TL;DR: Welcome to In Case You Missed It (ICYMI), a daily crypto news update. JPMorgan warns about state-backed cryptocurrencies undermining dollar hegemony. World Economic Forum (WEF) publishes blockchain Bill of Rights. Sichuan, China calls for ending cryptocurrency mining activities. Mining company Canaan Creative loses $5.6 million during Q1 2020 after US IPO. Gox Rising paying $800 in Mt Gox bitcoin claims, and FTX launches in the US.
JPMorgan Warns the Dollar can be Impacted by CBDC
JPMorgan, the largest US investment bank, warned in a new report about the dangers issuance of CDBC (Central Bank Digital Currencies) can pose over the hegemony of the dollar in world markets. While it does not consider the popularity of fiat can be swayed by CDBCs in the near future, other important aspects like its use in trade settlement and the SWIFT system can be impacted. “There is no country with more to lose from the disruptive potential of digital currency,” the report insists, than the US.
WEF Publishes Blockchain Bill of Rights
The WEF (World Economic Forum) announced its Presidio principles, a Blockchain Bill of Rights, seeking to regulate how decentralized systems should be constructed. Privacy, transparency, interoperability, and accountability are traits the WEF included on its list. The Presidio principles have already been signed by a group of governments, including Colombia, and by some notable companies led by ConsenSys, Deloitte, ECC, and CoinShares.
Sichuan Administration Seeks to Ban Crypto Mining
The Financial Administrative of the #Sichuan providence of #China has issued a notice to its subordinate offices ordering them to “guide mining entities to end their mining activities in an orderly manner”. The province accounts for about 9.66% of the global #mining power. pic.twitter.com/mVtihdf9px
— PANews (@PANewsOfficial) May 22, 2020
The Financial Administration of Sichuan, China issued an order seeking to shut down all the mining operations being directly powered by their electricity in the near future, according to the information posted by PANews. The communication would suggest the region is set to finish their relationship with cryptocurrency mining entities in an “orderly manner.” If enforced, this would undoubtedly impact the amount of hashrate contributed to BTC, given that Sichuan produces 10% of all the hashrate securing the Bitcoin network.
Canaan Creative Lost $5.6 Million in Q1 2020
Canaan Creative, a crypto mining manufacturer listed in NASDAQ, reported a net loss of $5.6 million during the first quarter of 2020. However, the company management achieved some good things in this period, posting a gross profit of $336,000, a much better number compared with the $96.7 million gross loss posted during Q4 2019. Canaan has been struggling since its public launch where the company missed its desired target and is now facing a lawsuit from investors, claiming the company made misleading statements during the IPO.
Gox Rising Paying $800 Per Every Mt. Gox Claim
A company called Gox Rising led by Brock Pierce is now offering $800 for every bitcoin claim to investors who lost their funds during the Mt Gox hack more than half a decade ago. Gox Rising offers a lifeline for investors who don’t want to wait until the civil lawsuit settles. However, each claim will need to be individually reviewed accordingly before being paid to investors. Mt Gox was the first big exchange (managing most of the bitcoin trading back in 2013) hacked, losing more than 850,000 BTC in the attack.
FTX Expand Its Business to US Customers
FTX, a cryptocurrency derivatives exchange, expanded to offer its services in the US with the FTX.US name extention. FTX.US will offer US customers BTC, LTC, ETH, BCH, PAXG, and USDT trading operations. It will expand to other services like OTC trading later. FTX CEO Sam Bankman-Fried stated, “I think U.S. crypto customers have been under-served for a while, and I’m excited to try to push the industry forward.” The exchange will be available in every state minus New York and Washington to compete with the likes of Coinbase and Kraken.
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