China’s Digital Fiat Currency Is Not A Real Cryptocurrency

china's digital fiat


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As the latest cryptocurrency news this month hinted, may be about to launch a with which the country will probably compete with . However, the expert analysts found that China’s fiat is not actually a real cryptocurrency and will only resemble one on the surface.

Aside from this, the coin won’t use a blockchain, too. Even though it is inspired to some degree by Bitcoin and the like, the effort will be explicitly framed as a strategy in order to beat them back.

The altcoin news show that China’s digital fiat currency came with a project that was thrust into the spotlight last weekend, when a senior official from the People’s Bank of China (PBoC) said at a closed-door conference that the country and central bank digital currency (CBDC) is ready to launch.

“Since last year, the staff at the Digital Currency Research Lab have been working 996 to develop the system. We can say the CBDC is now ready to launch at one’s call,” was his speech, later shared by many best cryptocurrency news sites.

The CBDC with this aims to replace MO, meaning cash in circulation through a two-tier system. The central bank will issue the digital yuan only to commercial banks, who will further issue it to the public.

Meanwhile the PBoC and its Digital Currency Research Lab are the ones standing behind China’s digital fiat currency – along with more than 50 patent applications which are all either invented or co-invented by Yao Qian.

One patent application reads:

“The emergence of digital currency is an inevitable trend. So far, privately issued digital currency bears the features of anonymity and volatility. Central banks must take their impacts on the payments, monetary systems and financial stability seriously. As such, it’s inevitable for central banks to push for digitized fiat currencies to optimize their circulation.”

However, physical cash is still arguably the only form of fiat money inside China that can remain anonymous. We can see that China’s digital fiat currency is not close to cryptocurrency – and the only third-party methods which are compared to bank wire can be offered by companies like Alibaba or WeChat – both requiring real-name verification authenticated by users’ IDs as well as additional banking information.

“Existing M0 (banknotes and coins) are subject to counterfeit and money laundering risks. … The [CBDC] system should follow the existing rules about anti-money laundering and anti-terrorism financing imposed on cash, and should report to the PBoC on large amounts and suspicious transactions,” Mu emphasized in a speech.

The post China’s Digital Fiat Currency Is Not A Real Cryptocurrency appeared first on DC Forecasts – Leading Digital Currencies.


Source: dcforecasts
China’s Digital Fiat Currency Is Not A Real Cryptocurrency

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Is The US-China Trade War Turning Bitcoin Into A Safe Haven Asset?

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‘Bullish For Bitcoin’: China Bank Bailouts Spark ‘Biggest Credit Bubble In History’

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MicroBT China Brings Mining Equipment Closer to You

Coinspeaker
MicroBT China Brings Mining Equipment Closer to You

About

Shenzhen Bit Microelectronics Technology Co., Ltd. (also known as “Bit Micro” or “MicroBT”) was founded in 2016 and has main office based in Shenzhen, . The company is specialized in producing and designing high-end 28nm/16nm/7nm dedicated chips, as well as providing developments in sectors such as blockchain technology, cloud computing and artificial intelligence.

The MicroBT company has independent intellectual property rights over its dedicated chips and ancillary products. The company also deploys cloud computing data centers and platform processes, catering to areas such as cloud computing, artificial intelligence, blockchain, where big data processing is required.

MicroBT Founder

Yang Zuoxing is the Chairman, General Manager, and CTO of MicroBT, establishing the company back in July 2016. He holds a Ph.D. from the Tsinghua University, and is accredited with founding the full-custom chip design methodology, which is the core technology of the dedicated high-performance computing chip.

A serial entrepreneur with more than two decades of experience in chip design, technology management, business and company management, Dr Yang aims to use his full-customization methodology to bring forth the greatest innovation in the field of technology.

What Miners Can You Purchase at MicroBT?

MicroBT’s miners can be used to mine cryptocurrency that runs on the SHA256 algorithm, such as and Cash. The five ASIC miner models, M20S, M10, M10S, D1, M21, can be purchased directly from their official website.

MicroBT Whatsminer M20s

The MicroBT Whatsminer M20S has PSU included, and can be used to mine SHA256 algorithm cryptocurrency, having a hashing power of 72 TH/S, with a power consumption of 46W/T, and 12nm TSMC chips. A variation of ±5% is expected in the hash rate and the power consumption with all the models.

MicroBT Whatsminer M21

The MicroBT Whatsminer M21 featuring PSU, has a hashing power of 30 TH/S, consumption power of 1860W, with P20 PSU, 10nm TSMC chips, and can be used in SHA256 Algorithm mining.

MicroBT Whatsminer D1

The Whatsminer D1V1 is a Decred Miner which generates a hashing power of ~44 th/s BLAKE-(14r) and has a power consumption of ~2200W. PSU is also included.

MicroBT Whatsminer M10

The MicroBT Whatsminer is a SHA-256 algorithm miner which features a maximum hashrate of 33Th/s, with a power consumption of 2145W.

MicroBT Whatsminer M10S

MicroBT Whatsminer M10S is A 16nm SHA-256 Algorithm ASIC miner, with a hash rate of 55th/s (+-5%) that can consume up to 3500w (+-10%).

Repair service

MicroBT offers reparation services if any of the ASIC Bitcoin Miners you bought from them stopped working. You just have to contact e-mail support and open a ticket for their tech support to locate the order.

Verdict

MicroBT is the only company with Chinese ownership to operate in the field of crypto miner manufacturing. Considering the very stringent crypto mining regulations in China, we can conclude that this business provides a legitimate service.

MicroBT China Brings Mining Equipment Closer to You


Source: coinspeaker
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‘Bullish For Bitcoin’: China Bank Bailouts Spark ‘Biggest Credit Bubble In History’

bitcoin price bubble

could possible gain from economic uncertainty in as one source describes the country’s third major bank bailout of 2019 as the world’s “biggest credit bubble.”


China Bailouts: 3 Banks, $390 Billion

Taking statistics from various sources, the Twitter cryptocurrency trader and commentator known as CryptoArbitrage noted that last week’s bailout of Heng Feng bank was the third involving assets over $200 billion.

“Trillions tied up in state-owned banks that are loaned to state-owned enterprises. Biggest money printing in history. Biggest credit bubble in history,” they summarized.

Heng Feng, also known as Evergrowing Bank, has agreed to a Chinese state restructuring as pressure piles on the domestic banking sector. 

In late May, a similar process began with Baoshang Bank – the first such move since the 1990s – followed last month by Bank of Jinzhou.

Both institutions have total assets of over 500 billion yuan: Baoshang 576 billion and Jinzhou 723 billion. In total for all three banks, the figure stands at a giant 2.719 trillion yuan ($386.3 billion).

The sheer size of capital at stake appeared surprisingly under reported in mainstream media, with cryptocurrency sources notably more vocal given Bitcoin’s recent boom occurring on the back of the -China war.

China’s credit bubble – banking assets as a percentage of GDP – is now the highest out of any nation at any point in history.

According to data from global macro asset management firm Crescat Capital, at almost 300%, the statistics dwarf Europe’s sovereign debt crisis of 2011 and the US housing market bubble of 2007. 

CryptoArbitrage spelled out the bottom line for cryptocurrency fans if China’s predicament spills out of control. “Bursts = bullish for Bitcoin,” the commentator said. 

Bitcoin Cools As Trade War Eases

In the short term, however, it appears excitement over Bitcoin as a way out of exposure to such risks has fizzled. 

Critics have already argued that US-China relations and the Hong Kong protests did not result in a Bitcoin buying spree, while a temporary lull in the trade war nonetheless coincided with BTC/USD dropping almost 20% this week. 

China’s central bank is meanwhile preparing the debut of own , which officials this week said was nearly ready for launch. 

As local news outlet Shanghai Securities News reported, Mu Changchun, deputy director of the People’s Bank of China, said the new currency would neither change existing monetary policy nor compete with the yuan in any way. 

What do you think about China’s bank bailouts? Let us know in the comments below!


Images via Shutterstock, Twitter @CryptoArbitrage

The post ‘Bullish For Bitcoin’: China Bank Bailouts Spark ‘Biggest Credit Bubble In History’ appeared first on Bitcoinist.com.


Source: bitcoinist
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China to Release Its Own Cryptocurrency Soon: Future Consequences

cryptocurrency

Cryptocurrency may have been completely unknown for most people around half a decade ago, and most of the banks in the world did not even take it seriously. However, things have changed dramatically over the past few years, and many banks are now considering the possibility of launching their own currencies.

Facebook (NASDAQ:FB) announced own cryptocurrency last month, while American banking giant J. P. Morgan (NYSE:JPM) has come up with own as well, and in a new development, it has emerged that the Chinese central bank is close to releasing own. According …

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China’s Virtual Currency Won’t use a Blockchain due to Lackluster Throughput

Rumors regarding various countries looking to create their own competitor have persisted for some time now. Until this week, there was no indication any major country would go through with those plans. , on the other hand, is looking to shake up the financial markets once again. By creating a stablecoin of sorts, the country might be able to make the Yuan slightly more stable in the future. 

Five Years of Work

For those who have kept tabs on what China is trying to do in terms of , this news might come as a surprise. Despite announcing their plans many years ago, most people had assumed the plan would not necessarily come to fruition in the end. Five years later, and the digital – which still hasn’t been named officially – is ready to be put into circulation over the next few months. Doing so may prove to be quite difficult, as there are still several hurdles waiting to be overcome. 

The main hurdle to overcome is whether or not the people’s Bank of China will gain the necessary approval to create their own currency. The current goal is to bring it to market fairly soon, but there is still no official timeline by any means. As such, no one knows for sure how serious the PBoC is about virtual currency plan, especially given all of the delays and uncertainties surrounding it over the past few years.

A Complex Structure

Under the hood, China’s up-and-coming virtual currency will require a fair amount of participation from Chinese banks. The People’s Bank of China will be the main entity in this equation. Additionally, commercial banks will create the necessary infrastructure to ensure this virtual currency can be used throughout China accordingly. For the time being, it remains to be seen which requirements the commercial banks will need to adhere to in this regard.

No Blockchain Involved

Not too many people will be surprised that this virtual currency isn’t a cryptocurrency. It should never be looked as such either. There is one crucial difference: China’s new currency doesn’t use a blockchain. It is unclear which backbone is put in place as a replacement, however. The choice of not using a blockchain was rather straightforward. PBoC officials claim it simply can’t offer the required throughput for retail. A bit of an odd statement, albeit one that also makes sense. Cryptocurrencies have often been scrutinized for their lack of scaling and performance. 

Financial Stability Remains a Problem

There are many reasons as to why the PBoC is looking to issue its own digital currency. Just last week, the bank decided to devalue the Yuan once again. This is all part of the ongoing “financial war” between China and the United States. Since China can’t do much in terms of tax tariffs, devaluing the Yuan is the only logical course of action. It creates even more financial instability in the country at the same time.

This new virtual currency might offer some relief. Creating stability for an inherently unstable currency will not be easy. Additionally, there is the growing concern over how long President Trump will try to hurt the country financially. A virtual currency would give the government more control over China’s financial sector as a whole. Whether this is a good thing or not, is up for debate. It would give the country a way to rely less on the Dollar as a global currency.

Image(s): Shutterstock.com

The post China’s Virtual Currency Won’t use a Blockchain due to Lackluster Throughput appeared first on NullTX.


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