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Digital currencies from central banks (CBDC) – what awaits state fiat currencies?



US Congressmen Bill Foster and French Hill asked Federal Reserve Chairman Jerome Powell to consider issuing the United States National Digital Currency (CBDC). At the same time, the president of the Federal Reserve Bank of Philadelphia, Patrick Harker, announced the inevitability of a digital dollar.

What do parliamentarians offer, how do American regulators relate to the idea, how will the launch of the American CBDC affect the economy and the crypto market?

What is CBDC?

Digital currencies from central banks (CBDC) is a digital version of the current national fiat currencies, but without intermediaries in the form of commercial banks. CBDCs are issued and secured by the Central Bank and make the banking system easier.

Now commercial banks transfer funds from customers and work with each other through the Central Bank's correspondent accounts (therefore, such large commissions must be paid for transfers from different banks). CBDCs allow commercial banks and their customers to pay directly to each other, bypassing intermediaries.

Congressmen urge Fed to hurry up with digital currency issue

Congressmen Bill Foster and French Hill outlined their request in a September 30 letter . They believe that the advent of digital currencies marked a “turning point” in the evolution of money and payments. Congressmen expressed concern that, according to the Bank for International Settlements (BIS), more than 40 countries are already developing their own CBDCs. In their view, in the long run, this could undermine the primacy of the US dollar. Therefore, they urge the Fed to take on the project to develop the digital currency of the US dollar.

Foster and Hill believe that now cryptocurrencies are used only for speculative purposes, but in the future they can take the place of fiat money. Congressmen fear private crypto companies are becoming leaders in this area and may deprive the United States of its financial management. A vivid example is the Libra project from Facebook .

Congressmen also mention recent stablecoin launch projects from JPMorgan and Wells Fargo . This can lead to the loss of control over monetary policy, as well as to the loss of the ability to combat money laundering and terrorist financing. Foster and Hill have suggested that a state-supported digital alternative to fiat currencies will prevent private companies from controlling the cryptocurrency microeconomy.

Congressmen are wondering why the US Central Bank has not yet switched to digital currencies. They point to comments by Christine Lagarde, where she argued for a new digital currency. Foster and Hill asked Jerome Powell whether the Fed is currently considering developing a digital currency, what it is planned to do if the CBDCs are distributed, if there are any legal and regulatory obstacles to issuing the CBDC from the Fed, and what are the possible risks and benefits.

Hill and Foster are not the only ones calling on the Fed to consider launching a CBDC. In June 2018, the former chairman of the Federal Deposit Insurance Corporation, Sheila Bair, also recommended the Fed to consider creating a digital currency in order to avoid disruption by the private sector or another country. According to the expert, if the Fed does not deal with this issue, banking will suffer, and the very existence of the Fed will be in jeopardy.

Fed is not going to issue digital currency

Representatives of the Fed confirmed that they received a letter and plan to answer it. Earlier in September, Jerome Powell said that the Fed is closely monitoring the CBDC, but has not yet considered their implementation. He noted that consumers already have many payment options, and they don’t need another one, they “do not require” cryptocurrency. Powell believes that CBDC carries too many risks – in the event of a network hack, you can "create as many coins as you want."

Speaking about Libra, the Fed chairman noted that because of the scale of Facebook, stablecoin can quickly gain systemic significance, but the project must meet the highest regulatory and regulatory requirements, and therefore, its development “will not be a sprint”.

However, the Fed’s position does not mean that there will be no digital dollar in the near future.

“The hypothetical launch of the US digital currency does not have to happen on behalf of the Fed. The fact is that the Fed “printing” the current dollar is a private organization from which the US government leases money for a fee. So if we are talking specifically about the national digital currency, then it may well exist in parallel with the dollar issued by the Fed , ”said Valery Petrov, vice president of RAKIB.

A digital dollar is inevitable, but it should not be a pioneer

Congressmen are not alone in their anxiety that the US will be left behind in the CBDC race. On October 2, President of the Federal Reserve Bank of Philadelphia Patrick Harker, speaking at a conference of the banking community in St. Louis, said that central banks, including the US Federal Reserve, "inevitably" will begin to issue digital currency, possibly within the next five years. But, as Harker emphasized, the United States should not be the first country to issue a national digital coin, because technology is still in its ripening phase, and the US dollar remains the world's reserve currency.

The basis of the digital dollar, according to Harker, could be the FedNow platform – the American quick payment system that allows you to process and conduct settlements in real time. It should be launched in 2023-2024. Harker suggested that the Fed’s attempt to create a CBDC would likely follow the formal integration of the payment processor.

Harker admitted that his opinion represents the point of view of the minority in the Fed. But, despite this, some employees are still working on exploring the possibilities of CBDC release.

Why did they talk about CBDC more often?

Earlier, representatives of central banks announced their negative position regarding CBDC. However, Facebook’s plans to create Libra attracted the attention of officials and slightly changed the rhetoric. The European Central Bank (ECB) recently announced plans to create a common European CBDC that counteracts Libra.

In the summer, Agustin Carstens, head of the Bank for International Settlements (BIS), said that central banks would soon be required to issue their own digital currencies. BIS supports the development of national central banks in this area.

CBDC's release may occur "earlier than expected" by the market and society. At the same time, the BIS annual report states that currencies supported by technology giants can “quickly establish a dominant position” in global finance and pose a potential threat to competition, stability and social welfare.

In recent months, among the main goals of launching the CBDC are called Libra growth prevention . The launch of such a global project – Facebook has two billion users – could significantly change the situation and deprive central banks of a significant part of the control over the movement of funds.

At the same time, calls are increasingly being heard for the world financial system to move away from the dollar. Thus, the head of the Central Bank of England Mark Carney believes that the CBDC can withstand the destabilizing influence of the US dollar in international trade and its dominance in credit markets. The expert believes that the protectionist trade wars unleashed by the current Trump administration have led to increased instability in world trade. Carney suggested a number of possible dollar replacements, including the Chinese yuan, and primarily the digital currency, supported by an international coalition of central banks.

According to IMF analysts, developed countries, in which the use of cash is reduced, see CBDC as an alternative to traditional methods of payment, which reduce costs, increase the effectiveness of monetary policy, and increase the competitiveness of the payment market. And for countries with developing financial systems, CBDC can be a means of improving the accessibility of financial services, their democratization and greater digitalization.

China launches its own digital currency

The creation of the national digital currency is being worked out by 40 central banks , but most of them are only exploring possible scenarios, fearing possible negative consequences from the launch of CBDC.

China has gone further and seems to be pursuing its own strategic goals. The country's national bank is about to launch its national cryptocurrency. The regulator did not publicly comment on the timing, but, according to rumors, this currency will start at the end of this or the beginning of next year. China's digital currency will be significantly different from the Bitcoin model , while the Central Bank will control the money supply and track transactions. Most likely, it will be a currency for interbank settlements, inaccessible to a private user.

Apparently, the country's authorities are hoping for the international use of their CBDC – this is a direct challenge to the dominance of the dollar, a way to break out of US power, become less dependent on them and their sanctions. This is an important geopolitical and strategic step of China.

If China's belt and road infrastructure project succeeds, a digital and barrier-free currency can facilitate international trade between more than 60 countries. China does not set a goal to overthrow the dollar, but it wants to give its allies an alternative, creating a system more independent from the United States, in which they would not have to use the dollar for their imports and exports.

Is the digital dollar the next chapter in cryptography?

Suppose the United States decides to issue a digital dollar. What would it look like and what consequences could it lead to? Indeed, unlike other currencies, the dollar is the main reserve and settlement currency of the world economy.

The digital dollar will be different from the dollar in the bank account, as it will use the same infrastructure as cryptocurrencies. People from developing countries will have direct access to the most important world currency without restrictions in the form of currency control, restrictions on transfers, import and export of currency. It seems logical that this will only strengthen the position of the dollar. However, everything is more complicated.

The digital dollar directly threatens the Fed, which controls the money supply to modulate inflation and stimulate the economy. No central bank wants a currency to be something that it does not control.

In addition, it is necessary to take into account not the most favorable situation with the balance of payments and the US public debt, the servicing of which may soon become very problematic.

“This is happening against the background of the fact that more and more countries are abandoning the dollar as a single reserve currency. Accordingly, in the case of the release of a new digital currency, it must be fundamentally ensured, otherwise its demand will be minimal, and the dollar will not be able to create competition. However, the United States has virtually no resources for such provision, which calls into question the prospects of the “digital dollar” in the foreign market. In addition, all the laws and regulations in the world are set to work with the ordinary dollar, and rebuilding this system to the new currency will require tremendous effort, ” Valery Petrov specified.

The competition of the digital dollar with the traditional currency in the domestic market can only exacerbate the identified economic problems of the United States.

“Thus, we can regard the news about the discussion of the national digital currency as an intensification of attempts by US officials to break the national financial system from a dead end, but it is too early to expect global influence on the cryptocurrency market ,” the expert added.

CBDC – the future of the global financial system

The future of cryptocurrencies can greatly disappoint many crypto enthusiasts and convinced libertarians – the revolution, which started with bitcoin almost 11 years ago, is taking root. The central banks that crypto users hoped to abolish themselves are more and more inclined towards the idea of digitizing national currencies. How this will work specifically is not yet clear, but Libra and TON significantly accelerate the development of the industry.

CBDC is the future of the global financial system. This is the result of the gradual evolution of fiat payment systems. CBDCs do not have to be on the blockchain . But they have one of the main advantages of cryptocurrencies – the ability to pay each other directly without intermediaries, without their drawbacks in the form of volatility and lack of legal protection.

With the widespread occurrence of CBDC, private and decentralized cryptocurrencies will not disappear. The former will compete with national currencies, while the latter will remain a means of hedging risks , a reserve asset and a means of settlement for those who prefer anonymity and confidentiality.

Publication date 10/09/2019
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Binance Exchange added the ability to purchase cryptocurrency from Mastercard



This Friday Binance Exchange announced the addition of the possibility of buying cryptocurrencies using bank cards in the Mastercard system.

The service covers 19 countries, including Russia and Ukraine. There are no other CIS countries on the list yet.

To use the option, you must log in to your personal account at , go to the “Buy Cryptocurrencies” tab and select payment using a bank card. Bitcoin, Ethereum, XRP, Binance Coin, USDT and some other assets are available for direct purchases from Mastercard cards.

Previously, users already had the opportunity to buy cryptocurrency on Binance using Russian Visa cards.

Also this morning, Binance CEO Changpen Zhao hosted another live broadcast at Periscope. Zhao’s speech mainly covered the latest achievements of the exchange, including the launch of the Binance Card , mining pool , Binance KR, OTC portal, as well as cooperation with Brave and the acquisition of CoinMarketCap . In addition, Zhao recalled the need to maintain social distance.

“We have completed the initial development of platforms, and now I think it is important for us to support mining , since bitcoin mining is now centralized. We want more players to take part in it, as well as support existing players, ” he said.

In addition, on his Twitter, Zhao shared a screenshot testifying to the preparation of the exchange for the launch of option trading.

He left no comments on this subject. In the main Twitter account of Binance, a list of tasks for testers that was “publicly available” was posted. Among other things, it includes the item “test option trading”.

Publication date 04/04/2020
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TRON (TRX) cryptocurrency review – forecasts and prospects, current rate



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Cryptocurrency TRON (TRX) is a decentralized protocol based on blockchain technology designed to create a global entertainment network with free content.

In simple terms, TRON is a service similar to all well-known social networks and platforms where users have the opportunity to publish, view and use any available content for entertainment, for example, online games.

The TRON project is currently developing the idea of joint consumption, which is that on a single global platform, users will be able to share entertainment content.

Official TRON cryptocurrency website:

Analysts call this platform the broadcast of the modern entertainment industry. In general, the functioning of this system is as follows:

  1. The author or copyright holder publishes the result of his intellectual work on the official website. You can download anything from literary novels to an author’s song or art on a specific topic. Next, the participant uploads information about how his creation can be used (as an accompaniment to another work or as an independent product). Nearby, he indicates the price of his work.
  2. Another user who is interested in this work acquires it for the local currency Tron (TRX). However, users should remember that it is impossible to purchase this or that product on this resource using fiat money (dollar, euro, rubles, etc.). The system has its own cryptocurrency , which must be purchased at exchangers or exchanges in order to complete a transaction.
  3. As soon as the interested user has acquired the result of intellectual work, the amount indicated by him is transferred to the author’s account. The author can use the tokens at his discretion – purchase a work from another author, simply save money in his account, or exchange it for another cryptocurrency or fiat funds.

About what TRX is, initially interested in all users who are just starting their activities on the site. This resource uses several types of tokens for different purposes:

  • Tron (TRX) . This is the main currency of the system. For this currency you can buy or sell the results of your intellectual work. If necessary, the owner of a certain amount in this currency can exchange it for fiat money or other cryptocurrency.
  • Tron Power It is impossible to purchase or exchange other money for a given currency. The only way to get them is to secure the TRX currency on the site platform. In this case, they are converted to TR. The presence of such tokens gives advantages to their owner. For example, the holder of a TR has the right to vote for one or another change in the system, or to oppose them.
  • TRON 20 . Coins owned by developers. With the help of them, they create new full-fledged blockchains with new tokens.

The TRON cryptocurrency issue is limited, 100 billion coins have been issued at present. However, it is worth considering another point – starting in 2018, tokens begin to be burned (they are meant to be forwarded to an address known only to developers). The last major burn was in June last year, but how often such procedures will be carried out is currently unknown.

project team

The team of this project has on its side professionals working in various fields. The founder of the platform and the creator of TRX Coin is Justin Sun , who also created a social network with an audience of 10 million people. In 2017, Forbes magazine included Justin on his list as one of the most successful entrepreneurs, who was not yet 30 years old.

The technical director of the project is Lucien Chen , who has extensive experience in working for large Internet companies. He is perfectly versed in blockchains and the principles of functioning of cryptocurrencies.

Deus Yu , responsible for quality control, has been working in the computer games industry for a long time. According to Justin Sun, the experience of Deus will come in handy a little later, when the platform gains even greater popularity.

Charles Zhang , an adviser who is well versed in a business not related to cryptocurrencies and blockchains. He has repeatedly lectured on the basics of entrepreneurship, with which he was invited to many universities. Charles made a huge contribution to the promotion of the platform at the initial stage.

Blockchain Browser

Block Explorer is a search tool that allows you to view the addresses of wallets involved in the system, blocks, as well as data of transactions completed or committed. It can be compared with standard browsers, with the help of which an ordinary user searches for the information he needs on the Internet.

For each cryptocurrency, a personal Block Explorer is created that shows the network status for a given period of time. For the Tron cryptocurrency, such a Block Explorer is called TRONSCAN , where users can get all the information they need ( ).

How to mine Tron?

The developers of the platform did not provide for mining the Tron cryptocurrency , since they had already created all the necessary coins. In addition, the creators talked about the scheme according to which their cryptocurrency will work:

  1. 40% of the total number of coins will go on sale to enable the project to develop further.
  2. 15% of the remaining amount is allocated for acquisition by investors. Investors are players who, after the main sale of coins, will be ready to purchase tokens further.
  3. The remaining funds are “frozen” and remain in the accounts of the company owners.

Justin Sun explained that perhaps mining will be provided in the future when the company gains the necessary popularity.

TRX Token Wallets

The user can choose one of two options for storing Tron coins (TRX):

  • Storage of tokens on the exchange;
  • Creating your own crypto wallet.

With proper use, wallets provide a higher level of security. All types of wallets for Tron (TRX) are described in detail in this review .

Buying and selling TRX coins

You can buy a Tron on popular crypto exchanges , we recommend that you use the first 15 exchanges, and do not forget to install additional account protection. On the selected exchange, you must go through the registration procedure, after which you will be given a personal wallet, as well as its address.

The most popular and safe exchangers where you can buy and sell Tron:

The exchange rate of the Tron cryptocurrency against the ruble as of October 28, 2019 is 1.29 rubles per 1 coin. For a detailed analysis of the course and chart of coins, we recommend that you look at the Coinmarketcap website.

Development Perspectives and Company Roadmap

A distinctive feature of the project is its roadmap, which is scheduled until 2027. It is divided into several stages:

  1. Exodus It lasts from 2017 to 2018 and is considered officially completed. During this period, information about the project was actively disseminated, as well as developers were engaged in improving tools for using the site.
  2. Odyssey . Accounted for 2019-2020. During this time, developers will pay special attention to the economic development of the platform.
  3. Great Voyage . Captures July 2020 and ends in July 2021. Implementation of a personal ICO system, and third-party developers will have the opportunity to launch their own ICOs.
  4. Apollo It lasts from March 2021 to March 2023. Creating a decentralized exchange platform.
  5. Star Trek . It begins in April 2023 and ends in September 2025. Creation of a decentralized platform for the development of any computer games.
  6. Eternity . It starts in September 2025 and ends in September 2027. Platform users will have the opportunity to create their own playgrounds.

The developers mentioned that if these plans are implemented, a new roadmap will be created in the future, which will begin in 2028.

When analyzing the active nodes of the Tron cryptocurrency, you can notice the scale of the development of the project, where the majority of servers are located in the USA, China and Germany.

The forecast for Tron cryptocurrency from leading analysts suggests that, taking into account the current features of the crypto asset, in the future the project can absorb the entertainment market. And this means that in 2020 the value of one coin is able to stand on one level with the dollar.

Main competitors Tron

The project has two main competitors – Qtum and Ethereum . Each competing company has its own advantages, for example, the first has a more advanced platform in terms of technology, and the second wins due to smart contracts and fame.

Analysts are confident that the Tron platform will still have to fight for its users, since the developers are aimed at a specific audience. However, the Throne does not have special advantages that would distinguish the project from its competitors, which could become a serious problem in the future.


Tronix cryptocurrency has good prospects for further development, since the project itself is one of the most ambitious among others. However, at present it is not in demand. Investing in such a project will bring quite large risks, however, long-term investments can bring the investor good profit.

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The largest exchange Binance has the opportunity to deposit / withdraw deposits in rubles



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The Binance cryptocurrency exchange this Wednesday activated the possibility of making deposits in Russian rubles.

According to the instructions provided on the website, deposit / withdrawal of funds is carried out through the AdvCash payment system , including using bank cards. The commission for the deposit in this case is 3%, for the withdrawal – 2.5% plus 50 rubles.

To deposit / withdraw assets in rubles, you need to go to the “Buy cryptocurrencies” tab in the upper control panel or select the “RUB” currency in the user's wallet, then indicate the desired direction of payment and other necessary data.

Trading pairs for exchanging the ruble for cryptocurrencies on the Binance platform have not yet been presented.

Earlier today, CoinDesk published excerpts from a conversation with Binance CEO Changpen Zhao during his visit to Moscow last week.

“We are always looking for partners in any community, especially in Russia. Russia is a key market for us, it is one of the most active markets in the global blockchain space, ” he said then.

Zhao also confirmed that Russia is included in the Venus project, in which Binance intends to launch several regional stablecoins.

“We are working with potential issuers of stablecoin tied to fiat currency. We do this in all jurisdictions, in Russia in particular, we are looking for partners, ” he added.

Last week, Binance listed its first cryptocurrency pairs on its main platform, starting with Nigerian naira. The exchange also supports fiat trading at selected sites in Uganda, Singapore, the United States and Jersey.

Publication date 10/30/2019
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