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China set to launch its own cryptocurrency
114 countries, representing over 95 percent of global GDP, are exploring a CBDC. In May 2020, only 35 countries were considering a CBDC. A new high of 60 countries are in an advanced phase of exploration (development, pilot, or launch).
There are already thousands of digital currencies, commonly called cryptocurrencies. Bitcoin is the most well-known fully decentralized cryptocurrency. Another type of cryptocurrency are stablecoins, whose value is pegged to an asset or a fiat currency like the dollar. Cryptocurrencies run on distributed-ledger technology, meaning that multiple devices all over the world, not one central hub, are constantly verifying the accuracy of the transaction. But this is different from a central bank issuing a digital currency.
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The composition of the organizations Schulte says will receive the DC/EP also aligns with Mu's comments. Later in his speech, Mu added that only after the technical specifications for the DC/EP were completed in 2018 did the central bank realize the similarity between its design and that of libra, the cryptocurrency being developed by Facebook and about 30 other early-stage partners.
Shehan is the Head of Tax Strategy at CoinTracker.io (bitcoin & crypto tax software). He is one of the handful of CPAs in the country who is recognized as a real-world operator and a conceptual subject matter expert on cryptocurrency taxation.
Two individuals were arrested this morning in Manhattan for an alleged conspiracy to launder cryptocurrency that was stolen during the 2016 hack of Bitfinex, a virtual currency exchange, presently valued at approximately $4.5 billion. Thus far, law enforcement has seized over $3.6 billion in cryptocurrency linked to that hack.
Nigeria became the first country in Africa to launch a CBDC last October. The eNaira is stored in a digital wallet and can be used for contactless in-store payments, as well as for transferring money.
To date, countries that have issued their own cryptocurrencies include Ecuador, China, Senegal, Singapore, Tunisia, though these countries will not be standing alone for long with Estonia, Japan, Palestine, Russia and Sweden looking to launch their own national cryptocurrencies. Some of these countries are likely to take it a step further and replace paper tender altogether with China being one nation that is looking to take one step beyond a virtual and paper version.
The issue that the market and decentralized cryptocurrencies such as Bitcoin will be the likely face the decision by central banks to ban existing cryptocurrency exchanges, same as China has done, forcing Bitcoin holders to move out of Bitcoin into national virtual currencies.
A move to a centralized cryptocurrency will unlikely be well received by the crypto community, though few will argue against the need for some regulatory oversight and it would perhaps be more appropriate to come from a regulatory body that is independent of governments and Central Banks as paper tender remains in circulation.
One of the key benefits of cryptocurrencies that tends to be lost in the returns is the fact that cryptocurrencies can be used to incentivize, with the programmability of cryptocurrencies making it possible to embed rules that can influence the holder of a particular cryptocurrency.
J-Coin ICO certainly looks to be on the cards, with a consortium of Japanese banks getting ready to launch a national digital currency to pull citizens away from paper money as J-Coin ICO is expected to take place ahead of the 2020 Tokyo Olympics. For now, the Bank of Japan and financial regulators are backing the project.
For the past decade, private companies in China have led the way in the digitization of money, with Tencent Holdings Ltd. and Ant Group Co. setting up enormous private payment networks and cryptocurrency-mining operations providing the fuel for the global Bitcoin boom. Their emergence was a break from Chinese financial history, which has been marked by aggressive centralized control. Things may now be reverting to the norm.
The co-founder of Andreessen Horowitz's crypto funds is leaving the firm to launch her own. Katie Haun announced she'll be starting her own venture early next year and will remain focused on crypto and Web3. Axios first reported her departure.
Haun was a16z's first female general partner hire, and previously had led investigations into cryptocurrency as a federal prosecutor for the Department of Justice. She launched the firm's crypto fund alongside Chris Dixon in 2018, and has seen the returns skyrocket through investments in companies like Coinbase. "When Chris and I started our first crypto fund in 2018, it was a moonshot experiment. Thanks to the hard work of many, it has exceeded both of our wildest expectations," Haun said in a statement.
In an analysis published Thursday, coming as FTX's potential collapse has roiled the entire industry, the CFPB detailed how reports of fraud make up about 40% of the more than 8,300 cryptocurrency-related complaints it received between October 2018 and September 2022.
The report comes near the end of a tumultuous week, even by the standards of the rollercoaster crypto industry. FTX's unraveling and Binance's decision to back away from a deal to acquire it has had ripple effects across the sector. The largest cryptocurrency, bitcoin, has fallen 16% over the past five days.
The DOJ said it recovered more than 50,676 bitcoin from the home of James Zhong who pleaded guilty to wire fraud charges following what the agency described as the largest cryptocurrency seizure in its history.
While stablecoins like USDC introduce the stability of fiat currency into the cryptocurrency space and allow cryptocurrency investors to realize their speculative gains by instantly exchanging them for stablecoins instead of going through the cumbersome process of selling them for cash, they also introduce new risks. Who oversees the minting and burning of USDC? What happens if there is a run on USDC? Do holders of USDC benefit from the same deposit insurance and lender-of-last-resort backstops as bank depositors do? What happens if Centre or its backers declare bankruptcy?
The Bahamas have emerged as a front-runner with the launch of the first retail CBDC, the digital B$ or sand dollar, which is pegged in value to the U.S. dollar. A system of authorized financial institutions was created to provide identification, wallet, and safe-keeping services.
There is an increasing interest within UNICEF and the UN to learn about blockchain and cryptocurrency; and the Fund is facilitating learning courses to foster the innovation community around blockchain and cryptocurrency.
In DeFi lending, borrowers must put up collateral by depositing, via a smart contract, an amount in currency that is at least equivalent to the amount they want to borrow. To protect against value fluctuations of cryptocurrency, some lending pools require borrowers to over-collateralize their loans. The catch for borrowers is that interest rates tend to be higher in DeFi lending than in traditional finance, often reaching 10%. The lure, on the other hand, is that the value of the coin borrowed might spike, which means they can turn a pretty profit.
Chronicled, for example, launched the MediLedger Network with several large drug companies and drug supply chain giants in 2017. The project uses a blockchain-based system to track who touched what drug at what time to verify pharmaceutical returns.
Building on their blockchain pilot launched with the IBM Food Trust in 2018, Nestlé and Carrefour are testing a similar service with customers for their Mousline mashed potatoes product in France. Consumers can get access to data stored on the project blockchain by scanning a QR code on the Mousline packaging, enabling them to see how the product traveled from farmer to the Nestlé factory to their Carrefour store. 2ff7e9595c
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