China’s Central Bank Finishes Joint Trial of its CBDC

China’s Central Bank Finishes Joint Trial of its CBDC
January 14, 2020

658+The heightened tensions between the US and Iran have once again lured investors to the cryptocurrency market. Bitcoin (BTC) has rebounded above the critical resistance level of $8,300. At the time of writing this article, Bitcoin (BTC) is trading at $8,382, reflecting a gain of 3.1% in the past 24 hours. With a gain of 2.2%, Ether (ETH) is trading at $146.52. XRP, Ripple’s native crypto token, is trading at $0.2157, representing a gain of 1.3%. in the past 24 hours. Other major altcoins, which has gained in the past 24 hours include Tron (TRX-$0.0149, 2.1%), Litecoin (LTC-$52.77, 5.4%), Stellar (XLM-$0.0488, .4%), Bitcoin Cash (BCH-$279.20, 6.1%), Dash (DASH-$72.84, 13%), IOTA (IOTA-$0.1919, 1.4%), OKB (OKB-$2.92, 1.6%), Cardano (ADA-$0.0378, 2.4%), EOS (EOS-$3.24, 4.6%), Huobi (HT-$3.07, 2.6%), ChainLink (LINK-$2.24, 3.5%), Monero (XMR-$59.27, 1.7%), Cosmos (ATOM, $4.26, 2.4%), Ethereum Classic (ETC-$5.58, 4.9%), Tezos (XTZ-1.30, 1.30%) and Binance Coin (BNB-$15.50, 3.1%). The only altcoin which has lost in the past 24 hours is LEO (LEO-$0.8409, -2.2%).


Government level initiatives

The FCA now overseeing AM: and CTF in crypto firms

The UK’s Financial Conduct Authority (FCA) has started managing anti-money laundering (AML) and counter-terrorist financing (CTF) compliance in firms involved in the cryptocurrency-related business. Broadly, FCA will oversee whether the UK registered companies having cryptocurrency-related operations are following appropriate rules and meet the stipulated criteria.

FCA has additionally stipulated a list of criteria for cryptocurrency-related firms, including the identification and validation of threats associated with non-compliance of AML and CFT, creation of policies and restrictions to ward off risks, and carrying out due diligence.

The FCA has issued the following statement: “We will proactively supervise firms’ compliance with the new regulations, and will take swift action where firms fall short of desired standards and cause risks to market integrity,” the announcement said.


PBoC completes trial of its central bank digital currency (the virtual yuan)

The People’s Bank of China (PBoC) has finished the front-end design and joint trial of its soon-to-be-unveiled central bank digital currency (CBDC). The country’s central bank completed the front end design of the planned virtual yuan, created requisite standards, conducted research and development, and a joint trial of the CBDC.

The bank has highlighted plans to enhance cybersecurity in the financial sector and establish rules for the certification of crucial data framework.

Last month, there were reports of China planning to carry out a first live trial of its CBDC, with the initial testing of the CBDC to be conducted in the city of Shenzhen before the end of 2019. The reports also indicated that the real-world test of the CBDC might also be conducted in the city of Suzhou.

As a part of the trial, China’s CBDC was anticipated to transcend the central bank framework and participate in services related to education, transportation, and the medical sector. Notably, earlier this month, PBoC has stated that the trial of the digital yuan is going smoothly.


Private sector initiatives

Ant Financial is now the fifth most valuable private enterprise in China

Ant Financial, China-based popular fintech company and subsidiary of e-commerce behemoth Alibaba, has taken the position as the fifth most valuable private company in China. In the first-ever ranking list by Hurun, famous for compiling China’s rich list, Ant Financial has taken the numero uno position in its domain and fifth largest in the ranking list encompassing all sectors.

The report pegs the market valuation of Ant Financial at $143 billion as of November 29th, 2019. Interestingly, Alibaba, China’s most valuable company, and its financial associate, Ant Financial, have been involved in the blockchain sector for more than a year. In 2018, Alibaba, along with IBM, held the top position in a list ranking worldwide enterprises based on blockchain-related patents filed till now.

Ant Finanacial is all set to unveil an enterprise-centered “Ant Blockchain Open Alliance” platform in January. The service intends to facilitate small-scale and micro-enterprises and coders to adopt blockchain at a nominal cost. The enterprise had earlier unveiled a blockchain-as-a-service platform, after testing it by conducting the first-ever blockchain-based remittance in the second quarter of 2018.

With a valuation of $545 billion, Alibaba took the number one spot in the list of private enterprises in China. It was followed by WeChat operator Tencent Holdings, with a valuation of $408 billion, and Ping An Insurance, with a valuation of $215 billion.


Lightnet raises $31.2 million to promote cross-border payments

Thai Stellar-based blockchain startup Lightnet has raised $31.2 million to boost cross-border payments in Southeast Asian countries.

Lightnet, the Thailand based Stellar blockchain-focused startup, has received $31.20 million in funding to improve cross-border payments in Southeast Asian nations. The series A funding round was mainly led by Singaporean United Overseas Bank (UOB) and South Korea’s Hanwha Investment & Securities.

Interestingly, in the Southeast Asian region, Lightnet aims to substitute traditional payment remittance platforms such as SWIFT, which is used by banks and financial institutions across the world. Lightnet calls itself as a “frictionless settlement hub for the region to provide centralized real-time settlement.”

Lightnet Chairman, Chatchaval Jiaravanon, states that the firm offers cost-effective, real-time financial mobility and inclusivity to the “four billion lives throughout the Asia Pacific.” In particular, the firm intends to foster economic mobility and inclusivity for the underbanked and unbanked individuals in the region.

Lightnet CEO Suvicha Sudchai revealed that the development of the basic platform is complete, and the initial transaction is planned to be conducted in the first quarter of 2020.

The platform aims to incorporate multiple payment and remittance systems such as MoneyGram. The company also hopes to partner with Thai digital payment provider Ksher and Yeahka, a Chinese mobile payment solution provider.

The company hopes to pave the way for more than $50 billion worth of yearly transactions via its network by 2023, according to the company’s Vice Chairman Tridbodi Arunanondchai.

Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.



Janine is our editor for related stock market news. Andrew and Janine will be focusing on providing the latest trends and where the next hit could be

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