Blockchain Increasingly Leveraged by China to Combat Coronavirus Outbreak

Amid the coronavirus epidemic that has been ravaging China, there have been concerns raised about how this would affect the growth of technology within the region. The country has since turned to the use of blockchain technology to keep track of the supply of virus prevention materials, manage medical data, and in getting public opinion.

According to a report from a domestic news outlet, People’s Daily Online, on Feb. 17, about 20 blockchain-based applications have been designed to address various problems that pertain to the spread of this virus within the first two weeks of February alone. Most of the apps have been designed to manage personal data of citizens within the region; this is because a vast majority of the country’s population is returning to work this month.

Local authorities have noted that blockchain is on guard for the security of medical data, as it has helped with the active tracking of data collected.

For this reason, Xi’an, the capital of Shaanxi Province, has been seen to apply this technology in the online screening, consultation, and secure management of data records. Vastchain Technology, a trenching company in Hangzhou, came up with a WeChat-based program dubbed Access Pass, which is designed to generate a QR code that residents can use to enter restricted communities.

The mobile and online payment platform, Alipay, introduced a platform in collaboration with the Zhejiang Provincial Health Commission and the Economy and Information Technology Department to ease the participation of charity organizations and initiatives for the purpose of increasing transparency and efficiency.

The app specifically helps the tracking of allocations and donations of relief materials in the affected regions; the review, recording, and tracing of demand and supply chains of medical supplies are a part of what the app helps users achieve.

As Blockchain.News reported earlier in February, insurance firms such as Blue Cross Insurance, have used blockchain in managing coronavirus-related claims amid the outbreak. The online mutual aid platform Xiang Hu Bao added coronavirus to the list of illnesses eligible for a maximum one-time payout of around $14,300 (100,000 yuan).

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Blockchain-Powered Donation Tracking Platform Shanzong Seeks to Propel Transparency Amid Coronavirus Scare

With coronavirus having claimed more than 1,800 lives, capturing vital statistics is fundamental in having it curbed. Shanzong, a blockchain-enabled donation tracking platform, has been established in China to boost efficiency and transparency of giving. Notably, some traditional charities have been marred with a lack of proper accountability when it comes to distributing resources to needy people. 

Tracking of donations

The lack of transparency can jeopardize the act of giving if the donated resources do not wholly or partly reach the intended users. Notably, China has been a culprit of public distribution and donations scandals that have tarnished people’s confidence in some governmental charity organizations. 

For instance, some hospitals have decried a shortage of masks needed by front-line medical personnel to protect themselves from the deadly coronavirus. This shortcoming instigated a social media outcry. Moreover, the Red Cross Society of Hubei recently asserted that they were extremely distressed and had themselves to blame for the difficulties witnessed in the distribution of donations. 

Blockchain startups China Xiong’an Group and Hyperchain have noted this concern, and they intend to solve it with Shanzong. By launching Shanzong, they intend to track the type of donations given, such as medical materials, masks, and money, and how they will be allocated and delivered to areas of need. 

This platform is touted to be beneficial because 500 donations have so far been recorded from entities, such as Yuegou Living Supermarket and New Sunshine Charity Foundation. On the other hand, donation recipients include Xiantao No 1 People’s Hospital, Jiayu People’s Hospital, and Tongshan People’s Hospital. These hospitals have been playing a vital role in treating coronavirus patients. 

Blockchain to authenticate donations

Shanzong seeks to validate donation information by recording it on the blockchain network as it is immutable or tamperproof. As a result, transparency will be guaranteed to all stakeholders, such as donors, and this will eliminate the challenges witnessed by traditional charitable donations. 

Private blockchain networks are, therefore, expected to come in handy in dealing with the coronavirus crisis as they enable the recording and tracking of anything donated, from N95 masks to donation dollars. 

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WeChat Pay and Alipay May Have Helped China to Track Coronavirus Victims Through Digital Payments

With the novel coronavirus infecting more than 75,000 people around the world, and with the majority of the Chinese population in the Hubei province infected, authorities in the nation decided to track everyone who bought fever medicine in the province.  

Provincial officials have taken measures to grasp tighter measures to better control the outbreak, as the situation has not shown signs of slowing down. Officials reported that they have tracked offline and online purchases of fever medicine to be able to provide relief efforts, as fever is one of the symptoms most patients with the virus display.  

The officials also mentioned that comprehensive investigations have been conducted,on citizens who have reported fever symptoms at medical institutions, and those who have purchased medicine through physical pharmacies or online. Information including the time, date, name, citizenship number, address, phone number of the citizen has been recorded.  

China’s CBDC vs. Alipay & WeChat Pay  

Alipay and WeChat Pay, the country’s most used mobile payment systems, have been suggested to provide the information collected from the citizens. The Alipay ewallet, owned by Alibaba Holdings, and WeChat, owned by Tencent, has close ties to the Chinese government. Mobile payments in China reached over $41 trillion annually, with over 92 percent of mobile payments made via Alipay and WeChat Pay. 

China has been progressing with the development of its central bank digital currency (CBDC), its digital currency electronic payment (DCEP). It has been revealed that the digital payment system is to replace M0 supply, which are the notes and coins in circulation, and is aimed at the retail market.  

Mu Changchun, the Director-General of the Institute of Digital Currency of the People’s Bank of China previously made a comment that the DCEP would “provide redundancy” to China’s “advanced electronic payment platforms” including payment duopoly WeChat Pay and Alipay.  

However, confidential information of Chinese citizens making purchases online and in-person has been provided to the Chinese authorities, raising the question of the necessity of its CBDC from the perspective of financial monitoring.  

 

What Can We Learn From Coinbase CEO Brian Armstrong's Coronavirus Outbreak Contingency Plan for Employees?

The coronavirus has dominated mainstream media coverage as countries outside of China has been seeing an increase of cases as the death toll reaches 2,700 worldwide.

Coronavirus cases in South Korea have reached 1,140, while the recent outbreak in Italy has caused more than 320 infections and 90 cases in Iran.  The World Health Organization officials and US experts believe it is still too early to declare the novel coronavirus, known as COVID-19 as a pandemic. 

US health officials from the Centers for Disease Control and Prevention stated that the coronavirus “is not recognized to be spreading in US communities.” Officials added that if the local transmissions are identified in the US, the US response strategy will “enhance implementation of actions to slow spread in communities.”

Hope for the best, prepare for the worst

US crypto trading firm Coinbase has been reportedly “planning for a really negative outcome” although the firm has kept an optimistic outlook. 

Brian Armstrong, CEO of Coinbase published a shared document stating, “Our expectation is that the measured mortality rate (once low-severity cases are included in the overall count) will fall significantly and that we’ll see limited transmission in the west, where there will be fewer high-density multi-generational housing situations.”

Coinbase has offices in the US, Japan, UK, and Ireland, and the firm is taking measures to ensure safety for three phases of the disease, from phase one, consisting of more than 100 cases of the coronavirus to phase three, more than 5000 infections. Currently, all of the firm’s offices are in tier 0, Japan is in tier 1. Tier 0 also includes improved sanitation measures in the office. 

Daily number of newly confirmed cases reported in Japan since January 10, 2020. Source: CHP Hong Kong

In cases where there are 100 or more infected people in the commuting radius of the Coinbase office, the firm will request some employees to work from home, while offering mask disposal bins and boost cleaning schedules for those in the office.

Phase two is when there are more than 1000 cases are within the commute range of the Coinbase office, with a mortality rate of 1% or above. If the situation leads to phase three, all employees will be required to work from home. 

“We continue to believe the risk of COVID-2019 coronavirus to most employees is low, with a slightly elevated risk to our team in Japan,” said Coinbase. The firm has made restrictions on travel to China, Hong Kong, Japan, Italy, and South Korea.

Hong Kong blockchain events cancelled

The Hong Kong Blockchain Week 2020, hosted by NexChange Group and supported by Cyberport, which was initially scheduled for March 2-6, has been postponed due to security and safety concerns regarding the outbreak of the coronavirus.  

Token2049, and StartmeupHK Festival 2020 have also been postponed to a later date, citing coronavirus developments creating uncertainty.

Hong Kong blockchain remittance startup Bitspark closure mildly due to coronavirus  

Bitspark, a blockchain remittance startup based in Hong Kong, recently announced its closure, stating reasons due to internal restructuring issues, as well as the coronavirus outbreak and protests that led to the current deterioration of Asia’s financial hub.   

Blockchain and the Wheel of Fate: The Role of Blockchain Technology in Disease Surveillance and Pandemic Prevention

There is a line in Stephen King’s The Stand that goes: ‘Life was such a wheel that no man could stand upon it for long. And it always, in the end, came round to the same place again.’

In The Stand, a man-made virus wipes out most of the world population within a short timespan. The antigen is a genetically modified flu-virus designed to be a constantly shifting agent, thus rendering it extremely or totally invulnerable to vaccines. The virus was part of a larger US Government-funded bio-weapons program known as Project Blue. 

Project Blue’s end game is a global Superflu epidemic, nicknamed Captain Trips. The Superflu rapidly spreads worldwide, thinning out the human race to barely a thread of existence. 

The Stand is a work of fiction, of course. The story deals with how the survivors (0.6% of the entire human population are naturally immune) deal with the new world, ultimately boiling down to a final stand between good and evil. 

But the book’s core message of a flu-like disease rapidly spreading and infecting an ever-increasing number of people across the world is very real and relevant indeed. 

It’s happening right now.

Coronavirus outbreak: The wheel has come to the same place again

At the time of writing, the coronavirus outbreak has killed almost 3,000 people worldwide, with more than 80,000 infections confirmed and rising, as the virus pops up in new countries. 

Pandemics, defined as international cross-border epidemics that infect and kill large percentages of the population have occurred through the ages. The deadliest perhaps are The Black Death in mid-14th-century that killed between 75 and 200 million people (true figure will never be known), and the 1918 Spanish Flu, which may have killed up to 100m people.

Global epidemics can occur anytime, anywhere, as we have seen with the ongoing coronavirus outbreak. The first case was detected in Wuhan, China, on December 31, 2019. Wuhan, a city of around 11 million people, became a hotbed for coronavirus infection. The disease spread like wildfire and soon reached other Chinese cities before crossing international borders. 

Modern air travel means that an infected individual can reach almost anywhere in the world within a few hours, which makes containment almost impossible, and global contagion a real possibility. 

So what can be done to prevent that wheel from coming back again to the same place as it did in the mid 14th century and 1918?

Using blockchain technology as a weapon to prevent pandemics

The Centers for Disease Control and Prevention (CDC) is the United States’ chief public health and disease prevention agency. CDC operatives show up wherever and whenever an outbreak of an infectious disease is detected. The CDC is researching how blockchain technology can become the latest weapon in their armamentarium to fight disease and prevent future epidemics from razing the world.

But this vital fight can sometimes be hampered by difficulties in the timely sharing of information with local health enforcement agencies on the ground. Language barriers, the sheer distance between the geographical location of an outbreak, cultural differences, and many other factors might become an issue that slows the transmission and exchange of information, which in some cases might literally become a life or death situation. Time is of the essence when dealing with outbreaks of the deadly disease.

Currently, the CDC uploads epidemiological data to a cloud-based solution, which is far from ideal as personally identifiable information cannot be stored there, due to data privacy and security risks, forcing on-the-ground operatives to find alternative solutions, which means more precious time-wasting. A blockchain-powered solution would address this issue, as data can be shared instantly while complying with data privacy and security regulations. 

But the CDC’s intended use of blockchain technology is only one of myriad other revolutionary use cases in healthcare.

We have seen that disease outbreaks can happen at any time, anywhere on the planet, with little or no warning. Blockchain will not prevent the outbreak itself, nothing can. These are natural events that have occurred in the past and will re-occur in the future. That wheel spins all the time, remember.

But what blockchain can do is create the first line of rapid defense through a network of connected devices whose only purpose is to remain vigilant about disease outbreaks, 24/7, 365 days a year, in perpetuity. Blockchain is a highly scalable solution that works in real-time, implementing machine learning and artificial intelligence routines that can gather, analyze, and collate data and instantly recommend a course of action, should an outbreak be detected. This instant response capability can represent the difference between quick containment and global contagion. 

Virgin Galactic CEO Rejects Coronavirus Bitcoin Bull Theory as “Idiotic”

Virgin Galactic CEO, Chamath Palihapitiya has dismissed the notion that the disruption to traditional markets caused by the coronavirus will serve as the catalyst for a major Bitcoin and cryptocurrency bull run.

Appearing on CNBC’s Squawk Box, Palihapitiya discussed the intrinsic value of bitcoin, stating that everybody would benefit from staking as little as “1% of their assets” in Bitcoin.

Coronavirus Bull CorrelationDuring the episode, the billionaire chairman advised everyone to get hold of some Bitcoin (BTC) as a form of crisis insurance. Palihapitiya also discussed Bitcoin’s disconnection from every other financial instrument which in his view makes it a “fantastic hedge” option.

Despite these claims, Palihapitiya was quick to dismiss the theory that economic disruption caused by the coronavirus outbreakwill serve as a trigger for a crypto bull run. He said, “I don’t think when you wake up and see a coronavirus scare and the Dow down 2,000, you should not be going in and buying Bitcoin – that is an idiotic strategy.”

Palihapitiya is a former Facebook executive and longtime Bitcoin advocate. Virgin Galactic, began accepting Bitcoin for its spaceflights in Nov. 2013, becoming one of the first high-profile companies to accept BTC.

Is Bitcoin a Safe Haven Asset?

Traditional markets have been falling amidst the Coronavirus disruption and Bitcoin’s price has taken a ride down with it. Once again bitcoin disciples are reconsidering the pioneer cryptocurrency’s status as a safe-haven asset.

As reported by Blockchain.News, last month during the escalating tensions between the US and Iran, the bitcoin price surged and several crypto analysts reignited the old debate on Bitcoin’s ability to function as a safe-haven asset similar to gold in times of geopolitical uncertainty.

In the Amun Research Letter—Issue 37 published on Jan. 7, the technology company responded to the debate by identifying two pieces of proof necessary to confirm bitcoin’s safe-haven status argument—proof that Bitcoin could act as a safe haven asset in theory, and proof that the market is actually treating Bitcoin like gold or other safe-haven assets. According to Amun’s research, the second proof is what really decides Bitcoin’s price reaction to geopolitical uncertainty and is the primary driver of Bitcoin’s long-term utilization as a store of value.

Amun’s own Thesis for Crypto discusses Bitcoin as a theoretical safe haven asset due to its limited supply, decentralization, security, and resistance to censorship.

Analyzing Bitcoin’s rolling correlation to Gold over a thirty day period yielded no discernible trend over time and the correlation is incredibly erratic. This data uncovered by Amun defies expectations that there would be a demonstrable strong correlation if Bitcoin did, in fact, fulfill a similar safe haven function.

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Bitcoin Safe Haven Status Under Fire Following US Federal Reserve Rate Cuts to Combat Coronavirus Disruption

Equity markets have been surging following the US Federal Reserve’s (Fed) announcement of an emergency rate cut to counter the economic disruption of the coronavirus.

The bitcoin price which had also been experiencing a recent bearish decline, also reacted to the news of a rate cut of half a percentage point from the Fed, with a sudden spike from $8400 to $8950.

The reaction of the bitcoin market to the first cut to key rates from the Federal Reserve since December 2008, during the global financial crisis, is being carefully observed by the crypto community and may eventually reveal the cryptocurrency’s true nature.

Bitcoin and Commodities

Is bitcoin a currency designed to facilitate commerce, or is it a commodity that has intrinsic value, which rises and falls according to supply and demand? This is a question that the crypto community has been asking for some time and the Federal Reserve’s rate cut could provide the answer.

By cutting rates the Federal Reserve will increase the supply of money in the global market, a welcomed move by businesses everywhere. The half a percentage rate cut effectively devalues the US dollar, the de facto global currency, thus it should put up the price of commodities such as gold as the supply of gold did not increase. This should in theory also apply to bitcoin as its supply is also fixed. 

Chart: The Balance Source: St. Louis Fed

The Bitcoin price did react almost immediately to the Fed’s rate cuts, shooting up almost $200 only minutes after the announcement. The rise was short-lived and the price fell immediately beginning the current cycle of volatility.  

BTC USDT 1-minute chart. Source: TradingView

It should be noted that the BTC price movements since the announcement have mirrored the traditional commodities and equities markets which also spiked before plunging 2 points. Gold itself did not see a bullish price reaction to the cut but there are still many reasons gold and bitcoin could climb higher from this point.

Bitcoin Safe Haven Hedge Questionable During Outbreak

VanEck recently outlined the case for institutional bitcoin investment in a report published on Jan. 29. According to the investment management firm, even a small amount of BTC allocation could improve a portfolio’s upside.

VanEck explained that BTC is not quite a currency but still has the potential to become one. The report also suggests Bitcoin bears the necessary features that could see it become a digital gold, but its future monetary value hinges heavily on how people’s perceptions of its value develop.

In a recent interview with Blockchain.News, Oleksandr Lutskevych, CEO and Founder of the CEX.IO Bitcoin exchange revealed that US investors have been looking for a bonafide store of value in bitcoin to hedge against the Federal Reserve’s quantitative easing. He noted similar sentiments in the UK during Brexit as citizens also invested heavily in bitcoin to hedge against a possible depreciation of the GBP.

As the coronavirus spread, global markets have been gripped by a ruthless sell-off, and Bitcoin has failed to serve as a store of value, which many believe should be its main use case. In fact, BTC performed worse than any traditional asset, shedding 15 per cent of its value in less than a week

Mike Novagratz, CEO of Galaxy Digital tried to shed some light on why bitcoin is failing as a safe haven in a tweet on March 1.

Novagratz wrote, “ How did BTC go from being a hedge against bad stuff to getting washed out and trading like a risk asset? When things go from bad, to very very bad like they did last week, investors take leverage down as fast as they can. They book profits to make up for other losses. Ouch.”

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UK Law Enforcers Blow the Whistle on Bitcoin Fraudsters Taking Advantage of Coronavirus Outbreak

As the coronavirus pandemic continues to wreak havoc, having claimed more than 3,000 lives and infecting more than 100,000 people globally, tension has become inevitable. The UK police have raised the alarm on fraudsters swindling Britons by demanding Bitcoin payments amid coronavirus scare. 

Egocentric motives

The UK law enforcers noted that scammers have been latching on to the coronavirus pandemic with fake emails purporting to come from the Centers for Disease Control and Prevention (CDC) to defraud the public in the pretense of selling them necessities, such as face masks. 

Some Britons have fallen prey to the Bitcoin fraudsters as they have lost £800,000, approximately $1 million. A case that was singled out entailed a person being scammed £15,000, nearly $19,500 for the delivery of face masks, and this did not happen. 

As a result, the National Fraud Intelligence Bureau (NFIB), a police unit mandated with gathering and analyzing fraud intelligence and financially-motivated cybercrime, gave the UK public a myriad of caution after it identified 21 fraud cases linked to coronavirus in February 2020. 

NFIB ascertained, “They claim to be able to provide the recipient with a list of coronavirus infected people in their area. In order to access this information, the victim needs to click on a link, which leads to a malicious website, or is asked to make a payment in Bitcoin.”

The fraudsters have been coercing people to make Bitcoin payments by sending texts and emails with the pretense that they are coming from research organizations affiliated with the World Health Organization (WHO) and the Centers for Disease Control and Prevention.

Blockchain’s efforts in tackling coronavirus 

NFIB has, therefore, advised the populace not to click on attachments or links in suspicious emails. Nevertheless, blockchain is being regarded as a game-changer in tackling the coronavirus epidemic.

For instance, blockchain is increasingly being leveraged by China to combat the outbreak by tracking the supply of virus prevention materials, getting a public opinion, and managing medical data. Last month, Shanzong, a blockchain-enabled donation tracking platform, was established in China to boost efficiency and the transparency of giving.

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Binance Continues to Show Support for Measures Against the Coronavirus

With over a month gone since the outbreak of the now dreaded coronavirus, charity organizations, social groups have been credited with the progress being made to contain the spread of the disease. Thanks to the efforts of the Chinese government, multiple provinces and cities have recorded no increase in the number of people infected.

Meanwhile, a report on exchange giant Binance’s blog post shows that the second phase of “Binance for Wuhan” donation has been concluded. It was stated that as of March 9, another 6 batches of medical supplies were delivered to 136 hospitals, medical teams, and disease control command centers.

The shipment included protective suits from Israel and the United Arab Emirates, oxygen machines, gloves, and protective goggles.

A quick breakdown of the relief materials to combat the disease

An estimated 2,300 protective suits purchased from Israel have been dispatched to 23 hospitals or medical teams.1,000 protective suits bought from the United Arab Emirates (UAE) were also distributed to 16 hospitals or medical teams. The donation also includes 388 oxygen machines to Guangdong Zhong Nanshan Medical Foundation. The final records of the distribution show that all they are dispatched to 44 hospitals which included 133,000 pieces of PVC gloves and 10,000 pairs of protective goggles.

Crypto space stakeholders in the fight against coronavirus

According to the blog post, with various humanitarian efforts, there has been a decrease in the number of newly infected cases and an increase in the number of patients cured. Progress has been made in the battle against the virus, although the war is not yet over and Binance Charity has promised to continue to be a helping hand until the situation is under total control.

As previously reported by Blockchain.News, Syren Johnstone said that a private blockchain network would “enable the recording and tracking of anything that is donated, from donation dollars to N95 masks.” By holding the person or organization accountable, donations for delivery could be tracked from the donor all the way to its final-use. Blockchain would also enable transparency for the general public to understand how their donations have been used and its progress. While a private blockchain is strictly controlled, it can also allow for public transparency for donors and donees, as well as authorities.

Blue Cross Asia Pacific Insurance, a subsidiary of the Bank of East Asia has been shortening the time spent on data verification. Its blockchain-based platform, which is able to handle more than 1,000 concurrent transactions in one second without human interaction has been helping to ease pressure on healthcare services in Hong Kong.  

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CME to Close Trading Floor on Friday as Coronavirus Prevention Measure

CME Group plans to close its trading floor in Chicago due to fears of further spreading the coronavirus, the influenza outbreak that has sent global stock markets falling.

As reported by CNBC on March 10, CME Group will close its Chicago trading floor at the end of the day on Friday. The derivatives exchange, which was also the first traditional financial insitution to offer Bitcoin Futures trading, has cited coronavirus prevention measures for the disruption.

This would make CME the first major U.S. exchange to close a trading floor due to concerns over the coronavirus citing an internal memo which said, “No coronavirus cases have been reported on the trading floor or in the Chicago Board of Trade building. The reopening of the trading floor will be evaluated as more medical guidance on the coronavirus becomes available.”

Coronavirus Disruption

Since the first patient was identified on Dec. 1, 2019, in Wuhan, China, the scourge of the coronavirus has led to the temporary closure of factories in China with the electronic industry supply chain being hit the hardest forcing an extension in the Lunar year holiday following the outbreak of the virus.

Despite quarantine and several measures being actively employed to halt the spread of the virus in China, the outlook continues to look bleak for Chinese manufacturers as the year 2020 continues to evolve.

Factories in China are showing their concern about how the situation of the virus could cause a drastic effect on their company. Andre Neumann-Loreck, founder of On-Tap Consulting, a Silicon Valley firm offering advice to hardware companies and startups building products in Asia said, “Clients are making lots of inquiries on ways to address the epidemic.” The effect of the virus is showing huge strain on companies who build hardware or physical products irrespective of the goods being built in China or reliance on China for components and sub-assemblies to finish the products.

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