It has been speculated that Bitcoin price is manipulated by Tether issuance printing itself into existence. This results of this empirical study based on daily data indicates that, whilst the Tether printing and Bitcoin price series are cointegrated (and thus tied together intrinsically), Tether printing does not Granger cause Bitcoin price movement. However it does provide evidence to show that Bitcoin price does Granger cause Tether printing, which is a reasonable alternative hypothesis for the apparent relationship.
China’s government-backed Blockchain Service Network (BSN) is building a universal digital payment network (UDPN) to integrate various countries’ central bank digital currencies (CBDC). Currently at the design stage, the beta version of UDPN is expected to launch in the second half of 2021. The BSN plans to complete the UDPN development in five years. With the UDPN, the BSN aims to enable a standardized digital currency transfer method and payment procedure. The new system intends to bring together systems like banking, insurance, enterprise resource planning and mobile apps through APIs to provide a cost-effective global payment solution.
The China Banking and Insurance Regulatory Commission and the People’s Bank of China jointly issued the “Notice on Regulating Commercial Banks to Carry Out Personal Deposit Business Through the Internet”. It clarified that commercial banks shall not carry out fixed deposit and fixed-activation deposit business through non-self-operated online platforms, including but not limited to non-self-operated online platforms to provide marketing promotion, product display, information transmission, purchase entrance, interest subsidy And other services.
* The views expressed herein are those of the author and should not be attributed to the International Monetary Fund, its Executive Board or its management.