Daily Roundup 21st July – White-only city tests crypto, Vietnam to forbid mining? & Allianz sees mass-adopting coming

White-only city in South Africa to test cryptocurrencies

Orania is a city in the middle of South Africa with a population of about 1500 people (2017). Only white people live in the city in an almost secessionist manner. The town already uses its own printed currency. However, it is pegged to the South African Rand with 1:1 parity. The administration of Orania is working on its own cryptocurrency now. The city plans peg it to the Rand as well. But the Oranians already discuss whether it would be better to peg it to other currencies or assets. The Rand has been a high inflationary currency for a long time which changed only in the past decade. International markets see the reforms by South Africa’s president Cyril Ramaphosa to disown white farmers in South Africa with scepticism.

Vietnam aims to forbid crypto mining

China forbade cryptocurrencies already and a lot of Chinese mining firms relocated to other countries like Canada, Ukraine or Vietnam. However, the governments of these countries do not value the influx of miners there as well. Miners profit from cheap energy prices. However, governments feel they are missing out on profits. As mined rewards can be brought out of the country in seconds and with ease. Also, energy supply is crucial to partially planned economies like China and Vietnam. Yesterday Quebec already announced that it is raising prices for mining firms.

Ukraine sets up positive regulation

Ukraine the wild, wild East of cryptocurrencies has finally decided to acknowledge cryptocurrencies as a legal form of payment. The lack of regulations, money laundering and other crypto related terms have gained the country the infamous title of being the Wild East of crypto. Though cryptocurrencies have boosted the country’s economy and the population sees crypto as an opportunity. The Ukrainian government now does justice to this positive stance towards the new technology.

Allianz sees big potential for insurance sector and cryptocurrencies

It is not a secret anymore that the blockchain can be applied in many useful ways to the service of insurers. However, that a representative of an insurance company as big as Allianz talks positively about cryptocurrencies themselves is not as common. The world’s largest insurance company predicts mass adoption for cryptocurrencies. Allianz spokesman Christian Weishuber sees the opportunity for insurers not particularly in adopting cryptocurrencies in the sector itself. But rather, in crypto insurance services which means insurance against the loss or theft of cryptocurrencies.