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China Issues Digital Currency Guide for Party Cadres

14/01/2020 by Idelto Editor

Understanding a complex subject should be easier with access to educational materials. With blockchain and CBDC now part of Beijing’s political vocabulary, the Communist Party of China (CPC) has issued a guide to digital currencies meant to prepare party officials for upcoming changes in the country’s financial system.

Also read: China Saw $11.4 Billion in Crypto-Based Capital Flight Last Year

Handbook Educates Party Functionaries About the Impact of Digital Currencies

“Digital Currency: A Reader for Cadres” is part of a series of guides on various current topics, from artificial intelligence to blockchain technology, Bloomberg reported. The handbook has been released by the publishing house of the largest newspaper group in China, People’s Daily, and is now in printing for its second edition.

In 200 pages, the guide acquaints readers with important aspects of digital currencies. Its 23 articles cover not only the basics but also more sophisticated matters such as the impact these currencies could have on monetary systems and global finance, the publication details. Noting their goal is to assist CPC cadres in expanding their understanding of the underlying technology, the authors have stated on the cover:

Digital currency is inevitable in the course of history.

The guide comes out as China prepares to complete the development of its central bank issued digital currency (CBDC). The research into the matter started about five years ago but the People’s Bank of China (PBOC) stepped up its efforts after the announcement of Facebook’s Libra project last summer. Also, a Politburo meeting in October revealed that the Chinese leadership wants the country to gain an edge in the blockchain field.

No timetable has been released for the issuance of the sovereign coin yet but according to recent reports by Chinese media, the central bank has completed “top-level design, standard formulation, functional research and development” as well as “joint testing” of the digital yuan. PBOC is now focusing on establishing “stability, security, and control,” the bank’s Digital Currency Research Institute announced.

Launch Date of Digital Yuan Still Unknown

Despite the stated progress, a launch date was not announced. According to previously available information, the Digital Currency Electronic Payment (DCEP) system, as the project is also known, will be introduced with a two-tier approach. PBOC will first issue the currency to commercial banks, which will then distribute it to the public. In December, the 8btc crypto outlet reported that the digital currency will be piloted in Shenzhen, China’s tech hub, and the city of Suzhou.

The trials will be led by the People’s Bank of China and will be conducted with the help of four state-owned commercial banks: Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China (ABC), Bank of China (BOC), and China Construction Bank (CCB). Three leading telecom operators, China Mobile, China Telecommunication and China Unicom, will also take part, the website detailed.

Parallel to the development of the digital yuan, Chinese authorities have been cracking down on platforms working with decentralized cryptocurrencies, with particular focus on exchanges and companies related to ICO projects. The government has also been busy dealing with serious issues in the traditional financial system, where a liquidity crisis is brewing on the interbank lending market with Beijing intervening to bail out several small banks. The debt-to-GDP ratio of China has reached 255% in the past decade. And the latest symptom of the hurting Chinese economy manifested itself in figures showing a 7.5% drop in passenger car sales last year, the second annual decline in a row.

What do you think about the digital currency guide issued by the Communist Party of China? Tell us in the comments section below.

Images courtesy of Shutterstock.

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Venezuela Wants to Use Petro to Finance Large Housing Program

06/01/2019 by Idelto Editor

Venezuela Wants to Finance Large Housing Program With Petro

Completing a project to build 3 million homes for its suffering population is the next big initiative Venezuela wants to finance with its digital currency, the petro. The socialist government in Caracas says there is enough money and materials to fulfill the main objective of the “Great Housing Mission.”

Also read: Crypto-Friendly Statesman Takes Over Swiss Presidency

Minister Urges Construction Companies to Accept Petro

The Venezuelan Ministry of Housing is now joining forces with other government institutions to revive a state-sponsored program focused on the building of new apartment blocks for the masses. The leftist administration of President Maduro hopes to boost Gran Misión Vivienda Venezuela (GMVV) using the oil-backed national cryptocurrency, the petro.

During the first government meeting in 2019, the housing minister Ildemaro Villarroel invited both state-run and private companies to support the ambitious plan, the Prensa Latina news agency reported. The official emphasized that using the sovereign digital coin to fund the construction projects will also help consolidate the economic independence of the South American country.

Villarroel insisted that GMVV has both the necessary budget and the construction materials needed to reach its target – the completion of 3 million housing units by the end of this year. The new homes will be distributed among Venezuelans from different walks of life with priority given to professionals, young people and senior citizens.

The minister added that over 2.5 million new homes have already been delivered and another 1 million have been renovated as part of the “Great Housing Mission Venezuela.” The program has also allocated over 1 million plots of urban land.

Mission Far From Accomplished

Faced with pressing economic challenges, hyperinflation and foreign sanctions, the Venezuelan government has put great hopes on the success of its cryptocurrency. Authorities in Caracas launched the public sale of the petro in October last year, but all buyers have been able to get so far are so-called “petro certificates,” not any digital coins.

At the same time, Nicolas Maduro’s administration has made a number of loud announcements about the petro. The digital currency was adopted as official unit of account along with the country’s redenominated fiat, the bolivar. Wages and pensions have been calculated in the state-issued cryptocurrency. The Venezuelan president promised special economic zones to stimulate its circulation and assured Venezuelans they’ll be able to purchase homes and property with the petro.

Venezuelan officials have been trying to convince partnering countries and organizations to accept the crypto for international trade deals. The Russian Federation, the Organization of the Petroleum Exporting Countries (OPEC), and the members of the regional “Bolivarian Alliance for the Peoples of Our America” (ALBA) have been offered the petro, so far with little success.

The large-scale housing projects may also soon grind to a halt. According to а recent report, Russian and Chinese construction businesses have already pulled out of the country. Caracas owes over $110 million to the Belarusian state-owned Belzarubezhstroy, one of the few foreign companies still building in Venezuela. Minsk, however, has been reluctant to accept the repayment of the debt in petro.

Do you think Venezuela will be able to finance housing projects with its digital currency? Tell us in the comments section below.

Images courtesy of Shutterstock, Belzarubezhstroy.

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Chat Bot Advises Crypto Startups and Investors

05/12/2018 by Idelto Editor

Three Ukrainian companies have developed an English-language chat bot that provides consulting services to businesses and investors in the crypto industry. The AI-based platform, Ailo, offers a range of automated services but it can also deal with cases that require human intervention and professional legal advice.

Also read: Russian Marketplace Allows Users to Sell Items Priced in Cryptocurrency

Ailo Tests ICOs for Free

Law firm Juscutum, crypto-payment solutions provider Paytomat and software developer Cryptogroup are behind the innovative project. Ailo, which is now live in testing mode, provides some of its services free of charge. Others can be paid with cryptocurrency. One useful feature, for example, determines whether a token is a security (Howey test) and if an initial coin offering (ICO) has the features of a fraudulent scheme (scam test).

The platform can also advise startups on where to conduct their token sales. A test run of the “Choosing jurisdiction of ICO” module suggested Gibraltar and Belarus. Indeed, both places are among the most crypto-friendly jurisdictions in Europe, along with Malta, Switzerland and Liechtenstein. In a list of destinations, Ailo provides the top two suggestions for free.

А team of legal experts can also prepare a number of documents that ICO companies might need. Some of these services are automated and free, such as the drafting of nondisclosure (NDA) agreements. Others require additional attention from professionals and are provided for a fee. These services are priced in cryptocurrency and the partners in the project currently accept BTC and ETH.

The cost of drafting a whitepaper legal notice, for example, is 0.01 BTC. Investment agreements, used to protect the interests of crypto companies and investors while also ensuring the security of funds raised through ICOs, cost 0.08 BTC. These agreements, which regulate the relations between the parties in a token sale, are offered as token sale agreements or as simple agreements of future tokens.

Experts Review Specific Requests

The project’s legal experts can draft even more specific documents. For instance, companies providing services in exchange for using some of their customers’ computing power to mine cryptocurrencies can order an “End User License and Mining Agreement.” Ailo also helps businesses meet a number of requirements that stem from various privacy and data protection laws such as the EU General Data Protection Regulation (GDPR) and other anti-money laundering and know-your-customer regulations.

Most standardized services require filling out a questionnaire designed to help the bot classify requests. Once a cryptocurrency payment is made through Paytomat’s system, Ailo generates the respective legal template and sends it to the client. Inquiries not covered by the website can be sent directly to Ailo’s creators via the “Ping human team” option.

Artem Amfyan, a Juscutum representative who has been working on the project, told the Ukrainian news outlet Ain that in the future Ailo will be able to provide a full spectrum of services related to security token offerings (STOs), cryptocurrency trading, mining operations and venture capital investments. Amfyan added that the project team plans to expand its services to cover the needs of the entire blockchain industry. The team is now trying to establish an affiliate network and is currently negotiating with prominent lawyers in the field of crypto regulations.

What do you think about the Ailo project? Tell us in the comments section below.

Images courtesy of Shutterstock.

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Paraguay to Provide Land for ‘Golden Goose’ Mining Project

27/11/2018 by Idelto Editor

Paraguay’s vice president has declared support for the “Golden Goose” project, which will see South Korea’s Blockchain Technology Foundation build five mining centers on state land. The foundation also plans to conduct what it describes as an “initial exchange offering” to facilitate investor participation in the project.

Also Read: Sweden Expects to Attract Norwegian Bitcoin Miners After Brutal Tax Hike

South Korean Group to Build Mining Centers

The Blockchain Technology Foundation, also known as the Commons Foundation, has entered into an agreement with Paraguay to construct what it claims will be a large mining hub. It said the government has provided five 10,000-square-meter plots of land to host five planned mining centers. The land is in close proximity to the massive Itaipu hydroelectric power plant.

A 15-year contract ensuring stable electricity pricing from the power plant has been included, as has the installation of requisite high-speed internet infrastructure and tax concessions. Choi Yong-Kwan, chairman of the Commons Foundation, claimed that only 10 to 20 percent of the electricity produced by the Itaipu dam is actually consumed in Paraguay. “We will build the world’s largest mining center in Paraguay using low-cost and abundant clean energy,” Choi claimed.

Commons Foundation Plans ‘Initial Exchange Offering’

The Commons Foundation also claims that it will develop “the world’s largest cryptocurrency exchange” as part of the Golden Goose project.

A recent press release announced that the project will facilitate investor participation through what the the foundation calls an “initial exchange offering.” The offering will support participation in the form of BTC, ETH and an altcoin that the Commons Foundation “contributes to” called microbitcoin.

The Commons Foundation claims that Golden Goose token holders will be paid 30 percent of mining profits and 70 percent of exchange profits “on a daily basis.” However, profits will be exclusively paid out in microbitcoin.

Despite the obscure structure of the planned offering, the project appears to have full support from Paraguay’s government. Hugo Velázquez Moreno, the vice president of Paraguay, has stated that “the Paraguay government will actively support the Commons Foundation’s Golden Goose project and provide tax breaks through constitutional revisions.”

What is your reaction to the Golden Goose project? Share your thoughts in the comments section below!

Images courtesy of Shutterstock

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Crypto Detectives Project Rates and Investigates Suspicious ICOs

20/11/2018 by Idelto Editor

Non-Profit Project Investigates and Rates Suspicious ICOs

An online platform created in Russia has set a noble goal of making the cryptocurrency industry safer for investors. The project investigates initial coin offerings (ICOs) that have raised suspicions and performs the due diligence for free. A report about each ICO is then published containing а summary of the findings and a conclusion about the project’s nature.

Also read: Crypto Experts From Sanctioned Countries to Receive Training in Crimea

Coin Offerings Under Surveillance

The Crypto Detectives portal examines the whitepaper and website of a project that’s been included in its “Under Surveillance” list. The established business model, applied marketing strategy and legal structure of the company conducting the token sale is placed under a magnifying glass.

The platform checks the social media accounts and Slack channels used by the startup and verifies whether its team members are real persons. Investigators look for online activity including media appearances and interviews.

The market segment in which the ICO project is positioned are analyzed with the help of external experts. The final report is also based on a study of the competition in the sector and the economic viability of similar tokens that have been issued by other projects.

Anyone can suggest a new investigation by filling out an online form on the Crypto Detectives’ website, providing their name, phone number and email address, along with a short description of the case and other information relevant to the request.

Red, Yellow and Green Projects

The platform claims it does not conduct its investigations in order to blackmail startups and it does not produce custom-made reports. The authors admit their conclusions reflect their subjective opinions but note they are ready to revise them if provided with information refuting the findings. They also say they are ready to support good projects that plan to conduct ICOs.

The crypto detectives point out that they care about the interests of investors in the cryptocurrency industry. Through a partnership with another company, LT Solutions, they also offer legal advice to investors and provide legal support to people who have lost money in fraudulent schemes including ICOs, cryptocurrency trading platforms and crypto-lending programs.

The surveyed projects are classified according to the results of the investigations and assigned an alert rating which can be green, yellow or red. A table shows if the crowdfunding is completed or ongoing and provides links to the projects’ websites and whitepapers.

A Couple of Examples

Crypto Detectives has so far investigated and rated over a dozen ICOs. Among them is Wi Fi Global, which has been tagged with a red alert indicating the project is dangerous for potential investors. The business idea behind its token sale has been plagiarized from another Russian project with a similar name – World Wi-Fi. It aims to build a decentralized wifi system that allows users to connect to otherwise locked wifi networks anywhere in the world, free of charge. The expenses will be covered by advertisers, while the owners of the wifi devices will get a share of the revenues for allowing guest users to access the web through an additional secured public network created for them.

The Wi Fi Global project, however, has been exposed as an outright scam. It turns out neither of the names on its management team belongs to a real individual. The ICO has no reputable advisors and it hasn’t issued the promised ERC20 token, WT. At the same time, its online marketing has been very aggressive, with pages and pages of posts and comments on crypto forums. Crypto Detectives’ conclusion is clear: “Trust us, there is no chance you’ll ever get anything from this project. These are thieves and rogues.”

The Russian detectives have designated another ICO called Bloom as a “green” project. It plans to create a global decentralized credit scoring system with a number of useful applications and features, from credit history manager to credit risk calculator. Three of the project’s four co-founders have been roommates at Stanford and its advisors are legitimate representatives of the industry, including for example Joeu Krug, co-founder of Augur. Bloom is also partnering with other projects like Ethland, Lendoit and Everex.

“Although the project is in its early stage, the ‘dream team’ behind it, and the fact that it’s well elaborated, suggest that it will be successful … Stanford rules,” Crypto Detectives concludes.

What do you think about the Crypto Detectives project? Tell us in the comments section below.

Images courtesy of Shutterstock, Crypto Detectives.

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