The rebels have surrounded the empire, not by gun nor pen, but through Nakamoto’s checkmate. After the “People’s” Bank of China decimated the last of la resistonce, the best dispersed to Singapore, Hong Kong, South Korea, Japan.
There they hatched their ingenious plans, with months and months of work now hatching fruits. Exchanges are proliferating in Asia. While in the west it feels like exchanges have gone stale, perhaps due to much regulation, in the other half of the world innovation is booming.
With their 600 miles per hour trains and glittery skyscrapers, cryptonians in Asia have taken ICOs and turned them into transaction mining.
It’s a reward in a way, like airline points, but a reward that many want, ney seemingly crave. Billions in volumes are coming from there apparently from no where. They pay for a transaction in eth or bitcoin and then receive an exchange token. This token can now be bought or sold on its own across the world.
PBoC can only watch for there is no fiat here. There is no banking system. There is no third party, except perhaps for the exchange itself although even that can be turned into a smart contract as many decentralized exchanges have.
Asia based centralized crypto exchanges are proliferating in a boom of sorts. It feels like a rush of 2017 ICOs. Much money to be made, laws in checkmate.
Not that there is any crypto law in China as far as we are aware. Their parliament has passed no legislation to ban cryptos or ICOs as far as we are aware. Their central bank has said things, but central banks are usually independent entities that often do not quite get on very well with the government.
Only recently Trump was angry at the Fed, telling them: “The United States should not be penalized because we are doing so well.”
While some cryptonians thus rile at the state, we think they can be allies, even in places like China where many of the upper echelons are probably at least intrigued by this whole crypto thing.
While Chinese citizens, especially the smarter ones, have been looking at ethereum and its Solidity smart contracts now for months. They must be learning much and some of it will probably turn into innovative products.
One, perhaps not innovative but much needed product, is CNYT. This is like USDT, but for Chinese money. The company that seems to be behind it says:
“CNYt Fintech PTY LTD coverts cash to secure digital asset. The anchoring value of CNYt is CNY. The subscription ratio is 1:1, which means 1 CNYt identical to 1CNY.
Meanwhile we guarantee that once we launch a CNYt we prepare 1CNY on our account. We will invite global well-known auditing firm to make report termly.”
Tether is a method of pegging a token to a fiat currency mainly through crypto exchanges which deal with the actual fiat to token or vice versa conversion.
The most well known, USDT, is very controversial, but primarily because no audits have been provided, so requiring some trust in the company that manages the conversion.
Arguably it isn’t much needed in the west due to actual fiat exchanges with DAI able to serve as a trustless peg, but in places like China it might be a way to in effect go around PBoC.
How that would work exactly we do not know, with conversion to actual fiat remaining a sticking point for ordinary traders, but there are probably plenty of loopholes now that at least they have a platform where they can trade.
And trade they are, billions and billions of dollars worth. Much of it perhaps not quite a real exchange, with criticisms of fake volumes already flying, but then so it always appears when it comes to China.
Just as it appears the ban from their Central Bank is no longer really a ban. Cryptos are kind of flourishing there, as seems to be crypto related innovation.
It seems there is too much to gain for entrepreneurial young men and women to pay head to PBoC or anyone else when their consciousness probably says not only they are doing nothing wrong, but it is perhaps their duty to do what is right.
To be part of the crypto revolution and keep the most populous and the second richest nation on earth part of it. To break the isolating walls and free innovation for their own betterment and those of their children.
We thus take back our calls to boycott China and further gift the crypto flag pictured above, as imagined by a Venezuelan artist, to the Chinese people.