Blockchain Technology Continues to Make Advances Internationally

[cryptency_v]

Ever since the government of the People’s Republic of China cracked down on ICO’s and digital currency trading, causing a temporary drop in the value of Bitcoin and its peers, blockchain technology has only continued to demonstrate its resilient and irrepressible nature. In September of this year the PRC government, banned companies from raising capital through initial coin offerings and forced all locally-operated cryptocurrency exchanges to shut down. China’s crypto-community has bounced back onto its feet by transferring their cryptocurrency operations to over-the-counter (OTC) platforms located outside of mainland China.

Two of China's top bitcoin exchanges - OKEx and Huobi Pro - have announced that they will be shifting more towards the over-the-counter (OTC) market and have plans to introduce peer-to-peer trading platforms that support fiat currency transactions, including the Chinese yuan.

There are two types of cryptocurrency trading – intraday and OTC. A report on the subject of blockchain technology, authored by the Chinese governmental body - The National Committee of Experts on Internet Financial Security Technology explains that: “OTC usually has no fixed place, prescribed membership, and strict rules and regulations; mainly the one-on-one transactions are conducted by the counterparties through private negotiations.”

Intraday trading on the other hand is usually conducted under the auspices of a formal institution such as an exchange - like the Shanghai Stock Exchange for example. Both Mr. Lennix Lai of OKEx and Mr. Lin Li of Huobi duly noted in separate press conferences, that because of the early-stage status of this technology, investing in it could prove risky, particularly since there is no regulation surrounding this sphere. Despite these words of caution, both men ultimately expressed their confidence and good faith in the further progress, improvement, and proliferation of blockchain technology.

While the government of China has chosen a cautious approach to blockchain and digital currency use, other countries are demonstrating a much greater enthusiasm for the adoption of said technologies. The government of Uruguay has announced last Friday, the beginning of pilot program of the digitalization of the Uruguayan peso. The project is being implemented in conjunction with Administración Nacional de Telecomunicaciones (ANTEL) - Uruguay’s government-run telecommunications provider - which will provide the relevant technology in the form of a mobile phone app to 10,000 of its users who are going to take part in the test. These registered users will be able to interact with merchants as well as peer-to-peer in currency exchanges. The test program will continue for six months - upon the completion of which, its efficacy will be subject to further review by the authorities.

The most interesting aspect of this advent is that unlike Bitcoin and its fellow cryptocurrencies - which are not issued or regulated by any central authority - the digital version of the peso a would remain the responsibility of the Uruguayan Central Bank (BCU). The BCU would supervise and control everything having to do with the issuance and circulation of the new electronic version of the country's money.

“This is not a new currency, it is the same Uruguayan peso that instead of having a physical support has a technological support,” stressed the president of the BCU, Mario Bergara. Commenting further on the motivation for experimenting with digitalization of Uruguay’s currency Mr. Bergara said; “It is expensive to print physical currency. Its distribution throughout the territory of the entire country is also expensive and there are obvious security concerns that come with its transport. There is also the opacity that is inherent to physical currency use.”

This development is a direct challenge to the idea that digital currency “has” to be decentralized and is perhaps a sign that in the not-so-distant future, government-backed electronic currency will compete side-by-side in the global marketplace with decentralized digital tokens such Bitcoin - providing the public a wider choice of digital payment solutions.

[Priyankasharma1]

Nice Post! Bitcoin is leading a nearly indistinguishable digitalization procedure in the international finance sector. While Bitcoin users may select to hold the cryptocurrency in the shape of physical cash, the vast majority of Bitcoins are saved in wallets and trading platforms. Bitcoin trade are settled in a peer-to-peer mode without the existence of mediators.
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