US Senators urge athletes to avoid blocking digital yuan

Jul 23, 2021

This weekly news aggregator from mainland China, Taiwan and Hong Kong seeks to curate the top industry news, including impactful projects, changes in the legal landscape and integration.

Olympic fight

After months of writing about the relentless actions of the Chinese government, we’re leading this week with the history of the US government. On July 19, three US Senators did signed a letter Sent to the US Olympic and Paralympic Committee urging US athletes not to use e-CNY during the Beijing Winter Olympics in February. The logic is that after the athletes return to the US, the digital currency will be tracked in case China is interested in tracking foreign soccer and snowboarders in training regimes.

Chinese Foreign Ministry spokesman Zhao Lijian is back that senators should “stop causing trouble” and “find out what digital currency really is”. Zhao clearly believes that U.S. lawmakers may not be on the cutting edge of technology, something crypto enthusiasts have been complaining about on Twitter for years.

Sarcasm aside, this shows a growing tendency for consumers to get caught up in the geopolitical battles over the technology, which could turn out to be a bigger problem. Sometimes CBDCs are becoming increasingly popular. Users can avoid certain hardware or applications that pose a data security risk, but avoiding the local currency would be a much tougher decision. Cash usage in China has dropped to negligible levels, with the majority of daily transactions being done digitally via Alipay and WeChat. Traveling or living in China without exposure to digital currency would be a major inconvenience and one that may not be good for future generations.

Lead the pack

On July 19, Cointelegraph reported that Chinese bitcoin miners made money nearly $ 7 billion last year, which is ten times higher than that of miners in the second highest country, the USA. This trend could be easily disrupted by the regulatory raids this year, but it still shows China’s impact on the industry, especially if large Chinese companies can continue to develop activities in neighboring countries.

Axie infinity
Axie Infinity’s token is running faster than the game in China (Source: Axie Infinity).

Chinese volume is rising again

Amount on Chinese stock exchange Huobi and OKEx rebounded slightly from the same point in time last week, including on the derivatives front, where the two exchanges accounted for about 44% of Binance’s volume, compared with just 38.7% at the same time. The Axie Infinity Gaming Token remains a hot token to trade and was the fourth most traded token on Huobi on Thursday after BTC, ETH and DOGE. The actual game has not yet been very successful in China, and although the site has so far been unblocked by the Great Firewall, access to the site is still scarce. Users from the Philippines account for 40% of website traffic, while China accounts for less than 3%. China is proud largest game community around the world, but strict restrictions on cryptocurrencies are likely to restrict the development of blockchain-based public games for the time being. However, speculation with game-related tokens is likely to remain a strong trend.

It’s worth noting that regulations are being introduced in the short term that make staking exchanges a risky endeavor. Many rumors circulated around the impending action by Chinese regulators, particularly against repeat offenders in the region. Regulators in smaller countries seem to be waiting to see who hits the first blow.

Fossils are not replaceable

Hong Kong’s best-known newspaper South China Morning Post is published an NFT platform is aimed at news and historical articles. The platform will enable verified issuers to coin and trade NFTs in an open market. This will appeal to a wider audience including non-cryptocurrency collectors and native users in Southeast Asia, as well as governments interested in exporting soft power to the world.

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