Tje People’s Bank of China (PBoC), banned ethereum-based coins but did not after all seem to have much of a result.
Just the other day, the PBoC said initial coin offerings (ICOs) were restricted in China. Ether, which is etherum’s currency, plunged as did bitcoin. But now both bitcoin and ether are back up. Bitcoin moved up a staggering 500 dollars.
Bitcoin seems to be sustaining its higher price and may soon go above $5,000 once again.
The United States, Europe and Asia account for much of the crypto market. Over time, China may reconsider, but in the meantime the market marches on.
Canada is worried about cryptocurrency anonymity. The Globe and Mail reports that new technologies need to be developed that can penetrate the “veil of anonymity.”
Money laundering is one part of the problem, though using cryptographic addresses can help penetrate anonymity.
The larger issue is that central banks want control. We can see this in China where central banks shut down cryptocurrencies rather than lose control.
Over time more and more central banks will take drastic action. And cryptocurrencies will develop new ways to defend themselves, This ongoing struggle won’t be resolved any time soon.
Governments run money through nation states, and behind government are powerful families. That is how money works. It is a monopoly enforced by government and central banks among others.
Today this is less true than it used to be because of cryptocurrencies. Cryptocurrencies are private money, not quasi-public money such as that offered by nation states.
The cryptographic nature of such money and lack of centralization sustains cryptocurrencies. But now big banks are getting together to oust cryptocurrencies altogether.
No doubt they are doing so at the behest of central banks that cannot issue real crypto without losing the special privileges that they currently have received from governments.
They will issue digital currency immediately convertible into dollars and other national currencies. But it is not clear how well this will work. People are using alternative money like bitcoin because it is alternative.
The new government money will just be a midpoint between truly private money and government currency that is completely, horribly transparent. Eventually it will have very few of the attributes of truly private money
A big fight is coming as we have warned numerous times now. It is not clear who will win. That’s because previously there were few alternative to government monopoly money. But now there are.
And people may not be willing to give them up. Especially when the alternative is fully transparent, digital money that reveals every part of your financial life at a glance.
A self-regulatory group in China is warning about initial coin offerings (ICOs). The National Internet Finance Association of China said ICOs are hyping deals and investors ought to be very careful. The group works with the government.
The group was created by the Chinese central bank in 2016. ICOs have already received regulatory scrutiny and now the central bank is said to be writing regs that may suspend ICOs altogether.
The group is composed of 400-plus organizations.
India’s central bank is getting into the blockchain business. A central bank research group will focus on the blockchains. The Institute for Development and Research in Banking Technology (IDRBT) is the group that will build them.
India wants to use blockchain to help digitize the rupee. The government has already started down that path, even while denying it. It has taken many higher notes out of circulation and says the withdrawals are only temporary, designed to deprive criminals of usage.
But the notes haven’t been replaced and the idea is that India has advanced toward this new goal, without admitting it. There is bound to be plenty of controversy going forward. It has hardly begun.
The Hong Kong Securities and Futures Commission (SFC) and Dubai are partnering.
It is a cooperative agreement. Hong Kong will help Dubai build technology. Dubai wants to be is already putting documents on a blockchain and is setting up digital passports.
as we have observed before, this progress is in the public sector. Crypto may have public applications but many of the changes will take place privately.
Dubai is using technology to re-enforce the way things are currently, not to make things less controlled. Dubai’s government may think crypto will just strengthen what is already there, but in fact it may move over time in opposite direction.
That won’t help Dubai’s government but it will help rationalize regulation and eventually make it more modest.
Japan is considering how to thoroughly integrate bitcoin into the country’s economic fabric. And South Korea is doing something similar, seeking to formally accommodate bitcoin.
Perhaps as a result, cryptocurrencies have moved up a good deal. Three of the world’s top exchanges now residing in Korea, have moved up sharply.
Contrast this to Canada. In Canada, regulators have been leading the charge. The US has a similar situation where the SEC is in charge.
The bottom line here is that legislative authority, which tends to have more concrete boundaries, is preferable to regulatory dictates, which may know no boundaries at all.
Here at Blockcity, we have argued that less regulation is better than more. These latest results playing between East and West would tend to reenforce this hypothesis.
The US Consumer Financial Protection Bureau has noticed that Coinbase is getting a lot of complaints. Coinbase has expanded a good deal, making it more inconvenient for people to use their services.
Coinbase is not alone. There have been over 200 complaints aimed at cryptocurrency companies recently. Increased complaints probably come from the higher prices and resultant attraction to their services.
Kim Dotcom is introducing Bitcache which allows people to pay for content directly. Most money doesn’t actually go to creators But there is a better way. The new system is aimed at Youtube f0r now.
Using the new service, you can give money directly to creators. Security isn’t much of an issue because people usually pay small amounts of money for an individual video.
Dotcom wants participation. He is asking interested individuals to join in a “beta partnership” to try the system out and to message him via Twitter if they wish to do so.
Plagiarism is an increasing issue as such systems because usable. That’s because content is conveniently monetized. However, the idea is that more media makers will connect to their audience.
The plagiarism issue becomes less important if people decline to care about it. That sounds harsh, but there is so much money available if people would concentrate on generating content instead of restricting it.
Countries have made plagiarism more and more of an issue. But the result is that the biggest companies get most of the money. If creators can use Bitcache and ignore the additional monetization, then everybody can do better.
It is a difficult suggestion but one that makes sense if people are interested in getting more for their products and are less concerned about others getting some of it.
Africa is getting its own blockchain. AbjCoin is a Nigerian blockchain solution that will bring Africa into the 21st century when it comes to the latest technology,
The AbjCoin involves a one-of-a-kind algorithm, the POW/POS, that resides on the system which itself allows for the purchase of an interest-bearing asset that returns some 15 %. You simply need to buy an AbjCoin. The coin can be mined as well.
AbjCoin is issuing 9 million coins. The coin will be listed on 3 major international exchanges. Additionally, online and offline stores will accept AbjCoin.
AbjCoin will set up a blockchain institute in Africa. The institute hopes to bring the best heads in the blockchain industry to help students take advantage of the industry and to foster pan African economic and infrastructural development.
AbjCoin holds a lot of promise and will foster trade, ecommerce, banking and educational development. For more info about visit https://www.abjcoin.org.