CHINA - Digital yuan app adds Mastercard and Visa prepaid top-ups for tourists. The e-CNY app now allows tourists to top up their payment wallet using Mastercard and Visa with the "top up first, use later" option. The app, known as e-CNY, is currently in beta and is available to iPhone users in select regions of China and China-based Google Play Store users. With this new model users would be ble to create personal digital wallets for China’s state-backed digital currency. This update aligns with China’s efforts to promote the use of e-CNY for payments by international tourists, especially during events like the Asian Games and the Beijing Winter Olympics in 2022.

Currently - Finance Feeds said - the e-CNY is being tested in 23 cities and regions in 15 provinces and provincial-level cities. However, officials say that the main purpose of the pilot program for the time being is to build confidence in the digital yuan’s reliability and ease of use.

SOURCE: FINANCE FEEDS

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JOHANNESBURG - Is there a real alternative to the dollar? Finding the answear to this question is one of the goals at the BRICS Business Forum 2023. BRICS stands for Brazil, Russia, India, China and South Africa. "The the bloc is much more likely to offer piecemeal economic and diplomatic alternatives to the US-led global order than to dramatically replace it, analysts say. That could still lead to more tensions with the West as the grouping’s leaders seek to chart out an independent path in a world in flux. But to remain effective, the BRICS will need to manage the disparate priorities of its member nations – a challenge that will not be easy for the grouping to address".

How not to be dependent from US dollar

The path to step outside the dollor global econmical power is already designed. "The South African presidency is working precisely on strengthening ties with Africa: on the third day of the summit, among over forty confirmed heads of state, most come from the African continent, as well as from Latin America, Asia and the Middle East" - Paolo Vittoria wrote on the italian newspaper "Il Manifesto".

Expectation is high, more than twenty countries have applied for membership and current members alone make up about 40% of the world's population and 25% of the global economy. Another topic under discussion is the unit of common value in commercial and investment transactions which does not replace national currencies, but creates a stable alternative to the dominant currencies: essentially, not depending on the dollar. In this sense, a sure shoulder is the New Development Bank, created by the BRICS and currently chaired by the former president of Brazil Dilma Rousseff.

So is there already concrete alternatives to trading in dollars? Not yet, but the direction seems to be creation of parallel financial institutions to the World Bank and the International Monetary Fund. in this scenario, could cryptocurrencies play a role? We don' t need to forget that both Russia and China, decided to invest in the new economy. Russia starting a trial for digital tubles with banks, China proposing to create a Digital ID System, whose goal is to have a sort of control on metaverse users. During the summit hoewer, South African hosts said there will be no proposals for a Brics common currency as an alternative to the dollar or euro.

Perspectives

Julian Borger on the Gurdian really made a powerful analysis of the situation. Borger underlined that "the White House, too, played down the likelihood of Brics turning into a powerful and cohesive bloc".

The national security adviser, Jake Sullivan, during a briefing, said : "This is a very diverse collection of countries … with differences of view on critical issues".

In his recorded remarks to the meeting, Putin blamed the volatility in global markets for food and other commodities on western sanctions, and said that Brics would be a force for fairness in international relations. “We cooperate on the principles of equality, mutual support and respect for each other’s interests,” he said. “This is the essence of the future-oriented strategic course of our association, a course that meets the aspirations of the main part of the world community, the so-called global majority.”

The absence of Xi

It's true that so often absence makes more noise than presence. This is the case of Chinese President Xi Jinping. Xi reaffirmed China's commitment to protecting the global South's common interests on an international scale, recalling that his country "resolutely supported the common interests of developing countries and worked to increase representation and voice of emerging markets and developing countries in global affairs" in his speech yesterday at the BRICS Business Forum 2023, on the eve of the South African summit of the BRICS (Brazil, Russia, India, China and South Africa) but it was not he who pronounced the his speech. His Commerce Minister Wang Wentao did it in his place.

Conclusion

Countries candidated as members are Iran, Argentina, Saudi Arabia, Kazakhstan, Vietnam, Indonesia, Ethiopia and Venezuela. The debate is about how far expansion should go and the criteria needed, India is so far the most cautious. As The gurdian underlined "Brazil supports the admission of Argentina into Brics, but has warned that rapid expansion could dilute the group’s influence".

Source: Aljazeera, The Guardian, Il Manifesto

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BEIJING - China plans to monitor all metaverse users. As the state-owned telecom operator China Mobile reported, it has been proposed the creation of a “Digital Identity System” to keep track of all local metaverse users in the Country. The report by POLITICO shows China wants to assert state control over virtual environments. The idea has been discussed between tech experts and Chinese officials and could set global rules focused on that technology. It's certainly not a good moment for Chian's economical climate. After the Wall Street Journal underlined that Evergrande's request of Chapter 15 protection in Manhattan bankruptcy court could lead to a new Lehman Brothers crack, all finance eyes are fixed on that situation. This choice could describe a new way for China to look toward the future of its own economy.

"The government of China (ruled by the Communist party) has made several attempts to eliminate decentralization inside its borders and closely monitors people’s activities and financial transactions", banning, for example, all operations involving cryptocurrencies in 2021.

On the other hand, the Chinese government is in favor of a central bank digital currency (CBDC): a monetary product issued by the People’s Bank of China whose supply could be adjusted by the financial institution.

According to a recent Politico coverage, in the proposed “Digital Identity System” users will share personal data informations, such as occupation and “identifiable signs.” The informations could be stored permanently and shared with law enforcement agents “to keep the order and safety of the virtual world.” The questions that economists and philosophers are making to themselves in these cases is how safe our privacy will be, after a global ID system like that.

SOURCE: CryptoPotato, Politico

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The cryptocurrency industry is in expansion directed by investors which are interested in branch out their portfolio.

Honk kong and Singapore, in particular the majority of family offices and high-net-worth individuals, are investing in crypto. 

A report said that 92% of the interlocutors in Honk Kong and Singapore are interesting in crypto finance. 58% of super-rich already investing in crypto world. 34% will invest. 

Singapore’s bigger bank - DBS - reveled that is expanding crypto services on its digital trade: 100.000 super-rich consumers was classed as accredited investors. 

The Monetary Authority of Singapore (MAS) has been increase crypto business for accredited investors. Now in the city-state is consenting to supply Digital Payment Token services. 

“We have seen a huge increase of institutional investor interest in digital assets. For the Asian private wealth management industry, digital assets represent an emerging asset class with opportunities that are unrivaled within other financial products” - said the CEO of the crypto Aspen Digital. 

SOURCE: South China Morning Post

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Friday 7 October Asia Chipmaker have collapsed due to US: what's up?

American power is taking new restrictions in order that China can’t sell its technology. 

The US announced that will prohibit American companies to sell chips that are used for computer and AI from Chinese's factories.

As we can read on BBC.com, restrictions also pick out sales from non-US companies that use American equipment. 

US established that companies must issue an authorization to furnish Chinese chipmakers to produce modern chips. 

These rules mark one of the biggest break by US and China that ever exists.

SOURCE: BBC

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