China, the emerging global powerhouse, is extensively utilizing blockchain technology in many industries. China is pushing up the development of the blockchain ecosystem and digital currencies to a great extent recently.
Xiao Gang, the China Securities Regulatory Commission former member, stated that lawmakers and government bodies need to reform rules and regulations as the country’s economy is stepping into the era of digitalization.
While attending the online conference, the 19th Pushan Lectures of China Finance 40 Forum, on July 17, Xiao said there is an instant requirement to cover digital reform:
The development of the digital capital market faces the problem of organizational change. The most typical, such as the cryptocurrency exchange, is bound to happen in the future. How to deal with such organizational change is also a problem that we may encounter.
Xiao stated that several areas require further research, including the development of trusts, the improvement of paths, and data exposure.
We must adhere to the principles of openness, inclusiveness, sharing and fairness in the development of the digital capital market […] we should actively embrace new technologies, prudently innovate business models […] promote data connectivity and create a fair market environment.
Several firms in China have been employing blockchain technology to streamline digitization efforts. As reported earlier, The Public Bank of China had conducted the digital currency pilot in major cities of China, including Chengdu, Xiongan, Shenzhen, and Suzhou. However, Chinese officials haven’t given any launched date for the digital Yuan.
DeFi tokens have presented great potential so far in 2020, greatly outperforming leading cryptocurrencies like Bitcoin. Enthusiasm for DeFi tokens has given a significant lift by the introduction of Compound token, which surged almost 500% a week ago.
Recently. Balancer Labs has distributed its Balancer token (BAL) on the Ethereum mainnet. Balancer’s decentralized finance token followed excitement generated by the distribution of COMP token, and made tremendous gains. After the launch, Uniswap and Balancer opened up for BAL token for trading.
In just a day of trading, BAL price bounced from $7 to $22. Currently, BAL is trading at $20.
DeFi Tokens Reach New Heights
CoinMarketCap analysis shows that Ren (REN), Synthetix (SNX), and Aave (LEND) had also marked substantial growth.
Aave token price has surged roughly 3,900%. After trading close to $0.01 for a year, LEND price initially rallied to $0.05 in May, then jumped to $0.16 on June 21.
However, the newly launched Balancer has quickly become one of the most expensive networks in the space. BAL token value has grown over 220% since its deployment on the Ethereum mainnet.
DeFiMarketCap recently listed Balancer and Compound on its website. After recent value growth following their token distributions, both DeFi tokens have spotted the top positions.
According to DeFiMarketCap analysis, DeFi tokens had recently crossed the $2 billion target just a couple of weeks ago, but the recent Defi token growth had pushed the total DeFi market cap above $7 billion.
PayPal, the most popular online payment service in the world is reported to be working on the integration of crypto to the platform. The platform was already working with major cryptocurrency firms like Coinbase since 2014.
According to Ian Allison report, PayPal and Venmo are shaping the plans to propose crypto service to users. However, market sources haven’t disclosed which cryptos will be supported. It seems the firm “would be working with multiple exchanges to source liquidity.”
An industry source told CoinDesk:
My understanding is that they are going to allow buys and sells of crypto directly from PayPal and Venmo. They are going to have some sort of a built-in wallet functionality so you can store it there.
Speculations About PayPal Integrating Crypto Prompted A Quick Market Recovery
PayPal has not published an official statement on the rumors yet but according to Coindesk, the news are confirmed by three different sources.
After trading sideways for the past week, Bitcoin had a 4% price surge on June 22 right after the rumors, blasting through all the previous daily resistances and eying up $10,000 yet again.
Will Bitcoin finally crack $10,000 or will it get rejected once more?
Ethereum, the second-largest crypto in terms of market cap, is exhibiting a positive sign as more than 80% of its supply moved in profit on June 10.
As per Glassnode recent market analysis chart, back to back for the 3rd time in 2020, Ethereum supply has jumped over 80%, “Last time the Ethereum’s supply in profit was significantly above 80%, ETH was priced at around $700,” as mentioned in the report.
Furthermore, the crypto analytics firm Glassnode chart shows that Ethereum has entered a positive zone. Similar zone from where ETH had started its bullish phase last time. On prior events when ETH reached the 100% mark, it was supplanted by an abrupt change.
However, data demonstrated that the firm solely recounted Externally Owned Accounts for this analysis.
Bullish Phase Short-Lived for Ethereum
In May, ETH rallied between $250–$252 could be the initial signs for the bullish phase. However, this surge has also fueled the transactional gas to reach a new height. The network’s overall gas has surged from $0.08 to $0.41.
Although Ethereum presented positive signs, somehow its bullish phase was short-lived. Currently, ETH is trading at $235. The crypto analyst believes that Bitcoin’s recent volatility played a significant roll in the price fall of ETH.
Tether is getting closer and closer to beat Ethereum and surpass it in terms of market capitalization. According to a recent Bloomberg report, USDT coins are getting issued at an exponential rate.
USDT has already surpassed XRP and it’s currently the third-largest asset in the market with a cap of $8.7 billion. Furthermore, the crypto expert that created the report also believes that due to abrupt growth in stablecoins, investors’ interest in digital currencies has surged.
We see little upside in the ETH price absent a rising tide from Bitcoin. The pre-eminent crypto is breaking away from the pack in terms of adoption and is supported by almost-ideal macroeconomic conditions for stores-of-value amid quantitative easing
Tether Is Dominating Stablecoins
The report clarifies that dollar-pegged digital assets are rising as the US dollar is also rising against other fiat currencies.
USDT is now essential for the crypto market even though there are plenty of other stablecoins available, most people use USDT which now has a ton of liquidity across all exchanges.
In fact, Tether transactions have surged from $17.4 billion daily to over $55 billion.
According to a new institutional law, the crypto firms based in Canada will be officially acknowledged as Money Service Businesses (MSB).
Francis Pouliot, the CEO of BullBitcoin, has been working very to legitimize cryptocurrencies and cryptocurrency businesses in Canada.
On May 29, Francis Pouliot tweeted:
Today is my last day as an unregulated dealer in virtual currency. As of June 1, 2020, Bitcoin exchanges and payment processors are officially regulated as Money Services Businesses in Canada.
Pouliot announced that the new law is a result of over half a decade of his efforts. “I’ve been closely involved with the process, starting in 2014, collaborating particularly with the Ministry of Finance and FINTRAC. Our stance never changed: Bitcoin is money, it should be regulated like other money, no more no less,” he added.
Crypto Firms Will Need to Register With FINTRAC
According to the new law, Crypto firms will need to register with the FINTRACT and notify them of all transactions that surpass more than $7,000.
Pouliot highlights that the new rules and regulations will mainly support crypto activities related to cash like Bitcoin ATM operators, adding that “most Bitcoin businesses already had KYC measures in place […] because they were required to do so by their banking or payment processing partners.”
Ripple is looking to explore new opportunities in Latin America by offering new services. Last year, the firm had introduced its Sao Paulo office with the intention to expand on Latin America specifically, Brazil.
In December 2019, the general director of the firm, Luiz Antonio Sacco, stated that Ripple was aimed to set up a new collaboration with institutional firms and banking sectors throughout 2020.
Ripple’s primary focus is the remittance market. The firm is planning to offer new services for Latin American users that could facilitate them in cross border transactions by utilizing XRP. Currently, Brazil remittance streams are estimated at more than $2.5 million.
Ripple Secured New Partnership to Expand its Platform
According to recent information disclosed by the financial institution’s website, Brad Garlinghouse along with other firm’s officials had a closed-door video conference with the Central bank of Brazil to bring “institutional matters” under to light.
The United States Consumer Financial Protection Bureau has also acknowledgedRipple and XRP performancein cross-border transfers.
However, Ripple (XRP) seems to be losing its ground as adoption amid retail investors is fading away. As reported earlier, USDT has now surpassed XRP and it’s ranked 3rd by market capitalization. XRP has dropped from almost $130 billion to somewhere under $9 billion mcap.
The mining community has been facing a lot of issues recently and not only because of Bitcoin’s halving. Some mining platforms are not getting profits because the Bitcoin hash rate has been unstable during the first quarter of 2020.
Adam Traidman, CEO of Ripple SBI Asia stated that the mining community will soon observe a significant shift towards the west.
We are seeing a huge interest [from][ wealthy Chinese miners who are paying somewhere on average of $0.03 to $0.05 per kilowatt-hour […] in Texas at $0.025 and below — in some cases way below
Mining War Between Two Countries
Adam also talked about the Bitcoin mining situation in the United States saying:
One of the issues is that the good old boys in Texas in some cases have a little bit of a bad taste in their mouth about working with some of the firms from overseas, based on some early attempts that didn’t work out well for a variety of business reasons. So there is a little bit of trepidation there, which is interesting. But money overcomes all of that, and I think over the next three years, you’re going to see a huge influx into the U.S
Traidman also pointed out the fact that Trump’s taxes are heavily impacting the mining sector in China.
The one other thing that is slowing it down is the tariffs from Trump on China. That is really hurting things right now, so as soon as those are lifted, it’ll be like this ‘boom’ – a huge acceleration,” he said
Sichuan Mines More Bitcoins Than The US
China has experienced an increase in illegal activity under the activity of mining. According to an official statement by the Chinese government, the rising crypto prices are fueling this illegal activity.
Sichuan, a Chinese state, mines around 10% of Bitcoins in the world according to a recent analysis from the University of Cambridge. Sichuan might restrict the mining of Bitcoins soon, something that will certainly have an impact globally.
Brad Garlinghouse, CEO of Ripple, told some of the United States regulators to look into blockchain technology in order to maintain the dominance of the US dollar. In a series of tweets, Brad highlighted certain areas of the global financial system that are mostly outdated and could be improved by adopting crypto and blockchain technology.
He also pointed out that the US is losing ground in terms of digital currency development. He noted that China is pushing up the development of digital currencies to a great extent; its central bank digital currency has the strength and mindset to overtake the dollar as an international currency.
The US Stands Behind in the Development of CBDC
The financial infrastructure of the United States is completely centered around the dollar’s status.
However, analysts believe that China’s active involvement in crypto and blockchain industries at this uncertain period of time could be a threat to the US financial system. Recently it has been reported that Chinese officials are looking into a digital Yuan possibility although, China didn’t announce any actual date for the launching of the digital currency.
Garlinghouse also emphasizes that the US is already standing behind in the development of cryptocurrencies compared to China. Brad further disclosed that financial investors are looking to join the crypto community if the US regulatory creates a welcoming framework.
Brad said in a tweet.
This piece nails it. One caveat – public digital assets like XRP are not exempt from U.S. (or global) financial oversight – actually the opposite. Responsible players who use these assets want to work with regulators, not against them.