “The launch is more about politics than technology.”

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Author: AnTy

Happy 11th Birthday to Bitcoin, Says Two US Congressman

  • US Reps. Patrick McHenry and Warren Davidson pushed for more opportunities for these innovators in the country.
  • At the time of writing, Bitcoin was holding steady at $9,217.57.

Today, Bitcoin is now over 11 years old since the whitepaper was originally released by Satoshi Nakamoto on October 31, 2008. Fast forward to today and 2 US Congress reps McHenry and Davidson gave a special shoutout to BTC.

McHenry, the representative for the 10th District in North Carolina, stated that the authorities in the US shouldn’t try to impede the progress of the technology in an October 31st tweet. He believes that policymakers should take on a more helpful role in the development of new technologies.

Davidson highlighted the importance of protecting online privacy and the way that Bitcoin supports that effort, using Twitter to retweet an article from Cointelegraph on Bitcoin’s whitepaper’s 11th anniversary. The congressman remarked that the publication created “infinite possibilities for technological innovation,” pushing for the US to create framework that benefits the innovators in the space.

Earlier last month, Davidson had said that the addition of Bitcoin into the Calibra wallet by Facebook would ultimately be a “way better idea” that creating their Libra digital asset.

Coinbase posted a blog yesterday, pointing out that the development of Bitcoin’s adoption has been progressing quickly, and at a much faster rate than other technologies previously, including email and television.

The exchange wrote:

“The television set was invented in 1927 but by the end of the 1940s only 2% of American families owned one. Bitcoin, on the other hand, went from an idea in 2008, and a first transaction in 2009, to over 27 million users in the US alone in 2019, or 9% of Americans.”

As of April 2019, a survey found that potentially 11% of the American population had some ownership of Bitcoin. Presently, Bitcoin is worth $9,217.57, losing less than half a percent of its value in the last 24 hours.

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Author: Krystle M

Telegram Introduces A Desktop Test Wallet For Its GRAM Token Amid Ongoing SEC Case

Encrypted messaging app giant Telegram has rolled out a desktop test wallet for its testnet of the yet to be released crypto network, Telegram Open Network (TON).

According to CoinDesk, the test app is now available for download for Linux, macOS as well as Windows. Interested individuals can access the app from Telegram’s website and they will be able to create a wallet as well as a set of private keys. In addition, users will be able to get and send test Grams, however, at the moment, the wallet will not hold anything of value.

Currently, the test wallet can only accept Grams as it is not indicated whether other cryptos are supported. Users are awarded from 5 to 20 Gram tokens by a bot to transact.

Telegram started a blockchain project and dubbed it TON and went ahead to get funding of $1.7 billion through a private token sale in 2018. Telegram went ahead and told the investors the network would be launched before Oct.31. In this case, the releasing of the Test Gram Wallet seems like a plot to beat the deadline.

Telegram’s plans to launch TON has been put in jeopardy by SEC after it was sued by the regulator saying that the token was equivalent to security. The regulator pleaded with the courts to stop the selling of the Gram token. Telegram has insisted that the token is not a security and has asked the court to set aside the ban.

In the recent past, Telegram and the regulator have come into an agreement where Gram tokens will not be distributed until the court has heard and determined the case which will take off in February.

Telegram has since received relief from investors after they agreed to postpone the selling of the Gram token to April 31, 2020, giving the company enough time to settle issues with the SEC. it turns out that Telegram has a lot to do to convince the regulator that Gram is not a security token or risk returning the $1.7 billion to investors.

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Author: Joseph Kibe

New Blockchain Pilot Will Tackle ‘Where is the Beef’ Question by Tracking and Verifying Origins

Wong supermarket has unveiled a pilot project that will enable their consumers to scrutinize and scan the origin of meat products. Wong supermarket is a Peruvian chain that is owned by the giant retail store in Chile, Cencosud.

The app is developed following a great partnership between the subsidiary for Citizens Reserve, SUKU, and Cencosud. SUKU is a supply chain company that is based in Silicon Valley, and the pioneers come from the Lab for Deloitte Blockchain.

This consumer-facing app is going to include Quorum. Quorum is a back-end enterprise-level blockchain for J.P. Morgan.

The new platform is expected to be availed in 20 distinct Wong stores, and it will also put into consideration all meat products that bear the SUKU logo. And just as the K emblem tells the Jewish customers that the product was inspected by a rabbi is the same way any commodity carrying the SUKU logo will imply that it has been tracked from its origin to the shelf.

With Wong’s technology, you can visit the supply blockchain history and have comprehensive coverage of the history of the meat. Jonathan Lapchik, the SUKU CEO, unveiled to CoinDesk that their technology has a huge potential in applications for the consumer goods market globally.

He said,

“You have a large group of consumers that want to buy sustainability, and want to buy transparent products from brands. But they don’t do it today – they don’t trust what the brands are saying. There’s a $1 trillion market sitting there for companies and brands to take if they can speak the same language as those consumers do.”

The animal’s health from where the meat comes from is tracked and stored in the new system, and anyone can have access to that information.

Many customers trusted Wong, according to Lima Chamber of Commerce, but things seemed to change after Chile’s Cencosud in 2007 bought the chain. The introduction of this new system is seen as a way to bring back the initial trust of the consumers.

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Author: Daniel W

New CasperLabs Proof of Stake Blockchain Specification Announced as ‘CasperLabs Highway’

According to a recent announcement published by CasperLabs, the company managed to create a new specification for a much more secure, live, PoS (Proof-of-Stake) protocol. The new specs are named CasperLabs Highway.

As many already may know, PoS protocol came as an alternative to the mechanism used by many cryptocurrencies, including Bitcoin, called Proof-of-Work (PoW). However, while PoW is used for verifying blocks by staking computing power, PoS works differently. It allows users to stake actual currency, which brings several advantages.

One such advantage is that there is no need for a powerful mining network or networks, which ultimately saves not only energy but also money. On top of that, it helps preserve the environment.

The second-largest cryptocurrency by market cap, Ethereum, has been developing its own PoS protocol that is supposed to be implemented shortly. However, there is still a lot of work to be done. According to CasperLabs, PoS faces several various issues regarding the security of the blockchain that uses it.

The company believes that a proper PoS needs to be live, but also much safer than what the developers’ efforts so far were able to produce. These issues were already addressed in the past, with one of the best-known examples being a research paper by Ethereum researcher, Vlad Zamfir. Zamfir released a study called CBC Casper last year, in which he addressed safety, but he left out the live aspect.

Now, with the release of the specs by CasperLabs, both issues were addressed for the first time. The company’s Highway did this by having a ‘summit,’ which will have to reach the consensus, as well as various levels of agreement.

The way that the company explains it is by imagining a mathematical highway, where cars have a constant speed, and vehicles traveling in different lanes tend to send messages over time. When the leading car sends its message, it spreads from one car to another, where each new car sends its own message to the next. Confirming these messages would lead to different agreement levels, which are then reached in ’rounds,’ which represent certain periods of time.

All of this can be possible if the process of moving the ‘lanes’ is dynamic, meaning that the frequency of switching gets doubled when it comes to the left lane, and cut in half for the right one. The concept will be able to speed up the process, while not sacrificing the security of the blockchain. It is still unknown whether the concept could be applied in practice, but CasperLabs is optimistic.

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Author: Ali Raza