Companies in China Are Claiming to Use Blockchain Technology to Improve Stock Prices

  • Only 40 companies in China can definitively prove that they are involved with blockchain technology as they advertise.
  • Chinese president Xi Jinping recently voiced encouragement for the country to pursue the development of blockchain technology.

Blockchain technology is one of the biggest forms of fintech to arise in recent years, and many people want to use it in their own businesses to improve customer experience, organization, and more. However, it seems that some companies in China believe that its easier to claim the use of blockchain technology than to actually use it. Multiple companies are reportedly stating that they are looking into blockchain technology, but there’s no actual proof that they are, according to The Block.

A Chinese publication called Global Times stated that a warning has already been issued by the Xinhua News Agency, stating that companies are claiming that they’ve adopted the blockchain technology, but nothing could be further from the truth. With over 3,000 listed companies, there are 500 companies saying that they are involved with blockchain. Presently, there are only 40 companies that have been able to prove it.

One of the most high-profile news programs in China – Focus Report – recently released an episode that shed light on the fraud found in the blockchain and cryptocurrency industry in China. The episode was called “Blockchain is not an ATM Machine,” exploring the way that blockchain is misused in an effort for companies to “further their money-grabbing schemes.”

Presently, according to China’s National Internet Emergency Center, the market presently has 755 tokens without any real initiatives backing them or that reached zero after they were created. CNCERT also discovered that Ponzi schemes accounted for 102 coins. By November 15th, a total of 566 legal rulings involving blockchain have been recorded, which is a record high that is only made worse by being involved with digital currency.

Blockchain technology has been a priority in China since President Xi Jinping stated that China should focus on increasing its development. While the president has praised blockchain technology, the official stance of the country on cryptocurrency is still not clear. Ever since the Chinese government has been taking an aggressive stance on illegal token issuing and financial fraud involving cryptocurrency, which started in September 2017, there has been a lot of anxiety over initial coin offerings.

During the episode, Focus Report stated, “We should vigorously push for blockchain technology’s application in trade finance, public services, and other fields, but we shouldn’t allow frauds or the encircling of money in the name of blockchain. Relevant departments need to strengthen their regulations in the space and the public need to keep their eyes wide open for fraudulent activities.”

Dong Shaopeng, an adviser with the China Securities Regulatory Commission, stated that the companies found with these claims could end up dealing with major reprimands from the stock exchanges they are listed on. Some of these reprimands include fines or even being delisted.

As more countries and companies recognize the benefits that blockchain technology offers, it has found many use cases outside of the cryptocurrency industry. However, despite the many companies that advertise its use, recent research shows how misleading these claims actually are.

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Author: Krystle M

China’s Cashless Payments Push is a Testimony that Bitcoin Will Succeed

China is racing ahead in becoming a fully digitized economy, which explains why it will soon have to adopt Bitcoin and other digital assets in order to cope with the upcoming nature of its economy.

It is apparent that China is becoming a blockchain-friendly nation. and warming up to new technologies in a quest to get ahead of its closest competitors. It also believes in order to enhance state foundations they will need to be on board with Blockchains technology.

In the past few years, the economy of China has witnessed notable progress on cashless payments delivered by tech-based companies in the country such as Alipay and Weibo among others. Consequently, it’s possible to purchase nearly anything with a Smartphone. A report by Bloomberg revealed that the big jump occurred between 2015 and 2016 during which transaction values for digital payments in China rose by a whopping 382 percent. Currently, the country has so far embraced cashless payments as the norm.

What Does it Mean for Bitcoin?

With universal adoption of cashless payments, Bitcoin and other digital assets are likely to get a boost. The implementation of cashless payment is in line with the crypto industry’s initial goal, which was to encourage peer-to-peer settlements without irregular banking procedures.

Since China is already using cashless payment system without cryptocurrencies, it’s quite likely that the country will incorporate digital money into the existing systems. Against that backdrop, many tech giants in the country such as Alibaba are investing heavily on blockchain. Currently, China controls 2/3rds of all blockchain-based patents worldwide.

China is Ahead With Fintech Infrastructure

While everyone else is striving to incorporate cryptocurrencies in their systems, China’s fintech infrastructure is already mature. This puts the country in a better situation to simply plug cryptocurrencies into their existing models. This would lead to faster and easier adoption.

Judging by President Xi Jinping’s recent remarks, the government seems skeptic about cryptocurrency but warming up to blockchain technology. However, the country will soon realize that cryptocurrency is part of blockchain and one cannot exist effectively without the other.

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Author: Hank Klinger

Crypto Trading Enthusiasm Returns in China, Prompting More Scrutiny from Country’s Regulators

The Central Bank in China seems set for another round of crypto crackdowns after President Xi’s latest remarks revived speculation on blockchain technology. Financial regulators in each Shanghai District are required to search and conduct an inspection of all suspected crypto companies and exchanges by 22nd November.

A notice issued by the Shanghai Internet Finance Rectification Agency noted that the regulators are expected to hand in their reports to the central bank by close of business on that day. The notice which first appeared on the web on Friday morning was later confirmed by Caixin, the Chinese Business Publication.

Emerging Decentralized Technologies

This latest move taken by the financial regulators has underscored the complicated relationship that China has with blockchain technology and other emerging technologies. In a speech made at the start of November, President XI asked his fellow countrymen:

“To help accelerate the development of blockchain technology.”

It’s worth noting that China has for many years been considered a top destination for crypto miners. But the government has also been persistent on issuing blanket bans on initial coin offerings and crypto-to-fiat trading, a move that began nearly two years ago. The blanket ban means that a majority of the population in the country has not been able to use crypto trading facilities.

Social Media Ban

Weibo, the China equivalent of Twitter has also gone ahead and banned its platform users from posting or publishing blog posts and content that contain the terms “crypto trading, “and “Blockchain.”

It went on to add that posts of this nature contained details that were in complete violation of local laws, which means that users posting the content were contravening Weibo’s community terms. As of Friday, it was not clear when this restriction was enforced, as users could still publish content containing the two phrases, as long as the terms were not used together.

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Author: Daniel W

Chinese Soldiers In The People’s Liberation Army (PLA) Could See Crypto Rewards For Performance

Soldiers from China could start to receive crypto rewards soon, according to the South China Morning Post, a prominent Chinese media outlet. The information comes from an official military source, the PLA Daily. This week, it was announced that the Chinese People’s Liberation Army could start earning rewards in crypto, which would be based on each soldier’s behavior.

The goal is to “improve human resource management” and each soldier would either get or lose crypto based on data about their daily performance. This would, in the army’s view, help to generate an objective assessment of how to manage human resources better while rewarding the best soldiers.

As the blockchain is a technology that basically is impossible to tamper with, this could provide a good way to increase the levels of trust and transparency on evaluations and to make them more secure.

In the same announcement, the PLA Daily also claimed that blockchain technology could be used as an effective way to store classified military information and could improve how data is handled in the country.

Since the country’s President Xi Jinping has endorsed blockchain technology, China is living an age of high blockchain popularity.

Top executives from the government seem to be leading an effort to strengthen the use of the tech in the country and to find new ways to apply the blockchain as a way to solve problems. Other political and economic measures are also being studied by the government.

While the technology is not necessarily mainstream in the country, it is certainly becoming more well-known and accepted in Chinese social and political circles. Now, it seems that the military is about to embrace the crypto world as well.

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Author: Rebecca Asseh

Chinese Police Hold MicroBT Crypto Mining Maker’s CEO Over IP Infringement Allegations

Zuoxing Yang, known as the CEO and founder of MicroBT, a BTC miner maker based in China, has been detained and held by the local police. According to reports from local media outlets, the investigation is regarding the infringement of intellectual property by the firm.

Local media outlet BlockBeats cited an inside source who claims that MicroBT is being accused of infringing the copyright of Bitmain. Before founding his own company, Yang worked at Bitmain as a processor design director. He was partly responsible for creating two popular mining models there, the Antminer S7 and S9.

Yang was allegedly unhappy with the economy and eventually decided to leave. He was able to raise $20 million USD to create his own firm. He was first sued for infringement of patent back in 2017, but it was successfully appealed at the time and remained free of any trouble. It does not seem this will be the case again.

Another source cited by the media outlet affirmed that it was still unclear why the police decided to act after so much time, but this could have something to do with Jihan Wu, the CEO Of Bitmain.

Wu came back to Bitmain a few weeks ago and has been working a lot in its direction, so there is a chance that he could be involved in what is happening right now. He decided to come back after the other co-founder, Micree Zhan, was removed from the leadership of the company.

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Author: Gabriel Machado

New Blockchain Alliance By Chinese Authorities Aims to Improve Trade Finance

  • China is almost ready to release their national digital currency, which has been in development for five years.
  • Chinese President Jinping has voiced public support for the progress of blockchain technology.

Blockchain technology is continually finding itself in different use cases, and the municipal Shanghai government is setting out to improve the use of this fintech for global trade. The collaboration is between the authorities and financial institutions, establishing an alliance that will improve the operations for trade finance. According to reports by The Block and Global Times, the members of the alliance presently include (but are not limited to) the Shanghai Municipal Commission of Commerce, Shanghai Customs, the People’s Bank of China, and the Bank of Communications.

Ye Jian, a general administration official at Shanghai Customs, stated,

“This is the first blockchain application project in customs. China upholds multilateral trade and constantly improves its business environment by seeking technological innovation.”

There are already multiple free trade zones in China that have applied blockchain technology, allowing them to reduce the cost and speed of operations, while offering digital trading options.

In China, blockchain has been a popular technology, especially considering the public support from President Xi Jinping for it. Jinping stated China should be taking on a leading position in its ongoing development. Following five years of ongoing research and development, China is almost prepared to launch their own government-based digital currency.

As far as blockchain technology, Qi Hong of the China Construction Bank Shanghai branch says that the tech is still in an early phase of experimentation.

He added,

“We now use blockchain in sporadic financial products instead of the whole finance industry chain, and the public doesn’t have a sound understanding of the technology when it comes to financing. But I think the government’s call for blockchain construction will help push the technology’s application in a more comprehensive way.”

Yesterday, Hong Kong established a partnership with mainland China for a blockchain project that will help with trade finance operations.

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Author: Krystle M

Peter Schiff to Max Keiser: Bullish for Gold, Bearish for Bitcoin if China Launches Gold-Backed Crypto

A gold bug veteran Peter Schiff claims that if China decides to launch a digital coin it would not be good for bitcoin. Schiff is well known for his notorious negativity regarding anything bitcoin.

Peter Schiff tells Keiser that Gold betas bitcoin

Schiff thought that the reporter Keiser referred to him as an idiot since Schiff thought gold is a better currency than bitcoin.

He also repeated his usual remark on bitcoin showing that bitcoin lacks intrinsic value. His usual remarks that Keiser has claims that China will launch a cryptocurrency backed by gold. In his statement, Schiff thinks that if that happens, it would be bullish for gold and bearish for bitcoin. Schiff also adds that a crypto backed is better than the one backed by nothing.

Keiser, however, has not responded publicly to Schiff’s remarks rarely seen on social media sites lately.

Hints on gold role

Cointelegraph has reported that China is making efforts to create the DCEP currency in the rise of Facebook’s token known as Lira.

This backing is rocky with an ex-congress official saying that DCEP would dip into the country’s gold reserve, along with other factors. However, the endorsement of China’s blockchain technology had a positive effect on blockchain markets. This endorsement did not matter since local media has advised citizens not to count on the support as a proof regarding blockchain.

Beijing, on the other hand, outlawed blockchain activities in 2017 despite the rumors that there are some investors using different platforms to gain access.

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Author: BEG News Desk

People’s Bank of China (PBoC) Launches Digital Payment Certification of Fintech Products System

In what has been China’s week for blockchain, The People’s bank of China (PBoC), launched a new certification program to regulate digital currency payments in the country.

The new laws will be set up and approved by the authority according to the official report released in a filing dated Oct. 26. The report states the “Certification of Fintech Products” will verify and certify 11 financial technology classes including digital payments.

Following President Xi Jinping’s remarks on the adoption of blockchain technology, setting up regulation on cryptocurrencies, CCP support on blockchain and the development of their sovereign digital asset, China is setting up to become the first country to go full crypto nationalization.

People’s Bank of China jointly promotes the integration of financial technology products into the nationally accredited certification system. With such a huge population up for digital payments and other financial products, the central bank launched the certification system that covers all possible payment systems in China including point-of-sale mobile terminals, embedded application software, user front-end software, and security carriers and chips.

The certification will be reviewed online and random checks by ordinary officials done on the payment systems. The license lasts for 3 years.

Launch of the Trusted Execution Environment (TEE)

According to the report, one of the 11 classified financial technologies, the trusted execution environment (TEE) focuses on blockchain payments which could open up the industry to the public.

Furthermore, this can assist in the establishment of a “consortium blockchain network and verifying blockchain transactions in financial transactions use cases,” the report states.

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Author: Lujan Odera

Ripple’s SWELL Event Nears as Community Members Give Bullish XRP Price Forecasts

Sato-Xi speech on blockchain adoption in China saw Bitcoin (BTC) grow by 40% in a day (only the third time in its history) pulling along top altcoins with it – most seeing 25%-100% growth in less than 72 hours after the speech. However, one token did not experience the “mini alt-season” (with exception of stablecoins), XRP.

The bullish trend that followed China’s president’s speech did not have an ‘explosive effect’ on the price of XRP as the digital asset oscillated around $0.29 USD, rising barely a percentage or two during the mini all-season.

Well, this is no new trend for investors who have seen the price of XRP dwindle to lows of $0.22 USD since hitting an all-time high price of $3.30 USD in January 2018.

XRP performed poorly against both the dollar and BTC in 2019. Has the price bottomed out?

XRP finally bottomed?

According to crypto trader, Peter Brandt, XRP is breaking out from a diamond pattern which signals a reversal from the long bear momentum in the market. In a series of tweets, Brandt says XRP has finally bottomed out and a break above $0.3801 USD will set the coin towards a trajectory of 50%+ gains.

Peter Brandt stated on Twitter,

If the price, currently at $0.03004 USD, manages to close above the support level at $0.3801, bulls will push the price towards the upper resistance level at $0.4691, Peter wrote on Twitter.

A dawn for XRP at Swell?

The situation on XRP charts is being closely monitored by investors with the Ripple Swell Conference coming up on November 7th and 8th. The highly anticipated conference may see the price move higher with investors expecting positive news from the largest XRP custodians.

One key announcement is the partnership between Ripple and Instimatch, a Switzerland based money market fund, to integrate RippleNET systems and a possible use of XRP to settle the transactions. Instimatch joined R3 Corda earlier in the year and a possible use of XRP is not off the table.

On a question on when the firm is launching on Corda, they responded,

Instimatch might add XRP to its R3 Corda project over SWIFT.

If positive news from the Swell conference pump the price of XRP to the target resistance at $0.50 USD, the coin will have experienced a remarkable feat of 60% returns since the start of October. However, according to one XRP page, investors should manage their expectations towards the conference to avoid disappointment.

Images from Coinmarketcap, Twitter/ @PeterLBrandt, @Instimatch and @XrpCenter

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Author: Lujan Odera

XRP Army Fired Up About Ripple’s Possible Involvement with SWIFT Alternative for Russia, China and India

  • Russia, India, and China are developing a payment system as an alternative for SWIFT, connecting primarily with Russia’s payment system.
  • A meeting in 2017 is leading Ripple supporters to believe that XRP will be their chosen token.

XRP, the native token of Ripple, has found itself in many places, considering the widespread network of its creator. With low fees and fast transaction times, it manages to remain in the top cryptocurrencies in the world, and that’s just the kind of flexibility that consumers enjoy. It has been used by numerous financial institutions, but it could be big enough to be a part of a new alternative to SWIFT.

SWIFT is the payment system shared throughout the world, but China, Russia, and India have decided to choose a different path. Avoiding the use of this payment system, the trio is working on their own network for fast payments, and there are some members of the Ripple community that hope to find XRP involved.

The reports from Russia today states that the SPFS system of payments will be connecting with the CIPS system, which is based in China. SPFS was originally in development in 2014 in response to the suggestion that the US could cut off the country from accessing SWIFT.

There has yet to be a new project launched in India, but reports indicate that there are local engineers that are working on one. In the meantime, India has expressed that they’ll be connecting with the Russian system as well.

With talks of the recent blockchain innovations in China, due to remarks by President Xi Jinping, some people in the XRP community believe that XRP will be the coin chosen to create necessary liquidity in the new system.

The hopes expressed by the users appear to be due to a meeting that occurred back in 2017, which involved Chinese central bank representatives and Ripple.

China’s Central Bank, PBOC, has been working on a centralized digital currency recently, which is has been referred to as “China Coin.” Huang Qifan, the executive vice president of the China International Economic Exchange Centre, made a statement yesterday that the coin is actually being called DCEP, which is an abbreviation for “digital currency electronic payment.”

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Author: Krystle M