Regulatory Dynamics

1. The People's Bank of China draft amendment to the law solicits opinions: Prohibition of issuing private digital tokens.

The People's Bank of China has released the draft of the revised "Law of the People's Bank of China of the People's Republic of China" for public consultation. The draft clearly stipulates that the renminbi includes both physical and digital forms, providing a legal basis for the issuance of digital renminbi. At the same time, the draft prohibits any organization or individual from creating or issuing tokens, tickets, or digital tokens that substitute for the circulation of the renminbi, in order to prevent the risks associated with virtual currencies.

2. The U.S. Commodity Futures Trading Commission has issued guidance on cryptocurrency derivatives.

The U.S. Commodity Futures Trading Commission ( CFTC ) has released new guidelines for the cryptocurrency derivatives market. The guidelines require futures commission merchants ( FCM ) to prudently hold customer virtual currency funds and restrict the locations where FCMs can store customer virtual currency. The CFTC also warned that FCMs must deposit customer funds into clearly labeled accounts and must not commingle funds from different accounts.

3. The Chairman of the Federal Reserve believes that central bank digital currencies can improve the payment system.

Federal Reserve Chairman Jerome Powell stated during a panel discussion that central bank digital currency ( CBDC ) could improve the payment system in the United States. He believes that CBDC can facilitate faster, lower-cost payment transactions, promote the modernization of payment infrastructure, and provide services to underserved financial groups. Powell noted that about 80% of central banks worldwide are researching CBDC, but the Federal Reserve will not rush to launch it.

4. The People's Bank of China collaborates with Agricultural Credit Bank to promote the application of digital renminbi.

The Digital Currency Research Institute of the Central Bank has signed a strategic cooperation agreement with the Agricultural Credit Bank's Fund Settlement Center, and both parties will collaborate on the digital yuan application projects. The Agricultural Credit Bank stated that it will provide "one-point access" services for rural financial institutions, promoting the pilot work of digital yuan in rural areas.

5. The Bahamas launches the world's first central bank digital currency Sand Dollar

The Central Bank of the Bahamas has officially launched the state-supported digital currency Sand Dollar, becoming the world's first country to issue a CBDC. It is reported that approximately 393,000 residents of the Bahamas can use Sand Dollar for transfers and payments via mobile phones. The Central Bank of the Bahamas has chosen NZIA to provide technical support for the project.

6. The Latvian financial regulator warns about the risks of cryptocurrency investment

The Financial and Capital Market Commission of Latvia ( FCMC ) has issued a warning that digital currency investment scams are becoming increasingly serious. Due to a lack of regulation, such fraudulent activities are frequent. FCMC reminds investors to remain vigilant regarding crypto investments and to carefully assess risks before investing.

7. Senior official of the German central bank: The launch of central bank digital currency requires political decision-making.

Burkhard Balz, a member of the Executive Board of the German Central Bank, stated that the introduction of the European digital currency (, the digital euro ), is a "political decision". He believes that given the impact of CBDC on financial stability, the banking system, and payment methods, its creation has political significance. Balz emphasized the need for a comprehensive assessment of the advantages and disadvantages of CBDC compared to other options, and supports central banks in strengthening cooperation in this area.

8. Chinese police cracked the first case of a platform operating with USDT for money laundering.

During the investigation of a cross-border online gambling case, Huizhou police discovered a new type of criminal method that uses USDT( Tether) to operate a scoring platform. This is the first case in the country to use USDT for running a scoring platform. The police remind that one should be wary of new scoring platforms that utilize digital currency channels, which are essentially illegal gambling websites circumventing regulation, facilitating payments, and laundering money.

Industry News

1. Payment giants enter the cryptocurrency field

A well-known payment company has announced that it will allow users to buy, sell, and hold cryptocurrencies such as Bitcoin through its online wallet. The company stated that starting from early 2021, users will also be able to use cryptocurrencies for shopping at 26 million merchants within its network. Reports suggest that the company is considering acquiring some cryptocurrency firms to expand its influence in the digital currency space.

2. Jack Ma Discusses the Potential Impact of Digital Currency

Jack Ma stated that digital currency may redefine the concept of money. He believes that the development of digital currency could have a profound impact on the existing financial system and monetary policy.