Tag : framework

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ConsenSys to Power Chinese City Using Blockchain Technology

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Government officials in China’s South Eastern province of Xiong’an have employed the services of ConsenSys. ConsenSys is an incubator from the Ethereum network. It is going to use the power of blockchain technology to convert the agriculture-centric economy into a technological center.

The Push for Blockchain

The South China Morning Post reported on the 24th of July that the authorities are well under way to fulfill the President’s dream. The President Xi Jinping wants to see China’s first smartly planned city come into being. Xiong’an province authorities are on their way to fulfilling that dream.

Jinping believes that Xiong’an is the likeliest to succeed in building a dream city. The industries of AI, energy sciences and biotechnology boosting the local economy can make that possible. The market analyst Morgan Stanley has projected a huge investment in the region so far. According to their figures, the investment is north of $360 billion. This figure is from October of 2017. It is possible that the figure is much higher by this point.

The May of 2018 saw Xiong’an announce that it will be leveraging the power of blockchain technology and AI for the development goals.

ConsenSys is now employed as a consultant on blockchain technology. Every aspect of blockchain technology used to build this city will have ConsenSys’ oversight. It includes the possible administrative utility of blockchain technology for the city. Everybody knows that China does not trust cryptocurrencies. This move shows they have a lot of faith in blockchain technology.

ConsenSys will focus on providing blockchain framework and software solutions to the region. They even signed a memorandum of understanding to cement their partnership.

The founder of ConsenSys said that this project is one of the first major steps into China. This will lead the way for the technology to be used for large scale infrastructure. Everything from whole districts to even cities might be able to use the new technology.

This partnership is also the first time that the province is using services of a foreign company instead of local ones.

Blockchain Project Already Underway

This isn’t the first blockchain project for Xiong’an. They have partnered with China Communications Construction Company as well. They’re working together to create a blockchain platform for small companies to raise capital. Companies using the platform saw plenty of benefits of using the technology. The ConsenSys partnership is a big move for the Chinese province. There is a lot for the region to look forward to with this move.

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G20 Cryptocurrency Guidelines Highlighted Before Summit

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The G20 Summit is an international forum that brings together all the leaders of major economies from all over the world to one platform in a bid for more prosperity moving forward. Cumulatively, the organization has the aim to make the kind of policies that will help the global economy.

March of 2018 saw the G20 leaders meet in Buenos Aires in a summit which saw discourse on topics like the growing importance of cryptocurrencies and other digital assets in the global economic system. The Financial Stability Board, which is the organization that coordinates and monitors all the regulatory proceedings in the world determined that cryptocurrencies at the time do not pose any threats to the stability of the global economic stability.

The thing is that there was not even a snippet of regulatory actions being discussed at the G20 in March. Instead of offering what regulatory measures they intended, the leaders made it known that meaningful regulatory guidelines will be there for July and with a few days to go, the Financial Stability Board has issued guidelines for the regulation and monitoring of cryptocurrencies.

Framework for Monitoring Cryptocurrencies

According to their report, they did say that cryptocurrencies currently do not pose a threat to the stability of the global economy right now. That being said, their rapid proliferation has to be kept in check, especially the ways in which the cryptocurrency world can make an impact on the long-standing economic structure of the world.

With their issuance of the framework, they want to track any and all financial stability concerns that may come up in a timely manner. Keeping that in mind, the FSB will be monitoring a lot of critical data including:

  • Volatility comparators
  • Confidence effects
  • Payments and settlements
  • Basic market statistics
  • Market capitalization
  • Institutional exposure

Other than that, the FSB also plans to monitor the incidents of fraud in the cryptocurrency market and what impacts it can have on the cryptocurrency world.

Of course, outlining the framework for their monitoring and regulatory oversight is one thing and actually being able to do it is another. It will be quite the challenge for them to take on. The FSB understands the fact that the actual monitoring is going to be much tougher:

“Given that the proposed monitoring metrics are mainly based on public data, it should be stressed that the quality of the underlying data can vary, and might not always be satisfactory.”

These recommendations by the FSB were sent to the participants of the G20 for their consideration. The summit which is soon to take place will be able to provide a more detailed understanding of how each of the participating nations respond to these guidelines and how they plant to implement them.