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Recent Developments in Blockchain & Cryptocurrency

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

Bank of China will Officially Launch State-backed Cryptocurrency Next Year

As rumored a few months ago, China’s congress has officially passed laws to allow the People’s Bank of China to launch a government issued cryptocurrency. China has also passed a new law, which will come into effect on 1 January, aimed at "facilitating the development of cryptography business and ensuring the security of cyberspace and information". It is understood that the new law will precede the launch of China's state-backed cryptocurrency, which is expected to be unveiled early next year. No specific dates have been given but in August a senior official at China's central bank said it was "close to being out”.

Chinese Cryptocurrency Mining Giant, Canaan Creative, Files for $400m U.S IPO

On October 28th, Canaan Creative filed for an initial public offering (IPO) with the U.S. Securities and Exchange Commission (SEC) to raise $400 million, while planning to be listed on the Nasdaq under the ticker CAN. If successful, Canaan, which is one of the three major Chinese crypto mining companies alongside Bitmain and Yibang International, could become the first China-based mining firm to be publicly traded in the United States. According to the SEC filing, Canaan generated $394 million in revenue in 2018, with a net income of $8.3 million. However, the designer and manufacturer of Bitcoin mining machines has experienced a total comprehensive income loss of $45.8 million in 2019

Bitcoin had a wild weekend, briefly topping $10,000, after China's President Xi Jinping sang blockchain's praises

Bitcoin’s price rose sharply over the past weekend, recovering from a plunge just days earlier, after Chinese President Xi Jinping gave a speech embracing blockchain technology and calling on his country to advance development in the field. The value of the world’s best-known cryptocurrency jumped as high as $10,332 on Saturday, October 26th, according to data from industry website CoinDesk. The price has since eased to around $9,176 as of today. The virtual currency’s jump came as China’s leader sang the praises of blockchain, the technology that underpins cryptocurrencies like bitcoin. According to state media, President Xi Jinping said Friday that China has a strong foundation and should look to take a leading position in the sector.

German Banks Consider Blockchain-Based Currency Called "Digital Euro"

The Association of German Banks recently stated their position in regards to the creation of a “programmable digital currency”, which helps with the development of a digitized financial system.  The Association considers blockchain and cryptocurrency technologies as a "basis” for a future digital currency coined the "Digital Euro". This digital currency will allow banks to do the following:

  • Use smart-contract technology to handle financial operations faster without third-parties;
  • Implement a cryptocurrency into their ecosystem that would lead to valuable benefits; and
  • Protect a consumer's personal data with the help of blockchain technology, providing a more secure system versus a cashless payments that is tied to paper money.

Nelson Ijih

Chief Executive Officer