China’s Central Bank Digital Currency (CBDC) Will Launch In Next 60-90 Days Per HCM Capital Exec

Jack Lee, the founding partner of HCM Capital, has recently affirmed that the central bank digital currency (CBDC) of China is being created and is expected to be launched in the next few months.

According to a recent interview with CNBC, Lee said that the central bank of China will use the new digital currency to have more strength over its capital flows. He also noted that the Chinese government uses serial numbers on banknotes to track cash flows, so this would basically be a more efficient system.

He claims that we’ll see this system, which is being called the Digital Currency Electronic Payment system, pretty soon. The official narrative created by China is that the launch is “near” but no official date has been stated, which means that he may be right about this.

Daniela Stoffel, the state secretary of international finances in Switzerland, was also interviewed by CNBC.

She said,

“The pressure has been on for a while. […] Other governments now realize this is now actually really happening and that the questions and challenges that are implied in an e-currency are now real. I hope this will lend further momentum to decisions on a global basis.”

While there are some concerns about money laundering and other related topics, she claims that the regulators have already understood that they have no choice but to take these systems seriously and that we are about to see a whole new age of digital currencies backed by central banks very soon.

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Author: Gabriel Machado

President of Turkey Says Country is Finalizing Its Digital Lira Currency Testing By 2020

Recep Tayyip Erdogan, the current president of Turkey, has recently affirmed that the government is testing its central bank digital currency (CBDC) project and that the project is set to be finished by 2020. According to him, the country will have a digital lira next year and the system will be in accordance with the 2020 Annual Presidential Program.

This program delimitates that the pilot for a blockchain platform that enables instant payments will be created by the central bank, together with the local innovation agency. The experiment should be conducted and finished by the end of 2020 and that.

Cointelegraph, which also reported on this story, affirms that the launch of the token is part of a larger campaign to strengthen the economy of the country and the financial sector.

The document reads:

“The main objective is to establish a financial sector with a strong institutional structure that can respond to the financing needs of the real sector at a low cost, offer different financial instruments to a wide investor base through reliable institutions and support Istanbul’s goal of becoming an attractive global financial center.”

The new CBDC is not the only plan for the upcoming presidential program. It was also decided that the country should be more focused on implementing the blockchain to improve adoption in the country and innovate more.

Because of this, the government is interested in using this technology for customs and transportation, too, two areas in which the blockchain has been used with success for some time. There are public plans to use it in these areas since September when the first plans were announced.

Obviously, this is attracting the interest of the crypto and blockchain industry. This month, the Turkish Capital Markets Summit 2019 will have the presence of leaders in the industry such as Changpeng Zhao, the CEO of Binance, the largest crypto exchange in the world.

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Author: Hank Klinger

Coinbase Leader in the UK: Facebook, Central Banks are Crypto Catalysts, Not Enemies

Zeeshan Feroz, the CEO of Coinbase in the United Kingdom, has recently affirmed that the world needs centralized entities to support the crypto market. According to him, having support from important players such as Facebook and Libra is important if cryptos want to become mainstream.

One of the reasons why he has so much faith in central banks is because of the concept of CBDCs, which are cryptos created by them. To create something like this, in his opinion, would catalyze a lot more attention and adoption than people in Silicon Valley are able to.

He also sees the Libra as a way to reach adoption. According to him, the token would greatly popularize cryptocurrencies and they could all be benefited from it. Coinbase is currently one of the 21 companies that remain a part of the Libra Association, so it makes sense that the company has faith in Facebook’s new project.

Feroz defended the Libra when he was asked whether it could just work as a way to replace the government’s fiat currency system. According to him, you need centralized entities to form a “utopia”. Maintaining a relationship with banks and centralized companies is vital for the development of the network.

Before the utopia, he affirmed, it is vital to get help from wherever it comes. He did affirm, however, that it is important that some businesses continue to be decentralized, not everything needs to be centralized, just a few important actors that will help the crypto world to be more widely accepted.

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Author: Gabriel Machado

CEO of Visa Claims Company Is Still Interested In Facebook’s Libra Crypto Project

The CEO of Visa, Alfred F. Kelly, has recently affirmed that, despite dropping out of the Libra Association, Visa is still interested in the project. This information comes from an interview made by the Brazilian financial media outlet Valor Economico (Economic Value).

According to Kelly, Visa still has a very close relationship with Facebook and it believes that digital currencies can be a good way to provide safer payments for people in different areas of the world. Kelly’s position is that Visa will engage with everything in the market up until it no longer believes that the engagement is positive anymore.

The main goal, he believes, is to create solutions that will be used to bring people faster to the financial world, so the relationship with Facebook is far from over.

He affirms that the Libra still needs more time to be fully developed and implemented in a satisfactory way, which is expected as it is a very disruptive initiative. Also, he took some time to talk about how he does not see the Libra Association as something centralized because each participant has the same power in making the decisions.

Right now, 1.7 billion adults are unbanked around the world. The CEO of Visa believes that Facebook can help with this situation when its project is ready.

In related news, Mark Zuckerberg, the CEO of Facebook, has testified yesterday. During his speech, he affirmed that Facebook may need to withdraw from the Libra Association in case the organization decides to go forward and launch the token anyway without approval.

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Author: Gabriel Machado

Researcher: Google’s Quantum Breakthrough Could Improve How Proof of Stake (PoS) Works

Google has recently affirmed that it was able to achieve some important breakthroughs in the quantum computing field. Now, a researcher from the University of Texas at Austin, Scott Aaronson, has told Fortune that this kind of progress could improve how the proof of stake technology works.

In case you do not know, proof of stake is a consensus protocol that works by staking tokens instead of mining them. The concept was originally created by Vitalik Buterin to be applied to the Ethereum network, although that never actually happened so far.

As block creators are randomly chosen in this method, a lot of people have criticized how random the method really is. Aaronson affirmed that quantum computing could help to end these doubts, as quantum supremacy could be used to generate numbers which are proved to be random.

Recently, Google published its latest results for the quantum supremacy experiment Sycamore. The computer was able to sample a quantum circuit a million times in only 200 seconds. IBM’s supercomputer would take 10,000 years to do that. With this technology on its side, crypto projects could prove that their proof of stake mechanisms actually worked as intended.

Not everyone is truly convinced that you need to do all that to just to be sure, though. Fortune also interviewed Greg Kuperberg, a professor from the University of California at Davis, who affirmed that the whole thing was overkill. According to him, there are ways to prove random numbers are random even without using such complex technologies.

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Author: James W

FCA Will Make Final Decision On Whether To Ban Crypto Derivatives (CFDs and ETNs) in the UK

The government of the United Kingdom has recently affirmed that its regulators and the executive should decide whether crypto derivatives should be banned for retail investors or not. According to the reports, the economy secretary John Glen affirmed that the Financial Conduct Authority (FCA) was the only entity that would determine if the ban should be done.

Glen affirmed that the FCA is an independent entity that does not need the authorization of the government to act, so there is no need to get involved.

The trouble started after the report from the Cryptoasset Taskforce of the country. It was proposed that the FCA should consult the public on whether to ban contracts for difference (CFDs) and exchange-traded products in the country if they were related to Bitcoin or some other crypto asset.

So far, the FCA has received several complaints about the sale of crypto derivatives in the country. It was after these complaints that the entity launched the consultation. One of the initial ideas was that non-professional traders were not properly equipped to correctly assess the risks of these products.

It is difficult to determine the underlying value of the assets as they are very volatile and not properly regulated, so the FCA believes that retail investors would save money by not investing in them.

There are many critics to the idea of the ban, however. Coinshares, for instance, has claimed that the FCA is lacking evidence to affirm that trading crypto derivatives is a dangerous activity.

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Author: Silvia A

Premier of Bermuda: Crypto Assets Balance Out the Powers of ‘Big Tech’ and Government

Edward David Burt, the Premier of Bermuda, has recently affirmed that cryptocurrencies can work as a great equalizer against “big tech”. He affirmed this during a recent interview with Forbes. According to him, cryptos are important to ensure that citizens are not at the mercy of big corporations and the government.

The Premier has a background as a programmer and entrepreneur, so he is pretty excited about the prospects of Bitcoin. He affirmed that crypto can be used to make a society that is more equal and that micropayments will completely change how the technology landscape is today. His direct quote was;

“Facebook and Google make money because they have your data, but they don’t pay for access to your data. However, when you talk about the ability to have infinitesimally-sized pieces of value so someone can pay you […] for using your data … […] the promise of cryptocurrency is to actually take power away from those large companies.”

Today, he affirmed, large companies such as Facebook and Google are able to make a lot of money by selling the data of the customers. Cryptocurrencies can be used to take that power away from them, as they would, for the first time, have to ask permission to be able to sell the data, and pay something back to the people.

Despite not trusting Facebook, he did affirm that most regulators were too afraid of the Libra and that they should be focused on innovation instead of pushing it back. According to him, you simply can’t stop the future and trying is a futile effort.

During his interview, he also talked about how fintech innovation is important for the national strategies of countries. According to him, the industry is growing in Bermuda and seeking talent abroad, as the government understands how important it is for the economy to invest in this nascent industry. Adding;

“Whether it’s Libra, when we talk about ICOs and different things, the fact is that it’s no different from when stocks and bonds were startup financial services.” […] “It’s going to happen. The Internet can’t be shut off.”

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Author: Saad U

MakerDAO’s Multi-Collateral DAI System Launches Nov. 18; MKR Holders Cast Votes On The 15th

The CEO of the Maker Foundation, Rune Christensen, has recently affirmed that the new multi-collateral DAI (MCD) system of the MakerDAO network would be launched on November 18. According to him, all the MKR token holders should vote on the project until November 15 to approve it.

His announcement was made during the Devcon 5 conference, which is happening in Osaka, Japan, right now. According to him, the new MCD will be a decentralized system that will encompass the whole MakerDAO network and its smart contracts.

Two features were highlighted during the announcement. They were the DAI Savings Rate (DSR) and the Coolaterized Debt Positions. The first feature allows the holders of the DAI stablecoin to lock their tokens to smart contracts that will act as saving accounts. The second one will create new kinds of collaterals to be used in the DAI system.

These updates are a huge milestone for the network and are set to pave the way for the future. They will be important because they will improve the integration of the network with other decentralized projects.

Before the update happens, however, the community has to vote. Unless the majority of the voters approve it, the governance rules of the network will not allow the update to happen.

Recently, the HackerOne group discovered a major bug in the update. Fortunately, the bug was found and fixed before any malicious actors were able to exploit it. The bug could have let an attacker steal all of the collateral that was used to back the stablecoins.

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Author: Gabriel Machado

Former UBS CEO Sets Sights On $220B Market As Director of Swiss Crypto Bank, Sygnum

Peter Wuffli, known as the former CEO of the largest Swiss bank, UBS, has recently affirmed that his new crypto bank called Sygnum could be used to tap into the crypto market more deeply. According to him, there is a $220 billion market to be explored, as many individuals and institutions who already own cryptos could use a bank.

He has also shown some excitement concerning the fact that crypto assets have plenty of potential to be explored. The market is still very young and Wuffli believes that several solutions can be offered to clients such as custody, trading and loans.

Wuffli has noted that tokenization is another great opportunity. In this digital age, several companies have the opportunity to tokenize their shares or other important assets such as real estate.

The only aspect that gets in the way of this is that there is still no clear regulation for the industry. Wuffli affirmed that the blockchain brings a lot to the table, but that some uncertainty is still there.

According to him, one of the main aspects of blockchain that will help companies beyond tokenization is that they can be used to simplify processes. You can simply abandon spreadsheets and complex systems. Using blockchain solves several uses and decentralizes the system.

However, he has also noted that “corporate currencies” are not completely using the potential of blockchain, which can be used for market democratization. He was very skeptical about Facebook’s new Libra asset, for instance, which is seen as a corporate currency instead of something that will really democratize the economy.

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Author: Gabriel Machado

UBS Former CEO: Big Banks Are Interested In The Blockchain Technology

Peter Wuffli, the former CEO of UBS, an international bank based in Switzerland, has recently affirmed that the crypto market is attracting the attention of large banks because of the advent of regulated actors.

He was known for being the CEO of UBS during the 2008 crisis. At the time, the bank lost a lot of money and the Swiss government had to bail it out in order for the bank to continue existing. At the time, he resigned. Today, Wuffli works as a board member of the local crypto bank Sygnum.

Wuffli affirmed that he does not see a bubble in the market right now, which is a very different way of how things were in 2017. There are more serious planning about how to solve the needs of the clients and a better understanding of the market, its potentials and limitations.

Sygnum is also on its way to becoming a fully regulated bank in the country, so Wuffli was obviously talking about his own company, not Bakkt, which was also launched this week. However, there is a clear trend of very well-organized regulated institutions entering the crypto market, and banks such as UBS and Credit Suisse are looking at them.

According to Wuffli, interest has clearly picked up lately and people from these banks are starting to approach the crypto industry in Switzerland. What they want strategically and how committed they will be to this new market, however, is what we’ll see in the following months.

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Author: Gabriel Machado