World’s 4th Largest Bank Drops the $3B Bond Tradeable Against USD & BTC Amid Fintech Backlash

China’s Construction Bank (CCB) has withdrawn the listing of its $3 billion bond on the Malaysian cryptocurrency exchange. The bonds were to be issued by Longbond Ltd, which was to be created specifically to issue digital bonds.

The bond, which was to be tradable on the FUSANG exchange, a crypto trading platform, had CCB Lauban as its listing sponsor.

The day the bond was to be traded, the Labuan-based exchange received a letter from CCB informing them that the world’s second-largest lender “decided not to proceed” with the issuance. The reason for the suspension wasn’t given, said Henry Chong, chief executive of FUSANG. Fusang said in the statement on Monday,

“The exchange has accepted this decision, and is announcing the suspension of the listing with immediate effect.”

This month, Ant Group met with troubles with its record-breaking IPO, just 48 hours before it was to be listed.

According to South China Morning Post, with China’s central bank rolling out its own digital yuan, “CCB’s digital bonds, which can be bought and traded using US dollars or bitcoin, appear to undermine efforts to safeguard its currency sovereignty.”

SCMP is owned by the Chinese Alibaba Group, founded by Jack Ma, who is also the controlling shareholder of Ant Group. Jacky Zuo, an analyst at Hong Kong-based China Renaissance, said,

“If a retail investor could use bitcoin or other cryptocurrencies to trade such digital bonds backed by a Chinese bank, there may not be a welcoming stance from the policymakers’ perspective.”

“This could be seen as challenging the digital yuan.”

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Author: AnTy

China Construction Bank Disables Chinese DCEP Wallet After Users Notice Feature in Bank App

China Construction Bank, one of the central state-owned banks in China, recently realized that the official wallet for the national CBDC is open for public use within its official banking app. The users could navigate to the wallet by merely entering the national digital currency, which would take the users to the wallet feature where they can register and activate the wallet by subscribing with the mobile number associated with their bank accounts.

Soon, the bank came to discover about the activation of the official wallet from the amount of community’s buzz that the activation caused among the crypto community in the country. Many customers went on to make small transactions in the yet to be released CBDC.

As soon as the news was brought to the attention of the state-owned bank, they swiftly disabled the feature. After disabling the official wallet feature, people searching for the CBDC wallet were shown a message which roughly translated to, “This feature is currently unavailable for the public, kindly wait patiently.”

How Does the Official Wallet Look and Function

The official wallet app was online for a brief period, but in today’s day and time, anything which makes it to the internet ones hardly disappear, and that has been the case with the ongoing official digital Yuan wallet launch by mistake. People were quick to post the layout of the wallet app on the internet, which showed that the users who managed to register with the new wallet app were given an official wallet ID, which could be used for the transfer of funds between the official wallet app and the user’s account.

The wallet would not just allow transactions between the bank and the app a user can send their digital yuan to another wallet by adding the unique wallet ID.

China is going to become the first country to launch its official digital currency issued by the People’s Bank of China. The big-four state-owned banks have been tasked to develop their respective wallet app to facilitate transactions using the CBDC.

China started its research on Central Bank Issued Digital Currency almost five years ago, and rumor mills were rife that the launch of the digital yuan would take place by the end of last year. However, the Chinese government mostly discarded these rumors without offering any official stance on the date of the launch. However, by the first quarter of 2020, the PBOC launched the testnet, and last week the mainnet for the digital yuan was established as well.

During the trial run, the government used digital yuan as a form of a travel subsidy for government employees in selected areas. The testing phase was later expanded to more cities and even included restaurants and fast-food chains.

With the official launch of the digital yuan just round the corner, many countries are actively observing China’s progress in the digital currency domain.

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Author: Hank Klinger