BitDigest April 16 · Issue #638

• Crypto marketcap back above $200 billion as bitcoin retests $7,000
• China to trial DCEP with payments of transportation subsidies
• The Netherland’s plans to increase charges on crypto businesses to adhere to new European AML regulations

Quick notes on above chart:

1. I added The Bitcoin Fund (TSX: QBTC-U.TO) and Riot Blockchain (NASDAQ: RIOT) to my weekly update on digital currency and blockchain stocks
2. Grayscale’s Diversified Large Cap Fund. Grayscale changed its ticker from GDLCF to GDLC, as such its key metrics like the 52-week price range have been reset.

The Headlines

Why isn’t China’s DCEP being covered in traditional media?

Today I am starting the headlines section of BitDigest with some thoughts on the lack of news, rather than actual news.

Over the past two days, numerous crypto sources across the globe have carried reports that China has begun testing its digital currency electronic payment (DCEP) platform. Additionally, the Chinese government released its national blockchain and announced plans to roll this out globally next week.

This is major news. This is not just a cryptocurrency story, this is a fully backed government stablecoin and the release of a national blockchain which will help spread China’s Belt and Road Initiative. Crypto believers may question the value of the digital yuan especially during our current period of QE on steroids, but these Chinese actions are ground breaking and will lead a change in financial structures equal to if not greater than their development of paper money during the Tang Dynasty in the 7th century.

As of this morning, none of my primary news sources such as Reuters, The Financial Times, Wall Street Journal, Bloomberg, CNBC and/or the New York Times have carried any coverage on this news. Why not?

Alipay Supported Digital Yuan to be Trialed for Worker Transportation Subsidies

www.cointelegraph.com

China plans to trial its DCEP (digital currency electronic payment) platform in the city of Suzhou by paying 50% of workers transportation subsidies through the digital currency. In separate DCEP news, it has been confirmed that Alipay actively contributed to the development of the currency’s hardware, distribution and payment channel technology.

US Issues Advisory Against North Korean Use of Crypto to Support WMD Programs

www.treasury.gov

US Government agencies including the Departments of State, Treasury, Homeland Security and Justice jointly issued a new advisory against North Korea’s cyber threat activities. The notice alleges the Democratic People’s Republic of Korea is engaging in illicit activities including digital currency exchange hacks and the release of crypto supported ransomware campaigns to support its ballistic missile and weapons of mass destruction (WMD) programs.

Holland Planning to Add Cost to Local Crypto Businesses

www.cryptobriefing.com

The Dutch Ministry of Finance is looking to levy new fees on digital currency businesses in the country. The Ministry is proposing amendments supporting the EU’s anti-money laundering directives that will add new costly, supervisory requirements on the companies.

Wyoming Amends Laws to Allow Insurance Companies to Invest in Virtual Assets

www.theblockcrypto.com

The State of Wyoming has passed a law which will allow domestic insurance companies to invest in “virtual assets.” Lawmakers amended the State Legislature to allow insurance companies to invest in digital securities and cryptocurrencies.

UAE Banks Completes First Sharia Compliant Blockchain Transaction

www.tradearabia.com

Abu Dhabi Islamic Bank (ADIB) has become the first Islamic financial institution to successfully execute trade a commerce transaction on a blockchain. The UAE based firm completed a cross-border transaction enabling an “end-to-end Sharia’a-compliant trade (system) through digital channels.”

Medici to Provide Second Blockchain-based Land Registry System in Wyoming

www.businesswire.com

Medici Land Governance has signed a Memorandum of Understanding (MOU) with Carbon County, Wyoming to develop its second blockchain-based land records platform in the state. The Medici designed blockchain-based registry will display existing land records, including warranty deeds, mortgages, and release of liens, and provide a digital archive to Carbon County’s current systems.

Riot to Geographically Expand Operations

www.ir.riotblockchain.com

Publicly trade Riot Blockchain (NASDAQ: RIOT) has signed a co-location mining contract with Coinmint. Under the agreement, Riot will relocate some of its newly purchased mining rigs from its Oklahoma City facility to Coinmint’s operations at the former Alcoa Aluminum smelter in Massena, New York.

Market Data

Total Daily Transactions on Ethereum Reach Bitcoin Levels

www.decrypt.co

According to crypto news and data provider Messari, the daily value transfer of all transactions across the ethereum blockchain, including ERC-20 tokens, has reached a level equal to bitcoin’s daily values.

Fake Google Browser Extensions Stealing Private Keys

www.medium.com

A new warning has been issued against malicious browser extensions appearing to be generated by crypto wallet companies including Ledger, Trezor, MyEtherWallet, and MetaMask. Almost 50 fake Google Chrome browser extensions were identified as actively stealing user private keys.

Kraken Issues Educational Report on Zcash

www.blog.kraken.com

Kraken has released an educational report on Zcash. The US based digital exchange is providing this information to education traders on the bitcoin based privacy coin ahead of its first halving in October.