PBoC to create state-sponsored cryptocurrency

Director of the Digital Currency Research Institute at PBoC makes some remarks regarding a centralized  state-sponsored cryptocurrency
14 October 2017   1662

PBoC's relatioships with cryptocurrencies have been quite tough lately. Thus, due to the whole China-against-Bitcoin thing, the top cryptocurrency price has fallen. On top of that, according to undisclosed sources, the Chinese government has officially decided to crack down on all Bitcoin and cryptocurrency trading, not just commercial exchanges.

For now, it seems like China is going to go in another direction. On October 12th, Director of the Digital Currency Research Institute at the People's Bank of China (PBoC), Yao Qian, made remarks regarding a centralized  state-sponsored cryptocurrency. Please, note, that  this is Yao's personal opinion and should not be interpreted as an official stance of the PBoC.

Based on a translation of the report provided by ethnews.com, the man claims that a legal digital currency has a stable monetary value function, and a state-backed currency would provide advantages over Bitcoin, which he referres to as a "private currency." He speculates that a state-sponsored cryptocurrency would create tangible economic values, helping to stabilize the relative position of fiat currencies in the marketplace.

The value of cryptocurrencies such as bitcoin primarily comes from market speculation. It would be a disaster to recognize it as a real currency. And the lack of an anchoring value inherently determines that bitcoin can never be a real one.
 

Yao Qian
Director of the Digital Currency Research Institute at PBoC

Yao also argues that the inherent volatility of Bitcoin "diminishes its capacity to serve as feasible currency".

According to Yao, by creating what would effectively be negative interest rates, it may be possible for the PBoC to reduce its target inflation rate to zero, rather than using an inflation buffer (typically 2 percent).

The whole crytpocurrency society continues to wait and see whether the opinions of Yao will result in policies to be handed down by regulators and the PBoC.

Binance Singapore Unit to Apply For License

Under the new law, aimed at regulating crypto paymetns and trading, firms must register with the Monetary Authority to receive a license
17 February 2020   211

Binance, a Singapore-based cryptocurrency exchange unit, has applied for a license under the new Payment Services Act, which entered into force on January 28.

We have already applied. We submitted the application pretty fast. Binance’s Singapore entity has been in close touch with the local regulators, and they have always been open-minded.

 

Changpeng Zhao

Founder and CEO, Binance

Under the new law, crypto companies in Singapore must register with the Monetary Authority and receive one of three licenses: an exchange of money, a standard or large payment institution. The measure is aimed at regulating payments and crypto trading using requirements for participants in the traditional finance industry. Zhao did not specify which of the licenses Binance Singapore chose.

Binance has been offering crypto-fiat trading services in Singapore since April 2019 and works with eight coins, including Bitcoin, Ethereum and XRP. The trading platform is supported by Vertex Venture Holdings, a venture division of Singapore's Temasek Holdings.