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People’s Bank of China Will Accelerate The Creation of China’s Official Cryptocurrency

Sying Tien

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The central bank of China (People’s Bank) announced in a video conference that it will accelerate the pace of research and development of China’s legal cryptocurrency (DC/EP), track the development trend of domestic and foreign virtual currency, and continue to strengthen Internet financial risk remediation. This was reported by Beijing News.

The idea of ​​the central bank to issue digital currency was already deployed when Zhou Xiaochuan was the governor of the People’s Bank of China, and the digital currency research institute was established, which also has basic conditions

Huang Zhen, director of the Institute of Financial Law at the University, told the Beijing News reporter.

Prior to the launching ceremony and the first academic seminar of the Digital Finance Open Research Project held on July 8, Wang Xin, director of the Research Bureau of the People’s Bank of China, revealed that the State Council has officially approved the research and development of the central bank’s digital currency. Currently, the central bank is organizing market institutions to engage in corresponding work.

In fact, after Facebook published the Libra digital currency project white paper, it triggered the attention of financial regulatory authorities in various countries on digital currency regulation. Libra is an encrypted digital currency project announced by Facebook. According to its white paper, the goal is to build a currency and a financial infrastructure that serves billions of people. Libra has been put on hold for a while, due to concerns from US regulators about its data security issues.

What is the difference between the legal digital currency announced by the central bank and Libra? What is the legal digital currency positioning?

A number of experts said that the legal digital currency is a substitute for banknotes and is issued by the central bank. The general encrypted digital currency, including Libra, does not have a monetary function and cannot impact legal tender.

In view of the difficulties faced by the central bank in issuing legal digital currency, many experts said that it may be difficult to move freely under the technology, RMB capital, illegal use of digital currency, and the transformation and upgrading of financial infrastructure.

Wu Changhai, deputy dean of the Institute of Capital and Finance of China University of Political Science and Law, said that the issuance of virtual currency by Internet companies, whether in the United States or in China and other countries, under the existing state governance model, it is impossible to impact or replace fiat money. While the legal digital currency is a legal currency, Wu Changhai seems that the encrypted digital currency, especially the stable currency represented by Libra, cannot and cannot replace the legal digital currency.

The legal digital currency is a substitute for banknotes. It is issued by the central bank. The general encrypted digital currency itself does not have a monetary function. The government cannot hand over the currency distribution rights to a company. This idea is impossible to achieve for a long time.

Wu Changhai said

In response to the possible positioning of the legal digital currency issued by the central bank, Chen Wen, deputy director of the Center for Inclusive Finance and Intelligent Finance of Southwestern University of Finance and Economics, told the Beijing News reporter that the central bank’s digital currency should be regarded as a supplement to the base currency.

Chen Wen believes that, like the previous central bank’s issuance of the base currency, it must be finally put on the market. In fact, it is necessary to use the bank as a channel provider and the micro-subject of the bank to be a channel, but like the issuance of digital currency, it can directly target ordinary people and non-profit enterprises. , less transmission links.

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Drug Enforcement Administration Awards 130K Contract to Chainalysis

June G. Bauer

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The Drug Enforcement Agency (DEA) has awarded Chainalysis with a $134,000 USD contract for a one year license to use their platform track cryptocurrencies used in drug related activities in Dark Web.

Cyber criminals are using Dark Web to hide their tracks when performing illegal activities like drug trafficking. Bitcoin and Monero cryptocurrencies are the preferred mode of payment for purchases on the dark web as they are hard to trace.

Authorities have deployed a wide array of different techniques to identify and ultimately convict dark web drug dealers, child pornographers, and more in the past several years.

Chainalysis has charting capabilities that have been used to show investigators how Bitcoin transactions are conducted and how they can be used as a tool to identify targets, the Bitcoin Exchanges they are using , and how to subpoena the exchanges for personally identifying information and bank information of targets . The identification of the wallets allows investigators to identify the level of trafficking conducted by the target , as well as the assets that can be seized when a search warrant takes placeChainalysis is currently being used to track targets in Canada , China , United Kingdom ,and within the United States.

Chainalysis has provided the authorities with cryptocurrency analytical tool used to help identify drug traffickers and trace their assets. This tool will be used by analysts in OSI and OSS to support field investigat i ons that involve the use of cryptocurrency . It will enhance other tools and techniques being currently used in OSS and OSI by helping to deanonyrnize the target and identify cryptocurrency exchanges the person is using.

Screenshot of the Chainalysis LSD

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Egypt Might Issue Its Own Cryptocurrency

M. Ali

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A well-informed source in the Central Bank of Egypt told Al-Monitor (a popular online Middle Eastern news portal ) that CBE (Central Bank of Egypt) is currently studying the effects of cryptocurrencies and ways to regulate it. The source said that CBE might issue it’s own cryptocurrency in the near future.

If this turned out to be true, Egypt will be the fourth country in Middle East to issue its own official cryptocurrency. Earlier this year, Saudi Arabia and UAE announced that both countries will be implementing a new cross border payment system using cryptocurrency. The Turkish government revealed its upcoming plans to adapt blockchain technology and cryptocurrencies.

Last month, the Central Bank of Egypt announced that it is working on a draft law for cryptocurrency related activities and banned creating, promoting or operating platforms for issuing or trading encrypted currency or cryptocurrency without obtaining the necessary licenses in advance.

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Armanino Begins Accepting Cryptocurrency Payments

June G. Bauer

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Armanino accounting and consulting firm begins accepting cryptocurrency payments for its services. Armanino is one of the 25 largest accounting and business consulting firms in the U.S., It’s clients can pay using Bitcoin, Ethereum, XRP, Litecoin.

Armanino has implemented a crypto onboarding service that includes preparing and consulting clients on the best practices for treasury, accounting, financial reporting, compliance and tax considerations, as well as the means to perform transactions in the new digital asset economy. 

About Armanino

Armanino provides an integrated set of audit, tax, business management, consulting and technology solutions to companies in the U.S. and globally. The firm helps clients adapt and change in every stage of business, from startup through rapid growth to the sale of a company. Armanino emphasizes smart technology, leading a cloud revolution of financial, operational, sales and compliance tools that are transforming the way companies do business.

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