Regulatory Dynamics

1. The People's Bank of China solicits opinions to revise regulations, prohibiting the issuance of digital tokens.

The People's Bank of China recently solicited public opinions on the draft amendment to the "People's Bank of China Law of the People's Republic of China." The draft clearly stipulates that the Renminbi includes both physical and digital forms, providing a legal basis for the issuance of digital currency. At the same time, the draft prohibits any unit or individual from producing and selling token vouchers and digital tokens to prevent risks associated with virtual currencies.

2. The U.S. CFTC releases cryptocurrency guidelines

The Commodity Futures Trading Commission (CFTC) has released new guidelines for the cryptocurrency derivatives market. The guidelines require futures commission merchants to carefully hold customer funds and limit the locations where customer virtual currencies can be stored. The CFTC also warned futures commission merchants that customer funds must be deposited into clearly labeled accounts and that funds from different accounts must not be commingled.

3. The Federal Reserve Chairman acknowledges that CBDCs can improve the payment system.

Federal Reserve Chairman Jerome Powell stated during a discussion hosted by the International Monetary Fund that central bank digital currencies ( CBDC ) may improve the payment system in the United States. He believes that CBDCs can facilitate faster and more convenient payment transactions, promote the modernization of payment infrastructure, and provide coverage for underserved populations in financial services. Powell noted that approximately 80% of central banks globally are exploring CBDCs, but the Federal Reserve will not rush to launch one.

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

The Central Bank Digital Currency Research Institute has signed a strategic cooperation agreement with the Agricultural Credit Bank Fund Clearing Center, and both parties will cooperate on the digital renminbi application project. The Agricultural Credit Bank will provide a "one-point access" service for small and medium-sized banking institutions to facilitate the interconnection platform for digital renminbi, promoting the pilot work of digital renminbi in rural areas.

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

The Central Bank of the Bahamas announced the launch of a state-supported virtual currency called "Sand Dollar," making it the first country in the world to officially launch a CBDC. Approximately 393,000 Bahamians can use Sand Dollar for transfers and payments via their mobile phones, with transaction fees being almost negligible.

6. Latvian regulators warn about the risks of cryptocurrency investments

The Financial and Capital Market Commission of Latvia ( FCMC ) issued a warning, pointing out that fraud related to digital currency investment schemes is becoming increasingly serious. FCMC reminds investors to stay vigilant against such scams and to exercise caution when investing in cryptocurrencies.

7. German central bank officials: The launch of CBDC is a political decision.

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 rather than a purely technical one. He believes it is necessary to conduct a comprehensive analysis to assess the impact of CBDC relative to other options, including its effects on financial stability, the banking system, and payment methods.

8. Chinese police have cracked the first case of operating a money laundering platform using USDT.

The Huizhou police have cracked the first case in the country involving the use of USDT( Tether) to operate a points trading platform. The police remind the public to be vigilant and pay attention to the new type of points trading platforms that utilize USDT digital currency channels, as these are essentially designed by illegal gambling websites to evade crackdown, facilitate payments, and launder money.

Industry News

1. PayPal enters the cryptocurrency market

Payment giant PayPal has announced its entry into the cryptocurrency market, allowing customers to buy, sell, and hold cryptocurrencies like Bitcoin through its online wallet. Starting from early 2021, users will also be able to shop with cryptocurrencies at 2.6 million merchants on the PayPal network. It is reported that PayPal is seeking to acquire cryptocurrency companies, including BitGo, to expand its influence in the digital currency space.

2. Jack Ma talks about digital currency or redefining currency

Jack Ma stated that digital currencies may redefine the concept of money and have a profound impact on the future financial system.