News, Rumors and Opinions Monday Morning 7-13-2020
TNT:
Harambe: Zimbabwe NewsDay: Virtual Currency to Rescue Developing Countries
(7/12/20)
It is a virtual currency that tends to be focused on speculative aspects, but it is also used to rescue developing countries and those who are called unbanked who do not have a bank account, as well as for refugees. This article introduces DASH, Stellar and OmiseGo’s efforts in developing countries, Bitnation’s refugee relief project, and discusses the role of virtual currency in this field.
Virtual currency attracting attention in developing countries
In developing and emerging countries, unstable political and social conditions and the influence of foreign countries can cause rapid inflation.
It is a new memory that the Turkish currency lira and the Argentinean currency peso recorded a big depreciation in 2018.
In order to rebuild the economy, it is common to seek support from regional communities, alliances, countries with economic connections, the international community, and the IMF (International Monetary Fund). Citizens try to protect their assets by receiving rewards in foreign currencies such as US dollars or exchanging their own currencies for foreign currencies if possible. However, in Zimbabwe in the latter half of 2017, there was a movement to exchange virtual currency instead of foreign currency. Therefore, during the cryptocurrency bubble centered on developed countries, the price of Bitcoin soared more than developed countries.
In developing and emerging countries, mobile devices have become widespread, and financial services using mobile phones have become widespread due to the fact that a certain number of people can access the Internet.
According to a survey by the mobile operator industry group GSMA, as of 2017, 44% of mobile phone subscribers were in sub-Saharan Africa, using their mobile phones to store and exchange money. There are 135 mobile money services available in 39 countries. Kenya’s Safaricom and South Africa’s Vodacom started SMS-based financial services “M-Pesa” in 2007, which is a pioneer in this field. The service started in Kenya and expanded to African countries and India.
About 10 years after the start of Bitcoin operation in 2009, following the first-generation financial services, new initiatives using virtual currencies are emerging. As a concrete example, let’s look at Dash’s inflation relief in Zimbabwe and Venezuela, and Stellar, OmiseGo, and Bitnation’s efforts for those who do not have a bank account called unbanked.
Hyperinflation relief, support for entrepreneurs
In November 2017, Dash announced Zimbabwe’s hyperinflation rescue. It was born as XCoin in 2014, renamed Darkcoin, and then renamed Dash as of the following year. According to Coinmarket Cap, the market capitalization as of October 2018 is approximately 145 billion yen, which ranks 13th. It can be regarded as a major currency. Visit anon-system.live and start trading online.
Dash is often mentioned as a virtual currency with high anonymity, but it should be noted that it also functions as the world’s first Decentralized Autonomous Organization (DAO). 10% of the newly mined Dash will be pooled in a fund called treasury and invested in projects proposed by votes around the world. This mechanism also functions in a decentralized autonomous manner like Dash itself.
Kuvacash, which received $550,000 in investment from the Dash fund, is a startup founded by James Saruchera from Zimbabwe, and in November 2017, in partnership with Dash, Zimbabwe’s hyperinflation and other financial problems such as hyperinflation Trying to show the solution to.
According to Kuvacash, Zimbabwe has more credit in the US dollar than its own currency.
Unbanked US dollars circulate, Zimbabweans wash and dry dirty banknotes, and sell clean banknotes with a 10-20% margin. However, the government does not have a long-term vision to improve this situation. Kuvacash offers a free mobile app that handles payments, transactions, and exchanges with US dollars.
The goal is to create a transparent secondary market by reducing the circulation of expensive US dollars that are not under the control of banks. In the future, Zimbabwe’s specialized virtual currency financial services will be provided to anyone who has a unique mobile phone number and can send messages.
Vash is also a big market for Dash, where hyperinflation is currently accelerating. In an interview with Ryan Taylor, CEO of the Dash core group, 800 companies, including the big ones, have already signed up to accept Dash payments.
The investment history of Dash’s fund mentioned above includes investment in conferences in Venezuela, investment in projects that allow Dash and Venezuelan currency Bolivar Soberano to be traded instead of via Bitcoin, Dash users and businesses in Venezuela. There are many things related to Venezuela, such as investment in events to spread to people. Taylor also suggests that he will use his experience in Venezuela to expand into other high inflation countries.
https://www.newsday.co.zw/2020/07/virtual-currency-to-rescue-developing-countries/
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Bloomberg: China Renews Push for Increased Global Role for the Yuan
(7/12/20)
Faced with the prospect of restricted access to U.S. dollars, China’s answer is to get more people to use its own currency instead.
The increasing spillover of Sino-American tensions into the financial sphere has ignited a fresh push by China to promote the global use of the yuan. A growing number of government officials and influential market watchers have in recent weeks urged greater efforts on the endeavor, which gained renewed significance after China’s new Hong Kong security law triggered the threat of retaliation from Washington.
While such drastic action is far from being implemented by the U.S. -- and could potentially do major damage to American interests and the entire global financial system -- the risks alone have raised alarm bells. With almost a trillion dollars in offshore bonds and loans and $1.1 trillion in state-owned bank liabilities, access to the greenback is vital for Chinese companies and lenders.
Tiny Share
Yuan took up 2% of global central banks' reserves at end of first quarter
“Yuan internationalization morphed from a desirable to an indispensable thing for Beijing,” said Ding Shuang, chief economist for greater China and north Asia at Standard Chartered Plc. “China needs to find a replacement for the dollar amid the political uncertainty, otherwise the nation will see financial risks.”
Similar calls for moving away from the dollar followed the 2007-09 financial crisis. While China over the years made some progress -- promoting offshore yuan trading, winning official reserve-currency status from the International Monetary Fund and launching commodity contracts priced in yuan -- the renminbi is a small player on the global stage.
The yuan’s share in global payments and central bank reserves remains low, at about 2%. And while a steady opening of China’s financial markets to overseas investors has lured inflows, foreign ownership of mainland stocks and bonds is relatively minor.
Zhou Yongkun, an official at the People’s Bank of China, said last week that the country will introduce direct trading between the yuan and additional currencies, without specifying which ones.
To accelerate reaching a par with counterparts such as the yen or euro, China would need to pull down its capital controls, which were tightened in the wake of a messy devaluation in 2015. But that would raise the risk of destabilizing outflows. China could alternatively expand imports and run persistent current-account deficits -- as the U.S. does -- to generate a pool of yuan balances overseas. That, too, would require a hard-to-envision policy shift.
“Yuan globalization is largely hinged on convertibility under capital account -- which China is not yet ready for,” said Yu Yongding, a former adviser to the People’s Bank of China. “China is facing a severe challenge of a series of potential U.S. financial sanctions and we can’t even rule out the possibility that they may freeze China financial assets one day. I believe regulators have a contingency plan.”
What’s unclear is how hard the Trump administration is prepared to push. Moves to curb a government pension fund from investing in Chinese stocks are already under way, along with tighter scrutiny of Chinese companies’ listings on American exchanges. But systematically restricting access of the world’s second-largest economy to dollar funding and transactions would be a step unprecedented since the U.S. first tolerated unregulated use of its currency abroad in the 1960s.
Chinese regulators are building the China International Payment System to settle transactions outside the dollar-based platforms where the U.S. holds sway. Hong Kong, which supplies around half of the world’s offshore yuan liquidity, is also aiming to become a more prominent yuan trading center.
Hong Kong regulators last month kicked off the Wealth Management Connect, which will allow cross-border investments among residents of Hong Kong, Macau and southern China. The move has implications including boosting the yuan’s international use and testing capital-account opening, analysts have said.
Boosting Holdings
Chinese institutions add dollar-denominated bonds and loans every year
Stronger steps could include China insisting on paying for some imports in yuan, making direct investments abroad in yuan and providing loans in renminbi -- the currency’s official name.
Still, the fact that over half of Hong Kong bank deposits are denominated in foreign currencies (led by the U.S. dollar) and Chinese banks themselves have about $747 billion in foreign-exchange deposits speaks to enduring demand in greater China for greenbacks.
The onshore yuan gained 0.05% to 6.9968 per dollar as of 1:51 p.m. in Shanghai on Monday, close to its strongest since March.
“It’s not possible for China to have a significantly internationalized currency as things stand” now, said George Magnus, research associate at Oxford University’s China Centre and author of “Red Flags: Why Xi’s China Is in Jeopardy.”
With a global yuan still years or decades away, what’s left to China meantime could be the threat of countermeasures, and highlighting the global implications of the most extreme U.S. action. Chinese banks and offshore bonds have after all become key cogs in the world system.
“Cutting off the banking system’s U.S. dollar funding would be a serious blow -- for this reason, I don’t expect it to happen” to mainland China, said Magnus.
Courtesy of Dinar Guru
Frank26 Question: "I present my currency at exchange, am I going to get current US dollars or the new U.S. currency?" The new U.S. currency isn't out yet so I guess you're not going to them them, right. Second of all, you're not gonna get any currency unless you really specially ask for it. They might give you up to about $5,000 dollars in cash but the rest of it'll all be electronic. That's how this major exchange is going to happen. Mainly electronic. There isn't that amount of physical cash to satisfy everybody. It's all going to be electronic mainly...
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MarkZ
There is no MarkZ Stream scheduled for today…The next scheduled stream is 10AM est Tuesday.
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Vietnam Dong News 07/12/20 - possible Oct rate change
Pimpy’s Investment Chat: Jul 12, 2020
Responding to the comments and question from last NESARA GESARA video
Pimpy’s Investment Chat: