China Pushes for A Digital Currency in the East Asia Region to Dilute the Dollar’s Influence

  • China’s political advisor body, the Chinese People’s Political Consultative Conference, were engaged in talks of a standard digital currency for the East Asian jurisdictions.
  • A basket of currencies would back the digital currency with the Yuan and Yen contributing at least 80% of the backing ratios.

News has now surfaced that Chinese officials are rallying for a standard digital currency for the East Asia countries. The digital currency is to be pegged on a basket of currencies utilized by the East Asian jurisdictions.

Talks of a universal digital currency for the three countries in the region: China, Japan, and South Korea took center stage in a recent meeting by seated members of the Chinese People’s Political Consultative Conference (CPPCC).

A select group of 10 members from the committee proposed the establishment of a digital currency that would be pegged on a basket of currencies including Chinese yuan, Japanese Yen, South Korean Won, and the Hong Kong dollar. This committee serves as a top political advisory body.

The ten members are a crop of influential personnel in the country comprising Mega travel company, Ctrip co-founder, and successful VC Neil Shen with an estimated $1.6 billion net worth and Hong Kong political top brass, Henry Tang amongst others. They all shared the sentiment that the endeavor is left to the private sector limiting the government’s input to merely a rubber stamping role in the project.

While it is set to be backed by the four countries, the Chinese Yen and Japanese Yuan will account for the bulk of the backing ratios with 60% and 20%, respectively. This has been deduced from careful comparisons of the economic impact of the jurisdictions involved.

This will be aligned with their vision of forming an alliance amongst the countries. They would be uniquely positioned to strike free trade agreements amongst themselves, with analysts opined that it would be in the lines of a trade zone.

Notably, the proposal comes at a time when China and the US are experiencing a strain in their relations. This has been seen as an attempt to detangle and dilute the dollar’s influence in the region. Other analysts believe that the abrupt push for digital currency has been brought forth by recent developments in Libra. They announced shelving their stablecoin ambitions and instead zero in on offering separate coins backed by independent fiat currencies.

China’s CBDC Still Underway

China’s CBDC was recently given a test run by the state-owned Agricultural Bank of China (ABC). The pilot program was rolled out in four regions accounting for the bulk of ABC’s activities: Chengdu, Suzhou, Xiong’an & Shenzhen. Its support was extended to whitelisted users leveraging IOS and android tech. There is, however, no imminent launch date for the Digital Yuan.

Read Original/a>
Author: Lujan Odera

Massive Adoption Crypto Conference Organizer Faces Lawsuit For Not Refunding Canceled Event

Jacob Kostecki, the organizer behind the ‘Massive Adoption’ crypto conference, is at the receiving end of a class-action lawsuit from over 2,000 people.

The lawsuit has been levied due to those who bought a tickets to one of his events, but never got a refund, even when the event was canceled by Kostecki himself. The lawsuit aims to recover $75,000 in damages.

The filed complaint claimed that Kostecki advertised the crypto-conference from February 27 to 28th in Memphis, Tennessee, and sold a large number of tickets, along with hotel and airfare packages at considerably lower prices. In total, Kostecki collected about $75,000 from these sales.

However, Kotecki canceled the event on January 31st (original scheduled for November 2019) citing cash issues, while promising to pay back everyone who bought tickets. But none of these customers who paid for the event received any refund, even after a couple of months raising the suspicion.

David Silver, a crypto attorney, filed the class-action lawsuit against the organizer in a Colorado District court this Thursday.

Silver said that the case came to his notice when he saw Kostecki taking advantage of people who could not afford legal representation. Silver took to Twitter and warned Kostecki to return what he owes to people otherwise he would be served with a lawsuit.

Ashley Gentry, of San Dimas who is the lead plaintiff in the case, revealed that the event was scheduled for November and was later postponed to February before being canceled.

The event promised to host 2,000 attendees, along with 60 speakers. Gentry bought a complete package costing $794 for herself, her husband, and one other person back in December.

Silver said that people should be aware and never take hollow twitter promises for granted. He explained:

“We seek damages in excess of $75,000,” the attorney said, which includes the money people lost, interest, other costs, and attorney fees. Typically in a class-action, a law firm only collects fees if it recovers money but according to Silver, who is doing the work pro-bono, “even if we collect attorney’s fees, we will give it back to the victims.”

Read Original/a>
Author: James W

Bank of France Announces Testing of Central Bank-Issued Digital Currency in Q1 Next Year

  • The Bank of France announced its intention to launch a digital asset during a conference held by the ACPR.
  • The People’s Bank of China has been researching and testing a digital yuan since 2014.

Cryptocurrency is still a risky product for many banks and countries around the world, but the use of central bank-issued digital currency allows a safer exploration for traditional financial institutions.

As France explores this industry, the French Prudential Supervision and Resolution Authority (ACPR) recently held a conference to announce their own CBDC, according to reports from The Block.

François Villeroy de Galhau, the central bank’s governor, explained that they would be testing out this type of asset soon, adding that they “will launch a call for projects before the end of the first quarter of 2020.”

Based on the comments of Villeroy de Galhau, it appears that France is committed to contributing to the innovation of the digital currency world. However, this new digital asset will allow the country to experiment with the technology with their own “serious and methodical” method, contained within their central bank.

At the recent European Union meeting, the Minister of the Economic and Finance Bruno Le Maire just announced that they were developing a “public digital currency,” not long before France discussed their asset. Previously, Le Maire had been adamantly against the Libra crypto asset from Facebook, even saying that France planned to completely block its operation in the country, unless it deals with the issues regarding Libra and monetary sovereignty.

Along with France’s efforts, the People’s Bank of China also stated that it is working on its own digital currency – DC/EP – though their efforts are in the experimental stage. The bank stated that it was “almost ready” for launch, though they’ve been researching it for about five years now.

A subsequent announcement stated that the digital yuan is still being researched and tested, though there’s yet to be any launch date

Read Original/a>
Author: Krystle M

Australian Crime Conference To Help Officers Put An End To Cryptocurrency Based Criminal Activities

  • The National Proceeds of Crime Conference has not commenced since 2009.
  • Multiple cryptocurrency-related crimes have occurred in Australia in the last few years, including nearly $1 million from retirees.

The cryptocurrency industry is no stranger to theft, but pursuing these crimes is relatively difficult around the world. A recent article by The Next Web’s Hard Fork reveals that law enforcers from around the world will soon gather in Australia at the National Proceeds of Crime Conference, as confirmed by a statement from the Australian Federal Police. Amongst the many topics of discussion will be finding methods that can end crimes associated with cryptocurrency.

The last time that the National Proceeds of Crime Conference took place was in 2009 before Bitcoin was even gaining any traction. Representatives of the Australian Federal Police, United States Department of Justice, Singapore Police Force, New Zealand Police, Australian Taxation Office, and the Australian Securities and Investment Commission will be in attendance.

Justine Gough, the AFP Acting Assistant Commissioner, stated,

“Advances in technology, like cryptocurrency and encrypted communications, have changed the way criminals acquire and hide their assets.”

She added that one of their “most effective” methods in influencing organized crime is with the seizure and removal of profits.

Some of the key issues that officers will be discussing at the event will include the dark web, the way that cybercrime is being monetized, and the trends that exist in money laundering. Considering the many cryptocurrency crimes that have been in the southern hemisphere of Australia, it should come as no surprise that the country is growing more aware of the need to end cryptocurrency crimes. For example, retirees in the country lost $900,000 in July this year in a scam involving cryptocurrency.

Along with these thefts, there have been multiple celebrities endorsing Bitcoin investment opportunities, aiming to con consumers. However, even with just these two examples in mind, locals lost about $14.76 million in just the first seven months of 2019, due to crypto-related crimes. Even after the event, this type of activity is likely to be enough of a reason for Australia’s law enforcement to crackdown more strongly on cryptocurrency crimes.

Read Original/a>
Author: Krystle M

AlphaPoint’s Digital Asset Exchange Software To Roll Out Crypto Margin Trading

AlphaPoint, a crypto software and technology provider, announced at the CoinDesk’s Investment NYC conference that it would be launching margin trading for its clients. By utilizing its software, the technology provider will be supporting margin trading with a range of trading options and control over crypto exchanges and brokerages.

Margin trading is when an investor buys a security, in this case, a cryptocurrency, using borrowed money. Margin trading is becoming prevalent and popular in the crypto industry. Most of the popular leading exchanges are implementing the feature. Bakkt, Kraken, and Coinbase’s trading platform have the feature. Binance also launched margin trading in July 2019.

According to Patrick Shield, the spokesman, AlphaPoint’s platform can be customized to serve the clients trading in different regulatory regimes and markets better.

“We have created a highly configurable platform, and there will be no need to create a one-size-fits-all model. The platform has configurable leverages, minimum deposit, liquidation levels, sizes, and fees. It will also require approval workflow for the end users,” said Shield.

During the launch, the company said that clients are yet to implement AlphaPoint’s margin trading. However, according to a recent press release, a number of firms, including Canadian cryptocurrency trader National Digital Asset Exchange (NDAX), are already beta testing the new platform.

The founder and CEO at NDAX, Bilal Hammoud, said in a statement that he is excited and longing to partner with AlphaPoint. “The partnership will introduce BTC to CAD margin trading to the crypto industry, allowing investors to enjoy a technologically advanced, compliant, and secure platform,” said Hammoud.

Margin trading, however, comes packed with its pushbacks. Some countries across the world are discouraging crypto margin trading and have even placed strict control policies around the policies like it is the case in Japan.

Read Original/a>
Author: Denis Miriti

Ripple SWELL 2019 Update: Economist Dr. Raghuram Rajan Talks Blockchain Financial Inclusion

Dr Raghuram Rajan, economist and financial analyst, took the stage at the Swell 2019 conference this month that was held in Singapore. During his talk, Rajan, explained the importance of blockchain technology in the financial sector and how it’s poised to revolutionize businesses around the world.

One specific note of Rajan’s talk was the application of blockchain tech in the existing financial system as well as the impact that globalization will have on world markets.

“We are due for stronger productivity,” began Rajan.

“Tech innovation doesn’t always translate to actual productivity growth. For corporations to really learn how to use emerging technology, they need to reinvent the system. Once this is managed, we will see the pace of growth increase—not the moderate growth we see today.”

The power of banking establishments were also highlighted as a potential problem by Rajan. He stated that these centralized institutions create “fear and fury” amongst the populace, while decentralized blockchain solutions can be used to help bridge this gap of fear.

“At an abstract level, what we see today is increased fear and fury at centralized banks. Across the world, there is a break down in globalization and a worry from businesses about adhering to rules, set by another country. The answer is more decentralized solutions, like blockchain technology—that people trust,”

said Dr. Rajan.

The topic of micropayments was brought up by Rajan as a possible area for disruption by blockchain and cryptocurrency technology.

“We’re going to see intermediaries negotiate for payments with information. If data belongs to the individual then it can be exchanged through micropayments and doesn’t become a source of monopoly. In this way, decentralization disperses trust and power, and ultimately breaks up monopolies.”

Read Original/a>
Author: Matthew North

FinCEN Director Asks Casinos To Follow The Agency’s Guidelines For Suspicious Crypto Activities

At an Anti-Money Laundering Conference in Las Vegas, the director of the Financial Crimes Enforcement Network (FinCEN) asked the casinos to comply with the agency’s guidelines in regards to suspicious convertible virtual currency (CVC) activity.

Convertible virtual currency is an unregulated digital currency that can be used as a substitute for real and legally recognized currency. It usually has measurable value in real money, but what makes it convertible lies in its ability to be interchangeable.

In his speech, he mentioned that the two areas where CVC and Casins intersect are mostly online casinos. Even physical casinos and card clubs are increasingly becoming more vulnerable. He reminded about the gap in reporting about the suspicious activities in these areas, saying:

“I encourage casinos to closely review both documents on FinCEN’s website to see how we are addressing this industry and its interactions with others in the financial sector. Casinos should be filing SARs when they encounter suspicious CVC activity and any cyber events that affect, facilitate, or conduct transactions. We know that casinos are targets for cyber and cyber-enabled criminal activity such as ransomware attacks and business e-mail compromise schemes.”

FinCEN was founded in 1990 with the goal of fighting money-related crime. The agency analyzes financial transaction information with the goal of combating terrorism financing, money laundering, and other financial crimes. Blanco has held the position since November 2017. In May 2019, the firm issued new guidance that contains its financial regulation policies concerning Decentralized Applications.

Last year BitcoinExchangeGuide had reported about Blanco explaining the agency’s stance on crypto. He was overall positive about cryptocurrencies and blockchain technology. He began his speech discussing how crypto can be used to optimize businesses and conduct more efficient international transactions. Although, even then, Blanco had claimed crypto can be used for criminal activities and that his agency’s goal was to facilitate a healthy, crime-free cryptocurrency ecosystem.

Read Original/a>
Author: Sritanshu Sinha