Back in 2008 when bitcoin entered the market as the first of cryptocurrencies, only a few people really understood it. Just a few were willing to throw their money into developing the bitcoin Network and its decentralized database. This first blockchain-based crypto network became the world’s first true decentralized database. In time, the pioneer cryptocurrency won the hearts of many, including a huge section of the Chinese public.
Cryptocurrencies In China – How Did We Get Here?
By 2017, the crypto market was booming. It’s this craze that brought about the rise of Bitmain as one of the largest China-based in the world. However, at the start of 2017 when bitcoin was preparing for a mega bull run, rumors started about an imminent crypto crackdown by the Chinese government. To say that the Chinese public was excited about bitcoin would be an understatement. People were almost crazy about the cryptocurrency, but this romance wasn’t to last.
Sadly, the rumors were true. The Chinese government banned all ICOs and cryptocurrencies within its borders. However, the authorities have continued to support other blockchain-based projects. After the ban, people started trading cryptos over the counter, a sure sign that the masses haven’t given up. Now, hope for cryptocurrencies in China seems well within reach as a court in Shenzhen rules that bitcoin is really an economic asset that ought to be accorded legal protection just as other assets or property.
Despite the crackdown on cryptocurrencies and subsequent shutdown of over 120 exchanges in China, many are still hopeful that cryptos will eventually prevail. The government’s public warnings against ICOs haven’t done any good either.
The bitcoin (BTC) Case
A blockchain dealer in China, CnLedger, has now fronted a case to ascertain bitcoin’s standing as a means of transacting. The Shenzhen Court of International Arbitration handled the court proceedings. According to the ruling, the Chinese law doesn’t really ban the possession or transfer of bitcoin. That makes it legal to own and transact with bitcoin in China. However, the court made it clear that the cryptocurrency isn’t recognized as legal currency. Interestingly, the court still ruled bitcoin as a valid means of transacting, given its standing as an economically valuable asset.
One point to note is that the court that handled the case resides within China’s special economic zones. That’s probably one of the reasons that the Shenzhen court took bitcoin’s side in the matter. Now, the ruling in support of bitcoin could serve to pave way for the resurgence of crypto exchanges. In fact, it could serve to shed more and positive light on legal regulations regarding the possession and use of cryptocurrencies in China, and possibly re-energize the campaign for of cryptos like bitcoin.
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The UK’s Royal Mint has canceled the launch of its gold-backed cryptocurrency after its failed partnership with Chicago-based CME Group. The government denied other plans to trade the tokenized gold assets on a cryptocurrency exchange.
UK’s Digital Gold Project is Dead in The Water
According to reports by , the planned project called Royal Mint Gold (RMG) was to launch in 2017 initially. However, CME which ought to offer a trading platform for the tokenized gold pulled out last minute.
The Royal Mint and CME partnership was announced in 2016 to create the RMG. The RMG was to be a digital record of gold ownership stored in the Royal Mint’s vaults. CME was to develop and operate the token’s blockchain-powered trading platform. The initial RMG offering was to be $1 billion worth of gold.
Anonymous sources in CME Group claim that a change in the financial market company’s management is responsible for the company’s change of heart. Under the former control, the company actively pursued digital technology innovations, investing in some fintech start-ups.
In a bid to keep the project going, the Royal Mint rescheduled the launch for spring of this year and approached the country’s Finance Ministry for approval to partner with a cryptocurrency exchange. The finance ministry denied the request. The British government’s unwillingness to partner with a cryptocurrency exchange underscores government’s uncertainty towards digital currencies.
Following the failed partnership and the refusal by the government, CEO of the Royal Mint Anne Jessop shut down the RMG project.
The Quest for Gold-backed Cryptocurrency
Digital innovation is gradually creeping into the gold market. Despite the Royal Mint’s failure at launching its gold-backed digital asset, some have delved in, issuing gold-backed tokens and blockchain-powered supply chain platforms for the precious metal.
The underlying aim of these ventures is to offer digitized gold as a new asset class to investors.
Emergent Technology (EmTech) created a digital token backed by gold on its blockchain-powered supply ecosystem. The token named G-Coin serves as certificates for physical gold passing through the company’s Responsible Gold supply chain platform. Each G-Coin is reportedly equivalent to one gram of Gold.
TradeWind Markets in partnership with other private companies and the Royal Canadian Mint launched a digital gold trading platform. The Royal Canadian Mint provides the storage facility for the traded physical gold, as well as guarantee the gold’s existence.
Image courtesy Daily Express
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