Blockchain consortium of digital banks is being created in China

Colin Baseman

The conjecture confirms the statement of Mr. Tong that the main goal is to create a world consortium of digital banks.

Do cryptocurrencies stop being decentralized? This latest news talks about it:

  • The first centralized cryptocurrency “Petro” was issued by Venezuela.
  • Mark Zuckerberg announced the creation of a token on the basis of the Facebook social network.

There is a persistent feeling of attempts by various countries of the world to take the control of cryptocurrency emissions. Considering the fact that the forum at which it was announced about the creation of the fund was held in Shanghai, a rhetorical question arises whether it is a coincidence that the fight against cryptocurrency trading platforms and ICOs is toughened precisely in Shanghai by the NBK (National Bank of China) or is there a direct connection?

You can learn more about this news by reading our material: "The Central Bank of China spoke about plans to combat the trade in cryptocurrencies and tokensales."

Xi Qinping, chairman of the PRC, said at the end of October 2019 that blockchain technologies are required to work for the benefit of China's development.

Preparation of the legislative framework - cryptography law:

  • In China, the prosecution of miners for mining cryptocurrency is prohibited.
  • As of now, 32,000 blockchain companies operate in China.
  • In the Republic of China, the most quantity of bitcoins and altcoins in the world is mined while mining.

It seems that the “Asian tiger” has prepared to become the first economy in the world, including, using blockchain technology.

HDFH (Investment Blockchain Fund of the Global Consortium of Digital Banks)

2 facts about the created fund:

  1. The investment period is six years.
  2. The planned term for entering the positions is 2 years.

A roadmap of the foundation’s work was presented. The first step is investing and preparing digital modification of banks. The second step will be to attract other digital banks and create on this basis a global consortium of digital banks.

HDFH control system

  • Head Chairman Cao Tong.
  • Six directors managing fintech platforms.
  • Regional management. 

Considering the legislative framework prepared in advance, the speech of the President of China Xin Qinping, tightening control over blockchain companies and trading floors in Shanghai, an obvious assumption can be made: management belongs to the Chinese Communist Party, and possibly to Chairman Xing Qinping personally.

CAO TONG

There is no public information in the Internet. According to unverified rumors, the leaders of such companies are appointed by the Chinese Communist Party. They themselves are members of the Communist Party.

World Economy and Cryptocurrency

The obvious fact that cryptocurrency directly depends on the global economy cannot be denied. If it is not possible to exchange altcoins for fiat money or make a purchase of real goods and services, then even bitcoin will depreciate.

Therefore, the question arises, how frank is Mr. Cao Tong in his statement that investments will primarily be directed to Australia, China and Singapore?

Not so long ago, China negotiated with the Russian Federation on the lease of several thousand hectares of land in Russia for agricultural purposes, then the negotiations were curtailed. Moreover, almost immediately after the statement of the Venezuelan government about its readiness to sell real estate for the national currency of El Petro. Immediately after that, such necessary and timely laws on cryptography are adopted and then an investment fund is created.

Considering that Venezuela wants to limit itself by issuing its own altcoins in the amount of $ 6 billion, a fund of $ 1 billion will allow to buy 1/6 of the real estate in the country, which will almost completely ensure China's food independence. Especially in the context of the trade war between China and the United States, when a similar trade war is waged by the United States against Venezuela and it automatically becomes China’s “ally” in the logic of events.

This is only an assumption, like many things in the world of blockchain, but if this assumption has a logical basis, then there is a chance that El Petro will increase in price.

HDFH - what is the interest of an ordinary trader?

If the conclusions on Petro are incorrect, you need to keep track of where the fund plans to invest. The influx of such large investments cannot but affect the cost of altcoin. As experience shows, even simple rumors can often affect the value of a coin on a cryptocurrency exchange, without any real investment. Follow the news of the HDFH fund and its investments.