News Updates February 5, 2022
1. ZipangCoin: Japan’s Biggest Bank Mitsui & Co. Releasing Its Own Cryptocurrency
Japanese trading house Mitsui & Co. has planned to roll out its ZipangCoin (ZPG) digital currency as early as this month. As reported, ZipangCoin (ZPG) will be linked to gold prices and sold to retail investors via cryptocurrency exchanges. ZPG will be Japan’s first cryptocurrency attached to gold, making it less volatile than any other digital token. However, Bitcoin and other cryptocurrencies are not backed by any tangible assets.
2. New gold-based stablecoin by trading giant Mitsui reportedly on the way
Japanese trading house Mitsui is reportedly planning to issue a cryptocurrency pegged to gold, local news agency Nikkei Asia reported Friday.
Called ZipangCoin (ZPG), Mitsui’s new digital currency will reportedly be issued as early as February and will be available to retail investors through cryptocurrency exchanges.
The stablecoin will be linked to gold prices at yen-denominated prices by Mitsui from the London Metal Exchange, with one ZPG valued equivalent to one gram of gold and guaranteed by Sumitomo Mitsui Banking.
According to the report, the new gold stablecoin will be initially offered through Mitsui’s proprietary crypto exchange and later made available on other exchanges. The trading house launched a crypto trading platform with Seven Bank Japan, registering the exchange with the Kanto Local Finance Bureau under Japan’s Financial Services Agency (FSA) approval.
The new gold-based digital currency is aimed at enabling new options to mitigate financial risk and hedge against inflation. Apart from offering new investment opportunities, Mitsui also reportedly plans to allow ZPG to be used for payments via smartphones at stores and supermarkets, as well as for bill payments.
3. Kazakhstan Extends Power Cuts for Cryptocurrency Miners For Another Week
Kazakhstan has extended power cuts for cryptocurrency mining operations until February 7. The power cut was supposed to end by January 31. However, ongoing difficulties with the power supply have forced the company to extend this ban until February 7. The crackdown on mining hubs in China led to the migration of many crypto mining rigs to Kazakhstan. However, mining operations gobbled enormous amounts of electricity, which led to power shortages in the former Soviet Republic leading to the ban on mining activities.
The state-run Kazakhstan Electricity Grid Operating Company (KEGOC) has informed Data centers authorized to mint digital currencies in Kazakhstan that they will not operate until February 7.
4. Belarus Moves to Allow Investment Funds to Acquire Crypto Assets
The crypto-friendly nation of Belarus is preparing to permit investment funds to put money into digital currencies. A proposal to do so is part of a package of necessary legal changes tailored to attract such institutions to the country.
5. Texas Governor Greg Abott Welcomes Bitcoin Miners, Texas Senator Ted Cruz Buys the Dip
Texas Governor Greg Abbott is welcoming Bitcoin miners to his state, claiming that the new industry of digital asset mining could help stabilize the electricity grid which struggles to keep up with demand.
According to a report by Decrypt, Governor Abbott, alongside several other prominent Texas politicians including Senator Ted Cruz and Austin Mayor Steve Adler, are enticing Bitcoin miners to set up shop in the lone star state. The report claims the politicians hope that crypto miners will bring their lucrative industry and put pressure on power providers in the state to up their infrastructure, thereby improving the efficiency of the electricity grid.
6. Central Bank of Ecuador Might Regulate Cryptocurrencies This Year
The Central Bank of Ecuador is planning to issue cryptocurrency-specific regulation later this year. According to statements from Guillermo Avellan, the manager of the Central Bank of Ecuador, this will bring more clarity to the cryptocurrency scene in the country, and will contribute to preventing crimes such as money laundering.
The announcement was made by Guillermo Avellan, manager of the Central Bank in an interview on January 30th. When asked about the state of the cryptocurrency regulation of the country.
7. Japanese Police Deletes its Warning about Crypto Mining after Losing Monero Case. The long-running Monero (XMR) mining saga that pitted Japanese web developers against the police over the matter of crypto mining software may have come to a close last month, but the police force appears to have added an intriguing coda – by removing its public warning about the dangers of crypto mining widgets.
