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China’s State ‘Cryptocurrency’ to Feature Negative Interest Rates

China’s state ‘cryptocurrency’ to feature negative interest rates

China’s State ‘Cryptocurrency’ to Feature Negative Interest Rates

Adam James · April 9, 2018 · 1:00 pm

Over the weekend, signs of positive sentiment have entered the cryptocurrency market, with bitcoin potentially having found its footing and many altcoins surging with confidence. However, news out of China is aiming to rain on the parade — as the People’s Bank of China looks to crack down further on bitcoin while creating its own digital currency. 

People’s Bank vs. People’s Currency

According to various reports, the People’s Bank of China (PBOC) plans on placing stricter regulations on bitcoin and other cryptocurrencies while the country’s central bank explores the creation of its own digital currency.

Bitcoin in china

The vice governor of the PBOC, Fan Yifei, stated:

First, we will intensify reforms and innovations to promote the central bank’s digital currency research and development; Second, the bank must strengthen supervision and rectify all types of virtual currencies.

According to Investing.com, the PBOC’s director general of financial research has also pushed the central bank to develop its own digital currency as quickly as possible, claiming such a product would help solve interest rate issues caused by cash. He stated:

In the long run, due to the lower natural interest rate, monetary authorities can incorporate negative interest rate policies into the normal monetary policy toolbox.

Sun Guofeng, the director general of financial research for PBOC, agrees that the creation of a central bank-sponsored digital currency is a top priority, stating:

While the central bank’s digital currency is conducive to the implementation of negative interest rate policies, the central bank should speed up the development of a central bank issued digital currency.

Pboc

Despite this news from China, early signs of renewed investor confidence are starting to show their faces in both the bitcoin and wider cryptocurrency markets.

At the time of this writing, bitcoin (BTC) has largely held steady as investors wait to see whether or not it will explore further lows. Meanwhile, Ethereum has bounced back 7.21 percent over the last 24 hours.

Most interestingly, NEO — often called the ‘Chinese Ethereum’ — is up 15.23 percent, perhaps due to speculation regarding the platform’s positive future in the restrictive country. However, a high-profile token offering for NEX, a decentralized cryptographic trade and payment service creation platform, is also likely driving NEO sales.

What do you think of China’s push to create it’s own digital currency while taking action against bitcoin and other cryptocurrencies? Let us know in the comments below!

Images courtesy of Bitcoinist archives, Adobe Stock.

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Published at Mon, 09 Apr 2018 17:00:16 +0000

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MobileGo Becomes 2nd Biggest ICO Ever, Netting Over $26 Million

MobileGo has gathered over $26 million dollars making it the second most successful crowd sale in the cryptosphere, and the fourth in the world.

[Note: This is a sponsored article]

MobileGo Raises Over $26 Million & Counting

Initial Coin Offerings (ICOs) are changing the way projects are being crowdfunded, creating a new generation blockchain-based tokens like appcoins and assets. Although ICOs started with Mastercoin’s relatively modest sum of roughly 500,000 USD, they are now taking new proportions.

As time passes by, it seems that investors are becoming less wary when it comes to investing in blockchain-based crowdfunds. Now, it is not uncommon for ICOs to gather millions on their first day (or minutes) and that’s exactly what MobileGo, one of the largest crowdfunding campaigns in history, has done.

Kicking its ICO off with 4 million dollars on the first day, MobileGo has attracted over $26 million (or 6,800 BTC) so far, making it one of the most successful ICOs ever, second only to the DAO, and the fourth most successful crowdfunding project in the whole world. And the ICO isn’t even over yet, with five days left until the end.

Hosted by GameCredits Inc., the MobileGo ICO allows users to exchange several established cryptocurrencies like bitcoin, Ethereum, Waves, GAME, and others in exchange for MobileGo (MGO) tokens, which will bring several benefits to its holders and help shape the environment of the GameCredit’s Moblie Store, a platform for mobile games with over 300 games by 150 different developers.

ICOs: Hype or New Paradigm?

The MobileGo ICO will not only help fund the Gamecredit’s Mobile Store marketing and branding efforts, but it will also gamify the platform through the use of Ethereum-based smart contract, allowing users to compete among themselves in a decentralized manner and to earn rewards and reputation while doing so.

The MobileGo token features some of the latest trends in the blockchain space such as dual-blockchain capabilities and a buyback program that will see the token supply decrease over time. The dual-blockchain functionality allows users to transfer tokens between the Ethereum and Waves blockchains through the use of BlockSwap technology.

However, the main aspect of these tokens are not their technical characteristics per se, but rather the function they serve within the platform. Although the GameCredit’s Mobile Store already features its own cryptocurrency, GAME, Ivica Simatovic, CEO at GameCredits Inc, explained to Bitcoinist why a second token is necessary.

GameCredits CEO Ivica Simatovic

He said:

The MobileGO token will be used to provide many important features to Gamecredits Store based on smart contracts. In this store there will be 2 tokens: 1 for processing (Gamecredits) and another for tournaments, betting, virtual market place (MGO).

Not only that, but MobileGo will also reward customers with discounts, free entrance to VIP tournaments and access to private game beta stages.

“This store will be a unique and special place for gamers where they will receive services they can not find in other places,” adds Simatovic.

Money is Pouring into Crypto

Although ICOs are not new, they are certainly one of the new crazes in the world of investment. Not only has the global cryptocurrency market cap doubled in size in May alone, millions and millions of dollars kept flowing into ICOs like MobileGo, Gnosis, Aragon,etc. with many more in the pipeline.

Although some have concerns regarding Initial Coin Offerings and the lack of regulation or guidelines, ICOs are providing new ways for entrepreneurs to get their projects off the ground, which wouldn’t be nearly as easy through banks and VC firms.

While undoubtedly uncharted territory, ICO are shaping the future of technology allowing developers to experiment with blockchain technology at will and to build decentralized and trustless applications, which were not possible before.  

What’s your take on the current ICOs trend? Share your thoughts below! 

Images courtesy of Gamecredits, Shutterstock

The post MobileGo Becomes 2nd Biggest ICO Ever, Netting Over $26 Million appeared first on Bitcoinist.com.

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