[Original story is from WSJ but behind the paywall: https://www.wsj.com/articles/a-big-...an-be-bought-with-cash-or-bitcoin-11605069043 ] https://finance.yahoo.com/news/world-second-biggest-bank-issue-092348073.html Sebastian Sinclair Wed, November 11, 2020, 1:23 AM PST·1 min read China Construction Bank (CCB) has tapped Hong Kong-based digital asset exchange Fusang for the issuance of $3 billion worth of debt securities over a blockchain. According to a Wednesday report by the South China Morning Post, tokenized bond certificates will be issued through the state-owned bank’s Labuan, Malaysia, branch over a period of three months. Notably, the digital securities will be exchangeable for bitcoin on the Fusang exchange, as well as U.S. dollars. Trading is slated to commence this Friday. If successful, Fusang intends to work with the “Big Four” Chinese bank on the issuance of certificates in other currencies, including the yuan, said Fusang CEO Henry Chong in the report. With the blockchain issuance, CCB – the second-largest bank globally by market capitalization – aims to reduce the costs traditionally associated with financial intermediaries. It will also offer the debt instruments at lower amounts to make them accessible to retail investors. Bonds are tradable debt securities issued by a government or company to support spending obligations. Chinese bonds usually trade for tens of thousands of yuan (over $4,000) meaning they are mainly accessible to institutional and professional investors. The bank aims to reduce that barrier to entry by making certificates available for a minimum of $100. They will offer around a 0.75% yield at maturity, higher than the average 0.25% interest achieved per annum at other banks, the report indicated.
It starts at the edges then moves towards the centre. Yes, I know the article says the bank is the world's 2nd largest but most outside of China haven't heard of it, including me. My take is therefore this bank is at the edge. Now, when Citi, HSBC, Goldman, Douche Bank or Goldman Sachs etc (not a bank, but you get the point) issue something Bitcoin related, that's the centre. Just a matter of time. Bitcoin, if you haven't already noticed is being slowly cornered in a corner like we've never seen before because a) NO further supply can ever happen, and b) NO exchange or government can jump in to move the goalposts (like they've done many times before with past corners). EVERY purchase that's not a short term spec takes further supply off the market. 21m coins, 2-4m lost forever, free float getting EVER smaller EVERY day.
It's a Chinese bank so the assets are highly suspect. I was reluctant to post the article, but the story was originally from WSJ... To be honest, it's a very bad deal: exchange bitcoin for bonds (could be risky projects) for 0.75% yield at maturity? For US based investors, depositing bitcoin at a US licensed and regulated FinTech company like BlockFi or Celsius Network (available worldwide) offers much higher yields.
I was heavily invested in Counterparty (symbol $xcp) so I'm familiar with the term, don't care to review so forgive me for not reading your link in details. If you're hinting that your criticism of bitcoin is valid because you're a (ex) bitcoin dev, fuggedaboutit. Lots of early bitcoin devs have moved on from the project, got disenfranchised when bitcoin became mainstream and the normies adopted it. Even Satoshi himself disappeared. Genie is out of the bottle, though, and the economic impact of the bitcoin idea will continue to flourish. By the way, you should look up the story about Truecrypt if you're not familiar with it. Creators tried to discredit saying it has bugs, after thorough review of the code, there's nothing wrong with it. The rumor is that it worked too well, 3-letter agencies coerced them to saying those things. I was using Truecrypt in the past, still have some TC encrypted volumes but I've copied the data to other solutions. I just googled it, New Yorker has an article about it in 2016. Who are we kidding here? You're not changing my mind and I'm not changing yours, so let's stick to bantering, lol
good luck thank core for your lost, are you that florida guy? in the long run $0 https://valueinvesting.substack.com/p/why-hasnt-there-been-high-inflation