German and French Create a Bitcoin Rule of Problem

Newsletters An Israeli walks in front of the Bitcoin digital currency exchange kiosk in Tel Aviv City, Israel, on Wednesday (17/1). Transactions using digital currencies since late 2017 have been legalized in Israel.

After much reap of controversy, a number of countries began to make rules about Bitcoin. This rule is addressed as a form of state responsibility to citizens related to the risks of virtual currency transactions.

PARIS - The governments of Germany and France plan to make a joint proposal on the Bitcoin legislation (virtual currency). French finance minister Bruno Le Maire said talks on the proposal would be held in meetings with finance ministers of G20 member countries in March.

"We have the same concerns and we want to share the Bitcoin rules together," said Finance Minister Le Maire, during a press conference with German Finance Minister Peter Altmaier on Friday (9/1). "The proposals on this rule will be included as a joint German-French rule to show to our partners in the G20," he added.

As a matter of seriousness, Le Maire's finance minister has called on the former deputy governor of the French central bank to immediately prepare the proposal. Finance Minister Altmaier said it has responsibility for citizens to explain risks and mitigate those risks through issuing the necessary rules.

Both countries have committed to developing a rule on Bitcoin a day after the first Bitcoin depreciation rate since November 2017 due to tightening rules by Chinese and South Korean authorities. Bitcoin is a decentralized global cash transaction system.

Anticipate "Cryptocurrency"

Meanwhile, the Chinese government is proclaiming it is preparing a strategy in the face of cryptocurrency, and issued this type of trade from China. Cryptocurrency is a digital currency that applies virtual network technology that allows users to conduct peer to peer (P2P) transactions using certain cryptographic principles.

The Securities Journal news website proclaimed Beijing will gradually clear up the platforms of digital currency trading, peer to peer networks, and listed companies in the country, enabling Chinese people to trade across countries. This step is to address online-based online risk.

The plan came to light following a rift in China's cryptocurrency last year, where Beijing saw a direct fall in the value of Bitcoin and immediately banned the use of this type of transaction.

Nevertheless, alternative channels for cryptocurrency trading are on the rise, including through social media networks like WeChat and Telegram. The social networking site facilitates large-scale peer-to-peer trading with greater oversight.

Bitcoin and Cryptocurrency international currencies plummeted in recent days amid concerns over tensions in Asia and so many currencies rose significantly last year that could have a negative impact.

On the other hand, Morris Chang, head of the semiconductor giant Taiwan Semiconductor Manufacturing Co (TSMC), said cryptocurrency would be a key driver of growth even though its value fell due to the threat of tightening regulation.

TSMC is a chip manufacturer that is planted on the iPhone from Apple and has recently developed an artificial intelligence business as well as a digital currency business. TSMC earlier on Thursday announced fourth-quarter earnings, of which the world's largest microchip revenue grew 5.9 percent to 277.6 billion Taiwan dollars ($ 9.4 billion). On the achievement, TSMC said the launch of new model phones and cryptocurrency as the key drivers of growth.

Some analysts project TSMC's sales in 2018 to double its total revenue. But Chang warned that the price of digital currency is still very fragile and for that reason, it will not invest in new manufacturing capacity, especially a number of cryptocurrencies. Instead, this sector will be closed by high computing performance. The statement came a day after the value of Bitcoin dropped below 10,000 US dollars for the first time.

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