How are central banks‘ digital currencies doing in 2020? 

More and more central banks around the world are developing their own digital currencies. Such a currency is also called a central bank digital currency, or a CBDC. This year in particular, developments are moving fast; China, for example, has almost finished its version of a CBDC. How are things going with that? And what other superpowers are developing their own currencies? An update.

Chinese digital yuan almost finished
The Central Bank of China, the PBoC, has been developing a CBDC for some time. The PBoC is now testing the digital currency and found a creative way to do so a fortnight ago.

On Sunday, 11 October, the central bank held a kind of airdrop, with which two million Chinese from the city of Shenzen could participate. A total of 10 million digital yuan (approximately EUR 1.25 million) was distributed over 50 000 wallets. These lucky Bitcoin Machine review inhabitants can now spend this digital money in more than three thousand shops.

It seems that China will be the first superpower to have its own digital currency, although it remains to be seen when it will be officially launched.

European Central Bank is investigating
The European Central Bank (ECB) is showing an interest in digital currencies. On the ECB’s website, we can find that the central bank is investigating the possibility of launching a digital euro.

At the beginning of October, the ECB published a 55-page research report. They are not yet in the process of developing a digital currency, which is likely to happen in the middle of 2021.

On Monday 12 October, the ECB launched a public enquiry. Europeans can indicate what they think of a digital euro, and what characteristics it should have. This can be done until 12 January 2021.

Europe is therefore lagging a little behind China, which already has almost a working product.

America is also still in the experimental phase.
The United States, like Europe, is still experimenting. Jerome Powell is the President of the Federal Reserve, the Central Bank of America. In an online panel discussion this week, he said: „It takes time and a lot of work to prepare for a digital dollar and to bring every stakeholder on board. It is more important for America to prepare this process well than to be the first“.

Governor Lael Brainard of the Federal Reserve gave a state of play speech on 13 August this year. According to him, there have been several experiments with digital currencies in recent years. It is still searching for the right form.

According to Anthony Pompliano, bitcoin investor of the first hour, the Fed has to hurry so as not to lag behind China. He said so in his podcast of 19 October: „They are talking about a period of a few years. But if they do not act now, the United States will lag behind China, because it all comes down to accessibility“.

Smaller countries already have their own currency
With 1.4 billion and 741 million inhabitants respectively, we can imagine that thorough research is needed to launch a digital currency in China and Europe.

However, there are also countries with far fewer inhabitants, which have already launched a digital currency.

We wrote earlier this week about the Central Bank of the Bahamas, which has launched the Sand Dollar. Already this week, 385 000 citizens can open an account to carry out transactions with the Sand Dollar. The Bahamian Central Bank has launched the currency to replenish cash and improve the country’s existing payment system.

A slightly larger archipelago is the Marshall Islands. This currency is issued through the blockchain of Algorand. So far, the archipelago has been dependent on the dollar, but with the Sovereign (SOV) they are taking control. There is only one stumbling block: the government is still in conclave as to whether the country should issue the currency. If they give the green light, then the pre-sale can begin.

Is a CBDC a threat to cryptocurrency?
It is difficult to say. What is clear is that governments can hardly ignore bitcoin.

In addition to private investors, more and more listed companies also dare to convert their cash reserves to bitcoin. Even earlier opponents, such as PayPal, dare to offer bitcoin and cryptocurrency, although there are hurdles. These developments make it increasingly difficult for governments to ban bitcoin.

In any case, we are curious to know which large country will be the first to launch a CBDC, and what the consequences will be. We will keep an eye on developments for you!

Ripple considers London to escape US regulatory fog

Ripple is reportedly considering moving its operational base from San Francisco to London due to an unfavorable US regulatory environment.

Ripple founder Brad Garlinghouse says it’s because the UK’s Financial Conduct Authority doesn’t classify XRP as a security

Japan, Singapore, Switzerland and the United Arab Emirates are also under consideration.

The Trust Project is an international consortium of news organizations based on transparency standards.

Ripple founder Brad Garlinghouse has revealed that the company is considering moving its headquarters from San Francisco to London.

Speaking to CNBC on October 23, he said the move was due to the difference in the regulatory environments of the two countries.

The United States Securities and Exchange Commission (SEC) has not taken a concrete position on whether it views XRP as a security or a currency. This is made worse by an ongoing legal battle between Bitcoin Bank reviews and several crypto investors who argue that its sales of XRP correspond to unregistered securities.

Crypto firm Ripple plans to move to London due to US regulations

“UK offers a clear taxonomy”

Garlinghouse believes that the UK’s Financial Conduct Authority (FCA) position on XRP is sufficiently clear and advantageous to warrant a possible relocation to London.

The FCA currently classifies XRP as a currency instead of a security, which is especially important given that Ripple’s entire use case for XRP would be compromised if classified as security.

Explaining his preference for the UK regulatory environment at CNBC, Garlinghouse explained:

“What you see in the UK is a clear taxonomy, and the UK FCA has taken a leadership role in characterizing how we should think about these different assets and their use cases. The result of this was the clarity that XRP is not a security and is used as a currency. With this clarity, it would be advantageous for Ripple to operate in the UK. “

Speaking at the LA Blockchain Summit on October 6, Ripple co-founder Chris Larsen alluded to Garlinghouse’s frustrations when he revealed that the company was considering moving to Singapore in an effort to get out of its quagmire. US regulatory.

According to Garlinghouse, other jurisdictions vying to become Ripple’s new global base of operations outside of the UK and Singapore include the UAE, Switzerland and Japan.

SEC verfolgt schwedischen Krypto-Betrüger mit 3,5 Millionen Dollar

  • Die US-Börsenaufsichtsbehörde (SEC) hat den schwedischen Krypto-Betrüger Roger Karlsson angeklagt, mehr als 2.000 Investoren um 3,5 Millionen Dollar geschröpft zu haben
  • Karlsson betrog die Investoren, indem er „astronomische“ Renditen für ihre Investitionen in seine Firma versprach
  • Mit dem Geld kaufte Karlsson ein Grundstück im Wert von 1,5 Millionen Dollar

Die US-Wertpapier- und Börsenaufsichtsbehörde (SEC) hat einen schwedischen Kryptowährungsbetrüger angeklagt, der ihrer Ansicht nach „Tausende von Kleinanlegern“ um Millionen von Dollar betrogen hat. Die SEC sagt, dass Roger Nils-Jonas Karlsson seine Opfer durch Investitionen in sein Unternehmen Eastern Metal Securities mit dem Versprechen riesiger Renditen für ihre Investitionen betrogen habe.

Karlsson versprach Gold als Gegenleistung für Investitionen

Die SEC behauptet, dass Karlsson einen „massiven globalen…Betrug“ durch einen vorfinanzierten umgekehrten Pensionsplan betrieben habe, und behauptet, dass er das erste derartige Angebot war, das online durchgeführt wurde. Anlegern wurden laut SEC „astronomische Renditen aus nominalen Investitionen in Wertpapiere“ versprochen, die Karlsson bei der SEC nicht registriert hatte.

Diese Renditen würden, so Karlsson, in Form einer möglichen Auszahlung von 1,15 Kilogramm Gold pro Aktie kommen, was zum damaligen Zeitpunkt fünfstellig war, obwohl die Kosten für jede Aktie nur 98 Dollar betrugen.

SEC-Ansprüche in Höhe von mindestens 1,5 Millionen Dollar veruntreut

Mindestens 2.200 Investoren aus der ganzen Welt entschieden, dass sie einsteigen wollten, und schickten Karlsson Geld über Bitcoin und andere Zahlungsmethoden, wobei zwischen Dezember 2017 und Juni 2019 weltweit mehr als 3,5 Millionen Dollar an Eastern Metal Securities überwiesen wurden. Einer dieser Investoren war eine Gruppe namens „the Deaf Group“, die beabsichtigte, die Erträge zur Finanzierung ihrer Pensionierung zu verwenden.

Die SEC behauptet, dass Karlsson mindestens 1,5 Millionen Dollar davon für seinen eigenen Gebrauch veruntreut hat, einschließlich des Erwerbs von Eigentum in Thailand. Karlsson wurde im Juni 2019 auf eben diesem Grundstück verhaftet und im Dezember an die USA ausgeliefert. In ihrer Anklage erklärt die SEC, dass sie möchte, dass Karlsson das Geld an die Investoren zurückgibt und eine Geldstrafe bezahlt, obwohl noch nicht bekannt ist, wie viel Geld der Investoren tatsächlich übrig ist.

Justice case investigates whether CCP leader’s sister used bitcoin to hide money

The Superior Court of Justice (STJ) decided that the case on crime involving money laundering of drug trafficking with cryptomorps by people linked to the First Command of the Capital (PCC) should be analyzed by the Justice of the State of São Paulo and not by the Federal Justice.

The case involves the suspicion of money laundering by the sister of one of the traffickers linked to the PCC. She would have opened „companies in order to capture people to invest in cryptomites (bitcoins), in order to conceal the origin of illicit resources from drug trafficking.

Adriana Roberta, sister of Álvaro Daniel Roberto (a member of a drug gang linked to the criminal faction) became suspected of using cryptomoins to hide the origin of dirty money. The police investigation was opened by the 2nd Civil Police Station in Campinas/SP.

The problem is that the 4th Criminal Court of Campinas (SP) when confronted with the case understood that this was a matter for the National Financial System and it would be up to the Federal Justice to judge the case. The basis was that the facts in the investigation „relate to the alleged practice of crimes against the National Financial System, the popular economy and money laundering, so it would be up to the Federal Justice, unless better judgment, to know them and judge them“.

The Federal Judge of the 9th Circuit of Campinas, on receiving the case, sent it back to the State Courts because he understood that it would not be „faced with the commission of any crime against the National Financial System or crime against the Capital Market (Law no. 6.385/76), which would have the ability to attract the present investigation to the scope of Federal Justice“.

STJ decision on PCC cryptomoracs

There was no other way out but for the STJ to decide who should try this case. According to the decision of Minister Felix Fischer, „there is no evidence of damage to goods, services or interest of the Union, sufficient to attract federal jurisdiction.

Fischer based his decision on similar cases already seen by the STJ, in which the court mentioned that the „crime known as ‚money laundering‘ and typified in Article 1 of Law No. 9,613/1998, will only fall under federal jurisdiction when practiced against the financial system and economic-financial order, or to the detriment of goods, services or interests of the Union.

The Federal Public Prosecutor’s Office, when consulted, had also already opined „in the sense of knowing the conflict to declare the competence of the Court of Law of the 4th Criminal Court of Campinas – SP“.

According to Minister Felix Fischer, the Criminal Court of Campinas (SP) had stated that the jurisdiction to decide on the case would be the Federal Court arguing that

That was not the view of the minister, however, who said that „there is no evidence of damage to goods, services or interest of the Union, sufficient to attract federal competence. Fischer based his decision on similar cases already seen by the STJ, in which the court mentioned that the „crime known as ‚money laundering‘ and typified in Article 1 of Law No. 9,613/1998, will only fall under federal jurisdiction when practiced against the financial system and economic-financial order, or to the detriment of goods, services or interests of the Union.

Similar case

This is not the first time that a case of a negative conflict of jurisdiction involving Crypto Bull has reached the STJ. Fischer, when deciding the case involving money laundering for the CCP with cryptomoreds, even cited one of the first of them as dealing with a discussion about a suspected financial pyramid in Embu das Artes (SP).

At the time, the third Section of the STJ was unanimous in deciding that it would be up to the state courts to handle the case. The ministers were eventually accompanied by the Rapporteur Minister Sebastião Reis Júnior. The rapporteur said that the negotiation of bitcoin could not be investigated on the basis of the crimes provided by federal legislation.

„In fact, I believe that the conduct investigated does not bind to the crimes provided for in Articles 7, II of Law 7492/1986, and 27-E of Law 6385/1976, notably because the cryptomime, until then, is not considered as currency or securities,“ said the rapporteur.

The reason for this is that the transaction with cryptomime has no regulation and there is no legal provision for it to be supervised or authorised by the Securities Commission or the Central Bank, given that it is neither a type of security or currency in itself.