Digital Yuan

State-Backed Agricultural Bank of China Launches the First Digital Yuan ATMs

12/01/2021 by Idelto Editor

The Agricultural Bank of China (ABC), one of China’s “big four” banks, is embarking on a pilot program to enable the first digital yuan ATMs. The banking institution deployed the first machines in selected branches in Shenzhen.

ATMs Will Work With a Smartphone App

According to SZ News, the program is part of the ongoing second digital yuan trial, consisting of a giveaway of 200 yuan ($31) to 100,000 residents.

The ATMs enable the possibility to deposit and withdrawal the digital yuan via a smartphone app. The pilot program’s mobile app allows customers to convert cash and savings to and from the token.

As the digital yuan pilot programs keep underway across the country, it’s not surprising that the ABC is testing the digital yuan ATMs. In fact, the bank is a partner of the People’s Bank of China (PBoC).

Zou Hua, manager of the bank’s Digital Yuan Innovation Lab, commented on the ATMs infrastructure’s deployment across Shenzhen:

Agricultural Bank has taken the lead in launching the ATM cash deposit and withdrawal function in the industry to guide Shenzhen residents to adapt to the digitization of cash and explore service transformation.

Shenzhen’s Interest in the Digital Yuan High, Says Expert

Moreover, local experts are reporting positive progress from the digital yuan tests in the city. A comment from Song Qinghuim, a local economist quoted by SZ News, reads as follow:

The third station of the digital RMB pilot program returned to Shenzhen again, indicating that the market has recognized the city. Compared with the first pilot, there have been many changes, which indicates that the digital RMB project is progressing steadily.

The Shenzhen authorities and the PBoC are also preparing the ground to launch another $3 million digital yuan giveaway. They expect to make it possible before the Lunar New Year holidays (mid-February).

Recently, the People’s Bank of China approved a physical card-wallet pilot to test its digital yuan. Coffee shop staff in a Shanghai-based university hospital was chosen as participants in the pilot.

What do you think about the new digital yuan ATMs? Let us know in the comments section below.

China Launches Digital Yuan ‘Hard Wallet’ Card Pilot Program

10/01/2021 by Idelto Editor

The People’s Bank of China (PBoC) have green lighted a physical card-wallet pilot to test its digital yuan. Coffee shop staff in a Shanghai-based university hospital was chosen as participants in the pilot.

Wallet Card Can Pay or Accept e-CNY Without Wi-Fi or a Mobile Connection

According to Tencent News, staff members at Shanghai Jiao Tong University School of Medicine’s Tongren Hospital used the digital yuan token to pay for food. They used a point-of-sale device and a physical card with a small screen in the top right corner.

The card reveals how much digital yuan remains in the wallet. Local media reports claim that the Postal Savings Bank of China is in charge of providing technical support. The “hard wallet” allows staff to buy products such as a cup of coffee or snacks.

One of the photos featured in Tencent’s article also shows a hospital staff member holding a card with 144.75 yuan on it and three offline payments available. The latter feature allows people to pay or accept e-CNY transfers without Wi-Fi or a mobile network connection.

Digital Yuan Tests Still Taking Place in Several Chinese Cities

So far, the digital yuan pilot programs have been underway internally in Chinese cities such as Shenzhen, Suzhou, Xiongan, Chengdu, preparing for the Winter Olympics — an event which is still scheduled to take place in 2022.

Although local experts have warned that there is still “a long way to go” before the token can be fully launched, PBoC officials believe that the digital yuan could be launched before the Olympic event.

The central bank aims to attract as many domestic and foreign spectators as possible to use the digital yuan. The Chinese government’s plans points towards reducing dependence on the USD.

What do you think about the ongoing digital yuan tests? Let us know in the comments section below.

The EURST Stablecoin Set the Path That Major Central Banks Now Want to Follow

08/01/2021 by Idelto Editor

From Asia to Europe, major central banks all around the world are expected to announce their own digital currencies soon. This is vindication that stablecoins like EURST are on the right path forward, and they can serve to show how national economies should reinvent themselves following the current crisis.

Why Everyone Wants a CBDC Now

There is a lot of discussions in economic forums and reports in the financial press these days about central bank digital currencies (CBDCs) and how they can help with building a new post-Covid economy. Many countries in various regions are said to be developing some version of a CBDC, as far apart as Thailand and Ukraine. In fact, major central banks have been working on CBDCs for a few of years already, and the European Central Bank’s upcoming digital euro and China’s digital yuan are expected to be among the first.

Even usually closed minded anti cryptocurrency detractors are now forced to admit that digital currencies are an unavoidable reality. For example, no other than “Dr. Doom,” economist Nouriel Roubini, now predicts a “big revolution” coming in the next few years due to many central banks launching their own digital currencies.

This is mainly happening because central bankers are seeing the success of stablecoins, digital tokens pegged to national currencies, and they fear being left behind as people are choosing to use the new innovation. Stablecoins also serve as a clear example for the central bankers of the world of how the technology of digital currencies work, and the positive impact they can have on their regional economies.

A leading example of a digital currency for the European economy is EURST, a USD asset-backed and live-audited stablecoin created by Mr Simone Mazzuca. This digital currency from Wallex Trust represents 1€ worth of USD, secured by the accounts of the federal reserve and Wallex Trust.

“Digital currency that represent countries or states is now a very trending topic. This is happening because stablecoins work. They are effective. EURST is an example for the European economy, but for us EURST is also just the beginning, it’s a taste of what can be done. Our aspiration is to ‘beat’ the system and to build the system.” – Simone Mazzuca

The Path Forward With EURST

One of the major technological challenges for digital currencies that will have official state backing is that will have to comply with a whole host of complex financial regulations. Anyone can just issue a token using a blockchain like ethereum, but to integrate with the legal framework on a national level you need to prove it is backed by an asset as claimed, you need to prove it follows regulations and compliance laws, and you need ways to prevent bad actors from taking advantage of it.

The Wallex Group, which secures EURST and includes Wallex Trust and Wallex Custody, is a regulated entity, with an insurance account, and it follows strict compliance procedures for AML (5th Directive Anti-Money Laundry) and know-your-customer (KYC) procedures. In this way EURST can be complaint with with European regulations and get integrated with the traditional financial system. This enables businesses and individuals to interact with the system they are used to while also benefiting from the many advantages of digital assets.

“This is where the new economy is heading and for companies like us, The Wallex Group and EURST, that is just the beginning. We are giving people the ability to have financial power again. We let people create startups and use this technology to the best of its ability.” – Simone Mazzuca

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The post The EURST Stablecoin Set the Path That Major Central Banks Now Want to Follow appeared first on Bitcoin News.

Trump Bans Chinese Payment App Giants Alipay and Wechat- Order Could Steer Billions of Dollars Toward Bitcoin

07/01/2021 by Idelto Editor

Cryptocurrencies may see a boost between China and the U.S., as the American president Donald Trump has signed an executive order banning financial transactions with eight China-based payment applications. Following the signing of Trump’s new executive order, popular payment apps including Alipay, Wechat Pay, and Tencent’s QQ will be banned in America in 45 days.

According to the latest executive order signed by U.S. President Donald Trump, Americans will be prohibited from transacting with eight different Chinese payment applications. Transactions processed with these apps will be prohibited in 45 days according to Trump’s latest edict. The applications that fall under Trump’s ban include WPS Office, QQ Wallet, Alipay, Camscanner, Shareit, Tencent QQ, Wechat Pay, and Vmate.

Trump’s administration claims the prohibition has been enacted for national security reasons and it follows the executive order Trump signed to ban the China-based app Tiktok. In August, Trump signed that specific order against any transactions between Tiktok’s parent company, Bytedance. The latest order against eight different Chinese payment apps says the ban was invoked for national security reasons as well.

“The pace and pervasiveness of the spread in the United States of certain connected mobile and desktop applications and other software developed or controlled by persons in the People’s Republic of China… continue to threaten the national security, foreign policy, and economy of the United States,” the Trump administration’s order insists.

The analyst Michael Gogel told his 4,800 Twitter followers that the executive order was invoked over the digital yuan and decentralized cryptocurrencies like bitcoin. “It has everything to do with the digital yuan and digital currencies like bitcoin that U.S. President Donald Trump signed an executive order on Tuesday to ban transactions with eight Chinese software apps including Alipay and Wechat Pay,” Gogel tweeted.

The analyst added:

Interesting to note that on the same day the New York Stock Exchange decides to 180 and reneges on the delisting action in relation to China Telecom, China Mobile, and China Unicom (Hong Kong).

Back in September 2020, the bitcoin proponent, Sylvain Saurel, also wrote a blog post about Trump banning these payment apps and how it would benefit bitcoin. “Financial transactions between the United States and China, or other countries in Asia, will have to be done through another channel,” Saurel stressed in his blog post. “We are talking about several hundred billion dollars exchanged each year.”

The author further added:

Bitcoin therefore fully meets the need that would emerge for millions of people from the Chinese diaspora living in the United States in the event of a complete ban on Wechat. Bitcoin also has the advantage of being completely politically neutral. At a time when a new cold war is starting between China and the United States, such neutrality is a significant asset.

If the Trump administration gets away with prohibiting transactions using these eight applications, Asian Americans and their families living in Asia will likely be affected negatively. However, the ban could be stopped, as a judge recently implemented a preliminary injunction against Trump’s recent Tiktok ban, as it’s been met with adversity. Further, Reuters reports that China’s Ministry of Commerce also gave a statement concerning the payment app ban, and the entity said it goes against “fair competition.”

Additionally, the U.S. Secretary of Commerce Wilbur Ross supported Trump’s decision and said he backs the President’s “commitment to protecting the privacy and security of Americans from threats posed by the Chinese Communist Party.”

Moreover, Ross insisted that the Commerce Department will “begin implementing the E.O.’s directives, including identifying prohibited transactions” in 45 days.

Do you think Donald Trump banning eight China-based payment apps will be a boon for cryptocurrencies like bitcoin? Let us know what you think about this subject in the comments section below.

The post Trump Bans Chinese Payment App Giants Alipay and Wechat- Order Could Steer Billions of Dollars Toward Bitcoin appeared first on Bitcoin News.

Video: Central Bank Woes

16/12/2020 by Idelto Editor

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The dynamic duo of “Fed Watch” is back in another episode. This time, Christian Keroles and I walk through policy updates from the three major central banks of the world, the Federal Reserve, the European Central Bank (ECB) and the People’s Bank of China (PBOC).

This year has been full of central bank action and it can be hard to stay on top of everything happening, even for those who try to follow monetary matters. The global recession is by no means over, and while the Federal Reserve and Jerome Powell might be holding policy constant, the ECB and PBOC are actively fighting slowing economic numbers.

Policy from the ECB is the most exciting because it is the most active, with the most colorful rhetoric. Last week, its expanded its stimulus program by €500 billion. Their Pandemic Emergency Purchase Programme (PEPP) is now a whooping €1.85 trillion. In the ECB’s statements, it admits to fighting deflation and a strong euro, despite the unprecedented central bank action this year. It seems the more it does, the worse its situation gets.

The Federal Reserve meets on December 16, 2020, for its final meeting of the year. Chairman Powell is expected to keep policy unchanged. Relative to the euro and renminbi strength, the U.S. dollar has been weakening, with the dollar index (DXY) extending yearly lows and approaching two-year lows. This presents a dichotomy, the least active central bank has the relatively weaker currency, which is contrary to the accepted wisdom that central bank activity devalues a currency.

The next central bank of interest in this episode of Fed Watch is the PBOC. After an update on the Digital Yuan project, we discussed the wave of defaults faced by the PBOC in recent weeks. To address the deflationary pressures in the Chinese economy it has rolled over previous bailout loans and expanded on them by $145 billion.

The episode ended with a discussion about a possible speculative attack against the dollar. MicroStrategy has given people an outline in how to borrow hundreds of millions of dollars and buy bitcoin with it. If this is done in high enough quantities, it can force the price of bitcoin up and the relative value of the debt down. MassMutual was also another large story, but as I said on the show, “Bitcoiners have been expecting this for a very long time.”

This is another great episode to keep you current on central bank issues. Do not forget to subscribe to Fed Watch’s new RSS feed, so you don’t miss any of our great guest insights in the future.

The post Video: Central Bank Woes appeared first on Bitcoin Magazine.