In between regulated and decentralized! EU and China are finding ways to regulate cryptocurrencies, while India and Australia put solar energy on blockchain. Start your Sunday with Break'N Crypto!
Germany: Bitcoin to Banks!
Germany took a further step in crypto regulations. A local news agency reported that a new bill proposed to enable German banks to support the sale of custody of cryptocurrencies by 2020.
The bill was successfully passed through the Bundestag, and now requires consensus from all the 16 states.
The successful adoption of the bill will be the green light for financial institutions to provide crypto services, which are currently prohibited in Germany.
“Starting in 2020, financial institutions will be able to offer their customers online banking, virtually at the touch of a button, along with classic securities such as stocks and bonds, as well as cryptocurrencies,” - the bill says.
The Association of German Banks has already supported the bill. The local industries also met the news with enthusiasm. The head of Distributed Ledger Consulting, Sven Hildebrandt, thinks that the regulations will make Germany a crypto-heaven.
“Stablecoins are dangerous for EU” - Central Bank
A member of the European central bank, Benoit Coeure, expressed his concerns about alternative payment methods during his speech at an ECB conference.
He admitted that Europe has achieved certain results launching the Single Euro Payments Area, or SEPA, and TARGET Instant Payment Settlement, or TIPS. Though, according to Coeure, National providers though have not been able, or willing, to act in a pan-European manner.
“20 years after the introduction of the single currency, we still do not have a European card scheme. Ten European countries currently have national card schemes that do not accept cards from other EU countries.”
Today’s Europe found a solution in technological initiatives, widely adopting stablecoins payments. Benoit Coeure has warned that global stablecoins remain untested and raise potential risks across multiple policy domains. Moreover, they pose risks to a “fragmented” Europe.
“Global stablecoin arrangements [...] raise potential risks across a broad range of policy domains, such as legal certainty, investor protection, financial stability and compliance with anti-money laundering requirements. Public authorities have made clear that the bar will be set very high for these stablecoin initiatives to be allowed to operate.”
Last week, BTCMEX reported that the EU is thriving to pioneer in AI and blockchain.
China: Exchanges on Pause
At least five cryptocurrency exchanges were reported to temporary suspend their services or shut down completely after the recent anti-crypto statement from the government.
“Blockchain, not cryptocurrency”, - was the message of the stance. A month earlier President Xi Jinping expressed his support for blockchain technology but asked not to associate blockchain with Bitcoin. Crypto trading platforms are still not in favor in China.
Cointelegraph reported that exchange operator Bitsoda informed the public on Nov. 23 of its decision to terminate services; Akdex followed suit, announcing its decision to shut down on Nov. 24.
Also on Nov. 24, Idax cited Chinese government policy as the basis for its decision to prevent domestic clients from using its service.
Likewise, with explicit reference to government policy, Btuex revealed on Nov. 25 that it would halt services immediately and reopen in the future for an overseas-only clientele.
On Nov. 4, crypto exchange Biss had announced it was “actively cooperating” with investigations into its operations and planned to resume services as soon as possible.
And finally, on Nov. 29, crypto exchange IDAX has suspended deposits and withdrawals generally after its CEO allegedly disappeared.
India to Trade Solar Energy
Australian blockchain energy company Power Ledger announced to pilot a peer-to-peer solar power trading in the state of Uttar Pradesh, India.
The first phase of testing the project is set to be completed by March 2020. During the trial, Power Ledger will integrate its blockchain-based platform with smart meter systems to enable residents with rooftop solar infrastructure to set prices, track energy trading and settle surplus solar energy transactions via smart contracts.
The idea behind the project is to make renewable energy less dependent on… weather by making it easier for small producers to find users.
Blockchain, previously associated with IT only, found its grounds in various industries today. The technology has been successfully used in F&B for tracking products’ shipment.
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