The first week of 2016 has proven volatile for China’s currency, which remains in a state of flux.
Problem: Volatile markets caused by highly levered fractional reserve lenders, leads to central bank intervention, currency devaluation and financial loss – especially for the little guy.
Following a sudden and sharp decline on Monday, China’s currency continues to weaken, having far-reaching impact on equity markets, businesses and consumers. For a second day this week, trading in China was halted and Wall Street shares closed in steep decline. The first event was triggered by stocks shedding more than 7% in the main country’s index and the second time officials closed the market 29 minutes into trading.
As Chinese equities plunge, questions around the health of the economy and related central banking response options mount. Traders and entrepreneurs are starting to move away from the yuan as ghosts of 1994 (50% overnight devaluation) begin to reappear. Shanghai banks are running short of dollars while the PBOC injects unprecedented levels of liquidity into highly levered banks. Currently ForEx within the legacy banking system is prohibitive with excessive fees, lengthy processing times, unknown changes in banking capital requirements and inaccessibility for over 2 billion people currently without access to basic banking services.
But China has not been the only market to suffer, in 2015 we saw extreme troubles in Greece, Venezuela, Kazakhstan, Brazil and Argentina.
Solution: Uphold helps members safeguard against currency volatility.
Enter cloud money.
Uphold is the world’s first and only real-time transparent and fully verifiable reserve. Now anyone, anywhere can easily and instantly convert and hold value in any currency. Anyone trapped in a currency that is less than desirable, in just a few clicks, has the ability to convert value into any of the 24 currencies, two crypto-currencies and four precious metals that Uphold supports. Members can hold their funds on the platform for safekeeping or send their money to anyone around the world instantly and for free.
“Over the last month, our little startup has used Uphold as its primary online bank, with over a quarter million USD in total volume. It’s been indispensable in keeping our profit margins predictable and our crypto holdings free of volatility. In the past, any startup engaging in Bitcoin payments needed to also have competent traders on staff. Now you can just offload all that to Uphold and focus on building your actual business.”
– Luis Buenaventura, CTO and Cofounder, https://bloom.solutions
With ~$718M transacted to date, Uphold is the fastest growing cloud money platform in the world. We hope you join us to explore and experience how Uphold is putting control of money back into its owners’ hands.
Onwards and Upwards!
Vice Chairman, Head of the Reserve & Investor Relations