Global Coin Research: Top news in Asia from Tuesday to today

Korean exchange Bithumb announces plans to start of EOS blockchain … The report says that Koreans own about 10% of EOS tokens and Bithumb …

Quick Take

  • A summary of the week’s top crypto news in Asia by Global Coin Research

by Ryan Todd

15 hrs ago · 3 min read

This twice-weekly newsletter is republished with permission from Global Coin Research, a global research firm with a focus on Asia blockchain and related technologies. You can find more resources on Asia Cryptocurrency and Blockchain at GlobalCoinResearch.com and on Twitter at @globalcoinrsrch


Top News

It’s Now Harder to Mine Bitcoin Than Ever. The arrival of the rainy season in China’s southwest has been delayed by nearly a month compared to previous years. Source

The Beijing Internet Finance Industry Association (BIFIA), a self-organized association of China’s internet finance players, just released a notice pointing out that projects such as Algorand and VDS, are vigorously promoting their virtual coins with roadshows and meetups, under the disguise of academic research. BIFIA reiterated the 2017 ICO ban content and other historical warnings, stating that ICO, IFO, IEO and IMO are with extreme risks and these illegal behaviors are strongly deceptive to the investors. Source

Binance in Talks with Facebook Over Listing Libra, may also support the Libra blockchain by acting as a permissioned node that validates transactions. Source

South Korean internet company Kakao has rolled out a public network platform called Klatyn. It’s a proof of stake based blockchain with enterprise participants including China’s Wanxiang blockchain, Philippines’ Union Bank, LG, Kakao, and Gaming companies such as Netmarble and PUBG. Here’s a comparison of its governance council vs Libra’s association. Source

Global Coin Research did a workshop on STOS with Securitize’s head of Asia Jacqueline Kwok. Securitize has 19 upcoming STOs and more takeaways. Source

Most Clicked on From the Last Newsletter

Korean exchange Bithumb announces plans to start of EOS blockchain voting. The report says that Koreans own about 10% of EOS tokens and Bithumb owns the most out of all the Korean exchanges. Source

Deals and Exchange News

Chris Paik and Jordan Cooper, formerly investors from Thrive Capital and Lerer Hippeau, respectively, have raised a $150 Million vehicle focused on Series A investments including crypto. Source

GCR highlights from an interview with Binance co-founder He Yi: Binance US coming soon; BTCB challenging USDT. Source

Binance and stablecoin issuer Paxos have collaborated to simplify exchanging of fiat directly for the stablecoin Paxos Standard. Source

Huobi exchange will expand its operations to Turkey, planning to have a crypto-to-fiat onramp for Turkish users by the end of 2019. Source

Exchanges encountering problems around the world:

-Ireland-based cryptocurrency exchange Bitsane disappeared without a trace last week, likely taking hundreds of thousands of users’ assets with it. Source

– Singaporean crypto exchange Bitrue gets hacked, loses $4.3 million in XRP, ADA. Source

-Another top Indian crypto exchange, Koinex, is shutting down amidst regulatory uncertainty. Source

Business

Xinhua News Agency, China’s state-owned media, pointed out that Bitcoin is being treated as a safe asset by investors and is funding a fund. Source

Alex Gladstein on the ongoing Hong Kong protest and Bitcoin As Cash Fades, Will Bitcoin Keep Protest Alive in the Surveillance Age? Source

China’s G20 spokesmen: “G20 is paying a lot attention on how to use new #technology in traditional finance industry, like #digitalcurrency and digital asset. China is doing pretty good in these areas.” Source

Regulations

The Monetary Authority of Singapore has spoken to the firm about its new cryptocurrency project — verdict is that there are still serious concerns but its early to tell. Source

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What You Need to Know about Facebook’s New Digital Currency

Social media giant Facebook is getting into the digital currency business. The company has announced plans to introduce a cryptocurrency called …

Social media giant Facebook is getting into the digital currency business. The company has announced plans to introduce a cryptocurrency called Libra to the marketplace, just as soon as it gets approval. The driving force behind Libra is to make online payments and transactions easier, especially for people without traditional bank accounts or credit cards.

What is aCryptocurrency?

Before you can consider clicking Like on Libra, it’s important to know what a cryptocurrency is. You can’t physically trade cryptocurrency because there are no tangible dollars and coins.

Libra is adigitally signed computer code. It aims to be like Bitcoin, the most well-knowndigital currency on the market. But, Facebook is taking a slightly differentapproach.

“Libra is a stablecoin backed by corporations and based on US dollars,” Logan Golema, chief technology officer for Hercules SEZC tells Parentology.

Those corporations Golema is referring to include PayPal, MasterCard and Visa.

facebook libra
Photo: josefkubes, iStock

How Does aCryptocurrency Work?

When people buy cryptocurrency, like Libra, they’ll be able to store it in a virtual wallet. When they need to send money or buy something, they spend their Libra currency just as they would their normal cash. Facebook is hoping to keep Libra’s value consistent by tying it to established currencies.

“They’re legitimizing cryptocurrency to billions of people and making it mainstream,” Golema says.

Golema tells Parentology that with such a large user base, it makes sense for Facebook to move into the cryptocurrency space. He doesn’t believe, though, that Libra can ever replace existing cryptocurrencies like Bitcoin or Ethereum.

Facebook’sHurdles with Libra

The Librablockchain will provide a tamper-proof record of transaction on the network,but that may not be enough for people to put their trust in it.

It’s no secret Facebook has been battling privacy issues, which could make some people skeptical of joining the Libra bus.

Facebook Libra
Photo: josefkubes, iStock

The head of the House Financial Services Committee has asked Facebook to suspend plans for Libra until there’s time to study it more closely. As of this writing, hearings are scheduled for July in both the House and Senate to further discuss Libra. US lawmakers want to know what kind of impact Libra will have on US currency, among other things.

In astatement to AP News, Facebook said, “We look forward to responding tolawmakers’ questions as this process moves forward.”

What’s Next

Golema believes Facebook will be successful in getting people to accept Libra. “Let’s not forget a lot of people have already signed over their privacy for accessibility and convenience.”

Lyft, Uber and Spotify have already signed on with Libra. They’ll likely accept Libra once it launches. Facebook hopes to debut Libra sometime next year.

Sources

Logan Golema, Chief Technology Officer, Hercules SEZC

AP News

TechCrunch

CNN

Coinsource adds Dai stablecoin to Bitcoin ATM, sets sites on remittances

A stablecoin is a virtual currency that has a stable value and is backed by another asset. MakerDao, a decentralized organization, issues Dai, which is …

Coinsource, a Texas-based Bitcoin ATM operator, is adding the Dai stablecoin to its machines this summer in preparation for a full remittance service, according to a report in Reuters.

A stablecoin is a virtual currency that has a stable value and is backed by another asset. MakerDao, a decentralized organization, issues Dai, which is backed by an underlying basket of crypto assets. Dai is pegged one-to-one to the US dollar, so that one Dai is worth roughly $1.

Stablecoins allow traders to manage the wild volatility of cryptocurrencies, such as bitcoin. When the prices go down, they can move funds into a stablecoin and wait till the market picks up again. The idea is similar to keeping funds in cash, as opposed to other investment vehicles.

As part of the move, Coinsource will update all of its more than 230 bitcoin ATM machines in 29 US states and the District of Columbia to allow customers to buy, sell, and store Dai stablecoins.

Eventually, the company plans to launch a remittance service allowing Bitcoin ATM and Dai users to send the virtual dollars from one user to another via digital wallet. Recipients will then be able to instantly redeem funds at any Coinsource machine or supported location.

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Goldman Sachs May Launch Stablecoin as Libra Schools Old Finance in Innovation

Their iteration of the tech also incorporates smart contract technology – similar to what Ethereum has done. So will Libra, or another challenger, …

Facebook’s Libra coin, a stablecoin crypto, may eventually falter and fail. It will take some time for Libra to get its digital sea legs or not. But whether or not you are a Libra fan or detractor, old finance is standing up and taking notice. Facebook is attempting to do something old banks should have done long ago – improve the payment ecosystem by speeding things up and lowering cost.

Today, French business newspaper, Les Echos, is out with a note that Goldman Sachs (NYSE:GS) is considering launching a stablecoin – following in the footsteps of JP Morgan’s crypto and Facebook’s Libra project.

Speaking with Goldman Sachs CEO David Solomon, the report states that he would not confirm or deny discussions with Facebook, but they are doing extensive research on tokenization. More specifically, on the creation of creating a stablecoin using blockchain:

“… the creation through the blockchain of a stable digital currency based on a basket of real currencies that can move money across borders and without friction. This is the direction in which the payment system will go,” said Solomon. “But as to whether it is this platform or one of the other fifty that people are watching that will make the most progress, I can not tell you.”

Like JP Morgan, Solomon says many people are looking to do the same but it is too early to say who will prevail.

Solomon said to “assume that all major financial institutions around the world are looking at the potential of “tokenization”, “stable wedge” and frictionless payments.”

Regarding regulation, Solomon said government officials will change their approach “for sure.”

Facebook’s blockchain ecosystem is really a direct challenge to the traditional banking system. Their iteration of the tech also incorporates smart contract technology – similar to what Ethereum has done. So will Libra, or another challenger, vaporize old banks?

“I do not think banks will disappear because of that. Admittedly, they will have to evolve, because the trades linked to the payment flows will become less profitable. But there are many other reasons why banks must remain innovative, otherwise, they will disappear.”

Solomon believes that Facebook, and others, will eventually partner with banks instead of trying to eliminate them. He cites the partnership with Apple and the soon to launch Apple Card as an example of a solid tech partnership.

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Goldman Sachs ‘Looking at Potential’ of Creating Virtual Currency, CEO Reveals

Goldman Sachs is performing “extensive research” on tokenization, the group’s chief executive told France’s Les Echos newspaper on June 27.

Goldman Sachs is performing “extensive research” on tokenization, the group’s chief executive told France’s Les Echos newspaper on June 27.

David Solomon said he believes global payment systems are heading in the direction of stablecoinscryptocurrencies pegged to fiatassets such as the U.S. dollar.

Although he stopped short of confirming whether Goldman Sachs has had discussions with Facebook about its upcoming libra cryptocurrency and Calibra wallet, Solomon said his corporation finds the concept “interesting.”

When asked whether Goldman Sachs will follow JPMorgan Chase in launching its own virtual currency, Solomon said:

“Assume that all major financial institutions around the world are looking at the potential of tokenization, stablecoins and frictionless payments.”

Elsewhere in the interview, Solomon predicted that regulations will change in response to virtual currencies — but said he doesn’t think new entrants in the cryptosphere will force banks to close. He added:

“Admittedly, they will have to evolve, because the trades linked to the payment flows will become less profitable. But there are many other reasons why banks must remain innovative, otherwise they will disappear.”

Solomon also suggested that tech giants such as Facebook would like to avoid the regulatory constraints that banks face, making it more likely that they would try to enter into partnerships than become financial institutions themselves.

Earlier this week, reports suggested that JPMorgan Chase is set to begin piloting its own cryptocurrency by the end of this year.

Back in April, Solomon categorically denied that Goldman Sachs ever had plans to open a crypto trading desk during a hearing before the United States House of Representatives Financial Services Committee.

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