A 200-page manual titled “Digital Currency: A Reader for Cadres” entered its second printing in January. The high demand signals interest from China’s government amid confusing regulations on cryptocurrencies. The handbook was first released in November and includes a comprehensive set of 23 articles, starting from the basics of digital currencies to their impact on global finance. Yinan Zhao, a Bloomberg reporter covering the Chinese economy,
“It is actually a collection of published articles by officials and researchers on digital currencies. The views expressed in the book are not new. I think it meant to be a one-stop-shop sort of thing for officials to get their head around on the concept.”
Chinese Communist Party officials appear to be showing interest in digital currencies, given the launch of the second printing after just three months after its initial release. The book’s cover describes digital currencies as “inevitable in the course of history,” adding that the articles are presented in the “hope to help Party cadres deepen their understanding” of the technology.
The Chinese state has had a confusing stance on cryptocurrencies and blockchain since its popularization. As the market grew, bans on crypto exchanges and initial coin offerings operating in China were quickly enacted in 2017. The government appeared to change its attitude the following year, releasing a primer on blockchain technology in August 2018. The manual was the first attempt to educate Chinese officials on the merits and pitfalls of distributed ledger technology, with the aim of fostering healthy growth.
Indeed, the country was reported in early 2019 to be a worldwide leader in terms of the number of blockchain projects. Nevertheless, China remained largely hostile to Bitcoin (BTC) and cryptocurrencies, despite the gradual thawing. Since early 2018, the People’s Bank of China (PBoC) representatives considered digital currencies as inevitable but viewed the potential spread of decentralized alternatives as destabilizing. It is unsurprising, given this view, that China pushed for creating a central bank-controlled digital currency in 2019.
Zhou Xiaochuan, the former governor of the PBoC, is reported to have started the project to ensure China would retain control over its monetary policy — instead of “externally controlled” Bitcoin. Retaining control over the blockchain ecosystem appears to be a recurring theme for Chinese officials. As reported in late 2018, the Huobi exchange re-opened a China subsidiary — which included a Chinese Communist Party committee branch. Finally, in October 2019, Chairman Xi Jinping called for increased blockchain technology adoption, while specifically excluding permissionless cryptocurrencies.
3 Big Blockchain Firms Working Together On A DeFi Product That Pays Passive Income
In a special announcement made at the Unitize conference on July 6, Cosmos, Polkadot, and Terra revealed a new DeFi savings product called Anchor that aims to offer dependable interest rates on stablecoins deposits. The companies involved in the creation of Anchor plan to launch it across their respective blockchains at the end of Q3 this year and scale across to other PoS blockchains in the future. Do Kwon, founder and CEO of Terra, explained in a prepared statement:
“While DeFi staples such as Maker and Compound have been revolutionary in creating fully decentralized crypto money markets, the volatility of their interest rates makes them unsuitable to be used as a household savings product. DeFi mass adoption needs the creation of a fully decentralized savings account that offers dependable APR.”
Anchor’s smart contracts receive stablecoin deposits and use a portion of them to acquire staking positions on compatible Proof of Stake blockchains. Users will receive their passive income from these staking rewards. The initial governance for this platform will come from the Interchain Asset Association (IAA), a newly formed organization that sees Zaki Manian of Cosmos, Jack Platts of the Web3 Foundation, and Do Kwon of Terraform Labs collectively steering the ship.
Telegram Is Set To Shut Down The TON Testnet By August 2020
Although Telegram has terminated its blockchain project, Telegram Open Network (TON), in May 2020, the TON test net has been apparently running for almost one year. In a July 6 update, the official TON development group on Telegram announced that it would be discontinuing its support of the test network for TON. Remaining TON validators will be turned off by August 1. In the post, the TON official recommended network participants save all their relevant data and stop their testing processes. Despite the testnet being set to shut down less than a month from now, network participants will still be able to continue their experimentation after the testnet is terminated. In order to do that, users can install their own testnet validators, described in greater detail in three different how-to documents containing guidelines for the Full Node, the Validator, and Test Grams.
Telegram launched the TON testnet for explorer and node software on Sept. 6, 2019. In anticipation of its scheduled Oct. 31 launch last year, the company released an alpha version of an iOS wallet to work with its native token, the Gram. But Telegram’s TON plans were never fully realized, as the United States Securities and Exchange Commission suddenly deemed Telegram’s $1.7 billion ICO illegal in mid-October. After a long-running legal battle with U.S. regulators, Telegram agreed to shut down its TON project, as well as return $1.2 billion to investors in line with a court-approved final settlement. As officially announced by Telegram CEO Pavel Durov, the firm had already reimbursed more than $1.2 billion by June 25.
Brock Pierce Enters The 2020 US Presidential Race
Brock Pierce, entrepreneur, crypto venture capitalist, and child star, has announced his USA Presidential run on Twitter July 5. His tweet stated: “
“I, Brock Pierce, am running for President of the United States of America.”
Pierce’s campaign site states that he is a pioneer digital currency and has raised more than $5 billion for the companies he has founded. Pierce is the Chairman of the Bitcoin Foundation and co-founder of EOS Alliance, Block.one, Blockchain Capital, Tether, and Mastercoin (first ICO). His website, sparse on details, does not say if he is seeking a nomination in a political party or if he is running as an Independent.