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China’s effort to support its slowing economy is heaping pressure on the yuan, signaling challenges for Beijing as it tries to stimulate growth amid rising trade tensions without triggering capital outflows.
WSJ.com: What’s News Asia
Venezuela’s president Nicolas Maduro has made several claims regarding his country’s digital currency this week. He announced the launch of the petro as a national currency on Monday, reportedly claiming that it is already “present in the world’s six topmost international exchange houses.” A new whitepaper has also been published showing that the petro is no longer 100 percent backed by oil but is also backed by some of Venezuela’s other resources.
Petro Officially a National Currency
Maduro announced on Monday the official launch of the petro, supposedly an oil-backed cryptocurrency created in February. In a televised address, he said:
Venezuela makes history! Today we take a step forward with the launch of petro as a national currency and platform for strengthening our financial sovereignty.
Telesur TV subsequently quoted him declaring that the petro, “unlike other digital currencies, doesn’t need to be mined because it already has a value; it is shielded with Venezuelan oil and mining wealth.” According to the publication, Maduro was also referring to “the country’s gold, diamond, iron, and aluminum.”
Following Monday’s announcement, the Venezuelan government published a new whitepaper for the petro.
In contrast to the previous whitepaper, the new version states that the petro is using Dash’s X11 mining algorithm for Proof of Work, as well as a staked masternode system for Proof of Stake verification. The hybrid system will employ four-megabyte blocks and a one-minute block interval.
A page of the new whitepaper, describing the basic concepts of the technology behind the petro, displays illustrations taken directly from the Dash and Bitcoin whitepapers.
“Lol Venezuela’s new petro token is a blatant Dash clone,” tweeted Ethereum developer Joey Zhou upon reading the document.
Furthermore, the petro is no longer backed fully by a barrel of oil. Instead, it is now backed by 50 percent oil, 20 percent gold, 20 percent iron, and 10 percent diamond, the new whitepaper details.
Maduro Claims Petro Already in Six Exchanges
Without naming any exchanges, Telesur TV also quoted Maduro claiming:
The petro is already present in the world’s six topmost international exchange houses and will now be accepted at a national level.
He further described, “All Venezuelans will have access to the petro and through it to make international purchases,” the news outlet quoted him saying, noting that “Petro coins are now a legal substitute to dollars in real estate deals as well as paying for goods such as airline tickets, hotels and the like.”
Venezuelan officials hope that the petro will “neutralize” the threat of black markets and money mafias across the country, the news outlet conveyed. Foreign Minister Jorge Arreaza was quoted telling reporters that “Such money mafias are widely blamed for a slump in the value of the Venezuelan bolivar, further exacerbating the nation’s economic woes.”
Venezuela has also recently launched a new national currency called the sovereign bolivar. AVN state news agency reported:
Each unit of the cryptocurrency will be equivalent to 3,600 sovereign bolivars and will be the reference for fixing the value of work, the price of services, and of consumer goods — one of the accounting units that will govern the Bolivarian nation.
Maduro also revealed that from Nov. 5, “the Venezuelan people will be able to purchase the petro cryptocurrency with sovereign bolivars,” the Ministry of Popular Power for Communication and Information wrote.
What do you think of Venezuela’s claims regarding the petro? Let us know in the comments section below.
Images courtesy of Shutterstock and the Venezuelan government.
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The post Venezuela Makes Petro Crypto a National Currency, Publishes New Whitepaper appeared first on Bitcoin News.
Since the inception of cryptocurrency, some critics have dubbed it “just another fiat money.” This has been the wail of anti-crypto combatants. They have succumbed to grasping at straws in order to manufacture any rebuttal against the thing they loathe. It doesn’t matter how valid the argument is so long as it satisfies their desire to smear crypto.
Using this kind of non-argument is akin to raising the dead. When one cannot count on truth to win the day, they reach back in time to deploy old, tired bromides. Jimmy Song performed his own ritual for the dead during a debate with Roger Ver at the Coinsbank Cruise on September 10th.
Instead of articulating a legitimate problem with bitcoin cash, Jimmy claimed it is a “centralized fiat money.” This is virtually the same broken premise crypto-antagonists have trotted out ever since Satoshi penned the white paper, including naysayers like Peter Schiff. It was a tragedy to witness, because fiat currency means something entirely different than what Jimmy believed.
What is Fiat Currency?
Fiat currency is money that is issued by decree or formal authorization. To be more specific, by decree means it is backed by a government’s alleged authority, and then enforced on the population by law — at the barrel of a gun. Generally, when a money is decreed by government, using other kinds of competing paper money is considered a criminal act.
For example, when Bernard Von Nothaus created the Liberty Dollar and attempted to put it into circulation, thugs in costumes raided his company headquarters. They put him in jail and charged him with counterfeiting and fraud.
No one is forcing anyone to use bitcoin cash. No men in costumes are coming to arrest those who use bitcoin cash. It is an opt-in, voluntary cryptocurrency.
Here is the definition of “fiat” according to Investopedia:
Why Bitcoin Cash is not Fiat currency
This is why bitcoin cash, or any other crypto, is not fiat. It is not decreed or authorized by government. It is not “legal tender.” It is possible that a digital currency can eventually be decreed, but then it is likely the “cryptocurrency” in question will not be cryptocurrency in the traditional sense.
For example, the Russian government has talked about creating the “Crypto Ruble,” which would act as their version of cryptocurrency. The problem is it would not be minable, and it would be manipulable by that government. A true cryptocurrency would not possess these “features.”
Jimmy claimed bitcoin cash was fiat currency, because he believed it is “authorized authoritatively.” Jimmy mentioned bitcoin cash was “paternalistic and Keynesian.” He also said it was “controlled by a central authority.”
Bitcoin cash is an open-source and peer-to-peer cryptocurrency that anyone can get involved in and use. It is not “Keynesian.” The amount of cryptocurrency issued into existence cannot be arbitrarily determined. It is determined by the protocol, and is the exact same as bitcoin: 21 million units will be minted by year 2140.
Keynesian economists believe the economy should be controlled and stabilized by government printing of money to prevent economic catastrophe. The bitcoin cash protocol functions antithetically to Keynesian ideology. No one can arbitrarily inflate or deflate the supply of bitcoin cash.
Clearly, Jimmy did not read the primary source on Keynesian economics as Roger pointed out.
Jimmy might have only been trying to argue that bitcoin cash is centralized. However, that is a MUCH DIFFERENT argument than claiming bitcoin cash is fiat. Of course, most people who claim some crypto is “centralized” do not really define what they mean by “centralized.” Bitcoin and bitcoin cash are also both a bit centralized in terms of mining operations. However, the problem is overstated.
Mining in bitcoin and bitcoin cash is more centralized as a result of limited adoption. This means only a handful of mining pools control the networks. However, the more users that begin to adopt cryptocurrency, the more mining operations will appear. This will mitigate the problem of centralization. Regardless, what matters is cryptocurrency remains censorship resistant.
In this regard, bitcoin cash is more censorship resistant than bitcoin core, which has had transactions censored because they got stuck in the mempool when fees skyrocketed. In this sense, one can make the case that bitcoin core is less censorship resistant than bitcoin cash. Therefore, bitcoin core is more “centralized.”
Crypto Paternalism and the Case for Op-Codes
Jimmy’s claim that bitcoin cash is paternalistic was the most problematic comment of the debate. A paternalistic cryptocurrency would mean that it is controlled by an oligarchic cult of developers. In terms of the ecosystem, bitcoin cash does not fit this criteria. It is truly open source in the sense that developers have wide-ranging leeway to build protocols on top of it.
Many of the op-codes have been re-enabled on the bitcoin cash protocol. This means developers have the ability to create new tools and programs. Some have already been developed, such as the Wormhole protocol and platforms like Memo.cash. Ironically, this is impossible on the bitcoin core network because of a mixture of high fees, disabled op-codes, and developer hegemony.
If anything, bitcoin core is more “paternalistic” and strict in terms of who has the right to develop on top of the protocol in a truly open source fashion. What protocol is really the most “paternalistic”?
Conclusion: Mind your Argument, Jimmy
In the end, Jimmy could not muster a strong argument against bitcoin cash so he resurrected a long-dead one and resorted to hand-wringing and arm-waving. The tragedy is there are certainly questions that need to be addressed regarding bitcoin cash, but it being a “fiat money” is not one of them.
This suggests Jimmy did not intend on making a case against bitcoin cash, but instead wanted to incite drama during a debate. It was just surprising that he would have premised his whole position on an argument that some people make against bitcoin core itself. That alone should have signaled to him that he was reaching.
Do you bitcoin or bitcoin cash is fiat currency? Let us know in the comments section below.
Images courtesy of Shutterstock, Cryptocomes, and Coinsbank Cruise
OP-ed disclaimer: This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com does not endorse nor support views, opinions or conclusions drawn in this post. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article.
Following the adoption of the country’s first cryptocurrency regulation, the central bank of Thailand is working on its own digital currency in collaboration with the country’s largest banks. Initially, the new currency will be used for interbank transfers; this phase is expected to be completely developed by the first quarter of next year.
Thailand’s Central Bank Digital Currency
Thailand’s central bank, the Bank of Thailand (BOT), announced on August 21 its central bank digital currency (CBDC) project called Inthanon.
Eight of the country’s largest commercial banks are participating in this project. They are Bangkok Bank, Krung Thai Bank, Bank of Ayudhya, Kasikorn Bank, Siam Commercial Bank, Thanachart Bank, Standard Chartered Bank (Thailand) and Hong Kong and Shanghai Banking Corporation (Hsbc).
Initially, “the concerned parties will jointly design and develop the prototype system of money transfer between institutions by issuing [a] wholesale CBDC” built on R3’s Corda platform, the BOT detailed, elaborating:
The Inthanon initiative will cover the design, development and testing of fund transfers between financial institutions through the use of digital currency…It is expected that the first phase of the project will be completed within the first quarter of 2019.
The central bank noted that its project is similar to those currently in development by other central banks such as the Bank of Canada, the Hong Kong Monetary Authority, and the Monetary Authority of Singapore.
In the next phase, the participating commercial banks and R3 plan to expand the usage of the digital currency to include third-party fund transfers and cross-border payments.
Thailand Races Ahead With Crypto
Many developments have transpired in the Thai crypto space since the country adopted cryptocurrency regulation on July 16.
The Thai Securities and Exchange Commission (SEC), the country’s main crypto regulator, has legalized seven cryptocurrencies and is currently reviewing applications from companies wanting to operate crypto businesses in the country. According to the regulator, about 50 ICO projects are interested in applying for a license, along with five ICO portals and 20 crypto exchanges.
Meanwhile, seven crypto firms have been approved to legally operate in the country while their applications are pending. Other companies must obtain approval before beginning operations. Furthermore, the central bank has green-lighted commercial banks’ subsidiaries for crypto activities.
What do you think of Thailand developing a central bank digital currency? Let us know in the comments section below.
Images courtesy of Shutterstock and the Bank of Thailand.
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The post Bank of Thailand Developing Central Bank Digital Currency appeared first on Bitcoin News.
Venezuela is starting to use a new currency Monday to help bolster its collapsing economy
CNN.com – RSS Channel – Regions – Americas
Businesses closed, banks struggled with transactions and people scrambled to find fuel Saturday, signs of panicked and skeptical reactions to Venezuela’s measures aimed at stabilizing a faltering economy.
WSJ.com: What’s News Asia
President Trump’s decision to double steel tariffs on Turkey as its government battled a currency collapse marked a departure for the U.S. from how it traditionally handles financial turmoil.
WSJ.com: What’s News Asia