Posted 2 years ago | by Ben Armstrong
National Cryptos see Big Push in 2019
Nation-states have been behind a massive development of crypto projects in 2019, eclipsing the impact of the ten previous years combined. In addition to many new projects, the USA shifted to a more conservative stance on crypto assets.
In the US, Facebook’s Libra has been a major issue at the federal level, and the SEC made high-profile enforcements, which included actions against EOS, Telegram, and kin.
FINCEN’s KYC/AML guidance has been written, which may slow down development of crypto projects in the USA, as these regulations aren't as accommodating as projects may find in other jurisdictions.
Some US-based entrepreneurs and investors think the SEC’s actions may have caused the crypto deal flow to slow. Overall, these actions have done little to spur crypto development in the USA, which stands in stark contrast to other nations.
China is Hot for Blockchain
When the Chinese announced plans for a national sovereign digital currency, called the DCEP, the effect on crypto market psychology was substantial. China has been a harsh on the crypto sector for a long time, but now it appears that the nation will develop a blockchain-based national token.
There aren't many details on how this new Chinese token will be used, but it is unlikely to be much of a competitor to Bitcoin, or other decentralized crypto blockchains. The Chinese government is one of the most dictatorial in the world, and it is highly improbable that it would create a way to undermine its own economic authority.
On the other hand, the DCEP may be intended as an alternative to the Western banking system, which is still the backbone of the global trading network.
New Sprouts in Russia and France
In Russia, as Russian news service Interfax reported on Dec 2019 that Elvira Nabiullina, Russia’s central bank head, announced that started testing stable coins pegged to real assets in a regulatory sandbox.
“We are testing stablecoins in our regulatory ‘sandbox’. We see companies willing to issue tokens pegged to certain real assets. In our regulatory sandbox, we are learning the potential uses of stablecoins but we do not assume that they will function as a means of payment and become a surrogate for money.”
According to the report, the Russian central bank is planning to issue its own central bank digital currency, called CBDC.
On Dec. 4, François Villeroy de Galhau, the governor of the Bank of France, announced that the bank is going to testing the digital euro project by the end of the first quarter of 2020. France will become the first global jurisdiction to pilot its digital euro project.