Bitcoin Ads Appear in Hong Kong as PBoC Outlines DCEP Impacts
A weekly overview of blockchain and cryptocurrency news from China and Hong Kong.
It has been a busy week in the Chinese and Hong Kong blockchain spheres. The People’s Bank of China’s deputy governor published an article on the impact DCEP would have on China’s money supply. Additionally, Bitcoin advertisements are going viral in Hong Kong.
Here’s everything you might have missed regarding these stories and more in this week’s edition of OKEx Insights’ China Market Watch.
PBoC Deputy Governor outlines five impacts of DCEP on China’s money supply
Fan Yifei, a deputy governor of the People’s Bank of China, recently published an article regarding the impact of China’s digital currency, DCEP, on its M0 money supply. The five most important things to note are:
- DCEP is part of China’s M0, meaning that it is part of the supply of paper notes and coins — i.e., physical cash.
- DCEP is a centralized currency and managed by the PBoC.
- The issuance and circulation of DCEP need to comply with applicable laws and regulations related to cash management.
- DCEP is a public good provided by the PBoC. The Chinese central bank does not charge interest or fees for the public to use the digital currency.
- Commercial banks in China are responsible for facilitating the conversion of DCEP and fiat RMB for the general public.
- The launch of DCEP marks an important milestone in the digitization of China’s money supply system. According to Fan, the demand for such a step stems from the rapid development of mobile and electronic payments in China.
- The issuance and circulation of DCEP, like fiat currencies, are also subject to anti-money laundering and terrorist financing regulations.
Blockchain Service Network welcomes official programming language
Red Date Technology — the developer behind China’s nationwide blockchain project, Blockchain Service Network — introduced the Digital Asset Modeling Language as a unified smart-contract programming language for BSN. The open-source and blockchain-agnostic programming language is being developed by American blockchain startup Digital Asset Holdings and will be available to BSN developers in 2021.
According to He Yifan, the company’s CEO, the Digital Asset Modeling Language will be the exclusive standard for developing decentralized applications on the Blockchain Service Network. The adoption of the unified smart-contract programming language aims to enhance the interoperability of the BSN, as developers do not need to rewrite their smart contracts each time they deploy an application on it.
- The Digital Asset Modeling Language is expected to complete its first pilot in November 2020 and to operate on both IBM’s Hyperledger Fabric and WeBank’s FISCO BCOS.
- The BSN continues to integrate more public blockchains, with Algorand, ShareRing and Solana expected to be connected soon.
Bitcoin educational campaigns appear in Hong Kong
Following the publication of a Bitcoin advertisement in Apple Daily, a tabloid newspaper in Hong Kong, there has been another wave of advertisements on trams and billboards in Hong Kong.
Launched by the Bitcoin Association of Hong Kong, the ads aim to raise public awareness of cryptocurrencies as an alternative to traditional finance. According to an announcement, there are five billboard messages discussing the merits and risks of Bitcoin amid a rapidly changing global economy.
- The advertisements highlight the economic merits of Bitcoin as an alternative to traditional finance. For instance, the limited total supply of BTC avoids the problem of widespread inflation caused by the incessant printing of fiat currencies.
- Bitcoin ads with the slogan “Be your own bank” have been placed in front of the headquarters of major Hong Kong banks, such as HSBC and Standard Chartered — raising the discussion of financial inclusion in the region.
#Bitcoin ads are right in front of #HSBC headquarters in #HongKong — is this a challenge or another step forward for finanical inclusiveness? pic.twitter.com/ywPXY3x7wV- Jay Hao @OKEx (@JayHao8) September 11, 2020
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