RMB stablecoin makes progress in Shanghai, Evergrande FUD and FTX – Cointelegraph Magazine

This weekly news summary from China, Taiwan and Hong Kong attempts to plan the most important news in the industry, including influential projects, changes in the regulatory environment, and enterprise blockchain integration.

This week, the word “Hengda” entered the vocabulary of every western investor. After years of watching the company’s football team on TV and drinking its bottled water, Crypto Twitter is the last place people in Shanghai hope to find. After facing debts of more than 300 billion U.S. dollars, various rumors spread, causing its Hong Kong-listed stocks to fall by 80% and a large-scale dump of cryptocurrencies earlier this week.

Misread their tea

Western experts have different opinions on this issue. Jim Cramer of CNBC Urge People hedge their cryptocurrency risks until the news becomes more stable. The well-known investor Ray Dalio paid little attention to the news. He claimed that debts are manageable and unlikely to cause too much structural damage to the economy. In any case, since China was clearly moving away from Westernization and democratic ideals in the early 2000s, global media, politicians, and scholars have wrongly predicted that China’s economy will collapse.

Therefore, it is always cautious to have reservations about these dramatic stories, especially since the Chinese government has many stability levers involved in stability. persuade Other participants in the economy provide help.For this reason, betting on a total collapse will mean believing what Chinese observers believe should Happened instead of what they believed will happen.

RMB on the blockchain

Unexpectedly, the Shanghai Lingang Special Zone was allowed to use offshore stablecoins linked to the renminbi to conduct business.this announcement After months of strict supervision on the use of cryptocurrencies, many people have concluded that the domestic prospects of public blockchains may be limited.

CNHC website promotes RMB-denominated DeFi compliance

The stablecoin project called CNHC allows users to deposit assets to mint CNHC stablecoin tokens.according to website, The project plans to become a gateway for traditional finance to enter the blockchain world, and at the same time help expand the use of renminbi overseas.

The public blockchain responsible for facilitating the project is Conflux, a multi-chain network founded by scholars from Tsinghua University, China’s top university. Conflux has now developed into a global network and is one of the few public chains that have received any form of blessing from the Chinese government. When talking about the news, Christian Oertel, head of global expansion at Conflux, replied:

“Following the recent announcement by the Chinese monetary authority to support Shanghai’s first realization of the free use of the RMB in the Shanghai Lingang Special Zone, Huihui Network and Shanghai Shipping have jointly promoted the latest reform and exploration of RMB internationalization in the Shanghai Free Trade Zone.”

Asia’s largest custodian is on the rise

Cobo Custody has completed one $40 million salary increase Complete what they call DeFi as a service. Compared with companies such as BitGo, custodians have remained relatively low-key in the Western investment field, and their goal now is to add more institutional channels to DeFi.

Cobo Custody enjoys a high reputation in the Asian crypto circle, especially in the mining field. The founder of Cobo is an early pioneer of the founder of F2Pool. The Series B financing was led by DST Global, A&T Capital, and IMO Ventures, and was designed to help obtain further regulatory approvals to ensure that the company always complies with anti-money laundering laws. Cobo Custody currently cooperates with institutions such as Deribit, WOO X, BitMart and Babel Finance.

FTX makes progress on Huobi

In the field of exchange competition, FTX slipped on the trading volume rankings, and it seems that it is ready to flip Huobi to the third place after Binance and OKEx. This will break the dominance of Huobi, Binance and OKEx (known as HBO) in the market for many years. The two exchanges have been flat in derivatives trading volume, but Huobi is slightly ahead in spot trading volume.

The competition for fourth place has become more intense this week.Source: FTX Volume Monitor

This not only proves the amazing growth of FTX in the past few years, but also the diversification of China’s user base. In view of China’s increasingly strict supervision, they will either use more overseas exchanges or simply reduce transactions. Many of China’s largest trading teams have moved overseas, thereby reducing their reliance on Chinese local products.In this regard, Huobi has been focusing outwards, focusing on Hong Kong institutional asset custody and other products. claim It has an asset management scale of more than 1 billion U.S. dollars.

Huobi also announced that it will cooperate with the Kyrgyz government to implement more cryptocurrency trading projects. With the news of El Salvador, see if small countries in Central and Southeast Asia take a more open stance on the adoption of cryptocurrencies, which may provide some larger Chinese players with room for entry and development.

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