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New Highlights in Blockchain and Cryptocurrency

This week, I would like to highlight some recent announcements in relation to blockchain technology and cryptocurrencies.

U.S. Congressmen Urging Federal Reserve for a U.S. issued Digital Currency

They are concerned that the “primacy” of the U.S. Dollar could be in long-term jeopardy from wide adoption of digital fiat currencies. Internationally, the Bank for International Settlements conducted a study that found that over 40 countries around the world have developed or are currently looking into developing a digital currency.  For example, Sweden is working on an "e-krona" project, Uruguay has completed a pilot program on an "e-Peso" digital currency, and China's central bank is expected to launch a digital version of the yuan later this year or in early 2020.

Facebook Reveals the Currencies that will Back Its Libra Currency

Facebook said that half of the Libra cryptocurrency would be backed by reserves of US dollars, while the euro, Japanese yen, British pound and Singapore dollar would also provide support. Backing Libra with traditional currencies is designed to help solve the problem of price volatility, which continues to plague cryptocurrencies like bitcoin. But notably absent from the basket of support currencies is the Chinese yuan – the currency of the world’s second largest economy. This may be a strategic decision by Facebook, who may hope that leaving out the yuan will help appease U.S. regulators critical of Chinese economic and trade policy.

The Uruguay Digital Party will apply Aeternity Blockchain Technology in its Internal Democracy Processes

Aeternity, the next-generation, open-source blockchain for building decentralized applications, announced this week a collaboration with the Uruguay Digital Party to optimize the participation processes of citizens through the use of blockchain technology in internal voting. This initiative aims to make decisions more transparent, thus building a new system in which citizens, and members of the Digital Party in particular, can participate in a decentralized manner in the political decisions of their community.

One of China’s Largest Banks Partners with Permissionless Blockchain to Roll-out Decentralized Apps

One of China’s largest state-owned banks is partnering with a public, permissionless blockchain to build a series of fintech applications, some of which will serve the bank’s retail customers.  China Merchants Bank International (CMBI), a subsidiary of China Merchants Bank (CMB), announced on Thursday it has partnered with blockchain network Nervos. The partnership will enable the bank to develop decentralized applications that are both retail and institution facing, according to Nervos Networks co-founder Kevin Wang.

Nelson Ijih

Chief Executive Officer