Good morning, crypto enthusiasts. Today we bring you an update on the cryptocurrency markets and a discussion on China’s stance towards Web3 technology.
Crypto markets and Asian stock markets had a strong opening as the White House reached a deal to avert a debt ceiling crisis. Bitcoin and Ether saw increases of 5% and 4.9%, respectively. The CoinDesk Market Index (CMI) rose by 4% to 1,209. The deal is regarded as “an important step forward” by President Biden and a compromise, providing relief for investors.
In other news, the Beijing Municipal Science & Technology Commission recently released a whitepaper on China’s Web3 policy. Excitement was fueled by a tweet from Binance CEO Changpeng Zhao, who found the timing “interesting” given Hong Kong’s upcoming crypto regulatory framework. However, it’s essential to understand that China’s Web3 policy is more focused on blockchain-not-crypto. Their vision for Web3 centers around an internet enhanced by artificial intelligence, blockchain, faster computing chips, and more resilient networks.
Despite the excitement from some corners, China isn’t embracing cryptocurrencies just yet. Proponents of the China narrative argue that the mainland will soon follow Hong Kong’s footsteps and open its doors to crypto trading, but several hurdles need to be overcome. These include finding a way to integrate crypto trading without clashing with China’s strict capital control rules.
So, while the recent whitepaper release indicates China’s growing interest in modern technology and infrastructure enhancement, it doesn’t signal a significant shift in crypto acceptance. Developing new technology standards and driving innovation remains the nation’s primary focus. For the time being, the crypto community should remain cautiously optimistic about China’s future involvement in the space.
Before we close out today’s update, let’s take a look at some recent crypto news. Digital Currency Group (DCG), the parent company of CoinDesk, has closed its trade execution and prime brokerage services unit, TradeBlock, due to crypto winter and regulatory uncertainties. Meanwhile, stablecoin issuer Lybra Finance, which launched last month, is nearing $100M in total value locked, and Gulf Binance is set to begin offering crypto services in Thailand later this year.
As we look forward, it’s essential to keep an open mind and strive for reasonable debate in the world of crypto. Taking action based on facts and keeping an eye on global regulatory developments will be vital in navigating the ever-changing landscape.
Source: Coindesk
