The United Nations has set up a cryptocurrency fund to accept bitcoin and Ethereum donations.

The latest player in cryptocurrency is the United Nations, the world's largest international organization.

On October 9, UNICEF announced the establishment of a Cryptocurrency Fund to accept, retain and spend donations in the form of "ether" and "bitcoin". It is the first institution in the UN system to launch a cryptocurrency fund. UNICEF said the fund's funds will be used to fund open source technologies that will benefit children and youth around the world. The first donation will be donated by the Ethereum Foundation through the UNICEF French National Committee. In addition to France, among the 33 national committees currently available to UNICEF, national committees in the United States, Australia and New Zealand also accept donations in the form of cryptocurrencies.

UNICEF said that the launch of the cryptocurrency fund is part of its application to blockchain technology, and UNICEF and WFP jointly lead the UN innovation network to explore potential opportunities and risks in the blockchain and other emerging technologies.

UNICEF's cryptocurrency fund accepts donations and funds in the same cryptocurrency. The first pen cryptocurrency is invested in three institutions, Prescrypto, Atix Labs and Utopixar, which are mainly used for prescription tracking, matching investors and needs. Funders and community tokens.

Coincidentally, UN Secretary-General Guterres issued a statement on the 8th through a spokesperson. If member states do not pay their annual contributions as soon as possible, the UN will face a serious shortage of funds. As of the end of September, the United Nations had a cash shortage of $230 million. This may be the most serious financial crisis that the United Nations has encountered in the past 10 years. By the end of this month, the United Nations will face the risk of exhausting its liquidity reserves and delaying the payment of staff salaries and supplier fees.

However, in addition to Ethereum and Bitcoin, the cryptocurrency Libra is subject to regulatory scrutiny by various countries.

The Libra, which is operated by the Internet giant Facebook, has not been officially released, but has been questioned by various countries. According to several media reports, PayPal announced that it has withdrawn from Libra members, and two international credit card organizations, Visa and Master, are also considering withdrawing from Libra.

Central banks are cautious about cryptocurrencies.

ECB Executive Committee member Yves Mersch said in September that the encrypted digital currency Libra appears to be "fascinating" but not reliable. Libra may weaken the ECB's control over the euro, affect the liquidity of banks in the euro zone, thereby jeopardizing the transmission mechanism of monetary policy, and may also erode the international status of the euro. Money is a public good and is closely related to national sovereignty. Only with the support of independent, responsible and credible institutions can money stimulate people's trust and achieve their key economic and social functions.

Federal Reserve Chairman Powell pointed out in July that the encrypted digital currency Libra has raised multiple concerns about privacy, money laundering, consumer protection and financial stability, and cryptocurrency projects should not advance before addressing these issues. The current regulatory rules cannot be applied to cryptocurrencies, and this new thing should be treated with a “patient and careful” regulatory attitude.

Seven central ministries and commissions such as the People's Bank of China have issued a document as early as 2017. The financing entity has raised and sold the tokens through the illegal distribution and circulation of tokens, and solicited so-called “virtual currency” such as bitcoin and Ethereum from investors. The financing act is suspected of illegally selling tokens, illegally issuing securities, and illegal criminal activities such as fund raising, financial fraud, and pyramid schemes.

The central bank requires that all types of token financing activities should be stopped immediately. Financial institutions and non-bank payment institutions may not directly or indirectly provide products, services such as account opening, registration, trading, clearing, settlement, etc. for token financing and “virtual currency”.

Author | Xin Jizhao

Source | 21st Century Business Herald