In the Chinese capital city Beijing, further steps have been made towards a full roll-out of a central bank digital currency (CBDC). Moreover, additional steps were made by cutting the energy supply of big mining farms in Sichuan. Also, billionaire Mark Cuban addressed the importance of governments and regulators embracing crypto innovations, while Paraguay is working on bitcoin legislation.
ATMs in Beijing can now convert the digital yuan into cash
CBDC, as opposed to a cryptocurrency, is digital central bank money that has the same exchange properties as the well-known fiat money. However, depending on the model, it can differ significantly from fiat money. This digital money is regulated and does not behave like sometimes highly volatile distributed ledger technology (DLT)-based cryptocurrency. According to cointelegraph, over 3000 automated teller machines (ATM) now have a feature that enables them to convert e-CNY, also known as digital yuan, into physical cash and vice versa. The Industrial and Commercial Bank of China (ICBC) and The Agricultural Bank of China (ABC) implemented the feature, making ICBC the first bank in the country to fully support both deposits and withdrawals of the digital yuan. Being a proponent of a central digital currency, China continuously makes such efforts, creating awareness for the digital yuan to achieve the goal of replacing physical cash with CBDC.
Sichuan government cuts energy supply for 26 mining farms
Last Friday, the Sichuan government ordered the state-owned power grid to cut the energy supply for 26 local mining farms by June 20 latest. As a result, Antpool, BTC.com, and Poolin are experiencing a 10% to 20% plunge in real-time hash rate. Thus, the one-day average of bitcoin´s hashing power went from 127 exahashes per second to 111 exahashes per second. According to The Block, the governmental intent seems to be on reducing carbon emissions from bitcoin miners. Such forms of pressure could be indications of the current prompt fall of the Bitcoin price.
Paraguay working on bitcoin legislation
Paraguay is following El Salvador´s example and is working on bitcoin legislation. Deputy Carlos Antonio Rejala Helman of the Hagamos Party will present bitcoin legislation in congress next month. The congressman´s aim is for Paraguay to be a global hub for crypto investors. The deputy is preparing a bill that seeks to legalize the use of cryptocurrencies in Paraguay as a means of payment. According to Bitcoin.com, he even changed his Twitter profile picture to include laser eyes, proving his faith in bitcoin. The laser eyes implicate that he eyes bitcoin going to $100.000 US Dollars.
Mark Cuban pointing out the potential of the DeFi industry
Mark Cuban, billionaire investor and owner of the National Basketball Association´s Dallas Mavericks, wrote a blog post on the potential of the decentralized finance industry (DeFi). The blog post is titled “The Brilliance of Yield Farming, Liquidity Providing and Valuing Crypto Projects”. In the post, he argued that the U.S. government and regulators need to embrace crypto innovations, such as DeFi rather than restricting it. Otherwise, the U.S. would “lose the next great growth engine that this country needs”. Pointing out his worries that politicians might waste this growth potential by dampening innovation, he still predicted the emergence of world-changing companies within the next 10 to 20 years.
And more exciting news from around the world:
- Neobank N26 will enable crypto trading to all their seven million users by the end of this year
- Transaction costs on the Ethereum Blockchain have dropped nearly 90%
It was a great week for blockchain technology. Follow us for more exciting news and be part of the blockchain revolution by joining our BLOCKCHANCE EUROPE 2021 conference in Hamburg in December 2021. You can get tickets here.