(Picture source: Coinglass)
China Times (www.chinatimes.net.cn) reporter Zhao Yi Hu Jinhua Shanghai report
accompanied by Federal Reserve announced another significant hike rate . On September 22, Bitcoin fell below the $19,000 mark again. As of press time, the price of Bitcoin was US$18,893, a drop of more than 70% compared with the all-time high of US$69,273.13 in November last year.
, and Ethereum, which recently completed the "Merge" upgrade, was also not spared. The price has fallen below $1,300, and the decline has exceeded 20% this week, with the latest price being $1,277.16. virtual currency investors suffered heavy losses. Coinglass data shows that in the past 24 hours, a total of 91,000 people have lost their positions, with a total amount of 325 million US dollars.
"Affected by the expectation of the Federal Reserve's interest rate hike in , the confidence of the virtual currency market has plummeted. Because there is no relevant management department supervision and lack of regulatory rules, it is easy to cause a "stampage" in trading venues. The more the price falls, the more people sell, and the more sells, the price will fall further, so the market will be more panicked, forming a vicious cycle, leading to a continuous decline in prices." Wang Peng, a researcher at the Beijing Academy of Social Sciences, told a reporter from the China Times.
regulation is tightened, Luna founder wanted
As the price of cryptocurrency continues to fall, many government regulators have begun to tighten regulation on cryptocurrencies.
html On September 21, according to foreign media reports, legislation to regulate stablecoins that the U.S. House of Representatives is drafting will impose a two-year ban on stablecoins similar to UST. According to the latest version of the bill, issuing or creating new "endogenously mortgaged stablecoins" is illegal. It is reported that the draft legislation will authorize the U.S. Treasury Department to negotiate with the Federal Reserve, the Comptroller of Currency, the federal deposit insurance company and the SEC to study tokens similar to Terra. In addition, the House Committee may vote on the legislation as early as next week. htmlOn September 19, South Korean prosecutors asked Interpol to issue a red wanted order against Quan Daoheng, co-founder of the bankrupt virtual currency operator Terraform Labs and the main developer of cryptocurrency LUNA, saying that he refused to cooperate with the South Korean investigation into the implosion of the above-mentioned tokens of US$40 billion. The South Seoul South District Attorney's Office said it had asked the South Korean Ministry of Foreign Affairs to revoke Quan Doeheng's South Korean passport , "He was obviously on the run and had no intention of appearing in court to be tried."Also on September 19, the UK's chief financial regulator, the Financial Conduct Authority (FCA), issued a warning about the entry of the business of cryptocurrency exchange FTX into the country's regulated financial sector, saying it was operating without authorization. The company has joined a growing number of unregistered cryptocurrency-related companies, which have surpassed those registered with the FCA.
In response to the regulatory actions of various countries on cryptocurrency-related industries, Su Xiaorui, senior analyst of iResearch Analysis's financial industry, told the reporter of the China Times that the cryptocurrency market is mixed, and the risks of various fraud and money laundering involved are emerging one after another, which destroys the stability of the financial market and erodes the status of fiat currency . Therefore, stricter supervision of cryptocurrencies in various countries will become the general trend.
Shanghai Randy Law Firm's lawyer Li Xinli told the reporter of the China Times that in terms of supervision, the European and American governments are relatively tolerant of cryptocurrencies such as Bitcoin and do not explicitly prohibit them, but not all governments have similar open-minded attitudes. For example, the governments of Russia, Saudi , India, Vietnam, Indonesia and other countries have a relatively vague attitude towards Bitcoin and are not completely prohibited, but use is not encouraged, and there are many restrictions.
Li Xinli believes that many governments have an ambiguous attitude towards cryptocurrencies, and their regulatory system is far less complete than financial products such as stocks and bonds. Therefore, investors who choose to buy cryptocurrencies need to bear higher security risks.
"From the perspective of major countries around the world, supervision is generally strengthened, and a path of compliance and legality is taken, and the digital currency regulatory license is used as a prerequisite for relevant enterprises and institutions to enter the market in the digital currency industry chain.Ultimately, strict supervision, increased taxation, and included in the financial system, which can reduce risks while meeting investors' needs. "Li Xinli said this.
aims at CBDC, and many governments continue to move
reporters noticed that while governments continue to tighten the regulation of cryptocurrency, they also targeted central bank digital currency (CBDC).
According to foreign media reports, on September 21, an expert panel including researchers and executives of blockchain analytics companies appeared on Tuesday at the House Financial Services Committee hearing on Tuesday. It is said that the United States needs to make progress in regulating stablecoins or issuing its own central bank digital currency in order to maintain the dominance of the US dollar and ensure that sanctions on other countries are effective.
Previously, the U.S. Treasury Department reiterated in a report that the United States needs to establish a guardrail for privately issued stablecoins to protect the financial system and consumers, and called for further research on the digital dollar or central bank digital currency in order to meet the "national interest needs."
html On September 21, Iran announced that it will launch the central bank digital currency, the central bank of Iran will begin testing the "digital riyal" plan, which will continue to be pegged to the country's official currency riyal at a ratio of 1:1. Officials believe that the plan will provide the Iranian government with more power over the country's currency, while providing more options for financial participants, which will only be used within Iran. html On September 11, foreign media reported that the Norwegian Bank central bank is building a central bank digital currency sandbox on Ethereum, An infrastructure prototype based on Ethereum technology has been developed.A few days ago, an article published by International Monetary Fund (IMF) showed that as of July 2022, nearly 100 central bank digital currencies (CBDCs) around the world are in the research or development stage, and two types of CBDCs have been fully launched, namely the Nigerian eNaira launched in October 2021 and the Bahamas Sand launched in October 2020. Dollar.
In this regard, Jiang Jingjing, director of the Beijing Digital Currency Research Center, told the reporter of the China Times that the attitudes of governments towards CBDCs have been a dynamic and evolving process in recent years. Overall, the attitudes of central banks of developed economies toward legal digital currencies are more cautious and conservative than those of emerging markets and central banks of developing countries in developing countries.
201 In September 8, the then-Governor of the European Central Bank publicly stated that due to the lack of prudence of basic technology, the European Central Bank and the euro system have no plans to issue central bank digital currencies. In May 2019, the Governor of the German Bank of also stated that the launch of central bank digital currencies may undermine the stability of the financial system and exacerbate the risk of runs on . In October and November 2019, the Governor of the Bank of Japan and the Chairman of the Federal Reserve said that there was no plan to issue central bank digital currencies. 4 But by 2020, the attitude of central banks in developed economies such as Europe, the United States, and Japan suddenly changed. In October 2020, the chairman of the Federal Reserve showed a positive attitude towards central bank digital currencies for the first time at the International Monetary Fund Annual Meeting. The European Central Bank also released a digital euro report, saying that it would launch a digital euro when necessary. The Bank of Japan followed closely behind and proposed a digital yen experimental plan. In Jiang Jingjing's view, it prompted the Bank of Europe, the United States and Japan to grow from cautious to accumulated attitudes. The main reasons for the extreme change are the impact of the epidemic, and people's preference for contactless payment methods may increase; the second is to deal with possible currency substitutions. Central banks in many countries are developing their own central bank digital currencies, and private institutions including large technology companies are also developing new payment solutions based on distributed ledger technology, which may challenge the status of existing international currencies; the third is to meet the needs of economic digitalization. "At present, we are in a severe international economic and political situation. We found that cross-border trade, cross-border payment, cross-border settlement, cross-border clearing, etc. are all important means of sanctions and countermeasures. However, in contrast, the existing cross-border payment, settlement and clearing systems have actually formed a relatively distinct monopoly pattern. Such a situation has a significant uncertain impact on financial security and the development of the real economy.The development of digital currency provides a possibility for the optimization and even reshaping of the cross-border payment and clearing system. "Jiang Jingjing said this. In this regard, Su Xiaorui said that governments have reached consensus on building their own CBDCs, mainly considering the following aspects: First, save the cost of issuing money. Although the cash usage rate is on a downward trend, the absolute quantity will continue to grow, and the management cost is high, and there is a risk of being used for illegal and criminal activities such as money laundering; Second, maintaining the status of fiat currency, which is conducive to resisting the erosion of crypto assets and global stablecoins, and preventing the loss of currency issuance rights in the digital economy era; Third, improving payment efficiency can help enterprises' capital flow, and at the same time it can also improve the speed of currency circulation and the execution efficiency of monetary policy . In the future, various countries will further increase their efforts in CBDC, and gradually promote their entry from the R&D stage to the implementation stage.
