China Sending Mixed Messages About Crypto & Blockchain

China Sending Mixed Messages About Crypto & BlockchainChina Sending Mixed Messages About Crypto & Blockchain

China central bank-firm recruits blockchain staff, perhaps for CBDC

by Ledger Insights

China Sending Mixed Messages About Crypto & Blockchain: An indirect subsidiary of the People’s Bank of China, Yangtze River Delta Financial Technology, has been heavily recruiting for blockchain professionals, reported Sina Finance.

The People’s Bank of China is gearing up to introduce digital renminbi. It has formed the Central Bank Digital Money Research Institute to oversee affairs related to the Central Bank Digital Currency (CBDC). The Chinese news outlet made a deduction that the staff will work on the CBDC.

However, the CBDC itself is not expected to be blockchain-based, though it could be. As shown below, the subsidiary is also involved in other blockchain activities. Hence the staff could work on separate or related applications that will leverage the digital renminbi.

Sina Finance said that Yangtze River Delta Financial Technology was established by the Central Bank Digital Money Research Institute, a unit of People’s Bank of China (PBOC), with a registered capital of 50 million yuan ($7.1 million).

Yangtze River Delta Financial Technology is hiring for a blockchain technology director, a blockchain architect, blockchain research and development engineers, and numerous other positions. The remuneration offered for the blockchain technical director and data centre manager is between 50-80k yuan per month, that’s equivalent to $7,000-$11,000 per month.

The company was formed to create the digital currency infrastructure, undertake the research and development and pilot of the upcoming digital currency, and focus on fintech such as blockchain and cryptography.

The intermediate shareholders of the firm include Shenzhen Financial Technology, Suzhou High-speed Railway New City Innovation and Venture Capital Co Ltd.

Shenzhen Financial Technology, a subsidiary of the Central Bank Digital Money Institute, last year joined Bank of China, China Construction Bank, China Merchants Bank and Ping An in the to launch Bay Area Trade Finance Blockchain Platform.

China’s Central Bank Digital Currency

China has been releasing information about its CBDC launch in bits and pieces. Last week, PBOC deputy director Mu Changchun, who also heads the CBDC initiative, said the digital yuan was capable of offering anonymous transactions to its users.

Back in August, Mu claimed China was ready to launch the digital currency, but a few weeks later the PBOC governor contradicted him by saying there was no timetable for the launch. The governor also clarified that the currency could possibly be based on blockchain, refuting previous statements that the digital yuan will definitely be independent of distributed ledger technology (DLT) owing to scalability issues.

Mu has previously confirmed that the CBDC would not require a linked bank account, and would also not bear any interest. Additionally, he said that the CBDC issuance was a ‘horse race’ and ‘the leader will win the entire market’.

China Sending Mixed Messages About Crypto & Blockchain

China Sending Mixed Messages About Crypto & Blockchain

Chinese Tech Capital Shenzhen Issues Warning Against Crypto Activities

By Adrian Zmudzinski
China Sending Mixed Messages About Crypto & Blockchain: The Chinese technology capital of Shenzhen issued a warning against illegal activities concerning cryptocurrencies.

Local finance news outlet Eastmoney reported on Nov. 21 also that Shenzhen’s Leading Group for Remediation of Internet Finance Risks will investigate and collect evidence on illegal activities involving cryptocurrencies

The crypto ban improved safety, says the official body
The Leading Group warning states that, since China banned local exchanges and initial coin offerings (ICOs) from operating in 2017, the illegal activities associated with cryptocurrencies and financial risks were greatly reduced.

Still, the regulator notes that the recent endorsement of blockchain technology by the central government reinvigorated cryptocurrency speculation. Alongside increased speculation, the number of cryptocurrency-related illegal activities in the country have also purportedly ramped up.

The warning cites the issuance of crypto assets, ICOs, fictional uses of technology, fundraising in fiat or crypto and cryptocurrency exchanges as examples of illicit activity in the industry.

After accumulating evidence, the regulator plans to undertake enforcement actions against such activities according to the “Announcement on Preventing the Risk of Subsidy Issuance of Financing.”

China is currently dealing with the increased public interest in cryptocurrencies and blockchain following President Xi Jinping’s official endorsement of blockchain tech development.

As Cointelegraph recently reported, Chinese state media said that there are around 32,000 companies in China that claim to use blockchain technology, but most of them are capitalizing on the hype to promote their company. In reality, only 10% of firms that claim to use blockchain tech actually deploy it, CCTV states.

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