China Embraces Blockchain Technology As CNY BTC Trades Less Than 1% Of Global Crypto Trading

  • China’s National Audit Office & Ant Financial is leveraging blockchain technology
  • China’s central bank crackdown on cryptocurrencies has resulted in the Chinese yuan (CNY) accounting for less than 1% of global Bitcoin (BTC) trading.

China’s central financial institution, the People’s Bank of China (PBoC), recently announced that the Chinese yuan (CNY) is now used in less than one percent of the world’s total Bitcoin (BTC) trading. According to CryptoCompare data in September 2017, CNY BTC trading accounted for over 90 percent of global bitcoin trades. In order to reduce the number of bitcoin transactions involving the Renminbi, the Chinese government moved toward banning cryptocurrency purchases using fiat currencies.

CryptoCompare BTC CNY Bitcoin TradingSource: CryptoCompare

Moreover, authorities in China placed travel restrictions on employees of crypto exchange Huobi and OKCoin. Both these exchanges had one of the highest crypto trading volumes in China at the time. Additionally, 85 initial coin offerings (ICOs) and 88 local cryptocurrency exchanges, which constituted the majority of China’s crypto economy, have now shut down. Due to the government-imposed restrictions, Huobi shifted its operations to Singapore, a country offering a more favourable crypto environment.

Meanwhile, OKCoin, now known as OKEx, has moved its headquarters from China to crypto-friendly Malta. Cryptocurrency exchange Binance, whose Q1 2018 profits exceeded that of Deutsche bank, Germany’s largest financial institution, also shifted its operations from mainland China to Malta due to regulatory pressure.

$1 Billion In Chinese ICO Investments Returned To Investors

During its nation-wide crypto crackdown, the Chinese government labeled ICOs as an “illegal public financ[ing]” method. ICOs were accused by the country’s authorities of aiding in money laundering and other types of illicit activities, including the issuance of fraudulent and illegal securities. According to a September 22nd, 2017 report by Xinhua news, approximately $1 billion worth of investments in 43 different ICO projects were given back to investors after a government-led crackdown on local crypto-related startups.

Chinese authorities widened the scope of their cryptocurrency ban in February by prohibiting the nation’s residents from trading and acquiring digital currencies through exchanges located in countries outside of China. The heavy restrictions placed by the Chinese government have also led to giant cryptocurrency mining company Bitmain shifting its headquarters from mainland China to Singapore. Bitmain has now established its mining operations in the United States and Canada as well.

Although China’s government has been critical of cryptocurrencies, it has praised and adopted blockchain technology in a number of its routine operations. For instance, the Chinese government’s National Audit Office is reportedly planning to implement a blockchain-based solution for its existing data infrastructure. Billionaire Jack Ma, founder of giant online retail company Alibaba, has also been a strong supporter of blockchain technology, while referring to Bitcoin and other cryptocurrencies as merely a “bubble.” Notably, Ma’s Ant Financial company introduced a blockchain-powered money transfer service on Monday, which is now sending digital payments from Hong Kong to the Philippines.

'We Are All Satoshi' Says Early Bitcoin Miner Calling out Craig Wright

Francisco Memoria

An unknown bitcoin miner has signed a message on the Bitcoin blockchain with over 140 different wallets, calling self-proclaimed Satoshi Nakamoto a “liar and a fraud” and singing off with “we are all Satoshi.”

The message was then spread on a debian with a list of 145 different BTC addresses and their corresponding signatures. Verifying several addresses shows the signatures match, which does mean the miner owns all of the listed addresses and has the private keys to sign a message with them. The message itself reads:

Craig Steven Wright is a liar and a fraud. He doesn't have the keys used to sign this message. The Lightning Network is a significant achievement. However, we need to continue work on improving on-chain capacity. Unfortunately, the solution is not to just change a constant in the code or to allow powerful participants to force out others. We are all Satoshi

The addresses can notably be found in a list of thousands Craig Wright claimed to own in the case against the estate of the late Dave Kleiman. Kleiman’s lawyers have, however, recently said Wright has access to his BTC fortune but won’t access it because he knows its contents “will include partnership records.”

Wright has failed to prove the ownership of these addresses on several occasions, as he has not signed a message with the private keys to these addresses yet. Last year, a post on Memo.Cash signed a message for another address owned by Wright, saying it did not belong to him and he is a “liar and a fraud.”

This recent messages echoes one sent from Satoshi Nakamoto’s email address back in 2015, claiming he is not Craig Wright and “we are all Satoshi.” On social media users have been speculating the message was sent by Satoshi Nakamoto himself over the similarities.

Did Satoshi Send the Community a Message?

Users have been relying on the analysis of the “Patoshi” pattern to identify whether an address is associated with Satoshi Nakamoto himself. The analysis gained fame earlier this month after a miner moved coins mined in 2009, sparking discussions Satoshi was active once again. Blockchain analysis does indicate it was unlikely Satoshi moved his coins then, and it’s unlikely he signed this recent message.

It’s worth noting, however, the early miner that signed these messages has advanced knowledge and was very careful. Every address independently checked by CryptoGlobe has received a Coinbase reward of 50 BTC and hasn’t moved the funds since they were mined. All of the transactions date back to 2009 and 2010.

It’s unlikely the miner never used bitcoin – or the bitcoin cash airdropped in 2017 to these addresses – after holding onto it for over a decade. Instead, it’s likely the miner chose addresses from which the funds haven’t been moved to avoid being identified by sleuths.

Featured image via Pixabay.