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Rep. Waters Opens Libra Hearing With Indictment of Facebook’s Past Mistakes

The chair of the House Financial Services Committee opened today’s hearing on Libra by noting Facebook’s past mistakes.

Today, lawmakers on the United States House of Representatives Financial Services Committee are meeting to discuss the possible effects of Facebook’s proposed Libra cryptocurrency project on the financial system. 

As a Cointelegraph respondent reports on July 17, committee chair Rep. Maxine Waters has opened the hearing with an indictment of Facebook’s past behavior. In her statement, Waters said that there was a, “demonstrated pattern of failing to keep consumer data private on a scale similar to Equifax.”

Waters also stated that Facebook, “allowed malicious Russian state actors to purchase and target ads,” which purportedly influenced the 2016 U.S. presidential elections.

Waters also emphasized that the committee will be discussing the “Keep Big Tech Out of Finance Act.” A draft of the bill recently surfaced, the goal of which would prevent large tech companies like Facebook from creating their own digital assets. The draft reads:

“A large platform utility may not establish, maintain, or operate a digital asset that is intended to be widely used as medium of exchange, unit of account, store of value, or any other similar function, as defined by the Board of Governors of the Federal Reserve System.” 

Today’s hearing in the House of Representatives follows one in the Senate, wherein lawmakers grilled Facebook’s David Marcus regarding Libra. Amid questions of safety, compliance and consumer protection, Marcus stressed that the Libra project would seek proper approval and registrations with the relevant authorities, including the United States Financial Crimes Enforcement Network.

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Mike Novogratz Gives His Support for Social Media Cryptos

Mike Novogratz Social Media Cryptocurrency

Galaxy Digital Founder and CEO Mike Novogratz recently shared his views on the rise of social media cryptocurrencies, particularly with news coming out about the launch of Facebook’s GlobalCoin in 2020.

Novogratz, who has been a regular cryptocurrency pundit and established Bitcoin bull, voiced support for the creation of social media cryptos, even if he doesn’t believe all of the projects will ultimately succeed to the same degree as BTC. In an interview with CNBC published on May 24, the billionaire investor claimed that at least one of the social media coins will succeed.

Novogratz explained,

“I think Facebook’s payment currency, I think Telegram’s gonna have one…You’re gonna see one of those payment coins work, and I think that has the chance to be a real currency.”

Earlier in May Novogratz stirred debate around the future and utility of Bitcoin when he claimed that the original cryptocurrency was reaching the end of its potential as a store-of-value digital asset. While Novogratz was commenting more on the lack of innovation left to developing Bitcoin, BTC enthusiasts questioned whether he meant the coin was no longer poised to be a dominant player in the sphere of cryptocurrency.

Novogratz updated his stance on Bitcoin in the interview with CNBC, reiterating that the coin constitutes a store of value–similar to a digital version of gold–as opposed to the transfer of wealth inherent in most currencies. However, compared to Bitcoin, Novogratz believes that Facebook’s GlobalCoin will be used primarily for payments, distinguishing it from the original cryptocurrency in terms of usability.

The Galaxy Digital CEO also gave his opinion that the ‘crypto winter’ for coin prices is largely over, and that cryptocurrency is entering the start of a bull market. Novogratz explained his belief that cryptocurrency investors, despite being burned in the severe valuation drop throughout 2018, will not be reluctant in their return to the market, telling CNBC,

“I don’t think it’s the case. And a lot of institutions never got in, so they felt kinda smart and now all of them say, ‘Wait a minute, now there’s more cover.’ […] Retail will come and go, and a lot of the guys who got burned won’t come, but there’s seven and a half billion people on the planet, there’s plenty of retail customers to continue to come in. ”

Novogratz is relying upon the entrance of institutional investors to continue driving the price of Bitcoin and altcoins higher, in addition to retail investors who either missed the initial collapse of the crypto markets or are still bullish on their outlook.

He also took time to declare his interest in network-based currencies such as Ethereum and EOS, which he referred to as ‘3.0’ coins. However, despite the innovation being developed by Ethereum and other similarly developed cryptocurrencies, Novogratz believes the competition in the space has become intensified in the race for Web 3.0 network dominance, and that it will likely be ‘years’ before a preeminent currency emerges.

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2020 Presidential Hopeful Eric Swalwell Accepting Cryptocurrency Donations

Eric Swalwell Cryptocurrency Donations

Another presidential candidate in the upcoming U.S. 2020 elections has thrown his hat into the cryptocurrency ring.

Just a week after Andrew Yang made headlines speaking of his support for cryptocurrency and pledge to improve existing government guidelines, Representative Eric Swalwell has announced his campaign will be accepting cryptocurrency-based donations as an alternative to fiat. Swalwell, 38, who represents the Democratic Party in the state of California, announced on Thursday that his campaign would integrate crypto as a form of donation to the political campaign and also gave his support for blockchain and digital currencies.

Swalwell said,

“Blockchain can change the world, if we let it. So much of our public life now exists online, and there’s no reason to believe we can’t extend this further into our democracy and our economy – from exercising our right to vote, to how we look at cryptocurrency.”

While Swalwell’s comments were general and vaguely focused on cryptocurrency, having another presidential candidate bring attention to digital assets and currencies is an overall win for the industry. Despite the crypto markets hovering in limbo, with Bitcoin consolidating around $8000, analysts and investors remain bullish in outlook compared to 2018.

A year ago, presidential candidates would have been hard-pressed to associate themselves with Bitcoin and cryptocurrency. Not only was the industry reeling from substantial losses in valuation, leading all sorts of financial pundits to decry the asset class as a bubble, but cryptocurrency was still contending with the connotations and misrepresentations as a tool of anarchy.

Now, with the shifting landscape in 2019–acceptance by both social media giant Facebook and Wall Street bulwark J.P. Morgan Chase–the vote of confidence in the industry of cryptocurrency is causing otherwise conservative public figures to throw their support behind Bitcoin, albeit tentatively.

While Swalwell is, in no doubt, capitalizing on the attention and additional donations that will come from accepting cryptocurrency, he is also no stranger to the industry. In April, Swalwell was one of a handful of Congressional members to sign a letter directed at the U.S. Internal Revenue Service (IRS) arguing for greater clarity on cryptocurrency tax regulations.

His campaign will accept six cryptocurrencies–Ethereum, Stellar, Bitcoin Cash, Bitcoin SV, in addition to the native token (WSD) of blockchain firm The White Company which will be overseeing the crypto donations. WSD is a Stellar-backed stablecoin which The White Company claims will make funds instantly available to Salwell’s campaign, as opposed to exposing the treasury to the price volatility of cryptocurrency.

Swalwell may be generating interest from the cryptocurrency community, but he follows on the heels of his presidential bid competitor Andrew Yang. In addition to making a statement of support for cryptocurrency and the innovative technology of blockchain, Yang’s campaign released a policy intended to improve the guidelines on digital assets. In the statement, Yang claims that businesses and individuals should be able to invest and develop in cryptocurrency “without fear of a regulatory shift.”

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Coinbase Eyeing $50 Million Acquisition of Bitcoin (BTC) Custody Provider Xapo

Coinbase Xapo Acquisition Bitcoin Cryptocurrency

Just days after Coinbase CEO Brian Armstrong revealed his company managing more than $1 billion in cryptocurrency assets through their custodial service, reports are surfacing that the exchange is negotiating an acquisition of Xapo.

According to sources familiar with the deal, the Block reported on May 16 that Coinbase is advanced talks to purchase the custodial service of Xapo for $50 million in an effort to further their position as the premier institution for cryptocurrency custody. The article also claims that Coinbase is in close competition with Fidelity Digital Assets to acquire the custodial service, with the latter viewing Xapo as a strong entry-point into the industry.

While the negotiation is far from concluded, Xapo would represent a substantial prize for either organization to acquire. Xapo is reported to have over 700,000 BTC under custody, worth $5.5 billion. According to the Block,

Xapo’s core product is cold storage vault custody of bitcoin, with rumors that the company holds as much as $5.5 billion of assets under custody (AUC) at the current $BTC price near $8,000, reflecting ~700K bitcoin under custody. Xapo custodies 226,000 BTC that are part of Grayscale Bitcoin Trust.

Xapo is also helmed by serial entrepreneur and staunch Bitcoin supporter Wences Cesares. Cesares, hailing from Argentina, is one of the more historic figures in the industry of cryptocurrency, earning the moniker “Patient Zero” as the original influencer for cryptocurrency in Silicon Valley.

The anonymous sources seem to believe that Coinbase is edging out Fidelity Digital Assets in the bid for Xapo. The Block claims that Fidelity Investments has been making an effort over the last year in bridging their traditional investment services with cryptocurrency and blockchain, since bringing in Tom Jessop as head of corporate business development in 2018, who holds experience in blockchain startups. Xapo represents a massive amount of leverage for the company to springboard into the industry of cryptocurrency, by targeting high-value institutional investors looking for custodial services.

However, with Coinbase currently in the front-running for purchasing Xapo, the U.S. based exchange is signaling its business model moving forward that will diversify beyond collecting trading fees. Given the cyclic nature of cryptocurrency and the extreme volatility the markets have exhibited thus far, Coinbase could find more steady ground by becoming a premier custodial provider for Bitcoin and other prominent cryptocurrencies,

“The addition of several billion of AUC would be a huge shot in the arm for Coinbase. Under Xapo’s current business model, customers are not charged for storing their bitcoin. Rather, they generate revenue by enabling over-the-counter (OTC) trades for customers using the bitcoin under custody.”

Since its founding in 2012, Xapo has raised $40 million in funding, with David Marcus and Winklevoss Capital included among its list of prominent investors. Adding Xapo would contribute to the list of recent deals Coinbase has been making, including the acquisition of Earn within the past year, which has been reformed into the educational portal Coinbase Earn.

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Mark Mobius Supports Bitcoin (BTC) After Previously Calling Cryptocurrency A “Fraud”

Mark Mobius Bitcoin 2019

One of the most recognizable figures in investing has had a change of heart in his opinion towards Bitcoin and cryptocurrency.

Mark Mobius, cofounder of Mobius Capital Partners, recently spoke in a Bloomberg podcast where he claimed that Bitcoin will be “alive and well” into the future. Despite his current positive attitude towards Bitcoin, Mobius delivered a scathing critique of BTC in May 2018, when he called the currency a fraud.

Now, with the price of Bitcoin achieving relative highs and plotting a scorching path of price gains, the long-time investors has come to believe that cryptocurrency will offer utility to consumers not currently provided through fiat,

“There’s definitely a desire among people around the world to be able to transfer money easily and confidentially. I believe bitcoin and other currencies of that type are going to be alive and well.”

While Mobius may concede a future that includes Bitcoin and cryptocurrency, he has yet to invest personally in any of the digital assets. Mobius told Bloomberg,

“Whether I would invest in it is not a question. You have incredible volatility and, at the end of the day, you can’t chase one individual group or one organization that will keep track of what is going on.”

The 82 year-old investor also took the opportunity to spread some caution on cryptocurrency, telling traders to be careful. Mobius pointed to the massive and high-profile collapse of cryptocurrency exchange Mt. Gox in 2014 as an example of the risks involved in crypto, which saw users lose hundreds of millions in BTC stolen from the exchange.

Mati Greenspan, senior market analyst for eToro and regular cryptocurrency commentator, was an early advocate of the shifting attitude towards cryptocurrency in Wall Street and established financial institutions. In a note to clients, Greenspan wrote,

“Many of those who are heavily entrenched in the old financial system are unsurprisingly unswayed by the benefits of crypto, but that’s changing rapidly. The volatility is one of the most attractive qualities of crypto from an asset managers perspective.

The idea of asymmetric risk allows us to use this unique and uncorrelated asset class to greatly increase our return on risk in any otherwise well-diversified portfolio. Just as I, in my portfolio, am holding about 3.5% in emerging markets, I believe that one day soon asset managers around the world will diversify with crypto.”

While the crypto markets have experienced a small contraction on the day, broader forces appear at work driving interest to the industry. As pointed out by Mobius, growing conflict between the United States and China in a looming trade war has investors feeling shaky about the traditional markets. Just as Brexit previously drove capital into cryptocurrency before it’s October-delay, tensions between the U.S. and China have made crypto an alternative source of investment.

In addition, the high profile development of coins by social media giant Facebook and J.P. Morgan Chase has led to a legitimizing effect of cryptocurrency. While the technology was previously thought of as niche, Bitcoin and cryptocurrency is heading in the direction of a mainstream product.

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Crypto is Taking Over the World, Bubbles are Normal; Shapeshift CEO Says to Blomberg

Crypto is making its way into the world of finance, slowly taking over an important part of the global markets. The recent Bitcoin (“BTC”) Bullrun seems to have attracted a substantial amount of fresh investors and this new wave of enthusiasm is very beneficial for the expansion of the ecosystem. This impression was shared by Erik Voorhees, CEO of Shapeshift in an interview for Bloomberg.

The well-known businessman and bitcoin bull said that not
only financial experts believe that the bearish season passed; from his point
of view, common traders also share this opinion and are venturing into the
world of crypto, albeit more cautiously:

“We’ve seen four or five of these bubbles at this point, so a lot of this is just cyclical. People wait until they feel the bottom is in and when they feel like the bear market Is over then they feel comfortable moving back into crypto. That´s probably the biggest reason why this is happening but often these things are just a confluence of many individuals making their own decisions”

Voorhees explained that bubbles are part of the typical behavior of an asset such as Bitcoin which is growing and settling in the industry. The experienced businessman explained that he is sure that cryptocurrencies are taking over the world. An opinion that has been shared by other investors such as Tim Draper and Mike Novogratz

Crypto is a Volatile and Heterogeneous Ecosystem

 “There have to be bubbles in crypto because crypto is taking over the world and it’s not just going to advance 5% a month without end” Said Mr Voorhees while calmly explaining why bubbles tend to be cyclical in crypto “There’s no way to go from a zero dollar asset onto one that is worth trillions without mass speculation and massive volatility we see in cyclical bubbles”

This graph shows the stages of a bubble. It seems very similar to the performance of the crypto markets
This graph shows the stages of a bubble. It seems very similar to the performance of the crypto markets

Voorhees also commented that there are already practical
cases for Bitcoin in various parts of the world but that most of those who use
it do so for speculative purposes. Finally, he explained that there are still
very few assets that can really affect the ecosystem since the gap in the
global marketcap is still too high:

 “In crypto you have to understand that even though there are thousand of these assets, it’s a very long tail and only the (first) ten or 20 have any importance at all and then there’s a lot that don’t really matter much, and they don’t really move the market”

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Dark Web Portal Wall Street Market Being Tied to Bitcoin Exit Scam

Wall Street Market Bitcoin Exit Scam

The dark web platform Wall Street Market, which underwent a complete crash weeks ago before finally being pulled by authorities, is now being tied to a Bitcoin or cryptocurrency exit scam.

Wall Street Market, which was estimated to be the second largest marketplace on the “dark web,” was officially shuttered by authorities on May 3. According to a release by Europol, the platform was taken down and three of its principal traders were arrested. Similar to other dark web portals–The Silk Road being one of the more historic and relevant to cryptocurrency’s history–WSM was a site for the trading and illegal purchase of weapons, narcotics and identify-theft related information.

However, the recent crackdown follows weeks of turmoil for Wall Street Market traders, as user and customer funds were suddenly frozen. According to Davey Winder, a contributing author on Forbes, the $30 million in user funds that was locked down on WSM was the result of a Bitcoin exit scam.

Before the exchange was shuttered earlier today, WSM compiled 5,000 registered sellers, operating through the use of Tor network. According to a Europol report release in the wake of the closure, WSM sellers were responsible for over 63,000 sales postings, conveying illegal substances and services to a customer base that totaled more than 1 million users. Operators of the marketplace, who have been implicated in the Bitcoin exit scam, were charging up to 6 percent in commissions on every sale made, leading to a substantial, albeit illegal marketplace of goods. At the time of the closure, authorities reported seizing more than $600,000 in cash, with an additional six-digit amount of BTC and Monero collected in digital assets.

According to the Europol report and Forbes article, the freezing of user funds may have been attempt by platform operators to conduct a massive BTC-based exit scam, amounting to over $30 million, in an effort to escape the tightening ring of law enforcement. Instead. Two of the more prolific drug dealers on the website were arrested in addition to the exchange seizure, with the entire WSM platform being taken offline.

Catherine De Bolle, executive director of Europol, shed light on the seizure and issued a stern warning to other current or would-be dark web operators,

“The importance of law enforcement cooperation at an international level and demonstrate that illegal activity on the dark web is not as anonymous as criminals may think.”

Some have pointed to the closure of WSM as a minor setback for illicit-based sellers, with the potential for more dark web-based marketplaces growing exponentially in the digital age. Monero and other privacy based cryptocurrencies, in particular, may play a key role in the maturation of online black markets.

Compared to Bitcoin and other popular cryptocurrencies, Monero allows users to conduct transactions in complete anonymity. While the coins use blockchain similar to all cryptos, they also allow buyers and sellers to keep their identities hidden–a feature that is exceedingly valuable to black market dealers.

However, while authorities and other evangelists may point to cryptocurrency as being implicated in illicit marketplaces–a refrain that rang for years during The Silk Road proceedings–other see it as vindication of the technology and usability of digital assets. While it may be disagreeable for Bitcoin and privacy cryptos to be used for illegal activities, it also proves that the currencies are capable of functioning to the extent of their intention.

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Survey: Two-Thirds of Global Millionaires Invested or Planning to Invest in Crypto

Cryptocurrency Millionaire Investing 2019

Despite the historic price volatility and risk associated with investing in Bitcoin and other top digital assets, high net-worth individuals around the globe appear to be in favor of cryptocurrency.

According to a new survey conducted by the Dubai-based financial consultancy firm deVere Group, 68% of the world’s millionaires are already invested in cryptocurrency or plan to do so within the next three years. The deVere Group controls more than $10 billion in assets, with a client base of over 80,000 spread across the globe.

From the survey, deVere reports that more than two-thirds of individuals with asset’s valuing greater than 1 million British pounds (GBP) (the equivalent of $1.3 million), have either invested in Bitcoin and other high-profile cryptocurrencies, or report the strong intention of doing so by the end of 2022. deVere collected responses from over 700 of its clients, ranging from the U.S. to Australia, to conclude that wealthier individuals, as a whole, are betting on the future of cryptocurrency and digital assets.

The reports is somewhat in contrast to other surveys, which have found cryptocurrency investing to be disproportionately concentrated in younger and lower net-worth individuals, with the assumption being the extremely high risk/reward proposition of digital assets is attractive to this group. Now, deVere’s newly published data gives some indication that the investment base for cryptocurrency is broadening, with high net-worth individuals more likely than not to be actively investing in digital assets.

Nigel Green, founder and CEO of deVere Group, claimed that cryptocurrency has sparked significant interest in wealthier clients,

“The research shows that wealthy individuals are increasingly seeking exposure to cryptocurrencies. There is growing, universal acceptance that cryptocurrencies are the future of money – and the future is now.  High net worth individuals are not prepared to miss out on this and are rebalancing their investment portfolios towards these digital assets.

The CEO also made the comparison between cryptocurrency and Amazon, stating that the former would do to fiat what Amazon has done to retail,

“Crypto is to money what Amazon was to retail.  Those surveyed clearly will not want to be the last one on the boat.”

Green highlighted a number of factors he found to be driving the investment interest into cryptocurrency, including Fear Of Missing Out. In addition to FOMO, Green found the borderless nature of cryptocurrency to be exceedingly attractive to high net-worth individuals, allowing them to better position themselves for the growing global economy. Having assets tailored for a digital format, such as Bitcoin, makes for a more modern form of currency that will ultimate challenge fiat.

Green also finds cryptocurrency to be better suited for overcoming real-world issues in commerce and business, stating,

“Third, they provide solutions for real-life issues, including making international remittances more efficient, and help bank the world’s estimated two billion ‘unbanked’ population.

As many other analysts have pointed out, millenial and younger investment interest in cryptocurrency could ultimately lead to a mass exodus from traditional markets to cryptocurrency, spurring substantial growth for valuation over the coming years.

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Report: Crypto Platform Bakkt Used Bear Market to Accumulate Digital Assets

Bakkt Cryptocurrency Bitcoin Bear Market

The bear market for cryptocurrency in 2018, which many analysts are referring to as the ‘crypto winter,’ proved fortuitous for at least one investment platform. While coin prices plunged over 80 percent across the board for top cryptocurrencies, the parent company behind forthcoming trading platform Bakkt used the opportunity to accumulate digital assets at a discount.

According to a report by Reuters, Intercontinental Exchange Inc (ICE), the company behind institutional cryptocurrency trading platform–which counts Starbucks among its proprietors–took advantage of 2018’s crypto winter to purchase coins at depressed prices.

Jeffrey Sprecher, ICE’s chief executive officer, allegedly told Reuters “it’s really been helpful that the cryptocurrency industry sort of went into what they call a winter.” Sprecher is referring to the severe bear market for cryptocurrency throughout 2018, which saw BTC prices fall to a relative low of $3000 after reaching nearly $20,000 just a year earlier.

While Bakkt has garnered substantial interest from both institutional investors and the broader commerce market, the exchange has experienced a series of delays. Originally set to launch in January 2019, the trading platform has been delayed to the middle or end of the year following a series of conversations with the Commodity Futures Trading Commission. Bakkt, in addition to offering institutional support for cryptocurrency trading, is planning to become fully compliant with the CFTC in order to integrate futures contracts for Bitcoin and other digital assets–a process that has delayed that launch of the exchange as the regulatory details are sorted.

However, the delayed launch has afforded the Intercontinental Exchange to continue acquiring cryptocurrency and blockchain firms it may not otherwise have had the opportunity for. Earlier in the week, Bakkt reported that it had acquired cryptocurrency custodian service company Digital Asset Custody Company, an acquisition that Sprecher alluded to when he commented on the benefits of delaying Bakkt’s launch,

“We’ve actually looked at a number of different companies and acquired a company earlier this week that wouldn’t have been available to us if the market had been really hot.”

While the crypto markets ended April on a high point, after over a year of falling coin prices, the last week has brought market volatility and a tumultuous time for cryptocurrency investors. Last week the New York Attorney General’s office accused stablecoin provider Tether and cryptocurrency exchange Bitfinex of foul play, claiming that the two had participated in defrauding investors and manipulating the marketplace for crypto. According to the filing, Bitfinex used Tethers funds to cover over $850 million in losses incurred by the exchange–funds that were specifically being held in reserve to back the dollar-valuation of USDT.

Earlier in the week, Tether’s lawyers responded to the ongoing legal case by claiming that the company held cash and cash-equivalent reserves to cover 74 percent of the USDT circulating on the market, with the difference in valuation covered by credit lines. However, many in the community of cryptocurrency have become frustrated with the company, who has historically positioned its stablecoin as backed 1:1 with U.S. dollars.

Nonetheless, the price of Bitcoin and other top cryptos continues to rise, with BTC up 3 percent on the day.

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Blockchain Research Institute Chairman Says Chinese Renminbi Will Become Crypto in 20 Years

Chinese Renminbe RNB Cryptocurrency

China has been notoriously harsh on the development of cryptocurrency, imposing a ban on investing and trading into digital assets, including Bitcoin. However, the executive chairman for the Blockchain Research Institute believes that in 20 years, Chinese national fait currency will be replaced by a cryptocurrency version.

Donald Tapscott, speaking in an interview with Bloomberg on April 17, said that the Chinese renminbi (RMB), will likely undergo a transformation into cryptocurrency format, despite the country’s current stance against the industry. Tapscott told Bloomberg of a meeting he had with a vice-chairman in the Communist Party of China, who revealed that President Xi Jinping is bullish on the outlook of blockchain and views it as one of the most important technologies for his country’s development.

China, which has caused a recent stir with rumors that the country will crackdown on cryptocurrency mining–in addition to its current stance towards trading and investing–state that the ban was likely short-lived,

“It’s not really necessary to do that [to ban exchanges and mining] because in 20 years we are not going to be using bitcoin in China. Chinese people will use the RMB, only the RMB will become a cryptocurrency. The central bank of China will turn it into a digital currency.”

Industry analysts have pointed to the development of decentralized exchanges (DEXs) as a way to circumnavigate political influence on cryptocurrency marketplaces. While Tappscott contends that DEXs are one way to operate in China, he reports that the country is adamant on clamping down on all forms of crypto-based investment.

Instead, Tappscott believes that the future of decentralized exchanges is to supersede existing centralized platforms, thanks to what he calls their transparent framework and ability to identify manipulation. Tappscott could see a broader market migration to DEXs, including securities.

Despite having the majority of the world’s largest mining pools based in China, the country is giving indications of a looming crackdown on cryptocurrency mining. Chinese authorities have been discussing the issue, with the National Development and Reform Comission (NDRC) reportedly including mining in a revised list of activities to be shut down. Among a number of issues, the agency finds that cryptocurrency mining wastes resources and pollutes the environment, harping on the point that Bitcoin is not energy efficient.

However, China is also leading the world in the number of blockchain projects under development, despite the government’s stance towards investing in cryptocurrency. Even if digital assets continue to be a point of contention for politicians, the technology of blockchain has garnered serious interest, with 263 blockchain-related projects underway–a full quarter of the global total.

Tappscott’s comments reflect a growing belief that tokenized currencies, supported by blockchain, will be the future for fiat as money turns digital. The renminbi, propelled by China’s massive boost in blockchain development, could make the transition to cryptocurrency even if the government ban continues. Compared to other countries, the Communist Party of China seems primarily concerned with staying ahead of regulatory control over crypto, even if they recognize the value of the underlying technology.

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