China is cracking down all cryptocurrency activities now, Two major Korean blockchain tech company teamed up, Peer & Kalytn, What is the main use scenario of DCEP, a digital currency of China?
China State-Owned Media, The Legal Daily (法制日报): ” Debunking the illegal Cryptocurrency Transactions”
Recently, as China has promised in Beijing, Shanghai, Shenzhen, and other places, cryptocurrency clearing, and maintenance work are taking place.
The Legal Daily, the governing body of the Justice Committee, has posted an article on the homepage titled, “Debunking the trend of the Blockchain revolution masking the cryptocurrency hype (刹住借区块链炒作虚拟货币的歪风)”.
The media mentioned in the article, “As recent blockchain technology has become a hot potato in the industry, some projects have been passionate about promoting tokens and other cryptocurrencies. As a result, the price of cryptocurrencies, including Bitcoin (BTC), has been hyped up and became very volatile. And even some media is mentioning that China will ease regulations on cryptocurrencies. ”
The article also emphasized, “Blockchain cannot be considered the same as cryptocurrency, and Chinese authorities will not change the strong policy line for cryptocurrency projects and exchanges. This will help regulators build a consistent and stable national legal policy framework towards blockchain.”
Earlier, the Shanghai authorities in China extended the crackdown on cryptocurrency projects and exchanges, and the Shenzhen City authorities also included cryptocurrency fraud in financial regulation.
Meanwhile, Shanghai’s representative local broadcaster Dongfang Weishi(东方卫视) recently has reported the shutdown of Binnace’s Shanghai office in the main news program on the evening of Nov 25th.
Peertec(former Peer) Partners with Klaytn, GDAC of Peertec will list up Klaytn Token soon.
Peertec, a blockchain financial company in Korea, announced on Nov 27th that it has signed a partnership and MOU with Kakao’s blockchain project ‘Klaytn’.
The two companies will lead the popularization of blockchain technology through this collaboration, and Peertec will support the Klaytn platform developed by Kakao’s blockchain technology affiliate GroundX.
In addition, the company expects that the Klaytn-based blockchain project will be able to list its own cryptocurrency exchange, GDAC operated by Peertec.
With the launch of the Klaytn’s Mainnet in June this year, Klaytn partners are swapping former ETC based tokens to Klaytn’s KCT.
Klaytn currently has about 60 Bapp partners and is expected to continue growing.
GDAC will partner with Klaytn to support selective fast track listing and swap for KCT-based tokens.
Currently, major crypto exchanges in both Korean and Global markets such as Upbit Indonesia, Bittrex, OKEx, and Coinone support Klaytn -based tokens (KCT).
Peertec is a blockchain financial technology company that provides digital asset trading, execution tech application, digital asset management, study, and B2B payment infrastructure technology. On October 17, the company developed and launched the blockchain and digital asset payment infrastructure, PeerPay.
China’s Stablecoin, DCEP to be Used in Retail and Cross-Border Payment
Zhou Xiaochuan Chairman of the China Financial Association and former People’s Bank President was attending at the 2019 Chai Shin Heng Chin Forum held in China on Nov 26 and announced there are 2 major use case scenarios for DCEP, a Chinese digital asset, Retail, and Cross-Border Payment.
Zhou said that the PBoC’s digital currency is highly utilized in two ways. One is electronic payment in the Chinese retail system, the other is for Cross-Border payment and remittance service. However, as the goals and design of both sides are significantly different, China authorities need to pay more attention to these use cases.
He also mentioned that China is looking for ways to provide technical support to the current retail system while emphasizing the payment capabilities of digital currencies, It is necessary to gradually develop the applications.”
Former and current officials from PBoC argued that “Digital currency of China does not mean decentralized currency and therefore it does not need to rely on blockchain technology only.”
According to the Report “Interaction of Information Technology and Financial Policy” written by Zhou in August 2019, He insisted when designing DCEP, it is necessary to do distributed R&D that introduces various technologies at once, rather than adopting one specific technology first. He also mentioned in the report that “We should see what the demand of the market and respect the choice of the market itself.”
Also, according to the announcement at the event, DCEP will operate as a two-stage system. In the first stage, PBoC issues DCEP and distributes it to commercial banks or other authorized institutions. In the second stage, these institutions distribute DCEP to the public (customers). This allows central authorities to control and manage DCEP more efficiently.