Taiwan’s “Bitcoin and Virtual Currency Development Association” officially released the “Bitcoin and Virtual Asset Development White Paper” today and will hold the “Bitcoin Development White Paper Release Conference and Taiwan and Bitcoin Key Symposium” on Tuesday afternoon, March 12th, at the Ark in Taipei.
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Table of Contents:
(1) Bitcoin as a store of value
(2) Bitcoin mining contributes to renewable energy development
(3) Bitcoin’s Lightning Network promotes inclusive finance
(4) Bitcoin’s role in promoting technological innovation
Promoting virtual asset regulation and international exchanges
Physical launch of the “Bitcoin and Virtual Asset Development White Paper”
This article is a press release written and provided by the Bitcoin and Virtual Currency Development Association and is unrelated to the opinions of Dynamic Zone.
The virtual asset industry has officially entered a critical period of global competition. Whether the virtual asset industry can become Taiwan’s next protective mountain depends on the cooperation and understanding of various sectors of society regarding its importance to Taiwan.
The “Bitcoin and Virtual Currency Development Association” gathers the experiences and perspectives of industry experts, scholars, and industry representatives to publish the “Bitcoin and Virtual Asset Development White Paper.” The white paper provides the following three recommendations for Taiwan’s promotion of the virtual asset industry, for reference by all sectors:
(1) Promote Bitcoin policies and its applications in Taiwan;
(2) Promote supervision and applications of virtual assets in Taiwan;
(3) Promote the application and international exchanges of blockchain technology in Taiwan.
In addition to being a target for virtual assets, Bitcoin also has its own value and importance that should be paid attention to. Here are the four main perspectives:
(1) Bitcoin as a store of value
Bitcoin, also known as “digital gold,” has a correlation coefficient of 0.6 with gold, according to the academic article “Network effects and store-of-value features in the cryptocurrency market” in 2023. This means that Bitcoin and gold are correlated. Therefore, whether it is individuals, corporations, or governments, if they include Bitcoin in their asset allocation, they can obtain the same hedging effect as gold, which also helps increase overall risk resilience. The Taiwanese government holds a large amount of gold, concentrated in a single location, which carries certain risks. Consideration should be given to how Bitcoin can provide additional insurance protection for Taiwan.
(2) Bitcoin mining contributes to renewable energy development
Bitcoin mining has the characteristic of storing electricity and can convert the energy that would otherwise be wasted in the early stages of renewable energy development into assets or stored electricity, thereby compensating for the weaknesses in renewable energy development. It is expected to complement Taiwan’s energy policy. In addition, Taiwan continues to promote offshore wind power construction, and most of the potential sites are located in the Taiwan Strait, which is of strategic importance to Taiwan. If offshore wind farms can be extensively deployed in the Taiwan Strait, it may accelerate the development of renewable energy and enhance national defense capabilities.
(3) Bitcoin’s Lightning Network promotes inclusive finance
Bitcoin’s Lightning Network is the most successful micro-payment tool. Compared to local payment tools in Taiwan, the Lightning Network has the advantages of globalization and low capital threshold. In 2021, the average remittance cost for cross-border remittances reached 6.4%. By using the Lightning Network, the public can quickly conduct remittances at nearly zero cost. In particular, the number of foreign migrant workers in our country has been increasing in recent years. If the salaries of foreign migrant workers can be transferred immediately and without delay through the Lightning Network to their families in other countries, it is one of the application scenarios where virtual assets are combined with finance.
(4) Bitcoin’s role in promoting technological innovation
Bitcoin’s use of blockchain technology leads technological innovation. For example, the Hong Kong Monetary Authority has used blockchain technology to launch green bonds, and the World Bank is considering tokenizing infrastructure to improve processing efficiency and increase transparency. The Bitcoin wallet, Strike, combines the current financial system with Bitcoin, creating a new type of bank based on Bitcoin. It allows users to send Bitcoin and fiat currencies instantly and at near-zero cost worldwide. The system also supports currency exchange between different fiat currencies.
Promoting virtual asset regulation and international exchanges
Based on the aforementioned value of Bitcoin, the content of the “Bitcoin and Virtual Asset Development White Paper” also covers the current legal and regulatory framework for virtual assets in Taiwan, as well as the Bitcoin and Virtual Currency Development Association’s plans for future virtual asset policy development, advocacy, and regulatory research. In addition, the white paper mentions that the association will continue to promote international exchanges and learn from the experiences and achievements of countries that are ahead of Taiwan in virtual asset regulation and development, in order to provide more information to the regulatory authorities and promote industry growth. This will also help us align with the international community faster and promote the overall upgrading and innovation of the industry.
Physical launch of the “Bitcoin and Virtual Asset Development White Paper”
Since its establishment in 2021, the “Bitcoin and Virtual Currency Development Association” has been committed to promoting the progress of Bitcoin and virtual asset-related regulations and focusing on the application and development of virtual assets. It is hoped that under the promotion of various sectors, the virtual asset industry will become Taiwan’s next protective mountain.
The association will hold the “Bitcoin Development White Paper Release Conference and Taiwan and Bitcoin Key Symposium” at the “Ark” on Tuesday afternoon, March 12, 2024. Industry experts will be invited to share the impact and opportunities of cryptocurrencies on Taiwan’s future.
Event details:
1. Summary presentation of the “Bitcoin and Virtual Asset Development White Paper”
2. Panel discussion on the theme of “Taiwan needs Bitcoin” to explore the importance of Bitcoin to Taiwan
3. Sharing of the contents of the books “Decisions in a Changing World” and “Cryptocurrency Law,” analyzing strategies and legal issues related to cryptocurrencies in the context of globalization.
Free registration link:
https://www.accupass.com/event/2402160230178484544360
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