Jul 052017
 
Central Bank of China In Brief China's central bank has developed its own cryptocurrency, which is now being tested. Cryptocurrencies have the potential to not only benefit China, but the rest of the world, due to their basis in blockchain. Benefits of Digital Currency China’s central bank — the People’s Bank of China — has developed a prototype of a cryptocurrency that it could end up in circulation in the near future. It would be introduced alongside the China’s primary currency the renminbi (also called the yuan). China will be simulating possible scenarios and running mock transactions using the cryptocurrency with some commercial Chinese banks.  Click to View Full Infographic The potential benefits of developing a digital currency are significant, particularly in China. First, it would decrease the cost of transactions, and therefore make financial services more accessible, which would be a big help to the millions of people in the country who are unconnected to conventional banks. Second, as it would be supported by blockchain, it has the potential to decrease the rates of fraud and counterfeiting, which would be of service to the government’s attempts to reduce corruption — a key concern. Third, it would make the currency easier to obtain, which would increase the rate of international transactions, allowing for more trades and faster economic growth. The Rise of Cryptocurrencies Since Bitcoin’s humble beginnings back in 2009 (when it was only valued at around 0.0007 USD) the digital currency, and the very idea of cryptocurrencies in fact, has grown monumentally. The total market cap of cryptocurrencies on April 1st of this year was over $25 Billion. A single Bitcoin is now worth more than $2,500. Now many national economies, as China’s plan shows, are considering the idea of developing their own variant. Although China’s experimental approach to simulate a self-developed cryptocurrency’s usage is the first of its kind, other countries and institutions have made strides in that direction as well. The Deputy of Russia’s central bank has emphatically stated that “regulators of all countries agree that it’s time to develop national cryptocurrencies.” Over 260,000 stores in Japan will begin accepting Bitcoin as legal tender this summer, and big banks like Santander have announced plans to develop their own version. Cryptocurrencies have the potential of revolutionizing not only the business world, but many methods of transaction. There has already been talk of using cryptocurrencies to administer Universal Basic Incomes due to their traceability, as well as for the delivery of human aid; the potential for which was demonstrated by a (more…)
Dec 302016
 
Russian Airline and a Bank Execute a Blockchain Service Payment – CryptoCoinsNews The post Russian Airline and a Bank Execute a Blockchain Service Payment appeared first on CryptoCoinsNews. up JSC Siberia Airlines, commonly known under its operative name of S7 airlines has executed the first of its kind service payment using Ethereum blockchain smart-contracts through a letter of credit, with Russia-based Alfa-Bank. The announcement reveals that the agreement took place between the airlines and a counterpart using a letter of credit, through Alfa-Bank. A letter of credit is issued as a bank guarantee that payments will be made to a seller from the buyer. The bank issuing the letter of credit is obligated to cover the amount in the event that a buyer is unable to make the payment. Services giant Deloitte acted as the advisory consultant to the airline on blockchain technology, whilst providing legal support to the project. With the deal, smart contracts helped record the bank’s actions of opening and executing the letter of credit on a blockchain. In providing a conclusive statement, Artem Tolkachev, director of legal services for tech products at Deloitte said: Legally, this transaction meets all the requirements for a letter of credit as a form of bank settlement, and demonstrates the potential of smart contract application in the framework of Russian legislation. The Blockchain Service Payment The bank specifically provided members of the deal with an electronic “Alfa-business online” system where a customer could apply to open a letter of credit while a contractor is enabled with providing the bank documents upon provision of services. A “special cover account” sees funds written off from a customer’s account when the letter of credit is issued, and the funds reach the contractor’s account upon submission of documents confirming the transaction. S7 airlines deems the opening and the utilization of the letter of credit as the two main facets of the deal. “A blockchain record includes a hash (result of encryption) of the following information: deal identifiers (Taxpayer Identification Numbers (INN) of the customer and the contractor and type of works) and commercial terms (value of the letter of credit, date of opening and closing of the letter of credit),” the announcement explains further. The airline group’s deputy director general Dmitry Kudelkin added: By conducting the deal, we have tested efficiency of smart-contracts and realized how this technology could help to optimize business-processes and improve (more…)
Dec 162015
 
China to get more power under reform deal   By IanTalley      Getty Images   Long-awaited IMF reform was approved in Congress. WASHINGTON–U. S. lawmakers look set to ratify a five-year-old international deal to overhaul the governance of the International Monetary Fund that gives emerging markets such as China greater power at the emergency lender. Lawmaker approval would resolve a long-running grievance by emerging powers that their voice and vote at the shareholder institution doesn’t represent their growing economic heft in the world. Congressional leaders agreed early Wednesday morning to include the changes in a catch-all spending bill, which could become law in the coming days. “We look forward to the outcome of the legislative process,” said IMF spokesman Gerry Rice. U.S. lawmakers have stymied modernization of the fund’s shareholder governance for years, fomenting resentment among the IMF’s emerging-market membership. An expanded version of this story is available at WSJ.com Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)
Sep 272015
 
Cara Anna, Associated Press Updated 7:49 pm, Saturday, September 26, 2015 UNITED NATIONS (AP) — China’s president on Saturday pledged billions in aid and said Beijing will forgive debts due this year in an effort to help the world’s poorest nations, as world leaders begin to seek the trillions of dollars needed to help achieve sweeping new development goals. President Xi Jinping spoke at a global summit that on Friday launched the non-binding goals for the next 15 years. Xi and others spoke as the U.N. gathering began to shift focus from development to the high-powered General Assembly meeting that begins Monday with speeches by Xi, President Barack Obama, Russian President Vladimir Putin and Iranian PresidentHassan Rouhani on the first morning alone. Obama and Putin will meet Monday. The prospects for any meeting between Obama and Rouhani, even a handshake, remained unclear. Rouhani arrived Saturday and immediately was encouraged by U.N. Secretary-General Ban Ki-moon to have Iran step up to help achieve political settlements to the grinding conflicts in Syria and Yemen, where Iran has influence. The Islamic republic is a top ally of the Syrian government of President Bashar Assad and supports Shiite Houthi rebels who have held parts of Yemen for months. Iran’s president said in his address that the recent deal with world powers on its nuclear program “has created suitable conditions for regional and international cooperation,” including on protecting the environment. As world leaders met quietly behind the scenes, others lined up to express support for the new development push that aimed to eliminate both poverty and hunger over the next 15 years. They replace a soon-to-expire set of development goals whose limited success was largely due to China’s surge out of poverty over the past decade and a half. China’s president vowed to help other countries make the same transformation. Xi said China will commit an initial $2 billion to establish an assistance fund to meet the post-2015 goals in areas such as education, health care and economic development. He said China would seek to increase the fund to $12 billion by 2030. And Xi said China would write off intergovernmental interest-free loans owed to China by the least-developed, small island nations and most heavily debt-burdened countries due this year. He said China “will continue to increase investment in the least developed countries,” and support global institutions, including the Beijing-backed Asian Infrastructure Investment Bank that is due to launch by the end of the year and is seen as a Chinese (more…)
Sep 162015
 
2015-09-10 06:32 PM  Author Evander Smart Read the complete article At Contelegraph.com Westerners are funny people. Westerners have never experienced currency devaluation, EVER! “The Almighty Dollar” has ruled the world their entire lives. Telling a Westerner there might be a problem with the U.S. Dollar is like saying the sun might not show up tomorrow morning. It has never happened; could never happen! Well, it turns out the U.S. Dollar isn’t as “almighty” as it used to be, and some new global currency might be ready to shock the world, literally. Welcome to how the rest of the world sees the United States. In effect, America is seen as an international thug, a global bully with nuclear warheads, and an unlimited credit card to make as many as they want and put them wherever they want. Nothing lasts forever Times have changed, and the shoe is on the other foot. America — land of perpetual warfare — is swimming in US$18 trillion in national debt. The U.S. owes almost US$3 trillion to just Japan and China alone as it prints about US$696 million per day. According to the International Monetary Fund (IMF) or the world’s loan shark, China has even passed the U.S. as the world’s largest economy. A large part of having a global reserve currency is your currency becomes global in demand. It is the international baseline currency for all trade. Countries are agreeing, in principle, to trade with your currency being the means to an end. Over the last several years, many countries, especially in East Asia, have stopped using the U.S. Dollar for trading purposes. These are called “bilateral trade agreements,” and they’re becoming as popular as cat videos on YouTube. So what are other countries starting to use instead? The Chinese Yuan, also known as the Renminbi. Countries are trading so much Yuan that it has become thesecond most used currency in the world, passing the Euro in 2013 whereas ten years ago, it wasn’t even considered tradable. That’s how powerful China has become as a global trade partner within the last decade. And the IMF along with the World Bank have taken note and are rumored to be ready to do something about it. Read the complete article HERE Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)
Sep 092015
 
US dollar dominance finances Washington’s reckless spending, global militarism, its empire of bases, endless wars, corporate takeovers, as well as speculative excess creating bubbles and economic crises – at the expense of democratic freedoms and beneficial social change. China, Russia and other nations increasingly trading in their own currencies pose a significant threat to dollar dominance. Mahdi Darius Nazemroaya explained Washington’s currency war on China, saying: The Chinese are in the process of displacing the monopoly of the US dollar. They are dropping their US Treasury bonds, stockpiling gold reserves, and opening regional distribution banks for their own national currency. This will give them easier access to capital markets and insulate them from financial manipulation by Washington and Wall Street. China bashing by public and private US officials is part of a campaign to denigrate its government – making inflammatory accusations without proof about hacking, defying its legitimate right to do what it wishes in its own waters, and threatening sanctions – legal only by Security Council members, never by individual countries against others, Washington’s longstanding weapon against independent governments. “As the financial architecture of the world is being altered by China and Russia, the US dollar is gradually being neutralized as one of Washington’s weapon of choice,” Nazemroaya explained. The post-WW II US-dominated international monetary system is threatened with unraveling. Washington is fighting back with propaganda, energy, financial, economic and currency wars against China and Russia, said Nazemroaya. Russia sold a fifth of its $125 billion in US Treasuries holdings last March. China’s US Treasuries holdings exceed $1 trillion dollars. It’s been aggressively dumping them. It’s gone from the world’s largest buyer to its biggest seller. Will other countries follow suit? Nations are increasingly trading in their own currencies. Weakening America’s financial strength is the best way curb its imperial ambitions. Russia drafted legislation aimed at eliminating dollars and euros in trade between Commonwealth of Independent States (CIS) countries: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, Russia, and other former Soviet republics. A Kremlin statement said “(t)his would help expand the use of national currencies in foreign trade payments and financial services and thus create preconditions for greater liquidity of domestic currency markets.” It would facilitate regional trade and help achieve economic stability. It would reduce dependency on the world’s two dominant currencies. China’s central bank launched a Heilongjiang Province yuan/ruble program – Russia’s currency replacing the dollar. Both countries are increasingly trading (more…)
Aug 242015
 
What is a currency war? Currency wars are also referred to as “competitive devaluations.” They occur when a number of nations seek to deliberately depreciate the value of their domestic currencies. The goal is to stimulate their respective economies. You see, a weaker currency will make a nation’s exports more competitive in global markets and simultaneously makes imports more expensive. Higher export volumes increase economic growth, while more expensive imports encourage consumers to shift to local alternatives instead of imported products. While currency devaluation is a common occurrence in the foreign exchange market, the hallmark of a currency war is that a number of nations engage in devaluation attempts simultaneously. Presently, more than 20 countries have reduced interest rates or implemented measures to ease monetary policy from January to April 2015. And in August, China – the world’s second-largest economy – jumped on board in a major way, placing a strain on the world reserve currency, the U.S. dollar… Currency Wars: China Has U.S. Dollar on Puppet Strings Peter Schiff, CEO of Euro Pacific Capital and best-selling author of “Crash Proof,” issued a warning about currency wars and an impending U.S. dollar collapse. He spoke to Newsmax TV on Aug. 11: “We’re on the verge of a much worse financial crisis than the one we went through in 2008, and it’s going to take the form of a currency crisis. You’re talking about currency wars. America is going to win the currency war, which is a race to the bottom, and you don’t want to win a currency war because a currency war is different from most wars in that the object is to kill yourself and unfortunately, we’re going to succeed.” You see, no other country has had this much impact on the U.S. monetary policy in quite some time – or arguably, ever. The U.S. Federal Reserve must now reconsider the dollar’s role in foreign exchange markets as it decides whether to raise interest rates this year. “It is very possible that we could see a 10% to 15% drop in the exchange rate against the U.S. dollar in the next week or two,” Duncan Innes-Ker, of the Economist Intelligence Unit, told The Guardian on Aug. 13. In an Aug. 13 report, Morgan Stanley analysts Hans Redeker, Ian Stannard, and Sheena Shah said China has exported “deflationary pressure” for global central banks to depress their countries’ own exchange (more…)
Aug 242015
 
What is a currency war? Currency wars are also referred to as “competitive devaluations.” They occur when a number of nations seek to deliberately depreciate the value of their domestic currencies. The goal is to stimulate their respective economies. You see, a weaker currency will make a nation’s exports more competitive in global markets and simultaneously makes imports more expensive. Higher export volumes increase economic growth, while more expensive imports encourage consumers to shift to local alternatives instead of imported products. While currency devaluation is a common occurrence in the foreign exchange market, the hallmark of a currency war is that a number of nations engage in devaluation attempts simultaneously. Presently, more than 20 countries have reduced interest rates or implemented measures to ease monetary policy from January to April 2015. And in August, China – the world’s second-largest economy – jumped on board in a major way, placing a strain on the world reserve currency, the U.S. dollar… Currency Wars: China Has U.S. Dollar on Puppet Strings Peter Schiff, CEO of Euro Pacific Capital and best-selling author of “Crash Proof,” issued a warning about currency wars and an impending U.S. dollar collapse. He spoke to Newsmax TV on Aug. 11: “We’re on the verge of a much worse financial crisis than the one we went through in 2008, and it’s going to take the form of a currency crisis. You’re talking about currency wars. America is going to win the currency war, which is a race to the bottom, and you don’t want to win a currency war because a currency war is different from most wars in that the object is to kill yourself and unfortunately, we’re going to succeed.” You see, no other country has had this much impact on the U.S. monetary policy in quite some time – or arguably, ever. The U.S. Federal Reserve must now reconsider the dollar’s role in foreign exchange markets as it decides whether to raise interest rates this year. “It is very possible that we could see a 10% to 15% drop in the exchange rate against the U.S. dollar in the next week or two,” Duncan Innes-Ker, of the Economist Intelligence Unit, told The Guardian on Aug. 13. In an Aug. 13 report, Morgan Stanley analysts Hans Redeker, Ian Stannard, and Sheena Shah said China has exported “deflationary pressure” for global central banks to depress their countries’ own exchange (more…)
May 082015
 
The Next Empire – :Part Four A New Central Bank From Doug Casey’s Internationalman.com. http://www.internationalman.com/articles/the-next-empire Editor’s Note: Russia has ratified an agreement on the New Bank for Development set up by BRICS and has ratified the equivalent of1$00B solidifying it role in the China formed Asian Infrastructure Investment Bank (AIIB) at the beginning of this month. Here is an April 15th article about AIIB in the ‘South China Seas’. Click Here In recent decades, China and Russia have been expanding their economic powers dramatically and have periodically complained that their seats at the IMF table are unrealistically low, considering their importance to world trade. In 2014, China officially replaced the US as the world’s largest economy, yet the IMF has consistently sought to minimise China’s place at the table. It would seem that the West believes that it’s holding all the cards and that the Chinese and other powers must accept a poor-sister position, if they are to be allowed to sit at the IMF table at all. The West somehow does not seem to recognise that, if frozen out, the other powers have the ability to create alternatives. As with the SWIFT system, the Asian powers have reacted to US overreach, not by going away licking their wounds, but by creating a second IMF. The Russian State Duma (the lower house of the Russian legislature) have now created the New Development Bank. It will have a $100 billion pool, to be used for the BRICS countries. Its five members will contribute equally to its funding. It will be centered in Shanghai, India will serve as the first five-year rotating president, and the first chairman of the board of directors will come from Brazil. The first chairman of the board of governors is likely to be Russian Finance Minister Anton Siluanov. It’s therefore structured to be truly multinational. In creating all of the above entities, the BRICS will, in effect, have created a complete second economic world. In the latter days of the British Empire, we Brits seemed to be under the illusion that, even as our power base crumbled, we might somehow retain control by threats and bluster. The UK was utterly wrong in this and only succeeded in alienating trading partners, colonies, and allies by doing so. The same is happening again today. China, Russia, and the rest of the world, when faced with American threats and bluster, (more…)
May 072015
 
The Next Empire – :Part Three The End of Dollar Hegemony and A New Swift System From Doug Casey’s Internationalman.com.  http://www.internationalman.com/articles/the-next-empire Editor’s Note: In this article Russia is given credit as the initiator of a New Swift system, however, in reality it was Russia and the rest of the BRICS nations that put together the New Development Bank. That is the backbone of the New Swift system. Now this back bone includes the AIIB banking system. The BRICS New Development Bank (NDB) – a key alternative to the IMF enabling developing nations to get rid of the US dollar as a reserve currency – will be operative by the end of this year. The NDB will finance infrastructure and sustainable development projects not only in the BRICS nations but other developing nations. Since the Bretton Woods Conference in 1944, the US dollar has reigned supreme as the world’s default currency. In 1944, the US held more gold than any other country, but in 1971, the US went off the gold standard, and since then, the dollar has been a fiat currency. The US has become increasingly cavalier in its abuse of the dollar—often at the expense of other countries. Russia and China dealt with the latest round of strong-arm tactics by the US to adhere to the petrodollar by creating the largest energy agreement in history. This and all trade between the two countries will be settled in the ruble and the yuan. Russia has since been active in creating agreements with other fuel customers, also bypassing the petrodollar. In creating these agreements, the Asian powers have unofficially announced the demise of the petrodollar. For decades, the US has applied its muscle to other countries, using the petrodollar. So, the Sino-Russian agreement stands, not only to end the petrodollar monopoly, but to create a decline in US power over the world, generally. A New SWIFT System Presently, the vast majority of economic transfers in the world pass through the SWIFT system, located in Brussels but controlled by the US. In recent years, the US has barred, or threatened to bar, other countries from the SWIFT system, effectively making it impossible for banks to transfer money and, by extension, causing the collapse of their banking systems. Russia has responded by creating its own SWIFT system. It’s entirely likely that, if Russian trading partners, such as Iran, are barred from the use (more…)