China to continue applying pressure on crypto market, while U.S. calls to accelerate development of digital dollar

Chinese regulator will continue to pressure the cryptocurrency market

The People’s Bank of China intends to continue to exert regulatory pressure on the digital currency trading industry. The bank came to such conclusions following a working conference of the structure, which was devoted to the results of the first 6 months and goals for the second half of 2021.

The People’s Bank of China wants to tighten the regulation of Internet finance sites. In addition, the regulator intends to suppress illegal operations with cryptocurrencies.

The People’s Bank of China also plans to promote green digital asset transactions to minimize carbon emissions.

The U.S. official considers it necessary to accelerate the development of the local state cryptocurrency

Lael Brainard, who is on the Board of Governors of the US Federal Reserve, considers it necessary to speed up the process of creating a state digital currency. In her opinion, the country lags behind other states in the development of the digital dollar.

“The dollar is very dominant in international payments, and if you have the other major jurisdictions in the world with a digital currency, a CBDC offering, and the U.S. doesn’t have one, I just, I can’t wrap my head around that. That just doesn’t sound like a sustainable future to me.” Brainard said.

The Fed spokesman believes that one of the key prerequisites for the digital dollar is the growing popularity of stablecoins. Brainard fears that the issuance of stable cryptocoins, which are controlled by individuals and companies, could provoke a “fragmentation of the payment system.”

Jack Dorsey’s fintech project invests in an installment service from Australia

Square, founded by Jack Dorsey, is gearing up to buy Afterpay, an Australian installment platform. In exchange for shares of the service, Square will pay in its own shares worth $29 billion.

Afterpay offers the sale of goods in installments. The company operates in the USA, Canada, Australia and New Zealand. In addition, the project brand operates in European countries under the Clearpay brand.

The parties intend to carry out the deal in the first quarter of next year. After that, the service will be integrated by Dorsey into its own acquiring system and the Cash App Square mobile application.