The Bank for International Settlements and the Federal Reserve are concerned about digital currencies, and international supervision is becoming more active

Source: Keith Communication

Summary

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Event: The BIS and the heads of the six central banks will discuss the potential advantages and possibilities of digital currencies. The Federal Reserve Board believes that it is important for the central bank to stay ahead of digital currency research and policy development. The United States SEC Commissioner proposed to provide a "safe harbor" for cryptocurrency projects and proposed a three-year grace period for cryptocurrency sales.

The BIS and the heads of the six central banks will meet in April to discuss the potential advantages and possibilities of digital currencies. According to the Nihon Keizai Shimbun, in mid-April this year, the heads of the Bank for International Settlements (BIS) and six central banks will meet in Washington to discuss the potential for the issuance of national digital currencies. The Bank for International Settlements and the United Kingdom, Sweden, Switzerland, Canada, Japan, and the European Central Bank formed a working group with the Bank. CBDC) application and feasibility. The working group is expected to complete its interim report in June and final report in the fall.

The Federal Reserve Board believes that it is important for the central bank to stay ahead of digital currency research and policy development. On February 5, Lael Brainard, a member of the Federal Reserve Board and a long-time researcher of crypto assets, revealed in Stanford's speech entitled "Payment and Currency Digitization" that the Fed's research on the issue of central bank digital currencies is deeper and more open. On the same day, Brainard said on the issue of central bank digital currency: The Federal Reserve is working with the central banks of other countries to improve their understanding of "central bank digital currency"; exploring a number of related issues, including policy, design, and legal considerations related to independent digital currency issuance; Some new players are outside the supervision of the financial system, and their new currency may pose challenges to combating illegal finance, privacy, financial stability, and monetary policy transition. At the same time, Brainard also believes that “digitalization may change the payment method to achieve higher value and more convenience at lower cost, but it has risks.” Obviously, Brainard ’s statement shows that the world ’s central banks are using private digital payments such as Facebook Libra Concerns about the rise of the system and currency have also been affected by the explicit proposal of digital currency plans by central banks such as China. Regarding whether the Fed is likely to issue digital currency in the future, she is also more open than ever.

The United States SEC Commissioner proposed to provide a "safe harbor" for cryptocurrency projects and proposed a three-year grace period for cryptocurrency sales. US SEC Commissioner Hester Peirce hopes that legitimate cryptocurrency projects will succeed without violating U.S. securities laws. On Thursday, Pierce formally proposed to provide a "safe harbor" for token projects at the International Blockchain Congress in Chicago. This will give these cryptocurrency projects more freedom to develop networks and communities without having to worry about regulatory restrictions. That is, cryptocurrency startups will have a grace period of three years from the initial coin sale to a level of decentralization sufficient to pass the agency's securities assessment, including the famous U.S. Supreme Court Howey Test ). Some tokens seem to meet the definition of securities when they are issued, but as the project develops to a certain degree, after passing the Howe test, it no longer meets the definition of securities. Therefore, if this proposal can be implemented, it will provide greater flexibility and broader development space for cryptocurrency projects.

Last week's market review: Chainext CSI 100 rose 11.81%, and the basic chain in the segment segment performed the best. From the perspective of subdivisions, payment transactions, entertainment and social networking, basic enhancement, basic chain, storage & computing, and AI performance are better than the average level of Chainext CSI 100, which are 16.14%, 17.44%, 14.63%, 19.74%, and 13.63%, respectively. , 14.66%; the performance of the Internet of Things & Traceability, commercial finance, and pure currency were all lower than the average level of Chainext CSI 100, which were 8.99%, 4.33%, and 8.64%, respectively.

Risk Warning: Uncertainty in regulatory policies, and the development of blockchain infrastructure is not up to expectations.

1. The Bank for International Settlements and the Federal Reserve are concerned about digital currencies, and international supervision is becoming more active

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Event: The BIS and the heads of the six central banks will discuss the potential advantages and possibilities of digital currencies. The Federal Reserve Board believes that it is important for the central bank to stay ahead of digital currency research and policy development. The United States SEC Commissioner proposed to provide a "safe harbor" for cryptocurrency projects and proposed a three-year grace period for cryptocurrency sales.

The BIS and the heads of the six central banks will meet in April to discuss the potential advantages and possibilities of digital currencies. According to the Nihon Keizai Shimbun, in mid-April this year, the heads of the Bank for International Settlements (BIS) and six central banks will meet in Washington to discuss the potential for the issuance of national digital currencies. The BIS and six central banks formed a new working group last month, and the meeting expected in April will be the first meeting between the working groups. The working group was born against the background of the rise of regulated digital fiat currencies, which has raised concerns about financial supervision in many countries, especially Facebook's Libra and the People's Bank of China digital currency plan. In January this year, the United Kingdom, Sweden, Switzerland, Canada, Japan, and the European Central Bank formed a working group with the Bank for International Settlements to further study the application and feasibility of the central bank's digital currency (CBDC). The Bank of Japan's attitude towards the development and issuance of digital currency by the central bank is very positive. According to Reuters, an organization of a senior member of the Japanese ruling Liberal Democratic Party said that Japan should prepare for the issuance of digital currency and put digital currency on the agenda of this year's G7 National Conference to respond to China's action to issue digital yuan. At this meeting, Bank of Japan officials plan to discuss how to use digital currencies to simplify international payments and study the security measures required. The working group is expected to complete its interim report in June and final report in the fall.

The Federal Reserve Board believes that it is important for the central bank to stay ahead of digital currency research and policy development. On February 5, Lael Brainard, a member of the Federal Reserve Board and a long-time researcher of crypto assets, revealed in Stanford's speech entitled "Payment and Currency Digitization" that the Fed's research on the issue of central bank digital currencies is deeper and more open. On the same day, Brainard said on the issue of central bank digital currency: The Federal Reserve is working with the central banks of other countries to improve their understanding of "central bank digital currency"; exploring a number of related issues, including policy, design, and legal considerations related to independent digital currency issuance; Some new players are outside the supervision of the financial system, and their new currency may pose challenges to combating illegal finance, privacy, financial stability, and monetary policy transition. At the same time, Brainard also believes that “digitalization may change the payment method to achieve higher value and more convenience at lower cost, but it has risks.” Obviously, Brainard ’s statement shows that the world ’s central banks are using private digital payments such as Facebook Libra. Concerns about the rise of the system and currency have also been affected by the explicit proposal of digital currency plans by central banks such as China. Regarding whether the Fed is likely to issue digital currency in the future, she is also more open than ever.

The United States SEC Commissioner proposed to provide a "safe harbor" for cryptocurrency projects and proposed a three-year grace period for cryptocurrency sales. US SEC Commissioner Hester Peirce hopes that legitimate cryptocurrency projects will succeed without violating U.S. securities laws. Hester Peirce has been called "CryptoMom" by the blockchain community, and has served in the United States Securities and Exchange Commission (SEC) for two years. Last Thursday, Pierce officially proposed tokens at the International Blockchain Congress in Chicago. The project provides a "safe harbor". This will give these cryptocurrency projects more freedom to develop networks and communities without having to worry about regulatory restrictions. That is, cryptocurrency startups will have a grace period of three years from the initial coin sale to a level of decentralization sufficient to pass the agency's securities assessment, including the famous U.S. Supreme Court Howey Test ). To date, the SEC has launched enforcement actions against a number of companies that develop and sell tokens, including Telegram and Kik, two major communications platforms. Earlier, projects such as EOS also paid fines to the SEC. The proposal mentions that the analysis of whether tokens are offered or sold as securities is not static, and tokens are not strictly digital assets. In fact, some tokens seem to meet the definition of securities when they are issued, but as the project develops to a certain degree, after passing the Howe test, it no longer meets the definition of securities. Therefore, if this proposal can be implemented, it will provide greater flexibility and broader development space for cryptocurrency projects.

2. News from governments: Japanese lawmakers suggest preparing for digital currency issuance

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China : Since February 8, 2020, the Beijing Municipal Planning and Natural Resources Commission, Beijing Municipal Housing and Urban-Rural Construction Commission, State Administration of Taxation, Beijing Municipal Taxation Bureau, and Beijing Municipal Administration Commission have launched real estate registration information based on blockchain technology The upgraded version of the platform launched 7 application scenarios of "blockchain + real estate registration". It is reported that in order to cooperate with the prevention and control of the pneumonia epidemic of the new type of coronavirus infection, the "Internet + real estate registration" online service, the working masses and enterprises can log on to the Beijing real estate registration field online service service platform to handle the blockchain application scenario business. At the same time provide online inquiry, online booking, online payment and EMS delivery services. On February 3, the seven departments of the Ministry of Transport, the Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Finance, the Ministry of Commerce, the General Administration of Customs and the State Administration of Taxation issued guidance on vigorously promoting the high-quality development of the maritime industry. Opinion said that vigorously promote the application of new technologies such as mobile Internet, artificial intelligence, big data, and blockchain. Promote the research and application of global shipping service network platform based on blockchain.

Japan: On February 8th, according to Reuters, an organization of a senior member of the Japanese ruling Liberal Democratic Party stated that Japan should prepare for the issuance of digital currencies and put digital currencies on the agenda of this year's G7 national conference to respond to China. Issuance of digital RMB. On February 8, according to news.Bitcoin news, the Japan Financial Services Agency (FSA) explained its recently adopted rules regarding the creation and sale of cryptocurrency exchange-traded funds (ETFs). In response to a question about whether the new law allows the use of cryptocurrency ETFs, a spokesperson for the FSA stated that in order for an instrument to be considered an investment fund in Japan, it is necessary under the Investment Trust Law to make it an investment trust "Corresponding. It is not possible to create such ETFs because instruments that primarily invest in crypto assets do not meet the legal definition of an “investment trust”.

Switzerland: On February 7, Switzerland stepped up its supervision and required Cryptocurrency Exchanges to verify the identity of customers for transactions exceeding $ 1,000. The Swiss Financial Market Supervision Authority (FINMA) announced the adoption of new anti-money laundering regulations and proposed amendments to anti-money laundering. The money-laundering regulations reduced the maximum transaction amount of unidentified cryptocurrency exchanges from 5,000 Swiss francs to 1,000 Swiss francs (approximately $ 1,020).

Germany: On February 6, the German Financial Supervisory Authority (BaFin) issued guidelines. The guidelines explain how the cryptocurrency escrow law, which came into effect on January 1, this year, applies to companies operating outside Germany but still serving the German market. The guideline states that companies currently hosting digital assets for Germans will not be punished even if they do not have a German-issued license, and will be protected by the new escrow law that came into force this year, just like German cryptocurrency custodian companies. However, the overseas hosting company must submit the license application before March 31 this year, and obtain the license before November 30. And if such companies have not managed cryptocurrencies for German customers before January 1, and intend to open up the German market, they must first obtain a license, otherwise they cannot enter the German market.

United States: On February 5, according to Fox Business, the Department of Justice, led by US lawmakers and Attorney General William Barr, is considering a total ban on cryptography. At a "smuggling" summit in the White House, Barr said he opposed end-to-end encryption. He said that "military-level" security features made possible human trafficking through closed networks.

United Kingdom: On February 3, the Market Conduct Regulatory Authority (FCA) updated the registration fees required for cryptocurrency companies, setting different registration fees based on the size of the cryptocurrency business of the company, not a uniform fee regardless of the size of the business. In addition, the FCA emphasized that if the regulator refuses to approve the registration, the application fee will not be refunded. The FCA previously announced that starting January 10, 2020, companies that use crypto assets to conduct business will be monitored as part of a previous amendment to the UK's anti-money laundering and counter-terrorism financing regulations.

3. Industry chain related developments: BTC mining revenues rose 3.0% MoM

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(The following source website data is updated to February 9)

Last week, BTC added 2.29 million transactions, an increase of 3.3% from the previous month; ETH added 4.28 million transactions, an increase of 13.2% from the previous month.

Last week, the average daily income of BTC miners was 17.67 million US dollars, an increase of 3.0% from the previous month; the average daily income of ETH miners was 2.3 million US dollars, an increase of 17.1% from the previous quarter.

Last week, the average daily computing power of BTC reached 110.4 EH / s, a decrease of 1.2% from the previous month; the average daily computing power of ETH across the network reached 167.5 TH / s, an increase of 2.2% from the previous month.

Last week's BTC network-wide mining difficulty was 15.47T, an increase of 0.9% from the previous month. The next difficulty adjustment date is February 10, and the expected difficulty value is 16.09 T (+ 4.03%). Last week, the average ETH network-wide mining difficulty was 2.1T, an increase of 1.8% from the previous month. (Https://btc.com/stats/diff Here you can see the time and difficulty value of the next difficulty adjustment)

4. Last week's market review: Chainext CSI 100 rose 11.81%, and the basic chain in the segment segment performed the best

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We introduced the professional index product of the token market——Chainext CSI series index, where the CSI 100 index [1] represents the overall market trend; the CSI 5 index [2] represents the market's large-cap currency trend; the CSI 21-100 index [3] On behalf of the market in the small cap. The market continued to adjust this week. As of last Sunday (February 9), the Chainext CSI 100 index was 952.63, an increase of 11.81% from last week, and the total 24-hour trading volume on Sunday was $ 81.166 billion; of which, the global average price of BTC was $ 10,116.67, a month-on-month increase. 7.48%; the average global price of ETH was $ 228.58, an increase of 19.79% from the previous quarter.

From the perspective of subdivisions, payment transactions, entertainment and social networking, basic enhancement, basic chain, storage & computing, and AI performance are better than the average level of Chainext CSI 100, which are 16.14%, 17.44%, 14.63%, 19.74%, and 13.63%, respectively. , 14.66%; the performance of the Internet of Things & Traceability, commercial finance, and pure currency were all lower than the average level of Chainext CSI 100, which were 8.99%, 4.33%, and 8.64%, respectively.

risk warning

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1. Regulatory policy uncertainty;

2. The development of blockchain infrastructure did not meet expectations.

This article is an excerpt from the report "Guo Sheng Blockchain | Bank for International Settlements, Fed Concerns About Digital Currency, International Supervision Trends," which has been released on February 10, 2020 by Guosheng Securities Research Institute. For details, please refer to the relevant report.

This article originates from " Keith Communications ".