By Nicolas Abington | Crescent City Capital Market Analyst Intern
While Bitcoin is currently fighting to break upwards past 7300 USD/BTC, some major events are happening in the east regarding blockchain utilization. The People’s Bank of China (PBoC) recently went through the process of tokenizing 2.8 billion dollars worth of bonds for small business loans in the region. The bonds are currently set at a two year fixed rate and paying a coupon rate of 3.25%. This was the first use of the blockchain issuance system developed by PBoC and acts as a symbolic red ribbon cutting of the technology’s opening to the Chinese market.
The use of blockchain technologies in the financial system isn’t directly helpful towards cryptocurrencies value in the short run but rather represents where the market is going. Banks like Deutsche bank seem to agree with their recent “Imagine 2030” report where they talked about the rise of crypto. The argument centered around the fact that consumers desire more anonymity in their dematerialized payments and governments beginning the regulation process. This news isn’t about the market this week per se but rather to remember that when the crypto market gets tough, zoom out your charts and look at the long term.