As Bitcoin Surges To Record High, China Prepares Its Own Digital Currency, Zero Hedge

As Bitcoin Surges To Record High, China Prepares Its Own Digital Currency

Traders are glad because the SEC is expected to rule on a Bitcoin ETF by March 11.

After assembling a research team in 2014, the People’s Bank of China has done trial runs of its prototype cryptocurrency. That’s taking it a step closer to becoming one of the very first major central banks to issue digital money that can be used for anything from buying noodles to purchasing a car.

At the same time as it builds up its own capabilities, the PBOC is enhancing scrutiny of bitcoin and other private digital tenders. It doesn’t want a bitcoin bubble to deepthroat up. And since currencies have historically been issued by the state, not private players, it doesn’t want to cede the cryptocurrency space to companies it has no control over.

Chinese people have embraced online payments for just about everything. To buy a can of Coke, thirsty commuters scan QR codes on their smartphones rather than feed coins into a vending machine. At Lunar Fresh Year gatherings, money is exchanged via a few presses on a smartphone instead of crisp notes passed over in crimson envelopes.

All of that poses a challenge to the PBOC’s status as the central bank of both the digital and physical realms. So if you can’t hammer them, join them.

“Getting to know more precisely how much banks lend, where the money goes and the rhythm of credit creation is key to curbing money laundering and making monetary policy more effective,” said Duan Xinxing, vice president of Beijing-based OKCoin Co., one of the country’s largest bitcoin exchanges. Issuing digital currency will make it lighter for the PBOC to monitor risk in the financial system and track transactions economy-wide, he said.

OKCoin is among cryptocurrency exchanges that has recently taken steps to halt bitcoin withdrawals amid efforts to tweak down on capital outflows.

In January 2016, the PBOC said it will have its own cryptocurrency “soon,” but there has still been no formal embark date announced. In the meantime, there’s been strong advocacy from senior officials, including Fan Yifei, one of the PBOC’s deputy governors.

“Cutting costs is an evident benefit, but the influence of shifting to blockchain-based digital money from the current payment structure goes beyond that,” said Larry Cao, director of content at the CFA Institute in Hong Kong. “There’s a potential you can pay anybody in the system, any bank, and any merchant directly. Blockchain will switch the entire infrastructure. This is revolutionary.”

For the PBOC, using blockchain, the technology that underpins the digital currency bitcoin, will permit it to trace transactions and collect “real-time, finish and authentic” data to compile precise monetary indicators such as money supply growth, OKCoin’s Duan said.

“The transparency of economic activities in every corner in the country will significantly improve,” Duan said. “The central bank will have unprecedented skill of how the economy runs.”

So instead of relying on monthly surveys of businesses, or collations of spending from the statistics authority, the PBOC and therefore the government would have real-time readings on the pulse of consumers. Policies could then be fine tuned on a day-to-day, even hour-to-hour basis, providing an unprecedented level of precision to monetary management.

Bitcoin is a primary means of capital flight out of China. How long will that last?

Here’s one key thought on bitcoin from the article: “OKCoin is among cryptocurrency exchanges that has recently taken steps to halt bitcoin withdrawals amid efforts to pinch down on capital outflows.

When China launches its own cryptocurrency, will it ban Bitcoin transactions?

If so, what happens to the price of Bitcoin?

The launch of a Bitcoin ETF reminds me of those waiting for the launch of JDSU Leap Options in two thousand so they could “explosion the boat”.

During the 1990s, JDS Uniphase stock was a high-flyer tech stock investor dearest. Its stock price doubled three times and three stock splits of Two:1 occurred toughly every ninety days during the last half of one thousand nine hundred ninety nine through early 2000, making millionaires of many employees who were stock option holders, and further enabling JDS Uniphase to go on an acquisition and merger binge. After the telecom downturn, JDS Uniphase announced in late July two thousand one the largest (up to then) write-down of goodwill. Employment soon dropped as part of the Global Realignment Program from almost 29,000 to approximately Five,300, many of its factories and facilities were closed around the world, and the stock price dropped from $153 per share to less than $Two per share.

I like the blockchain technology behind digital currencies like Bitcoin. Blockchain is ideally suited for recording mortgages, deeds, autos, etc.

Title insurance companies will cease to exist, at least as stand alone title companies.

Every transaction is recorded on the blockchain so the requirement of resources to process and store the information continually grows.

This poses a scalability issue for high volume transactions. Recording every payment would certainly constitute high volume.

If blockchain can scale to the point where governments can ban cash and record every transaction, expect instant tax collection and loss of privacy.

  1. The government will know where every penny is at every 2nd.
  2. The government will know every monetary transaction real time.
  3. You will no longer be able to give the babysitter, gardener, bartender, a friend, or anyone else an extra penny without the government knowing.
  4. Sales tax collection and VAT tax collection will be instantaneous.
  5. Governments can impose negative interest rates and other confiscation schemes at will.

If cash is banned, the blockchain will record every penny you spend, and who you gave it to.

Money laundering will become much more difficult, but the cost will be a loss of privacy, threats of negative interest rates, and other cash confiscation schemes.

  • Printer-friendly version
  • Feb 24, two thousand seventeen Ten:40 PM
  • 121

Anybody care to guess how crooked taht will be?

Trump was right in respect to masters of currency manipulation.

laughing just mine your own eh comrade?

It has to be bad when they stoop to this.

Someone should have seen this coming a long time ago. Oh that’s right it was shown in this movie a long time ago. Must observe ’cause it’s not just China the Fed is going to go this route as well! It’s coming!

Nationalist digital currencies are free to go up against teh mighty Bitcoin. and they will lose.

Not only lose, but shamed. Greshams law will kick in, and people will spend the bad bitcoin digits as swift as they can. But when the luxury items and other goods give a discount for bitcoin guess which will be used. Besides, if governments want to embark using digitial currencies they’ll be training consumers for free about how Bitcoin works and then why use national crappy fractional reserve digitial currencey that will lose value, when the free range defaltionary currency which will only become more vauable in an inflationary environment is available.

Canaduh said it would have its own digital currency, the “Mint Chip” back in 2011. still waiting.

Here’s the deal, they want to make a Bitcoin killer but they are tied by their own crimson gauze, laws and penchant urge to print and commit fraud. And Bitcoin has very first mover’s advantage plus Bitcoin fights dirty.

I’m making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I determined to look into it. Well, it was all true and has totally switched my life. This is what I do. http://bit.ly/2jdTzrM

China will realize that they will be incapable to challenge against Bitcoin and will soon embrace Bitcoin into their currency mix.

Should we begin throwing pedos off tall buildings?

CommieCoin® wirr rure da worrd.

What the PBOC is failing to understand that it is not just the digital currency, its that fact that its Btc is P2P where the Gooberment and Banks are not invited for evident reasons.

And of coure, the chinese know this, so they will use one currency for one thing and the other currency for fairly the other.

What people are failing to see is that Bitcoin required the use of the internet and the governments own the gates and the pipeline. Why do we not know the actual inventor of bitcoin and the underlying block chain. Oh that’s right because Satoshi is nothing more than a patsy because the NSA is intricately involved.

A crisis is coming that will force feed the destruction of all fiat currencies as the animal phases in the block chain technology where no one will be able to by or sell within three 1/Two years of this currency crises. Recall India was a test run of peoples preparedness to get along to go along.

Bitcoin was nothing more than a adorable name that is railing atop this block chain till they get all the bugs worked out and of course peg all those nefarious little users who just might buck the system. It amazes me how much these rogue players underestimate the capability of the NSA to keep tabs on all those using bitcoin.

Just reminisce what was written two thousand years ago is transpiring right before our eyes and is mandated by a Father and no one will be able to escape this except through Christ:

Revelation 13:14-18 And he deceiveth them that dwell on the earth by reason of the signs which it was given him to do in the view of the animal; telling to them that dwell on the earth, that they should make an photo to the animal who hath the stroke of the sword and lived. (15) And it was given unto him to give breath to it, even to the photo of the breast, that the photo of the animal should both speak, and cause that as many as should not idolize the pic of the animal should be killed. (16) And he causeth all, the petite and the excellent, and the rich and the poor, and the free and the bond, that there be given them a mark on their right arm, or upon their forehead; (17) and that no man should be able to buy or to sell, save he that hath the mark, even the name of the animal or the number of his name. (Legal) Here is wisdom. He that hath understanding, let him count the number of the brute; for it is the number of a man: and his number is Six hundred and sixty and six.

The Chinese are pikers compared to US currency manipulation especially since 1971.

I know right little amateurs

Get the frick out of Ethercoin and invest in physical in your possession Gold and Silver before it is too late!

Gold. Not silver/

Silver has more reasons to own it then gold and will have a much higher % profit build up then gold.

Silver is the most leveraged commodity with brief paper contracts in the world. Its an accident waiting to happen.

Silver is CONSUMED in tech as well.

Silver will become too precious to trade as money, since it is essential to electric current production .

Gold will envy silver’s value.

Nonsense, the both of you. Price will overcome silver supply problems. As prices rise, companies will begin mining landfill sites.

song is fitting

Funny you say that. The other day I was driving past our cities landfill. It’s about four hundred feet high. I told my wifey, “I bet it you dug down about one hundred feet you would find hundreds of thousands of dollars in silver coins that just got scooped up and threw out–like pennies in a vacuum cleaner.

Mining landfills? Man, now THERE’S a job. Where do I sign up? 😉

I agree. eth is crap. Buy Bitcoin instead.

When will you guys learn?

You can own both “ethercoin” and metal at the same time, there’s no rule against it. It’s called “diversification”, a novel concept I know.

Honestly this is bullshit. Everyone keeps attempting to find reasons for x,y and z. Bitcoin is the premier medium for drug purchases online. Why cant that be the reason ?

Also. All capital flight can be supplimented with the three trillion in forex and a trillion in US dollar debt they have. They don’t need those dollars. The EU is their thickest tarde fucking partner. Not USSA.

China’s problems are US dollar bearish. Thats a fact.

Bitcoin gets its value from vendor acceptance in the drug dark net markets (DNMs). Bitcoin is also trackable due to its open blockchain architecture. This means if you pay me in bitcoin, I know how much money Is in those feeder addresses and so on up the tree. I also know if you bought drugs if I knew the drug dealer’s addresses, which does indeed happen. Bitcoin is ill suited for DNM use due to these serious privacy issues.

Since I know if your stash is tainted or not, Bitcoin is not fungible. Want to pay me in coins related to DNM transactions and make your bad coins my problem? No thanks.Your coins are worthless to me. The only reason it is used on the DNMs is its relative transactional and monetary immutability, which is a result of its gigantic miner base. Odsly enough, China is the superior locale for mining. China has killed people for less.

Bitcoin also suffers from a fractious developer community. The core programming group has been co-opted by AXA and PWC. The result is transaction delays, high fees, and transactions drops.Bitcoin is on very skinny ice due to low privacy, low fungibiloty, an unstable.mining base, network problems, and co-option by globalists.

Inject Monero (XMR). XMR’s blockchain is private, which make it fungible. It stops others from knowing how much you have. It stops others from observing your previous transactions. XMR coins have no taint. XMR is not as immutable as the mighty Bitcoin, but has been practically immutable for a while. It is not co-opted. It’s developer group is quick and cooperative. And some DNMs are now accepting it.

What happens when interpol and FBI bust the DNMs again with bitcoin chainalysis providing key evidence? Worse for them, Bitcoin’s blockchain implicates thousands of other parties. Will the DNM vendors then request payment in Monero? Of course they will.

Some will say governments will squash Monero. They will certainly attempt. But Monero runs under the surface. Hard to see and hard to track. It indeed is something fresh and different. It is some kind of fresh and significant invention that will switch humanity soon.

As Bitcoin Surges To Record High, China Prepares Its Own Digital Currency, Zero Hedge

As Bitcoin Surges To Record High, China Prepares Its Own Digital Currency

Traders are glad because the SEC is expected to rule on a Bitcoin ETF by March 11.

After assembling a research team in 2014, the People’s Bank of China has done trial runs of its prototype cryptocurrency. That’s taking it a step closer to becoming one of the very first major central banks to issue digital money that can be used for anything from buying noodles to purchasing a car.

At the same time as it builds up its own capabilities, the PBOC is enlargening scrutiny of bitcoin and other private digital tenders. It doesn’t want a bitcoin bubble to deep-throat up. And since currencies have historically been issued by the state, not private players, it doesn’t want to cede the cryptocurrency space to companies it has no control over.

Chinese people have embraced online payments for just about everything. To buy a can of Coke, thirsty commuters scan QR codes on their smartphones rather than feed coins into a vending machine. At Lunar Fresh Year gatherings, money is exchanged via a few presses on a smartphone instead of crisp notes transferred over in crimson envelopes.

All of that poses a challenge to the PBOC’s status as the central bank of both the digital and physical realms. So if you can’t strike them, join them.

“Getting to know more precisely how much banks lend, where the money goes and the tempo of credit creation is key to curbing money laundering and making monetary policy more effective,” said Duan Xinxing, vice president of Beijing-based OKCoin Co., one of the country’s thickest bitcoin exchanges. Issuing digital currency will make it lighter for the PBOC to monitor risk in the financial system and track transactions economy-wide, he said.

OKCoin is among cryptocurrency exchanges that has recently taken steps to halt bitcoin withdrawals amid efforts to pinch down on capital outflows.

In January 2016, the PBOC said it will have its own cryptocurrency “soon,” but there has still been no formal begin date announced. In the meantime, there’s been strong advocacy from senior officials, including Fan Yifei, one of the PBOC’s deputy governors.

“Cutting costs is an evident benefit, but the influence of shifting to blockchain-based digital money from the current payment structure goes beyond that,” said Larry Cao, director of content at the CFA Institute in Hong Kong. “There’s a potential you can pay anybody in the system, any bank, and any merchant directly. Blockchain will switch the entire infrastructure. This is revolutionary.”

For the PBOC, using blockchain, the technology that underpins the digital currency bitcoin, will permit it to trace transactions and collect “real-time, accomplish and authentic” data to compile precise monetary indicators such as money supply growth, OKCoin’s Duan said.

“The transparency of economic activities in every corner in the country will significantly improve,” Duan said. “The central bank will have unprecedented skill of how the economy runs.”

So instead of relying on monthly surveys of businesses, or collations of spending from the statistics authority, the PBOC and therefore the government would have real-time readings on the pulse of consumers. Policies could then be fine tuned on a day-to-day, even hour-to-hour basis, providing an unprecedented level of precision to monetary management.

Bitcoin is a primary means of capital flight out of China. How long will that last?

Here’s one key thought on bitcoin from the article: “OKCoin is among cryptocurrency exchanges that has recently taken steps to halt bitcoin withdrawals amid efforts to tweak down on capital outflows.

When China launches its own cryptocurrency, will it ban Bitcoin transactions?

If so, what happens to the price of Bitcoin?

The launch of a Bitcoin ETF reminds me of those waiting for the launch of JDSU Leap Options in two thousand so they could “explosion the boat”.

During the 1990s, JDS Uniphase stock was a high-flyer tech stock investor beloved. Its stock price doubled three times and three stock splits of Two:1 occurred toughly every ninety days during the last half of one thousand nine hundred ninety nine through early 2000, making millionaires of many employees who were stock option holders, and further enabling JDS Uniphase to go on an acquisition and merger binge. After the telecom downturn, JDS Uniphase announced in late July two thousand one the largest (up to then) write-down of goodwill. Employment soon dropped as part of the Global Realignment Program from almost 29,000 to approximately Five,300, many of its factories and facilities were closed around the world, and the stock price dropped from $153 per share to less than $Two per share.

I like the blockchain technology behind digital currencies like Bitcoin. Blockchain is ideally suited for recording mortgages, deeds, autos, etc.

Title insurance companies will cease to exist, at least as stand alone title companies.

Every transaction is recorded on the blockchain so the requirement of resources to process and store the information continually grows.

This poses a scalability issue for high volume transactions. Recording every payment would certainly constitute high volume.

If blockchain can scale to the point where governments can ban cash and record every transaction, expect instant tax collection and loss of privacy.

  1. The government will know where every penny is at every 2nd.
  2. The government will know every monetary transaction real time.
  3. You will no longer be able to give the babysitter, gardener, bartender, a friend, or anyone else an extra penny without the government knowing.
  4. Sales tax collection and VAT tax collection will be instantaneous.
  5. Governments can impose negative interest rates and other confiscation schemes at will.

If cash is banned, the blockchain will record every penny you spend, and who you gave it to.

Money laundering will become much more difficult, but the cost will be a loss of privacy, threats of negative interest rates, and other cash confiscation schemes.

  • Printer-friendly version
  • Feb 24, two thousand seventeen Ten:40 PM
  • 121

Anybody care to guess how crooked taht will be?

Trump was right in respect to masters of currency manipulation.

laughing just mine your own eh comrade?

It has to be bad when they stoop to this.

Someone should have seen this coming a long time ago. Oh that’s right it was shown in this movie a long time ago. Must observe ’cause it’s not just China the Fed is going to go this route as well! It’s coming!

Nationalist digital currencies are free to go up against teh mighty Bitcoin. and they will lose.

Not only lose, but shamed. Greshams law will kick in, and people will spend the bad bitcoin digits as rapid as they can. But when the luxury items and other goods give a discount for bitcoin guess which will be used. Besides, if governments want to begin using digitial currencies they’ll be training consumers for free about how Bitcoin works and then why use national crappy fractional reserve digitial currencey that will lose value, when the free range defaltionary currency which will only become more vauable in an inflationary environment is available.

Canaduh said it would have its own digital currency, the “Mint Chip” back in 2011. still waiting.

Here’s the deal, they want to make a Bitcoin killer but they are tied by their own crimson gauze, laws and penchant urge to print and commit fraud. And Bitcoin has very first mover’s advantage plus Bitcoin fights dirty.

I’m making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I determined to look into it. Well, it was all true and has totally switched my life. This is what I do. http://bit.ly/2jdTzrM

China will realize that they will be incapable to rival against Bitcoin and will soon embrace Bitcoin into their currency mix.

Should we begin throwing pedos off tall buildings?

CommieCoin® wirr rure da worrd.

What the PBOC is failing to understand that it is not just the digital currency, its that fact that its Btc is P2P where the Gooberment and Banks are not invited for visible reasons.

And of coure, the chinese know this, so they will use one currency for one thing and the other currency for fairly the other.

What people are failing to see is that Bitcoin required the use of the internet and the governments own the gates and the pipeline. Why do we not know the actual inventor of bitcoin and the underlying block chain. Oh that’s right because Satoshi is nothing more than a patsy because the NSA is intricately involved.

A crisis is coming that will force feed the destruction of all fiat currencies as the brute phases in the block chain technology where no one will be able to by or sell within three 1/Two years of this currency crises. Recall India was a test run of peoples readiness to get along to go along.

Bitcoin was nothing more than a lovely name that is railing atop this block chain till they get all the bugs worked out and of course peg all those nefarious little users who just might buck the system. It amazes me how much these rogue players underestimate the capability of the NSA to keep tabs on all those using bitcoin.

Just recall what was written two thousand years ago is transpiring right before our eyes and is mandated by a Father and no one will be able to escape this except through Christ:

Revelation 13:14-18 And he deceiveth them that dwell on the earth by reason of the signs which it was given him to do in the view of the animal; telling to them that dwell on the earth, that they should make an pic to the animal who hath the stroke of the sword and lived. (15) And it was given unto him to give breath to it, even to the pic of the breast, that the photo of the animal should both speak, and cause that as many as should not adore the photo of the brute should be killed. (16) And he causeth all, the puny and the excellent, and the rich and the poor, and the free and the bond, that there be given them a mark on their right palm, or upon their forehead; (17) and that no man should be able to buy or to sell, save he that hath the mark, even the name of the brute or the number of his name. (Eighteen) Here is wisdom. He that hath understanding, let him count the number of the brute; for it is the number of a man: and his number is Six hundred and sixty and six.

The Chinese are pikers compared to US currency manipulation especially since 1971.

I know right little amateurs

Get the frick out of Ethercoin and invest in physical in your possession Gold and Silver before it is too late!

Gold. Not silver/

Silver has more reasons to own it then gold and will have a much higher % profit build up then gold.

Silver is the most leveraged commodity with brief paper contracts in the world. Its an accident waiting to happen.

Silver is CONSUMED in tech as well.

Silver will become too precious to trade as money, since it is essential to electro-therapy production .

Gold will envy silver’s value.

Nonsense, the both of you. Price will overcome silver supply problems. As prices rise, companies will begin mining landfill sites.

song is fitting

Funny you say that. The other day I was driving past our cities landfill. It’s about four hundred feet high. I told my wifey, “I bet it you dug down about one hundred feet you would find hundreds of thousands of dollars in silver coins that just got scooped up and threw out–like pennies in a vacuum cleaner.

Mining landfills? Man, now THERE’S a job. Where do I sign up? 😉

I agree. eth is crap. Buy Bitcoin instead.

When will you guys learn?

You can own both “ethercoin” and metal at the same time, there’s no rule against it. It’s called “diversification”, a novel concept I know.

Honestly this is bullshit. Everyone keeps attempting to find reasons for x,y and z. Bitcoin is the premier medium for drug purchases online. Why cant that be the reason ?

Also. All capital flight can be supplimented with the three trillion in forex and a trillion in US dollar debt they have. They don’t need those dollars. The EU is their largest tarde fucking partner. Not USSA.

China’s problems are US dollar bearish. Thats a fact.

Bitcoin gets its value from vendor acceptance in the drug dark net markets (DNMs). Bitcoin is also trackable due to its open blockchain architecture. This means if you pay me in bitcoin, I know how much money Is in those feeder addresses and so on up the tree. I also know if you bought drugs if I knew the drug dealer’s addresses, which does indeed happen. Bitcoin is ill suited for DNM use due to these serious privacy issues.

Since I know if your stash is tainted or not, Bitcoin is not fungible. Want to pay me in coins related to DNM transactions and make your bad coins my problem? No thanks.Your coins are worthless to me. The only reason it is used on the DNMs is its relative transactional and monetary immutability, which is a result of its gigantic miner base. Odsly enough, China is the superior locale for mining. China has killed people for less.

Bitcoin also suffers from a fractious developer community. The core programming group has been co-opted by AXA and PWC. The result is transaction delays, high fees, and transactions drops.Bitcoin is on very skinny ice due to low privacy, low fungibiloty, an unstable.mining base, network problems, and co-option by globalists.

Inject Monero (XMR). XMR’s blockchain is private, which make it fungible. It stops others from knowing how much you have. It stops others from watching your previous transactions. XMR coins have no taint. XMR is not as immutable as the mighty Bitcoin, but has been practically immutable for a while. It is not co-opted. It’s developer group is quick and cooperative. And some DNMs are now accepting it.

What happens when interpol and FBI bust the DNMs again with bitcoin chainalysis providing key evidence? Worse for them, Bitcoin’s blockchain implicates thousands of other parties. Will the DNM vendors then request payment in Monero? Of course they will.

Some will say governments will squash Monero. They will certainly attempt. But Monero runs under the surface. Hard to see and hard to track. It indeed is something fresh and different. It is some kind of fresh and significant invention that will switch humanity soon.

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