Four headlines related to Chinese progress on blockchain and cryptocurrency related matters caught my attention during Christmas of 2019.
China Issuing Bonds on Blockchain Is a Sign of What’s to Come, and this prove that Blockchaining Sukuk is something that is possible and could be done.
As reported by Cointelegraph:
“The Central Bank of China has recently issued 20 billion Chinese yuan ($2.8 billion) of special bonds, which it has sold in order to fund small and micro-enterprise businesses, according to the China Development Network.
This recent issuance of $2.8 billion in bonds is nothing to look twice at and was largely expected, given the bank’s inclusive small and micro-enterprise loan balance at 404 billion yuan so far this year — representing an increase of 35.36% since the end of the previous year and catering to nearly 410,000 small and micro-enterprise owners.
…the Chinese central bank used blockchain to organize the affair…
China’s self-developed blockchain issuance system was put on display for the first time and it will handle the administration and tracking of these two-year bonds with a coupon rate of 3.25%.”
As the writer of the analysis – Nikolai Kuznetsov – pointed out, “China’s ban on blockchain systems now seems that it had little to do with ideology and was more about control. This is a safe guess considering that in terms of both blockchain and cryptocurrency, 2019 saw China launch both the blockchain bond issuance system and its seminal Central Bank-issued cryptocurrency (CBDC).”
Blockchaining Sukuk
This is the edited version of the presentation file during the briefing to World Bank Group Malaysia Global Knowledge and Research Hub. The content is about the potential and possibilities of Blockchaining Sukuk.
Image by sherisetj from Pixabay
Related news:
Forex Reforms Will ‘Deal With Cryptocurrency,’ Says Chinese Government
Central Bank of China Official Says Digital Yuan Will Be Different From Bitcoin
Chinese Internet Giant Tencent Plans to Create Digital Currency Research Group