China State-Owned Media Covers Crypto as 2020’s Best Performing Assets Driven by DeFi & Weak Dollar

In an unusual coordinated report on Friday, several Chinese state-owned media covered cryptocurrencies, calling them the best-performing assets of 2020.

The country’s top broadcaster, China Central Television (CCTV), ran a three-minute-long news clip, highlighting crypto assets rallying 70% this year.

“Cryptocurrency has undoubtedly become the top-performing investment” among several other global assets, said the report.

The clip also mentions DeFi and the weak dollar as the two reasons for the crypto bull market this year.

“China is just getting started on DeFi…” said a researcher at crypto fund The Spartan Group who noted the retail investors are likely to go for early DeFi projects in China like DODO and MCDex and the blue chips UNI, YFI, COMP, and MKR that also has a Chinese community.

CCTV also covered ETH being the top performer and fear of inflation driving the growth along with the central banks experimenting with CBDCs as a bull case for cryptocurrencies but government regulations being a major uncertainty.

“There is another following coverage today on CCTV2 abt PBOC encouraging accelerating DCEP adoption and enlarging beta test cases. So previously, coverage on ‘cryptoasset’s top performance’ seems to be related to this DCEP bull narrative in general,” noted Dovey Wan of Primitive Crypto.

A Bullish Affair

All of this got the Chinese crypto community’s attention, who shared the clip on WeChat as a bullish signal.

CCTV’s crypto reporting came after state-owned news agency Xinhua which also published an article titled, “Cryptocurrency is this year’s ‘No. 1 asset’” a day before. Prior to its digital version on Xinhua, the same article appeared on one of the longest-running state media, Cankaoxiaoxi, in print form.

Such a rare coordinated effort is at odds with China’s stance on crypto speculation, but trader Qiao Wage said it is a “misconception” that the Chinese government has always been “hostile” towards Bitcoin and crypto.

“If there was a parallel financial system that could rival the dollar-based system, they would love to be part of it. What they are hostile towards is fraud and speculative craze,” he said, adding, “I do agree with the view that they are against capital flight using crypto, which is pretty obvious.”

Yesterday, the South China Morning Post also reported of at least 1 trillion yuan ($145.5 billion) worth of funds moving out of China into gambling activities every year, aggravating the country’s economic and financial security risk, as per Liao Jinrong, the director-general of the International Cooperation Department under the Ministry of Public Security.

“The volume and speed of cross-border capital flows are unprecedented,” Zhu Min, head of the National Institute of Financial Research at Tsinghua University, was quoted by the People’s Daily mouthpiece this week.

“This will not only result in sustained fluctuations in major world currencies, but will also lead to higher volatility in global financial markets. Therefore, we must be prepared for potential risks,” he said.

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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

Four Top Chinese State-Owned Banks Are Testing The Chinese Digital Yuan Project (DCEP)

In an unconfirmed report, four Chinese state-owned banks are gradually testing the ‘digital renminbi’ wallet app and Digital Currency/Electronic Payment (DCEP) system in different provinces across the country.

The reports, though unconfirmed, follow the recent comments by the People’s Bank of China (PBoC) confirming the “closed pilot of the digital RMB was completed” with plans to launch research on the legal digital currency underway in this second half of the year.

It was first revealed by a local newspaper, 21st Century Business Herald, who spoke with some of the employees working on the app. As reported, the app is in extensive scale testing in Shenzen and other parts of the country with four major banks – China Construction Bank, Bank of China, Industrial and Commercial Bank of China and Agricultural Bank of China – participating.

According to the report, users will need to have to open a digital account with either of the four banks to register the app. The digital wallets are then linked to various banks allowing the users to recharge their accounts and also spend on different utilities directly – similar to Alipay and WeChat payment services.

However, the app is still not publicly available for downloads as one respondent confirmed:

“Our bank is testing the ‘digital renminbi’ app on a large scale. The app cannot be downloaded publicly for the time being, and it has an identity code after opening it.”

The app allows users to transfer amounts to others by using their phone number or a QR code, pay, save, and spend RMB digitally across several merchants across China.

Read More: Will China’s CBDC See Strong Adoption Or Will Dollar Pegged Stablecoins Cause Resistance?

China has, in the past, hastened its efforts in launching a legal digital currency since the announcement of the Libra project, championed by Facebook. The leading committee on the digital currency, Central Bank’s Digital Currency Research Institute, launched closed pilot tests in Shenzhen, Suzhou, Xiong’an, and Chengdu in preparation for a Winter Olympics 2022 date release.

Moreover, the CBDC is in testing on Tencent Holding’s food delivery app, Meituan Dianping, as well as the Chinese Uber, Didi Chuxing, which are processing billions of dollars annually. China’s hastened launch of its DCEP project aims to reduce the dollar-influence across the country and East Asia.

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Author: Lujan Odera

Russia’s State Owned Bank, Sberbank, Mulls Over Issuing A Ruble Pegged Stablecoin

Russia’s largest state-owned bank Sberbank is mulling over the idea of issuing their stablecoin reported a local daily. Many believe the decision was prompted by the recent signing of a new cryptocurrency law by President Putin. The director of transaction business Sergey Popov confirmed the same and said that if everything goes as planned, the latest stablecoin could be pegged one to one against Russian Rubel. Popov said:

“Probably, we can issue based on the law that has been adopted, a token that we can peg to the ruble, such a corresponding stablecoin, which can become the basis, an instrument for settlements for some other digital financial assets.”

The reports suggest that the new stablecoin could be used to buy digital assets, and will be issued, under this new law, by the end of July. As per the new law,

“digital rights are understood as digital rights, including monetary claims, the possibility of exercising rights under equity securities, the right to participate in the capital of a non-public JSC, and the right to demand the transfer of equity securities.”

It is also important to note that the new law prohibits the use of digital assets as a means of payment, and the new law is expected to come to force by January 1st, 2021. However, crypto-to-crypto transactions buying and selling, as well as loans in crypto, are entirely legal.

Sberbank Has Been Waiting Since 2018 For a Cryptocurrency Law

The DFA law was implemented in 2018 when the government was pondering over categorizing crypto assets with the findings as treasure and regulate it the way they have regulated treasure hunts. However, the government went back and forth many times before arriving at the final version signed by President Putin.

Sberbank has been in waiting since 2018, given the bank has been involved in crypto-related initiatives in the country. In May this year, the Sberbank invested around $100 million for 5000 blockchain-enabled ATMs, which can also mine cryptocurrencies. Back in November 2019, the largest bank in Russia developed a blockchain solution for repurchase agreements.

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Author: James W

Increased Demand Leads Swiss State-backed Bank to Offer Bitcoin & Crypto Trading and Custody

A Switzerland-based state-owned bank, Basler Kantonalbank (BKB), will now be offering bitcoin and cryptocurrencies through its subsidiary Bank Cler, reported the local news. The bank spokeswoman, Natalie Waltmann, said,

“We will launch an offer for the trading and custody of digital assets over the next year.”

The bank has already hired crypto expert Alain Kunz, former CEO of Tokensuisse, as its head of digital assets who said:

“Bank Cler is Switzerland’s most digitally savvy bank. Cryptocurrencies are a natural extension of their offer.”

The bank decided to offer crypto trading and custody services because of demand among its younger clientele.

This would make Bank Cler the first government-backed, cantonal bank in Switzerland to enter the cryptocurrency space. Several banks in Switzerland do offer crypto exposure but particularly in the form of certificates, and this bank will further broaden its offerings with both trading and custody.

The crypto space in the country is currently served by crypto banks, including Sygnum and Seba, along with traditional lenders like Vontobel and Falcon.

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Author: AnTy

China: “Innovation in Blockchain Doesn’t Mean We Should Speculate in Virtual Currencies”

  • “Blockchain “the future is here.” — China’s state-owned media
  • Use of blockchain technology for illegal information and activities “should also be severely punished”
  • Some of the largest Internet companies have already established the layout

China’s state-owned media, People’s Daily endorsed the “orderly” blockchain innovation but at the same time cautioned to “keep it rational.”

As per the translated version shared by Dovey Wan, the founding partner of Primitive Partners, the article starts with a bullish tone as it writes, “blockchain “the future is here.”

Blockchain technology is accompanied by cryptocurrency, it goes on to say, only to make it clear, that innovation in blockchain technology “is not equal to” the speculation in the digital assets.

“It should be prevented from using blockchain to hype up aircoins and other activities,” adds the newspaper.

China Already Has a ‘Good Foundation’

Though the “future is here,” blockchain technology is still in the early stage of development.

The technology needs to be further developed and improved in terms of safety, standards, and supervision. The use of blockchain to store and spread illegal information and for illegal transactions, money laundering and other activities “should also be severely punished.”

To better promote the innovative development of technology, it advises the adoption of inclusive and prudent regulation that includes prohibiting transgression.

Though they believed “there is no wrong direction for the development of blockchain” that is only by avoiding the rush and repeated construction.

China, the People’s Daily says already has a “good foundation” in the field of blockchain technology.

More than 20 provinces have introduced policies to promote the nascent technology and some of the largest Internet companies have established the layout as well.

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Author: AnTy