Binance, the world’s largest cryptocurrency trading platform, is about to open a second office in China.
More fundamentally, cross-border companies and Chinese exchanges are said to have just obtained crypto licenses granted by Beijing.
If the news were confirmed, it would be a radical paradigm shift on the part of China. Can we pretend to be surprised by this sudden dynamism, just a few days after the declarations of President Xi Jinping and their effects on the value of Bitcoin?
In the same way that, in the most unexpected and counter-intuitive way possible, China has managed in 20 years to digest market capitalism and to make it “sino-compatible”, the empire over several millennia s ready to absorb the nascent crypto-economy to make it the instrument of its desire for planetary hegemony?
Binance, back to the motherland?
We recalled him during the file on the success story of the crypto exchange Binance, the company was born in China. If, anxious to move away from Sauron’s eye, the exchange will quickly migrate to Malta, the company clearly retains respect for its roots.
Changpeng Zhao, aka CZ, even though he spent his youth in Canada was born in China where he worked, before creating Binance in the crypto exchange OkCoin. Despite some friction, CZ never made any negative comments about his homeland. However, as much by its recent declarations, as through certain tactical decisions that it has taken in recent times, CZ discovers quite widely its game and its will to replace China in its center, judge it rather:
But above all, the boss of Binance is full of praise for all the benefits for the entire industry that will come out, he said, of the current steps in China, as part of the establishment and imminent launch of ” a national crypto, in the form of a stablecoin.
Just recently asked about the price of Bitcoin (and more precisely on the fact that the famous Reddit prediction for October will have proved unfortunately false), he expressed his optimism on the subject:
“Lol, price predictions are easy. It’s just hard to be right about the timing. We will soon see $ 16,000. 1.4 billion people are working there right now. “
For CZ, the equation seems simple: if he had publicly expressed his many reservations about the real potential of the project Libra of Facebook , despite its more than 2 billion users, the billion and a half of Chinese nationals seems to him much more credible to take the whole sector to the next stage.
China, a continent-wide incubator
Are we currently witnessing the emergence of a crypto and blockchain ecosystem coming out of nothing? In any case, this is the impression that we could have. It will be recalled that it only took a few dozen hours after the President’s statements Xi (which are worth roadmap for the whole nation), to see appear a first functional blockchain-based project, validated by the party. The fact that the project in question was only used to encrypt cryptographically in the blockchain the eternal allegiance of its members to the said Party, is nevertheless the foreshadowing of the future “Chinese Dragon-Unicorns” …
The return of crypto exchanges in China?
Less anecdotally, these are local sources who may well have detected the allocation of brand new trading licenses for the benefit of crypto trading platforms:
“HUGE LEAK! The legalization of crypto exchanges has started in China. It is believed to be a true photo of a “crypto trading license issued by the People’s Republic of China”. How will the market react in the next month? “
A few days ago, these were cross-border financial services which were mentioned by the same source:
“Source: Nanning branch of the People’s Bank of China: From October 12, Guangxi officially obtained authorization from the Chinese government to offer cross-border blockchain-based services. Will they use #Bitcoin or #ETH? “
If these elements are to be taken with caution, they could constitute the warning signs of a movement nothing less than upsetting on an industry scale.
China and crypto, I love you, neither do I
It’s probably worth remembering that in late 2017, China had simply prohibits exchanges on its soil, even pushing an actor like Huobi to expatriate to Singapore or South Korea.
Same ban for ICO (Initial Coin Offering), not to mention the activities of mining being the subject of a hesitation from government authorities, pushing major industry players like Bitmain to look for less threatening areas for the sustainability of their activities.
A change in Beijing’s posture on the subject, apart from being part of a general plan kicked off a week ago by statements by Xi Jinping, would constitute a major event for the ecosystem as a whole. Indeed, to deny China’s ability to bring to light, then massively support an entire economic sector, is not to have looked at the East in the past 30 years.
The price to pay
Even if the objective was then above all to direct the eyes of regulators away from their small businesses, Mark zuckerberg for Facebook and David Marcus Libra had nevertheless rightly raised the threat: not to position itself now on the strategic subject of state cryptocurrencies, is to leave the field open to China.
Beijing at the controls of BTC?
Everyone got very basic congratulated on the surge in Bitcoin prices the day after Xi Jinping’s statements. + 40% you think, how to complain? However, even if the debate is open regarding the real correlation between the statements of the Chinese leader and this flash bull run, the angry question will have to be asked at one point: at what point does the fact that a single declaration, emanating from a single individual (even one of the most powerful on the planet), be able to provoke such a movement , is good news for Bitcoin?
Did you like the whales? Do you find the market manipulated? You will love the times to come.
Indeed, even though it is well known that despite an uncomfortable policy, most of BTC’s mining activities are based in China, the world has just had the glaring demonstration that China is capable of causing the value of the crypto queen to fluctuate sharply.
Be convinced that this lever is not underestimated by Beijing.
A problem of values
And by value, we will talk about those that are supposed to be embodied by Bitcoin, beyond its only monetary function.
Let us agree that the initial vision of Satoshi Nakamoto is likely to cause debate. And deciding the question is a challenge as it is still difficult to really perceive the real potential of its creation.
However, everyone will agree on the fact that Bitcoin, well anchored on its blockchain, had as its primary ambition to rebalance the forces involved, by putting in the hands of citizen-consumers a powerful tool to counter banking supremacy.
However, to see after only one decade of existence and even when everything remains to be done, one of the most authoritarian, centralized, liberticide regimes in the world to monopolize the heritage of Bitcoin and blockchain leaves a bitter aftertaste…
Because, contrary to Confucian tradition, the Chinese great-granddaughter of the grandfather Bitcoin does not plan to respect his venerable ancestor:
- She will under the total control of the Chinese Central Bank and the Party, while Bitcoin is by nature distributed and decentralized,
- blockchain technology will make the file more efficient citizens, where Bitcoin aspired to bring more freedom,
- she will make it disappear anonymity and will track intimacy of all of its users, erasing the concepts of private life the most basic,
- it will feed the ecosystem of the Social Credit Chinese, opening the era of all-by-all espionage,
- Bitcoin offered the transparency, China will use its technology to enable a cops all the time,
- Nakamoto’s blockchain wanted to be incurable, it will guarantee in China that the allegiance of the citizens is eternally etched and stored cryptographically, without the possibility of prescription…
One of China’s most impressive strengths is its ability not to be shaped by the rest of the world. The Middle Kingdom absorbs the most advanced technological innovations, exotic political systems, new social models … It digests them slowly, extracts what could pollute its own value system, then calibrates the rest in order to serve its wishes hegemonic.
The Chinese dragon is in front of us, feasting on all the flavors of Bitcoin and blockchain. Very clever is the one who will know when to start spitting out a new technological fire.
Nice to meet you, it’s Hellmouth! Editor-in-chief of Bitcoin, the crypto media you are honoring to survey right now (well done, you have taste).
Crypto-enthusiast of the second hour, nothing is more important to me than supporting the global adoption and democratization of the treasures that the blockchain offers us.
I write articles between two cocktails in Tahiti, my adopted island, and do not hesitate, if the opportunity arises, to feast on a plump scam or a little too enterprising Ponzi pyramid.
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