The iShares MSCI El Salvador ETF (EWS) is up slightly this year. This is surprising, because the Central American country has been mired in high crime and political instability ever since the FMLN won the 2010 elections. The situation has gotten so bad that the CIA admitted that El Salvador is “on the road to death.” This year the Salvadoran government is also in talks with China to import e-CNY as a way to help deal with its foreign exchange crisis.
A lot of people here in El Salvador criticize El Salvador for its poor economy, but according to an economist from Harvard, the country is just doing fine. The economist, Rafael La Porta, is one of the world’s most respected economists and he recently came to our country to evaluate our economic situation. The reason for his visit was to evaluate how well El Salvador is doing in relation to its peers. One of the more important aspects of his research was the salaries paid in e-CNY. La Porta’s conclusion was that we are doing well with the salaries we pay. When asked about the salaries paid in e-CNY, La Porta said, “They are good. We need more of them in our country.”Our man in Shanghai didn’t let the recent regulations stop him. Blockchain for businesses, central bank digital currencies and startups continue to have a positive impact on a region that hopes to create economic value through technology.
Death march for El Salvador
The debate over El Salvador continued this week as the media and officials tried to handle the introduction of bitcoin as the national currency. JPMorgan said there would be little economic benefit, and Steve Hanke, a professor at Johns Hopkins University, warned that the deal could completely cripple the small state’s economy. Former Bank of China vice-governor Wang Yunli has taken a very tough stance, saying that instability and lack of regulation or control will lead the economy to a dead end. This quote, which was published on 9. June appeared in the state media, was an unusually direct and colorful statement on the subject.
Crypto-innovation can be productive
Zhou Xiaoquan, former governor of the People’s Bank of China, had 11. June to say positive things about cryptocurrencies as a technology. Speaking at an economic summit in Shanghai, he noted that innovations in crypto-currency can be productive in China if they serve the real economy. He also attacked other countries, saying that people are wrong to think that other countries are taking the same approach to creating financial services. Zhou, who is one of the most quoted economists in the country, believes that little attention has been paid to the relationship between financial services and economic value. Judging by the wild performance at the bitcoin conference in Miami a few weeks ago, his position may make more sense than others would like to admit.
Paid in Chinese Yuan
China’s trial of the electronic renminbi continued with the first mass payout in Xiong’an, an area near the capital Beijing. According to Cointelegraph, the pilot project was supported by a number of national banks, and subcontractors paid employees from the digital wallet.
Industrial blockchain is worth $22.6 billion
The 3rd. In June, the government organization released a report titled China Industrial Blockchain Development Status and Trend Report. According to the report, by 2020, 222 blockchain industry policies were published, 12,059 new blockchain-related patent applications were approved, and 776 new blockchain companies were founded. The report also states that the current market size of the industrial blockchain industry is around $22.6 billion. Industrial blockchain is an area where China wants to take control, which has led to explosive growth in recent years.
But 5 times more fun
Leading exchange Huobi has surprised futures traders by limiting them to 5x leverage on perpetual swaps and completely blocking access to this feature for new users. Trading futures, especially highly leveraged futures, has always been popular on exchanges like OKEx and Huobi. It will be interesting to see if these new risk mitigation decisions are detrimental to the major exchanges, which to some extent are still complying with the regulator’s rules. It is also possible that this is a short-term solution to avoid attracting attention during times of heightened scrutiny.
While Huobi tightened its grip on futures traders, Singapore-based platform SynFutures closed a $14 million Series A. The round was led by Polychain Capital and included names like Framework Capital, Pantera Capital, Bybit, Kronos Research, WOO Ventures, Wintermute and IOSG Ventures. SynFutures creates a free derivatives marketplace where users can take positions on assets or anything that has accurate information, including bitcoin, the price of gold or even the bitcoin hash rate. What many don’t know is that the SynFutures team is made up of members of Matrixport, a financial services app that was an offshoot of giant Chinese conglomerate Bitmain. Now you know the whole story! This weekly round-up of news from mainland China, Taiwan and Hong Kong seeks to gather key industry news, including influential projects, regulatory changes and blockchain business integrations.
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