China Seeks Role In Global Cryptocurrency Framework Formulation

In a recent report we heard about Jinping Xi’s (Chinese Premier), intention to be involved in the ongoing effort to streamline the global cryptocurrency industry. On the face of it, this does seem quite logical mainly because, China has been extremely active in digitizing its economy. There is little doubt that the Chinese have taken a serious lead in the CBDC arena. The Digital Yuan is well on its way into the pilot testing phase. 

Hop outside China for a moment and let’s see, some major happenings related to frameworks for cryptocurrency. The OECD (Organization for Economic Cooperation and Development) is working on a multinational cryptocurrency framework. The organization is due to place its report at the G20 meet scheduled to be held in 2021. Importantly this report, would mainly focus on cryptocurrency taxation.

The Department Of Justice (USA) has come up with a rather elaborate framework. This relates to the operation of cryptocurrency and the possible misuse of the same. So we read issues like money laundering, account owner cloaking, terror funding and even large sized cryptocurrency scams and frauds. The authorities have realized the importance of the crypto exchange, in initiating and executing various crypto related processes. Let’s not forget that the crypto exchange is where, crypto participants generally begin their crypto activity. At a very basic level, the US authorities have made their intentions of keeping a watch on international crypto exchanges very clear. 

Now on to China and its intention to participate in the formulation of a global crypto framework. The Chinese authorities have so far made it clear that, they intend to keep a firm control on all aspects of the local crypto industry. Chinese policies have quite blatantly shown an intention to limit, the role played by the private crypto industry in the country. 

The Chinese approach bears a sharp contrast to the approach followed by most nations. There is a general acceptance of cryptocurrency today, at the same time governments have a clear idea of the misuse that can occur. Ways and means are being found to plug the negative side of cryptocurrency – at the same time the constructive role played by this amazing financial innovation is not being discounted. 

Coming to officially digitizing currencies (CBDC – Central Bank Digital Currency), China might be in the lead but a host of nations are in various stages of debating, testing or implementing their own. The point is that unlike China, most nations are seeking to derive the benefits of CBDC without, suppressing the development of the private crypto industry. The IMF (International Monetary Fund) even suggested that, a partnership between government efforts and the private crypto sector be encouraged for the development and deployment of CBDC.

To summarize the gist of this report, it is apparent that the Chinese have a very different view of cryptocurrency both private and state owned. It is therefore tough to visualize the level of contribution that, the Chinese can make to a globally acceptable cryptocurrency framework. 

 

GLITZKOIN: A quick recap of the Glitzkoin project and the GTN crypto token.  The project was launched to improve the demand for natural diamonds and to enhance, the efficiency and productivity of the multibillion dollar industry. 

The DiaEx diamond trading platform was developed using Stellar blockchain resources. The GTN token was launched as part of the project and is designated, as the mode of payment on DiaEx. Promoted by second generation diamond veteran Navneet Goenka, Glitzkoin assigned a multifaceted role to the GTN token.  

The trading platform was completed in 2019 and was put through rigorous testing in early 2020. A team of diamond dealers subsequently did a pilot run on DiaEx with, actual transactions made on the platform.  This process was largely successful and revealed a few areas for improvement. The Glitzkoin tech team was handling the minor adjustment when, the pandemic and subsequent lockdowns slowed down the process. The management will reschedule the full launch of DiaEx once the health crisis eases. 

Talking about the multifaceted nature of the GTN token, the project is also focused on further increasing usage for the crypto – this aside from crypto exchange trade and the payment usage on the DiaEx platform. The concept is to have operators of various businesses, accept the GTN token as a mode of payment in their operations. Moving this idea forward Glitzkoin has confirmed a partnership with online ticketing giant Myticket.asia, wherein clients of the ticketing portal could use the GTN token as a mode of payment. Technical requirements for the integration of systems on both sides is at an advanced stage, nearing completion. Reviewing the challenges that the entertainment industry has been going through during the COVID pandemic, both managements have decided to set a launch schedule when the situation starts to normalize. The arrangement setup between Glitzkoin and Myticket.asia will form the blueprint, for similar deals to be negotiated with other business operators.  

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