Our man in Shanghai refused to let the latest regulations slow down the news from China. Enterprise blockchain, central bank digital currencies, and start-up projects continue to have a positive impact in a region that hopes to add economic value through technology.
Death march for El Salvador
The El Salvador debate continued this week as the media and officials tried to digest the adoption of Bitcoin as the national currency. JPMorgan said there was little economic benefit, and Steve Hanke, a professor at John Hopkins University, warned the move could “completely collapse” the small nation’s economy. Former Bank of China Deputy Governor Wang Yongli took a very tough approach, stating that volatility and a lack of regulation or controls would put the economy on a “road to death.” This quote, which appeared in The Paper state media on June 9, was an unusually direct and colorful statement on the subject.
Crypto innovation can be productive
Zhou Xiaoquan, a former governor of the People’s Bank of China, had some positive things to say about cryptocurrency as a technology on June 11th. Speaking at an economic summit in Shanghai, he noted that cryptocurrency innovation in China can be productive if it serves the real economy. He also shot several shots at other countries, stating that people would be wrong if they thought other countries were taking the same approach to building financial services. Zhou, one of the country’s most cited economists, said the relationship between financial services and economic value is little emphasized elsewhere in the world. Based on the wild performances at the Bitcoin conference in Miami a few weeks ago, his position could be more solid than others would like to admit.
Paid in e-CNY
China’s e-CNY testing continued with the first reported bulk payment of salaries in Xiong’an, a district near the capital, Beijing. According to Cointelegraph, the pilot was supported by a number of national banks and saw subcontractors paying workers their salaries from a digital wallet.
Industrial blockchain valued at $ 22.6 billion
On June 3, a government organization published a report entitled China Industrial Blockchain Development Status and Trend Report. According to the report, 222 industrial blockchain guidelines were issued in 2020, 12,059 new blockchain-related patent applications were approved, and 776 new blockchain companies were formed. The report also claimed that the current market size of the industrial blockchain sector is around $ 22.6 billion. Industrial blockchain is an area where China is eager to take control, which has led to this explosive growth in recent years.
Just 5 times as much fun
Leading exchange Huobi surprised futures traders by limiting them to only 5x the leverage on perpetual swaps and preventing new users from fully accessing the feature. Futures trading, especially heavily indebted futures trading, has always been a popular feature on exchanges like OKEx and Huobi. It will be interesting to see if these new risk mitigation decisions will hurt these big exchanges, which are still reasonably abiding by regulators. It’s also possible that this is a short-term solution to avoid verification during times of tighter control.
Future of singapore
While Huobi tightened controls on futures traders, Singapore-based platform SynFutures closed a Series A for $ 14 million. The round was led by Polychain Capital and included names such as Framework Capital, Pantera Capital, Bybit, Kronos Research, WOO Ventures, Wintermute and IOSG Ventures. SynFutures creates a trusted derivatives market where users can take positions on assets or anything that has an accurate feed, including bitcoin, the price of gold, or even the bitcoin hashrate. What many don’t know is that the SynFutures team is made up of members of Matrixport, a financial services app that was an offshoot of the massive Chinese mining company Bitmain. Now you know the whole story!
This weekly roundup of news from mainland China, Taiwan, and Hong Kong attempts to curate the industry’s top news, including influential projects, changes in the regulatory landscape, and corporate blockchain integrations.