Helicopter CBDC money rains on Shenzhen, May 26—June 1


China’s pandemic-affected economy needs all the help it can receive after an increase in COVID-19 infections triggered massive blockades across the country. In an attempt to revive consumption, the southern city of Shenzhen has used the digital currency of the Beijing Central Bank, or CBDC, to send free money to local residents. A similar strategy was used in the northern province of Hebei, where even more digital yuan was deployed. Think of all the things governments can do when they have full control over the access ramps of fiat money.

This week’s Crypto Biz newsletter explores China’s helicopter CBDC strategy, the latest blockchain world funding news, and whether Apple is getting closer to integrating non-fungible token (NFT) technology.

Binance Labs $ 500 million fund to catalyze the adoption of cryptography, Web3 and blockchain

The biggest funding news of the week comes courtesy of Binance Labs, which has announced plans to allocate $ 500 million to Web3 and blockchain startups. The new funding initiative, launched in collaboration with DST Global Partners and Breyer Capital, will focus on incubation as well as early and late growth companies. These megaphones are nothing new to cryptography. But, it is interesting that venture capital is pouring even more money into the industry at a time when cryptocurrency prices are plummeting. Things are not always what they seem on the surface.

Goldman Sachs is reportedly looking at the cryptocurrency markets with the integration of FTX

Goldman Sachs’ foray into the cryptocurrency market seems to be deepening every week. The latest news is that the US banking giant wants to incorporate some of its derivative products into FTX.US, one of the leading cryptocurrency exchanges. The reason for this integration, according to Barron’s Financial Media, is that Goldman wants to offer cryptographic derivatives using its own tools. It looks like Goldman derivatives customers will join the retail trade to destroy during the next major market crash. Or maybe I’m being too negative? Read about liquidation cascades before deciding.

Shenzhen City launches 30 million yuan free digital to stimulate consumer spending

You’ve heard of helicopter money before. Well, the city of Shenzhen is making it a reality by releasing 30 million Chinese yuan (e-CNY) to local residents in an effort to increase consumer spending. To qualify for the air launch, locals must register on the Mietuan Dianping food delivery application. If selected, they will be able to spend their digital yuan on more than 15,000 commercial terminals. For better or worse, you are seeing how governments will use central bank digital currencies to achieve macroeconomic goals. But yes, there are also many disadvantages for CBDCs.

Apple’s upcoming developer conference is causing rumors of NFT swap cards

Apple’s upcoming World Developers Conference, also known as WWDC, sparked interest from the crypto community amid rumors that the iPhone maker was looking to integrate NFT exchange cards; the rumors are not unfounded either. MacRumors fans apparently clicked on the Memoji characters featured on new Apple devices and software models, and discovered three trading card characters available to claim. The good news is that we will not have to wait long for the rumors to be confirmed or crushed as the WDCC takes place next week.

Don’t miss it! How does the Fed affect your encryption?

There has been a lot of talk in recent months about the Federal Reserve and interest rates. After lying to us about inflation, the Fed was forced to make a complete turn in monetary policy to reduce cost pressures. So, like it or not, the clique of central bankers who meet eight times a year has a big impact on their portfolio, and that includes crypto. In this week’s market report, we explain how the Fed is pulling the strings. Click below to see a full replay of the program.

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