Ethereum Looks to Associate with The Chinese Government to Potentiate Blockchain Technologies

Maria Rodríguez
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Ethereum Looks to Associate with The Chinese Government to Potentiate Blockchain Technologies

Ethereum would be looking to partner with China after the Asian country said it would be looking to increase its blockchain processes

Since some weeks ago, the government of the People’s Republic of China has been promoting a strong campaign of acceptance to blockchain technology and its growth in the field of new technologies in the financial and administrative management.

Among what stands out the most is the government’s effort to develop research groups which help put this technology at the forefront. China has been one of the few countries that has decided to approve the adoption of blockchain technology and adapt it to the dynamics of its economy.

In this sense, it was possible to verify that representatives of the Ethereum company could offer the Asian government their contribution to advance in processes of adoption of blockchain technology, as well as support or assistance for the cryptocurrency preparations that the Chinese government plans to launch in the near future.

Ethereum Hopes to Have Free Access to The Chinese Market

Given the remarkable growth of blockchain technology in the Chinese market, Joseph Lubin, one of the founders of Ethereum, said he would like to collaborate with the Chinese government to improve the adoption levels of blockchain technology.

Lubin also assured that it would be possible to achieve a positive impact on the Chinese market, if ETH was allowed access. This action would not only significantly improve the capabilities of the digital currency and the use of blockchain technology, but it would inject more dynamism into the already large Asian market.

                          As blockchain platforms are having good levels of acceptance in the country’s growing innovative industrialization, there is still much to improve, Lubin said, adding that these platforms would not yet be the most powerful in the world.

“I would love to help China to get expert in Ethereum technology. The main idea is that Ethereum is the strongest of blockchain technologies and it’s a very positive “virus” to implant in people’s minds”, the co-founder of the startup firm said.

Despite this offer and the opinion of different experts on crypto-economic issues, Lubin said he does not believe it is possible for the Chinese government to allow Ethereum to operate freely for its market. He does not believe that it would be possible to work “hand in hand” with the digital currency that China seeks to launch in its market. However, he hopes that Chinese politicians will consider this offer and evaluate the benefits of applying this types of technologies.

“I assume it is going to be exactly what Chinese leadership thinks is most beneficial to Chinese leadership. Hopefully that’s also open and we can interoperate with it (the virtual currency of the Chinese government), but I don’t know”, he recently said.

About the possibility that the Chinese government decides to reject the use of ETH in its economic market, even legally condemning those who use that platform, Lubin commented that it may be a reality and that this will depend on the final decisions of government representatives.

“China is a business that writes its own rules and has an enormous customer base: 1.4 billion people. That’s a tough economic force to compete with. I think there is instability. I think leaders are constantly terrified of revolution, so they have to keep the people relatively happy at some baseline level”, Lubin concluded.

These official statements of one of the most important representatives of the powerful firm Ethereum demonstrate the great relevance that it has for the global crypto market to introduce this technology in China. For this reason, Ethereum is looking for a possible agreement or alliance with the Asian giant that allow to potentially benefit both parties.

By María Rodríguez

Role of Cryptocurrencies in Venezuela’s Economy Emphasized by the Country’s Business Agency

Willmen Blanco
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Role of Cryptocurrencies in Venezuela’s Economy Emphasized by the Country’s Business Agency

Consecomercio expressed its opinion on the measure that obliges to keep accounts in petros. The business agency considers that the Petro does not have the necessary robustness to position itself as a cryptocurrency.

The National Council of Commerce and Services (Consecomercio), a Venezuelan business organization, stressed that in the last two years cryptocurrencies have become a necessary option to make movements to different means of transactional payments.

This information was disseminated in a statement published on Twitter and issued by the Economy Commission of that business leadership, in order to express its opinion on the recent measures decreed by the Venezuelan Executive in relation to the cryptocurrency Petro (PTR).

In the document, the agency concludes that, at the present time, the petro seems to lack the necessary robustness to position itself in the market as a cryptocurrency. This conclusion is reached after an analysis of the Venezuelan government’s recent decision to decree the obligation to keep double accounting records, in both bolivars and Petro.

In the same document, Consecomercio also recognizes the “undeniable importance and relevance of using cryptocurrencies in Venezuela, given the limitations that businesses and citizens have to move their money in bolivars due to various circumstances.”

Problems Regarding Petro

As for the other measures taken by the president of Venezuela, Nicolás Maduro, which involve the use of petro in different administrative procedures, the Economy Commission, composed of Andrés F. Guevara B., José Miguel Farías, Rednaxela Sequera and Antulio Moya, stressed that the main problem with PTR seems to be that it has origin flaws, which makes it really difficult to know how it may be used in the national economic system.

The Consecomercio Economy Commission explained that Petro had initially been promoted as a cryptocurrency. This project was rejected as it did not enjoy trust, a key factor in this type of financial assets. In addition, the economic agents were not clear about the role it would play. For example, the commission did not know if the instrument would be used for the payment of salaries, such as a unit of account, a form of value reserve or a reference to trade currencies, among others.

The agency adds that, after this resounding failure, the government has sought that Petro be applied as a unit of referential value in the country. It is also unclear what its applicability can be in an increasingly dollarized economy at a transactional level such as Venezuela. Besides, “the strategy of using the Venezuelan cryptocurrency seems to have no connectivity with the Central Bank of Venezuela at the present time.”

Likewise, it is asserted that “there is no consistent and harmonious economic policy behind this asset,” which simply continues to increase the uncertainty and doubts surrounding this financial project.

Economic analysts believe that the government decree that forces public and private companies, as well as natural persons, to keep double accounting records, further distorts Venezuelan economic activity. This does not solve the existing structural problem but, on the contrary, it becomes an accessory element that hinders the application of effective solutions.

By Willmen Blanco

Paxful Said that Barriers to Operating in Venezuela are Increasing

Willmen Blanco
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Paxful Said that Barriers to Operating in Venezuela are Increasing

Ray Youssef noted that the startup is focused on Colombia for its operations in the region. In partnership with CoinLogiq they plan to install more than 100 cryptocurrency ATMs.

Ray Youssef, co-founder, and CEO of Paxful, believes that the Latin American cryptocurrency market attracts renowned companies in the ecosystem, including Paxful. The Estonian exchange platform, with reach in more than 200 countries, sees opportunities in the region for business development and the potential for greater Bitcoin adoption.

In July 2018, the executive said that he was convinced of Venezuela’s immense potential to establish a market, which led them to study the possibility of opening an office in the country. However, the plans still do not materialize and the company now aims its efforts at Colombia, since a complicated political and economic landscape is maintained in Venezuela.

In order to expand in Latin America, Paxful allied with the company CoinLogiq in the installation of ATMs in Colombia, Peru and Venezuela, among other countries. To deepen more about these advances and to publicize their plans in the medium term, Youssef talked about his view on the region.

Youssef said that their idea of ​​opening an office in Venezuela still remains, but says they are still researching. There is a team that seeks to develop its business in Latin America, which is now focused on Colombia, where many Venezuelans fled in search of better opportunities.

Although the situation in Venezuela has worsened, he still sees opportunities to develop business in the country. The barriers to operation have been increasing significantly but he still considers Venezuela a very important growing market.

He was asked about whether the United States sanctions imposed on Venezuela would interfere with any Paxful operation in the country. In this regard, he explained that, as a US-regulated company, they have to comply with the prohibition of serving Venezuelans.

Regarding its expansion in Colombia, Peru, and Venezuela, among other Latin American countries, he indicated that they will install around 100 ATMs jointly with CoinLogiq, which they consider a key player in the region. The partnership of both companies is very aligned with democratizing finances and providing access to anyone.

The executive explained that CoinLogiq is the only one of its partners that has focused on cryptocurrency ATMs. He noted that in Latin America they are also partnered with AirTM, which allows buying Bitcoin in Paxful through AirTM as a payment method.

Youssef stated that one of Paxful’s goals is to make Bitcoin accessible to everyone and the installation of ATMs is one of the most convenient ways to do so. He also said that they will be expanding to other Latin American countries, of which they will announce details in the coming months.

The co-founder of Paxful notes that purchase through a cryptocurrency ATM is bidirectional. People can go to the device, undergo a basic KYC process, specify the amount to be bought, insert the money, scan their wallet and immediately obtain the cryptocurrencies and vice versa.

In order to buy using the Paxful Kiosk, it is required to enter the e-mail address to automatically create an account. After this, users can select between buying or selling with any of the payment methods offered and obtaining the funds directly deposited in the Paxful wallet.

Latin America is one of the main markets to which this startup wants to expand in the coming quarters. Its main focus is now growing in more established cryptocurrency markets, such as Colombia, Mexico, Argentina, Venezuela, and Brazil, through local partnerships and brand promotion.

By Willmen Blanco

Ukraine is Advised on Crypto Regulation Issues by the Binance Firm

Maria Rodríguez
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Ukraine is Advised on Crypto Regulation Issues by the Binance Firm

The alliance will help boost cryptography, as well as new technologies in the country

Binance, one of the world’s most important crypto exchange companies, has partnered with the Ukrainian government to evaluate regulatory issues on crypto assets; this as part of the country’s incursion in the development of alternative and innovative financial technologies.

The agreement between both parties indicates that it is a paradigm shift to the usual rules common in the current economy in Ukraine.

According to the official information of the treaty, the Ministry of Digital Transformation of Ukraine decided to use the MoU method (or Memorandum of Understanding) to seal ties with the Binance company. The text says that both parties will work in the search for a “potential legal status of virtual assets and currencies in the country”.

It is known that the Ministry that will work on said project was created recently in the month of September; it will not only have as a function the development of cryptographic and regulatory issues of digital currencies and their environment but also it will have the task to develop an online service which serves the Ukrainian Government in administrative matters, as well as the assembly of a digital platform for the management of trade and finance.

Ukraine is mainly interested in the technological change of its economic systems. This is the reason why it is currently evaluating possible changes and amendments to its laws and its financial processes. This puts the country among the new governments that have seen in the crypto industry a step towards the future of global finance.

The document suggests that both parties will start by creating a working group that will be in charge of researching the crypto industry. In the same vein, they will find the best ways of adoption for the country, as well as predicting changes in the global crypto industry to define a correct route plan for the economy of the country.

Besides, regarding blockchain technology, local press reports informed that they will use this technology for the transfer of rights and property licenses for digital currencies.

“Binance will also help develop transparent and effective mechanisms for the transfer of rights to any virtual assets or currency using blockchain technology, as well as beneficial conditions for investments and businesses in Ukraine”.

To continue with the development of this project, Binance said that next week there will be an important meeting between its managers and public authorities of the Ukrainian government in Kiev.

On the other hand, Changpeng Zhao, who is Binance’s CEO, referred to this alliance with the Ukrainian government, labeling it as positive for the industry.

“The legalization of cryptocurrencies and corresponding adoption of progressive legalization in this sphere can become one of the key drivers in stimulating positive growth in the Ukrainian economy, as well as attract additional investments to the country. We are honored to be part of the Ministry’s plans and hope that our global expertise will contribute to the most favorable formation and regulatory practices in Ukraine while meeting the needs of both the public and businesses”, Zhao said.

The cooperation between Binance and the Ukrainian government is in the process of creation and execution, after the signing of the agreement. Ukrainian parliamentarians and Binance executives hope the process to be a resounding success, which will also help improve technologies in the country.

By María Rodríguez

Cryptocurrencies Represent a Growing Problem to FBI Director

Willmen Blanco
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Cryptocurrencies Represent a Growing Problem to FBI Director

Christopher Wray notes that terrorists seek alternatives that allow anonymity. US senators wonder if the country should take measures regarding cryptocurrencies.

Christopher Wray, Director of the Federal Bureau of Investigation (FBI), sees cryptocurrencies as a considerable problem that will become even bigger.

Wray stated his opinion while responding to senators’ concerns about Bitcoin and other crypto assets, during a hearing before the United States Senate Committee. It was revealed that at the session, which was held on November 5th, national security and government issues were discussed. There, senators asked the leaders of the FBI, National Security and the National Center for the Fight against Terrorism about “Threats to the Homeland.”

Mitt Romney, a Republican senator, asked during the hearing whether or not cryptocurrencies represent a threat large enough for the US to take action.

For his part, the head of the FBI, responding to the senator’s question, said that cryptocurrencies are already a problem.

Wray added that terrorists are becoming more knowledgeable about technology and seeking alternatives that make their evil activities anonymous. The FBI chief also said that more attention is being paid to cryptocurrencies, with tools that can monitor crypto transactions. He also believes that if the US does not put its affairs in order and keeps current with the new technologies, the country will soon be blocked.

However, despite the problems mentioned by the FBI director, the justice departments of several countries managed last October to analyze the Bitcoin network and its transaction log to discover a network of pedophiles on the dark web. The police found and arrested the site owner, originally from Korea, and criminals from several countries, including the United States, the United Kingdom, Germany, Saudi Arabia, Canada, Ireland, Spain, Brazil and Australia.

Likewise, a study of the Messari cryptocurrency market monitoring portal, published in July, showed that the ratio between US dollars related to money laundering and Bitcoin funds circulating in the dark network is 800: 1. The figure obtained in the study implies that for each fraction of the pioneering cryptocurrency equivalent to one US dollar, which is spent on a darknet, an amount of USD 800 is used in money laundering in the hidden network.

In this way, the claims of regulators and security chiefs that digital terrorists prefer cryptocurrencies seem unfounded. In fact, data from several research studies reveal that crypto assets are not used for criminal activities as much as many people think.

The research of expert Yaya J. Fanusie, former CIA counter-terrorism analyst and director of analysis at the Center for Illicit Sanctions and Finance of the Foundation for Defense of Democracies of the United States, showed in September 2018 that Terrorists prefer to handle cash to cryptocurrencies.

However, while there are those who note that cash is the king of terrorist organizations, there have also been warnings about alleged sectors that have begun to show signs of cryptocurrency adoption with the idea of ​​supporting terrorism. Last April, it was reported that jihadist groups created multiple cryptocurrency wallets to prevent the detection of terrorist activities, but this is not fully demonstrated.

By Willmen Blanco

Cryptocurrencies Can Be Bought through Cards in Local Argentine Market

Josselyn Avila
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Cryptocurrencies Can Be Bought through Cards in Local Argentine Market

To conduct the purchase or sale of crypto assets at local exchange offices, authorization is not required. This restriction only applies when access to the exchange market is required.

The government of Mauricio Macri imposed an exchange control on September 2nd and, subsequently, the Central Bank of the Argentine Republic (BCRA) has continued to add rules. Consequently, on October 31st, communication “A” 6823 was issued, which led to a misinterpretation that is still confusing the population.

Government measures are aimed at preventing excessive demand for US dollars from causing a further devaluation of the local currency. Therefore, in order to stop certain specific operations that allowed obtaining dollars according to the official rate, the new measure came into force this month.

Communication “A” 6823 of the BCRA provided that, from November 1st, local financial institutions must have the prior approval of the Central Bank to get access to the foreign exchange market and make payments abroad through the use of credit, debit or prepaid cards issued in the country. Of course, such payments must originate directly or indirectly through the use of international networks.

The confusion arose when information circulated indicating that the measure prohibits the purchase of cryptocurrencies through credit or debit cards. This misinterpretation tends to confuse the population, which is why exchange houses and other actors in the Argentine crypto asset trade request clarification.

The new rule does not really prohibit the purchase of Bitcoin or other cryptocurrencies through credit cards, since buying them does not require getting access to the exchange market. It is necessary to go to local exchange houses or other means of exchange, as long as both parties, the one who buys and the one who sells, reside in the country.

The measure only applies when access to the exchange market is required for the purchase of cryptocurrencies abroad. If necessary, access was subject to the prior authorization of the BCRA, as indicated in the communication.

The opinion of Exchange Houses

Several operators of Argentine cryptocurrency exchange houses gave their opinion. In this regard, Juan José Méndez, Director of Ripio believes that it is necessary to clarify to Argentines that the Central Bank does not prohibit the purchase of crypto assets through credit cards.

Dante Galeazzi, Operations Manager of the cryptocurrency ATM Company Athena Bitcoin in Argentina, believes that the measure implemented by the Central Bank, to limit the purchase of cryptocurrencies through credit cards abroad, represents an opportunity for the local industry

The CEO of the ArgenBTC exchange office, Julián Arceo, states that something that has never occurred cannot be prohibited. He explains that Argentine trading platforms do not offer, nor have they offered, the possibility of acquiring cryptocurrencies through credit cards. Although there was no law to establish this, the financial institutions that manage the different existing payment gateways neither allowed nor allow charging their customers through credit or debit cards for the acquisition of crypto assets.

Recommendation of Market Connoisseurs

The connoisseurs of the Argentine crypto asset market agree that Bitcoin favors citizens, especially in countries that are experiencing economic difficulties. For this reason, they note that it is best for them to research, know and discover the opportunities that can be seized.

Méndez adds that in Ripio they trust that the regulation on the local FinTech ecosystem will help foster the development of an industry that builds the tools for the future and expands the possibilities of work and inclusiveness.

Dante Galeazzi recommends seeking information and understanding how cryptocurrencies work. He also believes that it is interesting that, especially in Argentina, there is no limit to acquire crypto assets, so they appear as an alternative to saving in pesos.

On this subject, Julián Arceo believes that in the face of the difficult time that Argentina is undergoing, it is best to take refuge in cryptocurrencies as the restrictions aim to prevent the flight of US dollars. In that sense, he assures that buying bitcoins at local exchange houses does not pose any risks against the system.

By Willmen Blanco

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