World's Second-Biggest Bank to Issue $3B in Bonds Tradable for Bitcoin

bitbunnny

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Quote from: livingfree on November 15, 2020, 11:15:40 AM

What's next when a Chinese has traded his bitcoin for that bond? He just lost his bitcoins.

Assuming that this news is real and we can have a sense of bullishness if it's a bank that's owned by the state. But, you don't just get on it without understanding it. Yeah, we may hear it as good news because it's a bank.

But that's inevitable use and part of bitcoin.

I see that from a different point of view. I'm not concerned if this involved China, bank or some government but that we still look at it as a breaking news and in reality it does not have any significance. Use of Bitcoin by serious banks or companies is still on the level of experiment, not necessary of a successful one.

livingfree

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What's next when a Chinese has traded his bitcoin for that bond? He just lost his bitcoins.

Assuming that this news is real and we can have a sense of bullishness if it's a bank that's owned by the state. But, you don't just get on it without understanding it. Yeah, we may hear it as good news because it's a bank.

But that's inevitable use and part of bitcoin.

Mauser

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Quote from: Sterbens on November 15, 2020, 10:56:06 AM

based on the news, we identified the Bank also wanted to cover the Bitcoin exchange area. wasn't it that in the past any bank did not like the presence of bitcoin, citing the volatile price volume when bitccoin soared at the price of $ 15,000. and now they finally gave up and tried to go with the bitcoin flow. they want to double their bank position as one of the factors driving the current high price of bitcoin.
I assume that banks in China will continue to try to enter the Bitcoin exchange space on a large scale.

China is among the country with the largest capital inflows. They are getting all kinds of currencies like the Euro or USD, it's no secret that China tries to use less USD and switch to other currencies. Going into the crypto world and in particular the bitcoin market could definitely be a solution. Also with the size of trades China can do they will definitely go at large scale in the market.

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based on the news, we identified the Bank also wanted to cover the Bitcoin exchange area. wasn't it that in the past any bank did not like the presence of bitcoin, citing the volatile price volume when bitccoin soared at the price of $ 15,000. and now they finally gave up and tried to go with the bitcoin flow. they want to double their bank position as one of the factors driving the current high price of bitcoin.
I assume that banks in China will continue to try to enter the Bitcoin exchange space on a large scale.

verita1

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Both news are good for banking advances and the pioneers appear to be China with China Construction Bank (CCB). The Coindesk source mentions the announcement of implementing blockchain in CCB and its advantages such as reducing costs by minimizing intermediaries.
While the Cryptoslate article talks about the issuance of digital bonds accessible to investors from $ 100 that they can buy with Bitcoin.
The transformations in the institutions make Bitcoin preferred.

aesma

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I know a French bank is working on something similar. Using blockchain technology with a public ledger so anyone can see the transactions of the bond. However it's centralized, there is no major processing power or POS or anything like that, it's designed as a bond not a currency, so it's not crypto, it's just blockchain.

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Quote from: The Sceptical Chymist on November 12, 2020, 12:05:08 PM

Bullish? I'm not sure about that, but this is a step in the right direction as far as crypto adoption goes.

It's bullish in the sense that larger institutions are now realizing there is gold rush for an extremely scarce Bitcoin supply. CCB is obviously looking for ways to part early investors from their coins. Don't be surprised when BTC traded for bonds don't return to the order book.

Don't fall for it. Selling your coins for junk bonds? LOL. If that sounds attractive to you, send me a PM because I've got a bridge to sell you! Tongue

Wind_FURY

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Quote from: Poker Player on November 12, 2020, 10:42:04 AM

Do you think this is bullish?

NO IT'S NOT!

Quote

It's appeared in various crypto news sites as having a big impact in the bitcoin market but I'm confused about what Steven Wong says.

That bank is scamming you, by offering you "an investment" to get what they truly want from you. YOUR BITCOIN!

In an investment/trading standpoint, Bitcoin simply better.

beerlover

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Obviously china construction bank is a huge, it is only trailed by another Chinese bank which was I think agriculture related or something like that, they are really so big that nothing in USA would even compare but the main reason for that is the fact that it is government owned and China is huge, there is no government owned huge bank like that in many nations because we are not ruled by dictatorship.

However bonds in 3 billion level are also not a big deal in crypto neither, 3 billion itself all going into crypto would obviously have a huge impact on the price, but this is just a 3 billion bond that "could be traded for bitcoin" and that means only a tiny portion of it. Considering we are already in a volatile and bull market that tiny amount couldn't be the reason for anything this big.

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This bloody news is all about leeching on the bitcoin hype and issues junk bond that name after bitcoin but has no features of bitcoin. The joke bank did it again.

davis196

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This sounds like fake news to me.I have never heard about bonds,which are tradable for Bitcoin and I don't think that any Bank would be allowed by the authorities to issue such bonds.
Listing bonds via a blockchain is also something I've never heard of.What makes listing bonds via blockchain better than issuing them the old fashioned way?Is it cheaper or is it more secure?

asriloni

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Quote from: Paycoinzzz on November 12, 2020, 11:43:15 AM

answer for first question, I don't think this news will affect the price of Bitcoin. because Steven Wong's claim that it is all just a test on the blockchain platform, and they have no real plans yet with Bitcoin or cryprocurreny in the future.
so testing is just testing, we never know when they will enter the crypto market. So do not expect too much, governments still do not have policies to apply in reality. Wink

Imo if that's not only just for testing caused by it's ready to be sold to public. If you read it properly and he has no plan to use bitcoin as game-changer for its core business and that's why he was also denying the rumour about the bank tried to deal with crypto which will always lead to the bank will adopt crypto as an option to the payment system.

fiulpro

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I do believe that even if they decide to do this , they are going to get hugely benefited by this since we have millions of users and therefore the crypto enthusiasts might more or so try out the bank , they will gain more customers. By saying the statement that they are not getting involved with cryptocurrencies, means they are playing with a double edged sword , getting benefited from the crypto sector and at the same time preventing themselves from the harsh criticism they might have to face from the government and other banks alike.
- everyone knows the value of Bitcoins and how it is flourishing since years so I believe not just this bank but many more should have already taken this step.

It would engage more people and at the same time they can explore their options by being a crypto friendly.

Banning the accounts of people engaged in trading is something that has been happening since years and I think instead of doing this the banking sector do need a new portrayal of what cryptocurrencies really can do for the individual and country alike.

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Quote from: Husires on November 12, 2020, 01:00:28 PM

Banks will not engage in direct trading of digital currencies unless they obtain adequate permission from governments and many governments do not listen to direct trading.

And China Construction Bank is actually a state-owned banking entity founded in 1954, so they would have a pretty clear go signal on these projects if it were announced publicly.

Personally I think this ploy to accept bitcoins in trade for bonds is pretty good to lure in new money into this seemingly no-brainer investment scheme because the word 'bitcoin' is in it. While China's stance on cryptocurrencies remains to be as fickle as ever, it's not really surprising that they would come up with these ideas to again lure some money into their own economy. Whether this will be good or bad is up to anyone's guess, though adoption wise this is still a win. However I just don't like that banking entities are slowly encroaching into bitcoin and cryptocurrencies' turf by offering these kinds of investment plans for the general public. It's slowly centralizing almost anything crypto-related.

Husires

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Banks will not engage in direct trading of digital currencies unless they obtain adequate permission from governments and many governments do not listen to direct trading.

Some banks are trying to give more ways to invest and create a return, so they set out experimental projects for digital currencies, but the results depend on the extent to which users interact with them.

I believe that all that is happening is a process of trading bitcoins according to their prices and not direct selling/buying of those currencies.

jacafbiz

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If you use to watch Bloomberg you would have heard about the bank. I don't like the idea of banks tying their product to Bitcoin, if we allow these people to control Bitcoin then this would be he beginning of the end for Bitcoin we saw how they destroy fiat currencies and they will find away around Bitcoin also if they want

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Quote from: Poker Player on November 12, 2020, 10:42:04 AM

Have never heard of that bank, until today. But it's the World's second-biggest bank: China Construction Bank.

I'm a bit confused with the news because on the one hand some report that: "It's going to issue 3B in bonds tradable for bitcoin."

I think it's pretty normal because if we can allow people to buy and sell other commodities with bitcoin or cryptocurrency the why bonds can not be brought with bitcoin. I think they are just using bitcoin as a payment gateway here. That means that banks are now officially accepting the cryptocurrency for exchange bonds.

The Sceptical Chymist

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Sounds to me like the bonds themselves are blockchain-based, and they can be redeemed/sold for fiat or bitcoin through that Fusang exchange, which I've never heard of.

Bullish? I'm not sure about that, but this is a step in the right direction as far as crypto adoption goes. What I'd like to see is how many bond buyers cash out in bitcoin--but I highly doubt coindesk will write a followup article on this. Most news sources neglect to do the same after writing a story like this, and it's infuriating.

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Quote from: Poker Player on November 12, 2020, 10:42:04 AM

I'm a bit confused with the news because on the one hand some report that: "It's going to issue 3B in bonds tradable for bitcoin."

On the other hand we can see:

The bank: "is selling a cheap digital bond that buyers can invest as little as $100 in."..."the bond is “the first publicly listed debt security on a blockchain.”"..."Steven Wong, the chief operating and financial strategist for CCB Malaysia, added that the bank considered the issuance of the bonds as both a pilot project and an innovative offering. However, he also cautioned against rumors. “The bank is not dealing in Bitcoin or cryptocurrencies,” Wong stated.

From what I understood, the $3 billion worth of bonds would be available for trade in USD and also in bitcoins. Simply put; the bank is selling the bonds and you can buy them with bitcoins. The bank however is not dealing in bitcoins or cryptocurrencies and the trade would be facilitated by an intermediary;

Quote

The deal also allows investors to trade these China Construction Bank’s digital certificates using bitcoin, on Fusang Exchange, a digital exchange licensed by the financial regulator in Labuan, Malaysia. Trading of the bond, which can also be done in US dollar, will begin this Friday.

I should add that such a trade is not simple in execution and anyone interested should do their own research;

Quote

investors interested in these notes may also need to read through the fine print, according to the programme’s terms, trading of the notes will be subject to the guidelines of Fusang Exchange.

Source

Paycoinzzz

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Quote from: Poker Player on November 12, 2020, 10:42:04 AM

The bank: "is selling a cheap digital bond that buyers can invest as little as $100 in."..."the bond is “the first publicly listed debt security on a blockchain.”"..."Steven Wong, the chief operating and financial strategist for CCB Malaysia, added that the bank considered the issuance of the bonds as both a pilot project and an innovative offering. However, he also cautioned against rumors. “The bank is not dealing in Bitcoin or cryptocurrencies,” Wong stated.

Source: https://cryptoslate.com/one-of-chinas-biggest-banks-is-allowing-investors-to-buy-bonds-with-bitcoin/

Do you think this is bullish? It's appeared in various crypto news sites as having a big impact in the bitcoin market but I'm confused about what Steven Wong says.

answer for first question, I don't think this news will affect the price of Bitcoin. because Steven Wong's claim that it is all just a test on the blockchain platform, and they have no real plans yet with Bitcoin or cryprocurreny in the future.
so testing is just testing, we never know when they will enter the crypto market. So do not expect too much, governments still do not have policies to apply in reality. Wink

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