Above the Fold

China: All Crypto-Related Transactions Are Illegal

The world’s most populous country and second largest economy has declared that all digital currency (except for those created by China’s government) are illegal in the nation. To be specific, any currency issued by nonmonetary authorities, which uses encryption technologies and exists in digital form, shouldn’t be circulated and used in the marketplace as legal tender. The country had actually banned cryptocurrency exchanges from operating within its borders years ago, but trading and exchanging of digital currency remained healthy among consumers. 

The news took its toll on most cryptocurrencies over the last few days, but the big players, such as Bitcoin and Ethereum, seem resilient. China’s move certainly seems dramatic, but it’s not unlikely that other large nations will continue to crack down on untraceable digital transactions and/or create their own digital currency to compete with the rising interest in this relatively new marketplace. In April, the 2021 State of U.S. Crypto Report revealed that nearly 15% of Americans own some digital currency, and another 13% more said they intended on purchasing digital assets within the next 12 months. 

And while a large number of crypto transactions may be completely legitimate, the digital currency market remains volatile and is still a means for nefarious operators to move or launder assets without detection. 

Three Things 

1. Commercial Real Estate Comeback in San Francisco? – On the heels of Google’s big real estate bet in New York City, a South Korean pension fund and real-estate developer, Hines Interests LP, just purchased PG&E’s corporate office campus for $800 million. The site will be redeveloped into a modern tower with around 600 rental apartments. The move comes amid a commercial real estate crisis in the Golden Gate City as more than a record 25% of the city’s office space was available for lease.
2. China Has a Different Kind of Pork Problem Now – Just a couple years ago, pork prices in China were soaring while the country worked to contain the spread of African swine fever. With the outbreak under control, China’s hog population has swelled to 439 million, up from 370 million last year. With the country now “high on the hog,” prices have been falling for much of the year. The selling pressure has been made worse by farmers who had been fattening up their pigs, waiting for prices to rebound, decided to sell. Experts do not see a sharp rebound in pork prices for some time. 
3. Facebook Pauses “Instagram Kids,” but… – Facebook, the parent company of Instagram, will halt development of its Instragram Kids (children under age 13) platform after facing enormous criticism for the alleged harm Instagram is already causing younger users. And despite a recent Wall Street Journal report that revealed internal knowledge of how Instagram creates body image issues for teen girls and women, the company did not admit its platform may contribute to mental health issues. 

Did You Know? 

Yes, There Was Digital Currency Before Bitcoin

Though Bitcoin is recognized as the first decentralized cryptocurrency, there were a few predecessors that set the stage for what’s become a global craze. An American cryptographer, David Chaum, experimented with a token currency that could be transferred securely and privately. Using his “blinding formula,” the transaction would be encrypted from end-to-end. It became known as “blinded cash” and was to be the core of his company, DigiCash, in the mid-90s. Unfortunately, DigiCash went bankrupt in 1998, but its concepts, formulas and even encryption tools were instrumental in the development of modern digital currencies.