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   1055

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.

Crypto Investor to File Lawsuit Against AT&T

Michael Terpin believes that AT&T helped scammers to still his $24M worth crypto
16 August 2018   109

In the Los Angeles District Court, a 69-page lawsuit was filed by BitAngels founder Michael Terpin against the American telecom giant AT&T. Terpin claims that the operator assisted fraudsters in "stealing digital personal data" from the account on his smartphone, which is why he lost $ 24 million in cryptocurrency, according to an official release.

According to Terpin, for seven months, there were two hacks. Initially, an attacker got access to his phone number without providing a password or correct identification data. Later, the phone number was used to steal crypto.

AT&T’s studied indifference to protecting its customers’ privacy and financial assets is a metastasizing cancer, threatening hundreds of millions of unsuspecting AT&T’s customers. Our client had no idea when he initially signed up, nor when later he was promised the highest level of security for his account, that low-level retail employees with access to AT&T records, or people posing as them, can be bribed by criminals to override every system that AT&T advertises as unassailable.
 

Pierce O’Donnell
Lead counsel for Terpin in this complaint

Michael Terpin requires AT & T to pay him $ 224 million - $ 200 million for moral damages and $ 24 million for actual theft.