Commission-Free Trading App Robinhood Crypto Now Support Ethereum Classic (ETC)

Siamak Masnavi

On Monday (6 August 2018), Californian FinTech startup Robinhood, announced, via its blog and Twitter account, that its "Robinhood Crypto" platform now offered trading support for a sixth cryptocurrency: Ethereum Classic (ETC). This is the tweet the company sent out to announce the news:

This move comes exactly three weeks after the company announced support for Dogecoin (DOGE), and it means that you can now invest in Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Dogecoin, and Ethereum Classic, as well as track market data for 10 other cryptocurrencies. 

Robinhood Crypto is currently available in 19 states, but Robinhood seems to be rapidly accumulating the state licenses it needs to offer the service in the remaining states.

On 11 June 2018, Coinbase announced that it was working on adding support for Ethereum Classic. At the time, it said that the work would take a few months. Then, on 3 August 2018, Coinbase said that final testing would be completed by Tuesday, August 7, at which point it would announce its readiness to "accept inbound transfers of ETC". No doubt, Robinhood, which is a strong competitor to Coinbase in the U.S. market, must have decided step up its development effort for adding ETC so that it could have its support ready before Coinbase.

During the past two months, Ethereum Classic has been one of the best performing cryptocurrencies:

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According to CryptoCompare, on 10 June 2018, ETC closed around $12.56, and at press time, it is trading around $17.48, up 6.45% in the past 24-hour period. Between June 10th and August 6th, it has gone up over 39%. And today's news by Robinhood is likely to add to ETC's strong momentum.

 

Featured Image Credit: Courtesy of Robinhood

Blockchain-Enabled Chinese Yuan Could Increase Governmental Oversight, Investor Argues

The Chinese government has been closely studying blockchain technology in order to determine whether the immutable distributed ledger can be used to streamline routine business processes.

However, Chinese authorities have expressed concerns regarding the use of cryptocurrencies in financing illicit activities and potentially disrupting the country’s $12 trillion economy by facilitating capital flight.

People’s Bank of China Considering Blockchain-Based Yuan

While China’s government has attempted to restrict transactions involving cryptocurrencies, the People’s Bank of China (PBoC) has reportedly been conducting research to determine the feasibility of launching a blockchain-based Chinese yuan (CNY) since 2014.

This, according to Dovey Wan, a founding partner at Primitive Ventures, a “market cycle agnostic” investment firm which has invested undisclosed amounts into various cryptoasset projects such as ZCash (ZEC) and DFINITY.

Wan, who earned her Masters in Information Systems from Carnegie Mellon University, wrote in a blog post published on CoinDesk on May 17, 2019 that the digital yuan, or Renminbi (RMB), initiative may potentially allow the Chinese government to exercise greater control over the nation’s local and international economy.

M0 Versus M2

As explained by Wan, digital fiat currencies allow financial institutions to more effectively create credit flows which increase M2, the broad money supply. Meanwhile, blockchain-based digital currencies impact a base currency measure, referred to as M0.

Blockchain-enabled digital currencies could potentially allow central banks to “bypass commercial banks” in order to directly control money creation and supply channels. This would structurally centralize the central financial institution’s power and role in formulating monetary policy, Wan argued.

Chinese Government Will Most Likely Use Permissioned Network

According to Wan, the PBoC is looking at various types of network design for a digital, blockchain-powered RMB. She believes that it will most likely be a permissioned network in which the nodes will be managed by major Chinese financial institutions, including the PBoC.

This indicates that transactions involving a digital yuan would only be seen by Chinese banks, and not the nation’s citizens.

Blockchain-Powered Currencies Enable “Better Coordination Paradigm”

One of the main reasons for using blockchain technology, Wan noted, is to take advantage of “a better coordination paradigm” when compared to “traditional currency supply management, which is heavily dependent on bookkeeping,” Wan wrote.

Moreover, Wan thinks blockchain’s immutable nature and private-key cryptography can prohibit users from entering fraudulent transactions and also prevent users from counterfeiting currency notes.

A blockchain-based yuan could also assist the Chinese government in more carefully monitoring the spending history of the nation's residents. This would allow the government to "accurately assess creditworthiness" and detect illegal activities such as money laundering and tax evasion, Wan noted.