The Hong Kong Monetary Authority (HKMA) and the People’s Bank of China (PBOC) have advanced the digital yuan (e-CNY) pilot for payments, aiming to increase e-CNY wallet usage in Hong Kong. Residents can now set up and top up wallets via the Faster Payment System (FPS), marking the first global linkage of a faster payment […]
Bitcoin News
Analysts: Gold Rush In China Is Propping Prices Up
The interest and high demand for gold products in China is one of the factors that is propping the price of the precious metal up in international markets. Several analysts believe that the loss of confidence in traditional investment options in China, and the geopolitical factors and U.S. sanctions have contributed to this end. China […]
Bitcoin News
HK vs. US: China AMC Leads but Can’t Lift Hong Kong Spot Bitcoin ETFs to US Levels
Hong Kong’s debut of six spot bitcoin and ethereum exchange-traded funds (ETFs) garnered HK.5 million ( million) on their first day, April 30. However, these ETFs underperformed compared to their U.S. counterparts, which had attracted a much larger sum of .6 billion on their initial day. Despite High Hopes, Hong Kong’s Bitcoin ETFs Start Slow […]
Bitcoin News
China Asset Management Exec Anticipates Hong Kong Spot Bitcoin ETFs to ‘Exceed’ US Debut
With the debut of spot bitcoin and ethereum exchange-traded funds (ETFs) in Hong Kong trading on Tuesday, market observers are speculating about the potential demand for these ETFs in the region, reminiscent of the enthusiasm seen in the U.S. following the approval of 11 spot bitcoin ETFs on Jan. 10. Zhu Haokang, head of digital […]
Bitcoin News
Central Banks Kept Purchasing Gold in February; China Continues Gold Run
Central banks kept up demand for gold in February, registering net purchases of 19 tonnes. Albeit the purchasing trend continued, purchases fell 58% compared to January’s demand, according to IMF and World Gold Council numbers. China reported the largest gold accumulation, acquiring 12 tonnes to maintain a 16-month gold purchasing streak. Gold Demand Still High […]
Bitcoin News
Report: China Could Be Hoarding Over 5,300 Tonnes of Gold, Might Create Price ‘Perfect Storm’
A recent report from Jan Nieuwenhuijs, an expert in the Chinese gold market, has found that the actual gold reserves held by the People’s Bank of China might comprise over 5,300 tonnes, dwarfing official numbers. Nieuwenhuijs explains China might be a driving force behind increasing gold prices, as the country moves to hoarding gold to […]
Bitcoin News
BRICS Meeting: Iran Pushes for Common Currency — China, Russia Prioritize Settlements in Local Currencies
The first BRICS sherpa meeting with 10 member states has kicked off in Russia with representatives from Brazil, Russia, India, China, South Africa, Saudi Arabia, the United Arab Emirates, Iran, Egypt, and Ethiopia. China, Russia, and Iran are all advocating for the use of national currencies in trade settlements. Iran’s sherpa also expressed hope that a common BRICS currency will soon be operational.
BRICS Meeting With 10 Member States
The first BRICS sherpa meeting for 2024 under the chairmanship of Russia commenced on Tuesday in Moscow, with participation from 10 member states for the first time. In addition to, Brazil, Russia, India, China, and South Africa, the economic bloc is joined by five new nations: Saudi Arabia, the United Arab Emirates, Iran, Egypt, and Ethiopia.
Iran’s sherpa and deputy foreign minister for economic diplomacy, Mehdi Safari, said at the meeting:
In the plans of 2024, I hope that these economic and financial pillars, especially banking and financial issues, payment systems, digital currency, common currency, exchanges with national currencies, etc., will speed up and become operational.
He also stressed the importance of strengthening the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA), noting: “I emphasize once again that we in Iran have plans, and will implement the necessary plans, for active and innovative participation in this year’s program.”
Last year, there were reports that the BRICS economic bloc was planning to create a common currency. However, at the group’s leaders summit in August last year in Johannesburg, South Africa, the BRICS nations pushed for the use of national currencies to reduce reliance on the U.S. dollar, instead of discussing a common currency.
Russia’s Deputy Foreign Minister Sergey Ryabkov said at the BRICS sherpa meeting on Tuesday: “In line with the decision of the BRICS leaders in Johannesburg, we will explore ways to make greater use of national and local currencies and payment instruments in our cross-border transactions in order to reduce the negative side effects of the current global economic system.”
China’s BRICS sherpa and vice minister of foreign affairs, Ma Zhaoxu, similarly stated:
We should implement the leaders’ instructions, promote financial corporation as a strategic priority, expand settlements in local currencies, and strengthen linkage between payment systems.
Moreover, he revealed: “China is considering [the] possibility of launching a BRICS AI development and cooperation center in China.”
Do you think the BRICS nations will create a common currency this year? Let us know in the comments section below.
Famed Analyst Richard Bove Says US Dollar Is Finished as World’s Reserve Currency — Expects China to Overtake US Economy
Renowned financial analyst with over 54 years of experience, Richard Bove, has warned that the U.S. dollar is finished as the world’s reserve currency, cautioning that China will overtake the U.S. economy. He warned that the offshoring of American manufacturing poses a significant threat to the financial sector and the U.S. dollar.
Richard Bove’s Economic Warning
Renowned financial analyst Richard Bove shared his dire outlook for the U.S. economy in an interview with the New York Times on Saturday. The 83-year-old worked as a financial analyst for 54 years at 17 brokerage firms; he officially announced his retirement last week. Voicing concerns about the future of the U.S. dollar, he said:
The dollar is finished as the world’s reserve currency.
In addition, Bove predicted that China will overtake the U.S. economy. He emphasized that no other analysts will make a similar statement because they are “monks praying to money,” choosing not to critique the mainstream financial system that employs them. He added that many analysts are rewarded for making unique but inconsequential and “arcane” statements.
Bove has warned about the global rise of the Chinese yuan as a threat to the U.S. dollar for quite some time. In January 2019, he explained that “China and its allies are working diligently to establish a multilateral world.” He noted, “The United States is creating a financial vacuum into which the yuan is creeping,” adding: “The biggest banks in the world are now headquartered in China.”
Bove once held the belief that big banks are essential. In his 2013 book titled “Guardians of Prosperity: Why America Needs Big Banks,” he contended that regulatory crackdowns on the industry would hinder lending to small businesses. However, he has since shifted his stance on the importance of big banks, especially following the regional banking crisis last spring.
He articulated that the offshoring of American manufacturing poses a significant threat to the financial sector and the U.S. dollar. This is because “the people making the goods elsewhere are getting greater and greater control of the means of production and therefore greater and greater control of the world economy and therefore greater and greater control of money.” Bove sees cryptocurrency as a natural beneficiary of the decline of the U.S. dollar.
What do you think about Richard Bove’s predictions regarding the U.S. dollar losing its world’s reserve currency status and China overtaking the U.S. economy? Let us know in the comments section below.
China Pushes Metaverse Standardization Group to Establish the Rules of the Yuanverse
The government of China has announced the creation of a metaverse standardization working group to establish different rules to govern the Chinese Yuanverse platform. The standardization group will be integrated by Chinese universities, government institutions, and companies like Tencent, Huawei, Baidu, Netease, and Sense Time.
China Announces Metaverse Standardization Group
The Chinese government aims to create standards for metaverse platforms. In a circular released on January 19, the Ministry of Industry and Information Technology of China (MIIT) communicated the formation of the Metaverse Standardization Working Group, which will aim to establish rules for the organization of metaverse platforms and the development of the Yuanverse, a national metaverse platform.
The standardization group will be integrated by several entities including Chinese universities, and companies like Huawei, Tencent, Baidu, Netease, and Sense Time. The proposal, which is based “on the needs of industrial development and industry management,” will receive feedback for the publicity plan of the group by February 18.
MIIT’s standardization proposal comes on the heels of the announcement of a new Web3 strategy for the country, that gives faith in the continued development of the blockchain and metaverse field as topics of exploration, studying the possible use cases of these techs.
While according to experts, the metaverse hype has subsided in favor of artificial intelligence (AI), another nascent technology, China seems focused on becoming a leader in this area. In September, four ministries and the MIIT issued a three-year plan to boost the development and growth of metaverse initiatives in the country.
The plan expects breakthroughs to be reached by 2025 in different applications, including metaverse technology, industry, and use cases.
Experts expect this investment to boost the development of the metaverse industry in China, as reports predict that these movements will position the nation as a global metaverse hub, outpacing the developments in the West.
What do you think about China’s metaverse standardization group? Tell us in the comments section below.
Report: EU Represents Just 6% of Bitcoin Mining Hashrate, US Significantly Leads China
The countries in the European Union collectively account for 6% of the Bitcoin network’s hashrate while the U.S. has emerged as the world’s number one bitcoin miner, a new report has said. The economic bloc’s bitcoin mining prospects are however being hamstrung by geopolitical tensions and the region’s energy dependence.
The EU’s Bitcoin Mining Prospects
According to the latest Bankless Times report on bitcoin mining, the 28 countries comprising the European Union (EU) collectively account for 6% of the Bitcoin network’s hashrate. On the other hand, Ireland, whose 2023 gross domestic product (GDP) of 5 billion is nearly 160 times less than the European Union’s GDP, accounts for 2% of the Bitcoin network’s hashrate.
Despite having the potential to increase its share of the Bitcoin network’s hashrate, the EU countries lag because they lack the infrastructure required to achieve this. Commenting on this as well as the report’s data, Alice Leetham from Bankless Times said:
The European Union has the capacity and ability to improve their hashrate. Mining is the current most profitable frontier in the crypto ecosystem. But for them to benefit, they have to lay ground.
The economic bloc’s prospects for bitcoin mining are however greatly impacted by geopolitical tensions and energy dependence. This, together with the general lack of regulatory frameworks to oversee mining, often leaves miners vulnerable and uncertain.
Meanwhile, the report’s data shows that the United States is now the leading bitcoin mining nation-state with 38% of the network’s hashrate. China, which until recently accounted for more than 50% of the Bitcoin network, is in second place with 21%, followed by Kazakhstan (13%) and Canada (7%). Russia completes the top five with 5%.
To address bitcoin mining’s perceived over-reliance on electricity generated by fossil fuels, the Bankless Times report stated that the “future power prospect for Bitcoin mining is renewable energy.” This is expected to be made possible by the anticipated 15% to 25% decrease in solar costs, as well as the increased share of wind-generated power.
What are your thoughts on this story? Let us know what you think in the comments section below.