SEC setbacks, CBDC surveillance in China and Co.

The latest regulatory ECHO is all about a Chinese government that sees blockchain as an opportunity to keep monitoring its population even further. The Singaporean central bank and the star investor and PayPal founder Peter Thiel also have their say. And something is also happening in the Ripple case: Ripple reports a partial success.

Surveillance 3.0 – How China wants to use the blockchain to suppress the population

In view of strict laws, private cryptocurrencies in China are anything but good. In order to preserve the financial monopoly in the digital sector, the government in Beijing has been relying on its own central bank currency, the digital yuan, for some time. However, observers are now warning of the expensive price the Chinese people pay for the benefits of faster and easier money transactions. BTC-ECHO editor Daniel Hoppmann is examining why the CBDC could be a further step towards complete monitoring.

Star investor Peter Thiel: China uses Bitcoin in the struggle for global supremacy

But the digital yuan does not only play a role for domestic politics in the Middle Kingdom. Most recently, the CBDC repeatedly called skeptical US observers onto the scene that the digital currency could attack the global pole position of the US dollar as the world’s leading reserve currency. Star investor Peter Thiel now rejected such forecasts. In his opinion, from a geopolitical perspective, one has to look carefully at Bitcoin. This – according to the PayPal founder – could be used by Beijing as a “financial weapon” to undermine the hegemony of the USA. Actually, Thiel is considered a committed crypto friend. With his statements, however, he is likely to further fuel the skepticism of the US authorities towards cryptocurrencies.

Georgian autonomous region of Abkhazia prohibits crypto mining

For a long time, crypto miners in Abkhazia could count on a free pass from the government. While the economy in the Autonomous Region of Georgia groaned, mining businesses were a welcome addition to the household budget for many citizens. Now the government of the breakaway region seems to be following the skepticism of its big neighbor and advocate Russia. In the face of persistent electricity shortages according to a recently passed law From now on, all mining activities in the country are banned until 2022. Now miners from the black region have to be prepared for severe penalties.

Digital geopolitics – Central Bank of Russia announces prototype for digital ruble

Moscow is meanwhile continuing to target the potential of state blockchain applications. Like China, the Russian government has been working on its own central bank currency for months. The Russian central bank has now announced that it will soon present a draft to the public. A first prototype of the digital ruble should see the light of day as early as December.

The latest warnings from the Kremlin show that the development is picking up speed and that there is much more to the planned CBDC than just experimentation. Here the fear was recently voiced that the country could be excluded from the global SWIFT payment system. So there could also be solid strategic interests behind the digital ruble. The commented accordingly Russian Foreign Minister Alexander Pankin discussed the situation last week, according to which blockchain alternatives are not only the answer to the increased need for digital payments. Rather, they represented “a reaction to the current geopolitical situation”.

Authority under pressure – Herber setback for the SEC

Away from the poker of the great powers, the roller coaster ride in the Ripple case takes the next curve. In the ongoing legal battle between the company and the SEC, the US Securities and Exchange Commission has to cope with another setback. The responsible judge Sarah Netburn recently decided that the SEC had to disclose all comparative documents on Bitcoin and Ether – a potential round victory for Ripple, in view of which the XRP price has recently doubled. Meanwhile, one should also soon petition Land on the desks of the SEC, with which Ripple supporters want to persuade agency director Gary Gensler to give in. It is just as likely, however, that this will launch a counterattack and the roller coaster ride will continue.

“Not for retail customers” – Singapore’s central bank warns of cryptocurrencies

That burned children shy away from the proverbial fire seems to be true in Singapore meanwhile. After scammers adopted the identity of Prime Minister Lee Hsien Loong in order to distribute tokens among the people, the authorities responded in the past week promptly. Central bank chief Tharman Shanmugaratnam warned him strongly about the volatility of cryptocurrencies. Corresponding investments would simply not be suitable for normal consumers. With the extremely critical reaction of the monetary authorities, the financial center of Singapore is turning away from cryptocurrencies.