Weekly update #12: G7 disapproval, Ford’s cars, and Korean blockchain

Dominik Olech
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It’s good to begin a new week with a quick reminder of the last one. This time, we have some news about blockchain projects in different countries – and much more.

In the previous Weekly Update, we talked about Facebook’s cryptocurrency, Australian mint gold token, and other important news. Let’s see what has happened this time in the cryptocurrency industry.

G7 doesn’t like stablecoins

This week, we aren’t beginning with Libra. At least not directly. G7, a group of the seven most advanced economies, has considered stablecoins as a threat to global economic stability. According to the Financial Stability Board, which monitors the global market, the G7 is preparing a report about the dangers and opportunities of cryptocurrencies backed in fiats. Problems listed by FSB concern AML policy, privacy and data security, tax evasion, and overall influence on market integrity.

Since Libra creators are describing it as a stablecoin, the possible administrative consequences also apply to it. And since Facebook’s coin is already in conflict with authorities, the G7 respond is likely to be closely linked to the Libra case.

Blockchain in Switzerland (again)

Switzerland is well-known for banking traditions and its contribution to the global economy. No wonder that blockchain technology feels good in this alpine state, and so-called Crypto Valley is located in this country. Despite being one of the most crypto-oriented countries in the world, the number of traditionalists oposing blockchain technology is still significant, especially in the capital city of Zurich. Now, the situation is likely to change because of the Crypto Valley Association partnership with Zurich Tourism. The goal of this cooperation is to raise the awareness of the blockchain technology for tourism and business in Zurich.

Renewable Bitcoin

Is the Bitcoin mining network wasting too much energy? The cryptocurrency industry is struggling with that question, and as we have shown in one of our articles, there is no easy answer. But Alexander Liegl, the CEO of Layer1, believes in the solution of renewable energy for maintaining Bitcoin’s blockchain. According to his plans, wind-powered mining rigs will go live at the beginning of the next year in West Texas. Moreover, Layer1’s mining equipment will be featured with a liquid-cooling system suitable for Texas.

Ford

And since we are in an electricity-saving topic, Ford is testing blockchain technology for increasing the efficiency of their cars. For now, this innovative idea is implemented only in the City of Cologne, which has low-emission zones. When one of the adapted hybrid electric carsenters such a region, the blockchain system will automatically switch to electric-drive.

Blockchain hope for Korea

South Korea’s adventures with blockchain technology are a little complicated, with both regulatory problems and high popularity of this idea. Nevertheless, this East Asian state has been consistently aiming to increase to increase the usage of the blockchain. Apparently, the next sector open for this technology is trade financing. The whole process is likely to be completed by 2021. 

How will the implementation of blockchain help in trade finance? It will facilitate the information flow for sure, with the most essential data shared on the blockchain. The Korean government is willing to use blockchain, alongside 5G and AI development, to improve the trade environment in the country.

Digital wallet to improve cross border transactions

South Korea is not the only country that announced a blockchain-related project over the last week. Cambodia’s Central Bank decided to use it to lower the cost of international transactions with its neighbor, Malaysia. A digital wallet Bakong, made by the National Bank of Cambodia, is meant to be a solution here. An agreement between countries has already been signed – so let’s hope this plan will succeed.

OneCoin is still a threat

OneCoin is an alleged Ponzi scheme – one of the many which prey on the cryptocurrency industry. Despite the disappearance of the company founder, Dr. Ruja Ignatova, and a general breakdown in structures, it still has some influence on the market. According to the BBC report, one of the OneCoin’s victims received death threats for speaking about it. Jen McAdams and her friends had lost over £220,000 on a said scam. 

And that sum is only a percentage of all the money frauded by OneCoin since the company raised about £4 billion. Ignatova is missing, and the victims of the scam still haven’t recovered their money. And this is just one of many other stories concerning crypto frauds – more you’ll find in our latest article.

That would be all for the last week. Stay with us for more crypto-related content!

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