China is poised to launch the first national digital currency.


hello folks you have reached the cryptocurrency portal and today we’re gonna go over little information about China China has been in the forefront of the blockchain space or getting into the CB DC as well and there’s been some highlights of what they’ve been doing lately on that front but today we want to go over an article that actually showed up in Bloomberg and the reason why I want to highlight this one is cuz usually we’re on the daily Hodel or a coin desk with those types of crypto related websites but now Bloomberg is starting to talk about it when when the normal everyday I’d say online portals or even CNBC’s of the world they start talking about it in the retail masses start hearing about it that’s where momentum comes from so this one is about China how there the title is say goodbye to banking as we know it as China is poised to launch the first national digital currency and there will be no counting the disruption so let’s go through this together it says so China is ready in its own Bitcoin banish the thought and it’s good that they started with that so they can get rid of the actual misconceptions it’s far bigger than that yes just like any other cryptocurrency or for that matter cigarettes and prisoners of war camps the upcoming digital you want will be tokenized money but the similarity ends there that’s good did a little research there it ends there the crypto you want which may be on an offer as soon as 2020 will be fully backed by the central bank for the world’s second largest economy drawing its value from the Chinese state’s ability to impose taxes in perpetuity other national authorities are bound to embrace the powerful idea a little is known about the digital you won’t accept that it’s been in the works for five years in Beijing is nearly ready to roll the consensus is that the token will be a private blockchain a peer-to-peer network for sharing information and validating transactions with the People’s Bank of China in control of who gets to participate now to begin with the currency will be supply via the banking system and replaced some part of physical cash that won’t be hard given ubiquitous to the presence of the Chinese QR code based digital wallets such as Ali pay and WeChat pay so it may start small but the digital yuan can disrupt both traditional banking and the post of Bretton Woods system of floating exchange rates that the world has lived with since 1973 now wonder that for China blockchain and the yuan digital currency are a national strategic priority almost at the level of the internet says Stanford Bernstein & Company FinTech analyst quantum Chu Gani ever since the advent of the 7th century Goldsmith banker in London the most crucial thinking banking has been the ledger a repository of irrefutable records to establish trust in situations where it doesn’t exist when Peter and Vancouver agrees to send money to Paul Peter and Paul in Singapore they’re forced to use a chain of interlinked intermediaries because there’s no longer the ledger in the world with both of them on it block chains distributed Ledger’s make trust irrelevant Paul devises a secret code and shares its encrypted version with Peter who uses to create a digital contract to pay Paul a cumbersome and expensive network of correspondent banks become redundant especially when it comes to the 124 trillion dollar businesses that move across borders annually imagine the productivity whose plot and picture the threat to lenders so says china isn’t the only one experimenting first chat cheap fast and border cross-border payments illnes one application of the JTP Morgan Chase and companies quorum an ethereal based platform on which the Monetary Authority of Singapore is running project ubin an exploration into the central bank digital money these are early days but if blockchain technology shows promise and handling a large number of transactions simultaneously then digital currencies could become substitutes not just for physical cash but also for bank reserves so here’s some tables to go over wholesale retail account based or tokens and this is from the Bank for International Settlements that’s when the game changes reserves at a central bank are maintained by deposit taking lenders a digital you want or Singapore dollar or Indian rupee could bypass this system and allow any holder of the currency to have a deposit at the central bank potentially making the state the monopoly supplier of money to retail customers as Augustine Karstens the general manager of at the Bank for International Settlement noted recently if the central bank becomes everybody’s deposit taker it may find itself becoming everybody’s lender – but why would central banks want to demote their own banking systems one answer looking at Europe and Japan is that the negative interest rates are doing that anyway lenders are starved of profit because while the central bank charges them for keeping money on deposit that can’t has easily pass on those negative interest rates through their own depositors if the global economy gets mired in long-term stagnation official digital currencies will at least be an efficient way of monitor and monetary easing without involving banks to other the other more concrete reason may be that technological progress is making the status quo in tenable it’s no coincidence that China has hastened its national cryptocurrency after Facebook announced the Libre project which has touted as an alternative to the dollar perhaps that was fanciful and the Libre was hit a wall of regulatory concerns but if they’re offered like Spotify gift cards at the local set eleven there will be a demand for tokens that are acceptable across borders stable and value against baskets of national currencies and can be used in global trade and investing someone in Silicon Valley will eventually succeed blowing away the fig-leaf of monetary sovereignty and emerging markets in the process so the changes won’t end with banking and monetary arrangements token transactions will be a pseudonymous if the central bank wants to see who’s spending where it can anonymity disappears when cash does while that will make life difficult for money launderers and terrorists it could also become a tool to punish political activism meanwhile currency as a foreign policy weapon loses some sting pariah states will can cut that a crypto they can access by circumventing banks that are terrified of flouting Western sanctions as Harvard University economist Kenneth Rogoff snows technology is on the verge of disrupting America’s ability to leverage faith in its currency pursue its broader national interests it roller coaster decade not just for banking in mine but also for privacy and politics may just be beginning so that’s a good little overview from Bloomberg we appreciate that in terms of what China is poised to do so let’s go to the next article because has to do with China it says China maybe soon have its first blockchain exchange-traded fund so China Securities Regulatory Commission the CSR see the country’s financials what financial watchdog has recently received an application for listing and exchange-traded fund ETF that will track blockchain related stocks as underlying assets it’s dubbed the penguia Shenzhen stocks blockchain ETF the application was filed by Shenzhen based asset management firm ping how fund and was accepted by the c.src on December 24th according to the regulator’s disclosure the proposed ETF aims to track and reflect the performance of Shenzhen listed public stocks that have businesses in the blockchain industry now based on a report from Shanghai security news on Thursday if the application received final approval by the c.src it would be the country’s first completely blockchain themed ETF open to public investors the application was received at the same time the Shenzhen Stock Exchange rolled out a blockchain 50 index comprised of 50 stocks listed on the exchange that have entered the blockchain space the Shenzhen exchange said in an announcement on December 24th the index tracks those that are involved in different aspects of the blockchain ecosystem and selects the top 50 by market capitalization now the current index list includes software companies banks including ping and Bank as well as Internet companies that entered cryptocurrency mining such as holy Z which invested million in Bitcoin miners in 2018 so the last little article that we’ll go over is because the United Nations chief touts blockchain tech as critical component China digital age so it’s great to talk about China what China is doing obviously the first blockchain exchange traded fund and now what the United Nations is doing so Antonio Guterres who’s the secretary-general of the United Nations says the organization should embrace blockchain and distribute the ledger technology DLT in a statement obtained by Forbes Guterres recommends that blockchain tech being the core technologies used by the United Nations and he says for the United Nations to deliver better on the mandate in the digital age we need to embrace technologies like blockchain that can help accelerate the achievement of sustainable development goals the UN is working with the world identity network to explore ways to record identities on the blockchain in her to fight child trafficking and it’s year-end report on the world economy the UN refers to crypto currencies as the new frontier in digital finance they’re definitely getting it it’s it highlights emerging blockchain use cases in property registration personal identity and provenance of food medicines among many other types of data and the quote is the decentralized networks for cryptocurrencies bitcoins being a well-known example can’t keep track of digital transactions they enable value to be exchanged and can give rise to new business models which would otherwise require significant regulatory and institutional commitments the UN has steadily explored how to work with crypto and blockchain in May of 2018 the United Nations office for project services UN o-p-s revealed its exploring Yoda’s distributed ledger technologies to see if it can increase the agency’s ability to manage data efficiently in October UNICEF the organization’s fund devoted to helping disadvantaged children around the world began accepting Bitcoin and ether donations more use case so that’s the latest update folks on the cryptocurrency portal we just wanted to go over some things on the on the China for you know is that said goodbye to the banking as we know it and then of course what they’re trying to do the first blockchain traded ETF fund and now what the UN chief is doing so there’s momentum in the blockchain and crypto space everywhere and it continues so we just wanted to have a discussion about these topics today let us know what your thoughts are by putting a little comment in the comment section below or any comment below so we can 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5 thoughts on “China is poised to launch the first national digital currency.

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  4. Great info Sir 🙏🏾 all the Best for 2020 🤩 again; how is this all gonna work with liquidity now below $900million??? 🥴

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