China And The USA Have A Contrasting Strategy For Cryptocurrency

The USA and China have always had differing opinions and strategies on a number of pivotal issues. This has once again becoming glaringly visible, in their attitude and policies towards cryptocurrency. Both countries have in a way, remained consistent in their respective policies on handling major economic decisions.

When it comes to CBDC (Central Bank Digital Currency), China has wasted no time in pushing through with its plans. The country is today, way ahead of most other nations when it comes to digitizing its national currency. Significant progress has been made in the design and testing of the Digital Yuan.

The USA on the other hand, prefers to continue analyzing the pros and cons of the Digital Dollar. While being aware of the significant progress made by its arch competitor China, in digitizing its own currency, America refuses to be drawn into a rat race. Various government agencies in the USA, have started coming forth with their own ideas – the government seems keen to hear all opinions before, taking a decision. 

The difference in official mindsets on the crypto industry is also apparent when, you review the American and Chinese attitude towards the private crypto industry. Let's not forget that the entire official crypto activity now visible, has been triggered by things proved and demonstrated by the private crypto industry.

While policies are still at the development phase, China has indicated a clear intention to keep a tight control on all crypto activity. Various measures including its heavy handed tactics in dealing with crypto exchanges, have shown a low regard for the private crypto industry. This attitude is likely to gain momentum as, the launch of the Digital Yuan is completed. 

Private crypto in the USA continues to hold center stage. The authorities apparently prefer to define, a healthy working environment for private cryptocurrency enterprise. This is in-keeping with American economic development policies where, the private sector plays a prominent role. 

Having said that the USA continues to be aware of crypto misuse that includes crypto scams, money laundering, terror funding, crypto theft and even crypto tax evasion. The idea seems to be to formulate effective laws that are thoroughly implemented. No effort is being made to downsize or discourage the private crypto industry.

One thing however remains common between China and the USA. Both nations have clearly expressed their desire to have a say, in the global framework under which cryptocurrency would operate. While it is too early to comment on, the USA seems to have a slight lead on this aspect. We have seen the USA mention that, it would go after international crypto exchanges that helped or covered up crypto crime of any type. Senior officials in China have expressed an opinion that, the country should be involved in the definition of an international crypto framework. 

Time will tell just how much of say China and for that matter the USA, would have in the international cryptocurrency arena. The USA with its overall acceptance of private crypto currency might, be the preferred choice – but it is just speculation for now. 

 

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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