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

Canadian Blockchain Companies Request More Regulatory Understanding From Government

The blockchain companies in Canada are eager to understand more about how the national government stands on the crypto space, a new report made by the Canadian Digital Chamber of Commerce has shown.

According to the new report, which was devised to comprehensively analyze the national blockchain market, several new companies appear very bullish about their own futures, however, they want to know if the government shares this sentiment with them.

Almost 40% of the survey’s responders affirmed that the main issue for their growth were “legal and regulatory challenges”. So far, Canada has been reticent in creating crypto laws that are any different from other major countries, so progress is pretty slow in the country.

Michael Gord, the CEO of MLG Blockchain, a consulting firm in the country, affirmed that the regulation of digital assets in the country is very ambiguous and that the local lawyers often are unable to give simple yes or no answers to entrepreneurs. This has been a major issue and local companies are championing more attention from the government to this matter.

Tanya Woods, the managing director of the Canadian Digital Chamber of Commerce, there are still a few missing pieces of data for the government to decide on in the industry. Lawmakers want to know if the blockchain can create jobs and if there is enough talent in the country to create a strong industry and people often don’t have the answers for that yet.

Fortunately, the research was able to find some of these answers. 96% of the companies that have over 500 employees have considered the technology and 25% of them are spending on blockchain solutions. There is certainly room for growth, the market is only waiting for the right regulation.

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Author: James W

Switzerland Central Bank and SIX Digital Exchange Eye Digital Currencies for Trade Settlements

Swiss National Bank (SNB), Switzerland’s central bank, together with Bank for International Settlements (BIS) are jointly exploring on how a central bank digital currency (CBDC) can be used to trade tokenized assets, the Block reports. Bank for International Settlements (BIS) acts as the central bank for other central banks in the world.

In a press statement, the SNB stated that it had already inked an operational contract with BIS and the two will launch a hub in Switzerland whose main mandate is to explore the possibility of a central bank issued digital currency in the country.

According to the press statement, the new type of central bank currency will aim at aiding the settlement of tokenized assets among various financial institutions. At the moment, the project is creating a proof of concept together with SIX Digital Exchange (SDX) which is a subsidiary of SIX stock exchange.

In a separate press statement released by SIX, the new project by SDX will seek to come up with a platform that will explore the technical options of digitizing the Swiss franc on the SDX blockchain platform. The project will also look at the possibilities of linking the Swiss Interbank Clearing System on the SDX platform.

SDX explained that distributed ledger-based tokenized assets, as well as a central bank issued digital money, will reduce counterparty risk and free financial innovations.

The head securities and exchanges at SIX, Thomas Zeeb, explained that their proof of concept about a central bank-issued digital currency for use by various participants on DLT platforms will open up technological advancement and encourage different market participants to explore the DLT technology as well as digital assets.

In the recent past SIX has been a crucial player in financial innovation and has listed various crypto-based exchange-traded assets. Just last week, a fintech-based company Amun AG stated that it had successfully listed a Bitcoin and Ether ETP that will be denominated through the Swiss franc on SIX exchange. In addition, Six is set to launch its own digital assets exchange after the release of a prototype platform in September this year.

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Author: Joseph Kibe

NSA Suggests New Developments Towards Creating a Quantum-Resistant Cryptocurrency

The National Security Agency (NSA) has been involved in the crypto space mostly to tracking criminals that used Bitcoin (BTC) so far, but it seems that this might be prone to change soon.

According to reports from Bloomberg, Anne Neuberger, the director of the NSA’s cyber division, has revealed that the agency is working in the creation of a new “crypto” that is quantum-resistant. The announcement was made at the 10th Annual Billington CyberSecurity Summit, which happened this week.

At the moment, it is still not clear why the NSA is doing this, but there is certainly an agenda behind this move. A quantum computing crypto could put all the existing technology behind.

However, it may be noted that when Neuberber talked-about cryptos, she could be mentioning cryptography instead of cryptocurrency. Quantum computing can be used to crack much of what is being used for far, so it would make sense if she was actually talking about that. The institution is focused on eradicating threats, and quantum computing could be a great tool for that.

As the organization has been proved to consider Bitcoin surveillance something important, this second theory does not surprise anyone. In case the project is about a proper cryptocurrency, its impact could also be pretty big as it would certainly affect the industry directly.

In any case, Neuberger also talked about ransomware attacks during the presentation and talked about how these threats can be dangerous if used by its geopolitical adversaries. North Korea, specifically, was cited as a country that uses cyber warfare strategies.

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Author: Gabriel Machado

Malta Government Official Announced Use of Blockchain Tech for National Business Registry

  • Blockchain technology will be used in Malta’s national business registry.
  • The authorities hope that the use of blockchain tech will improve efficiency.

Malta is one of the most crypto-friendly and blockchain-friendly regions in the world, so it should come as no surprise that the national business registry (MBR) is making changes in favor of these industries. According to Silvio Schembri, the Junior Minister for Financial Services, Digital Economy, and Innovation, the MBR will now use blockchain technology, making them the first government agency to run on a blockchain-based system with artificial intelligence.

The report on these statements, which were made at the inauguration of Prime Minister Dr. Joseph Muscat on the MBR’s new premises at the end of June. So far, the statements have already been confirmed by the Italian-Maltese Chamber of Commerce on Twitter, which included a link to the article regarding these changes.

Malta Independent, a local news outlet, reported that the agency’s goal is to ultimately improve the efficiency of the system, reducing the unnecessary bureaucratic procedures, investing in this information technology, according to Schembri. With the new MBR, new services will be available that were not offered in the past.

Dr. Muscat, the prime minister in Malta, stated that these developments coincide with the modernization process that the Malta Financial Services Authority is broadly implementing. With these changes in mind, becoming the global capital of blockchain developments and advancements will not be a tall order for Malta’s government.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

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Author: Krystle M

Avenir Suisse Suggests Swiss National Bank To Launch A Token Based On The Swiss Franc

  • Avenir Suisse recommends Switzerland’s National Bank to launch a Swiss franc token
  • The goal is to remain at the forefront of the blockchain and crypto industry

The Swiss think tank called Avenir Suisse recommended Switzerland’s National Bank to launch a Swiss franc token. The information was released by the privately funded think tank in a report on June 4. This would allow Switzerland to become a dominant player in the tokenized securities landscape.

Could The Swiss National Bank Create A Swiss Franc Token?

Different central banks around the world have been analyzing the possibility to issue a Central Bank Digital Currency (CBDC). This time, Avenir Suisse released a report in which they explained that the analysis on embracing or not blockchain technology is focused too much on the risks rather than on the positive things.

This is why the think tank believes that if Switzerland becomes a dominant player in trading tokenized securities, it could attract more domestic and also international players to the market. This would also allow wealth managers to get a chance to exploit new business models as well.

The author of the article explained:

“Useful groundwork has already been done in these areas in Switzerland. But the time for pioneers is over: Switzerland now has to take the next step in the development of DLT, morphing from the much-vaunted ‘Crypto Valley’ into a fully fledged DLT nation.”

At the same time, Avenir Suisse explained that it is important to have a balance between legal certainty and also lean regulation. The goal is to create laws that are compatible with Distributed Ledger Technology (DLT) and open the market to as many foreign workers as possible.

Switzerland became one of the most important countries in terms of regulations and legal frameworks for digital currencies. Although there are many challenges to address, there is a clear political intention to make it better for crypto and blockchain companies to locate their operations in the country.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

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Author: Carl T

Brazilian Bank-owned Stablecoin BNDES Backed by BRL to be Used as Funding for a Documentary

Brazilian Bank-owned Stablecoin BNDES Backed by BRL to be Used as Funding for a Documentary

Brazillian National Bank for Economic and Social Development (BNDES) is funding a documentary using its ERC-20 token BNDES Token, according to reports by Cointelegraph in Brazil. The documentary is to be produced in collaboration with local cinema producer Elo Company.

The token which is based on the Ethereum blockchain is to be backed by the Brazillian federal bank that will eventually use the token for improved transparency in the bank’s financial activities. The token has reportedly been under development since 2018 and has had its first proof-of-of-concept in collaboration southeastern state of Brazil, Espírito Santo.

It would seem that Brazillian government is becoming very crypto friendly with the support it is giving BNDES Token. The new Brazillian president Jair Bolsonar also challenged a local cryptocurrency firm to create a cryptocurrency for Brazillians. Unlike countries like the U.S, Brazillian regulatory authorities and the central bank are aware of BNDES and are fully in support of it.

Venezuela is another South American country that has created its own cryptocurrency, Petro. The cryptocurrency which is backed by the Venezuelan oil reserve however has not been very successful as an option to the local currency the Bolivar. At least the country has been receptive to cryptocurrency like Brazil

So far, not many countries have accepted cryptocurrency for regular use, let alone approve the creation of its own cryptocurrency. The U.S has been in a struggle against cryptocurrencies for a long time and is still on. A parliament member of recent moved for the complete ban of cryptocurrency because it could take over the influence of the U.S Dollar.

With Brazil launching its own cryptocurrency, the country could soon become a hub for cryptocurrency startups like the Philippines. As the world tends towards digital currency, this could potentially be good development to the Brazillian government and its people.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

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Author: Ponvang Bulus