How China is Secretly Helping the Push for Mass Adoption
What do recent headlines tell us about the necessary steps for crypto adoption?
A major blow hit the smartphone industry this week as a US government order blacklisted the Chinese smartphone giant Huawei following recent developments in the trade war. In compliance, Google has limited Huawei’s access to the Android Operating System. In order to adapt, future Huawei models will use Chinese-made equivalents for commonly used Google apps. The only way forward is out for Huawei, as it looks to debut its Huawei OS in the next models as early as this year.
The cryptocurrency world was also shaken when WeChat banned crypto trading activities effective 31 May 2019. An update to its payment policy stated that merchants engaging in cryptocurrency transactions would face termination of their accounts. It’s a harsh wake up call as most of China’s OTC trades are facilitated on WeChat, according to Primitive Ventures’ founding partner Dovey Wan.
This news aligns with the cautious stance by Chinese platforms that are tied to the cryptocurrency ecosystem. Alipay is monitoring over-the-counter transactions of Bitcoin and other currencies. Additionally, it is educating platform users to discern fraud schemes. It is important to note that despite the roadblocks imposed, China has welcomed blockchain technology with open arms, paving the way for blockchain patents and investing $3 billion in projects that develop use cases for the distributed ledger technology. The bans have targeted ICO and cryptocurrency-related activities as a precautionary measure against illegal intentions and abuse of crypto’s anonymity.
Tencent Technology has gone a step further by proposing three remedial measures for illegal financial activities:
1. Restrict the collection function of the problem platform receiving account, prohibiting it from using WeChat payment for virtual currency transaction collection;
2. Limit the amount of payment for individual seller accounts, only meet the daily social business use, and limit the collection of virtual currency related transactions. All the use of merchant numbers for the cleaning of virtual currency transactions has been completed;
3. Real-time monitoring of daily transactions, based on the monitoring results, the risk severity assessment of the hit transactions, or direct interception measures will be taken.
Similar to the push for innovation required of Huawei to surpass its roadblock, what can these developments positively influence? Binance Founder Changpeng Zhao said in a tweet that this is a case of “short-term pain, long-term gain.” Closing off the option of centralised WeChat communication can push cryptocurrency users to seek alternatives that are more plugged in to the needs of the crypto industry. The silver lining of this harsh updated policy is ultimately forced adoption.
Cryptocurrency users benefit from WeChat’s popularity and extensive base, however their experience is not optimised for their trading needs. There are opportunities for the growth of the crypto market and the improvement of crypto functions. As a cryptocurrency wallet and messenger, the Consentium app not only enables communication through its direct chats, groups and channels but also facilitates crypto transactions because of its in-app wallet.
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其支付政策的更新表明，从事加密货币交易的商户将面临账户终止。据Primitive Ventures的创始合伙人, Dovey Wan称，这是一个严厉的唤醒。这是因为中国大多数场外交易都是通过微信进行的。
Telegram 频道: Consentium Official