Dear Friends,
While company after company pulled out of Facebook's Libra project, the US Congress grilled Mark Zuckerberg, the SEC halted Telegram's token offering, and several US legislators called for a digital dollar, China had a few words for the world...
In the first of a flurry of announcements over the past week, China's President Xi Jinping made his first public statement on blockchain tech, calling for the country to "seize the opportunity". A few days later, China's National People's Congress passed a cryptography law to regulate the sector. Bitcoin's price shot up from $7K to nearly $10K, and China had to issue a statement warning against speculation when blockchain related stocks surged on local exchanges - not unlike what happened in 2017 in the US.
China publicly embracing blockchain tech is significant in that it will likely spur other countries to pay attention to the sector, so as to not be left behind. Once China puts its resources behind something, results follow quickly. This announcement reminds me of China's focus on artificial intelligence - billions have flowed into the sector since China's stated in 2017 that it wanted to be the world leader in AI by 2030.
None of this is a surprise to those of us following the sector for awhile...China banned crypto exchanges from operating on the mainland in 2017, but it has been widely believed that they would re-enter the space with regulations and a strategy in place. As if on cue, Binance, the largest crypto exchange by volume, yesterday stated its intent to open an office in Beijing.
While President's Xi Jinping statement focused on blockchain tech and not crypto, I expect that tokenization will be included in China's ultimate strategy, particularly as it rolls out its digital currency. I look forward to seeing how this will impact strategies in the rest of the world.
Yours Truly,
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Jalak Jobanputra
Founder, Future\Perfect Ventures
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“So absorbing all the information, making sense of it, you know, takes some time, and that's why I think actually the day to day doesn't matter, that if you're long bitcoin, you're long bitcoin. You can speculate on the short term, but it gets harder and harder to get all of the information to do that.”
- Jalak Jobanputra
October 1, 2019
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"I believe tokenization is an important part of our future – and the sector will have to engage with regulators if that future is to be realized. Initiatives like this, if executed objectively, can help further the conversation and provide clarity."
- Jalak Jobanputra
October 3, 2019
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LMHQ x Future\Perfect Ventures
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Libra could potentially transform the circulatory system of the global economy. But what does that mean for the value of other cryptocurrencies? What does that mean for the global market? Our panel of experts to discussed the wide-reaching implications of Facebook’s introduction of Libra, the ensuing controversy, and if it will ever actually be introduced into the economy.
October 10, 2019
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Jalak Keynotes at Congressional Blockchain Conference
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Attendees at the event included
Rep. Grace Meng (D-NY), Rep. French Hill (R-AR), Rep. Warren Davidson (R-OH)
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Rep. Darren Soto (D-FL)
Congressman Davidson is co-author of the Token Taxonomy Act, geared to provide regulatory certainty for businesses, entrepreneurs, and regulators in the U.S. blockchain economy.
October 17, 2019
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