China PANICS and Censors Stablecoins!🔥Ethereum Strategy Winning?📈

Chinese regulators are reportedly preparing to restrict mainland state-owned enterprises and banks from pursuing stablecoin and crypto initiatives in Hong Kong.

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00:00 Intro
00:10 Sponsor: Tangem
00:45 China restricts Hong Kong stablecoin activity
02:30 Animoca Brands
03:00 China deflation gets bad
03:55 CNBC: What deflation looks like in China right now
05:30 China SEC corruption
06:00 Utah State Rep Hints at banning china stocks
06:50 RFK jr. is starting raids on Chinese consumer products
08:00 JP Morgan successfully slows CLARITY BILL?
08:20 Sponsor: Gemini
09:00 Japan’s Crypto Payment Revolution Begins
09:30 Credit Card not Debit Card
09:50 Cool card skins
10:15 Japan Sponsors Ethereum
10:55 Animoca goes all-in on Japan
11:45 Ethereum Winning
12:00 Outro

#Crypto #Ethereum #china
~China PANICS and Censors Stablecoins!🔥Ethereum Strategy Winning?📈~
⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺

Episode Transcript

Speaker 1 (00:00):
Let's talk about China versus stable coins today. We'll break
it down for you what does this mean for the
crypto market. My name of S. Paul Barre will come
back into the show. I want to thank our sponsor
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you on your journey to self custy. Let's get into
it today. This is an article that is stocked full

(00:44):
of issues that the Chinese government is now in play on.
Chinese firms may now may face limitations on stable coin
activity in Hong Kong, and within this I'll zoom in
on this to kind of give you guys an idea.
This is according to Thursday report by local news outlet.
This is a news outlet that kind of reports on
where things are happening within mainland China, and firms are

(01:07):
now operating in Hong Kong may be forced to withdraw
from the cryptocurrency relative related activities. There are seventy seven
institutions that expressed interest in applying. This is in reference
to the stable coin structure that was being built, and
then Chinese banks and other institutions now are applying for
a Hong Kong stable coin license. All of that is

(01:29):
going to be going away. Further in the article, a
source familiar with the matter said, don't worry, don't rush
into any participation. This is in reference around stablecoin businesses.
Coin Telegraph reached out to HKMA for a comment but
could not get a response. And then now restrictions will
also be placed on investments by those companies in any

(01:50):
kind of crypto or crypto exchanges. So not only are
they saying back away from stable coins, but also any
of these companies who are holding digital assets acting now
will be asked back away from it. Early August, Chinese
authorities reportedly also instructed local firms to cease publishing research
and holding seminars related to stable coins. That's the kind

(02:12):
of oppression that they've put onto crypto and stable coins.
This of course slows down everything in China, but it
does push everything over to a centralized banks digital asset
or digital currency a CBDC, and I think that's what
we're dealing with right now. Further into the report, let
me go over to this right here, because this was

(02:32):
HKMA announcing stable coin issuer. This was the sandbox participants,
and you guys will probably remember Animoka Brands was part
of this, So it looks like that would be terminated
and Animoka's Brands we've had Yah Sue on the show
many times, may be forced into another strategy here. So
what this boils down to is China basically panicing because

(02:54):
of the growth that we've seen in stable coins already
just in a very short period of time. Also the
fact that the country is faced with a deflationary situation.
And this is where it gets interesting. If you look
at some of the charts here, let me kind of
just jump over to this one. This is the deflation
or the inflation rate there in China, as you can see,
this is where deflation began. But remember this was kind

(03:16):
of their Chinese New Year.

Speaker 2 (03:18):
This was a.

Speaker 1 (03:19):
Whole component of where you see a big bump in
economic activity, but in reality, this was the regression off
of that. So if you were to balance that out,
a lot of analysts say, this is really probably going
to be like a point one. So this would have
been going back for the entire year of twenty twenty
five and where we are now in August to its

(03:39):
biggest drop down to negative point four. So this means
that what you're dealing with in terms of a deflationary economy,
the kind of impact that this would have. And I'll
show you a video on this. This explains a little
bit more of what it really looks like. Take a look.

Speaker 3 (03:57):
Hotels across the country have started selling food from their
restaurants on the street. This is a way to drum
up business amid a consumer spending slot. We used to
sell only sixty to seventy a day, Wong says, now
we sell around two hundred. But it cut prices before
each cost eight dollars today five point thirty. Falling prices

(04:18):
is a problem across China's economy excess capacity across industries.
Food delivery is one of the most fiercely competitive battlefields.
All are offering coupon discounts, bringing prices down.

Speaker 4 (04:31):
This superstore of secondhand luxury products opened just this summer
in the heart of Beijing. We hardly go to the
luxury stores anymore, she says, so why not shop at
places like this?

Speaker 2 (04:42):
And say? The government is worried that deflation could become entrenched,
so the authorities have been stepping in with a combination
of pressure as well as price controls to try to
control what they've described as excessive competition.

Speaker 1 (04:55):
Frank, it's the whole blind box create with the lab buboos.
It seems like people are willing to spend there and
to spend pretty freely, but in other areas you're looking
to cut back.

Speaker 5 (05:02):
It's not in a crisis in the way that you
see sudden massive job losses and it's all over the
news or something, but people just feel it day to day.
I think I'm just going to be a little bit
more measured, and I think that's how the kind of
the affordable splurge of a blind box fits in.

Speaker 1 (05:17):
So as you can see what this does is it
continues to push prices down, which creates excessive competition. This
eventually will put businesses out out of business, and that
of course gets into kind of this whole cascading effect
that could immediately cause pressure, which is why we're seeing
the reaction we are right now. Other things that are
happening is China is investigating their former stock market regulator.

(05:39):
This course is similar to our SEC, so we're already
seeing the kind of corruption there that in often cases
we see here in the United States. But the point
is is that this is happening in multi levels there
in China. We've got the SEC and NASDAQ, both who
have been putting a lot more pressure on Chinese stocks
for stock fraud. Of course, is starting to escalate. Most

(06:02):
likely we're going to see some actions on this pretty quickly.
I'm going to go to a clip real quick because
this is some of the legislators that are starting to
take a look at this. Watch this one.

Speaker 3 (06:10):
Will you ask for those stocks Chinese stock to be
delisted from the mocking exchanges?

Speaker 6 (06:16):
See, that's one possibility, and we don't want the exposure
from companies that are not providing the information needed for
a typical listing on the US.

Speaker 7 (06:26):
Is all this part of the trade negotiations.

Speaker 6 (06:30):
Potentially, although you know we aren't as state financial officers, all.

Speaker 1 (06:34):
Right, So this was the Utah State rep that was
hinting at that point, being is that a lot of
these states have pension funds, et cetera that are layering
into some of these kind of stocks that they're trying
to protect those investors. That's something that could get a
little bit more broad based. RFK, in fact, has already
started to go after some of the consumer products. Take
a look at this one.

Speaker 7 (06:55):
Chinese products flood at the market.

Speaker 6 (06:57):
Only twenty seven percent have FDA approoves.

Speaker 7 (07:00):
These products are illegal in China and they're dumping them
here in our country, and the Chinese are getting richer,
a lot of children get sicker. The result is today
we are doing raids, these kind of operations across the
country to confiscate the mags.

Speaker 3 (07:17):
All right.

Speaker 1 (07:17):
So you can see there's activity across all of government
now that are really taking a heart or closer and
closer look to what's happening not only the publicly traded companies,
but in general, how a lot of these supply and
manufacturing companies are dealing with this. You combine that with deflation,
you combine that with control on digital assets. Now that
starts to create a bigger factor. I still think we

(07:38):
are not seeing the effect of China because most of
the crypto market worldwide has already counted China out. That'd
be great if they jump in, but they are not
necessarily making that play. Now when you talk about countries
trying to jump in, well, the market structure act is
now in play. We'll most likely see some more pressure
on this. However, John Can comes in and says GOP

(08:01):
is not ready to advance the crypto bill just yet
because the banks are calling for more time. So this
is something that we've talked about before, guys, is that
the banks do have a very powerful lobbying group. It
could be one of those things where they do slow
things down, especially in market structure. All right, So I
want to jump into our next sector here because this
will start how to play into how Japan's actually playing

(08:21):
a role in this. Before I do that, I do
want to thank our sponsor, and that is Gemini. You
guys can go out there and get the Gemini credit
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(08:41):
some additional bonuses up to four percent on certain purchases,
so that's a pretty big deal. And you can change
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like right now you might be on Salona as long
as we're trading hot. That's the way you can use it. Now.
Going over to Japan, they've started accepting payments. This of

(09:03):
course is the next generation credit card that they're launching,
and it's called Nudge speaking of credit cards, and this
is their first stable coin. This is the Jpboy. See
this is a point where Japan is actually going the
alternate route and going all in on where this is going.
And I think when you compare what they're doing versus
what we've seen in China, the Japanese market could end

(09:25):
up being one of the meccas for blockchain in a
very short period of time. Here I'm talking about Thank
you for all the responses as noted this is a
prepaid type credit card, but it's actually a credit based
credit card and a pay later option. That's something that
I think we'll see more of interesting that we're going
to see this on a stable coin. Imagine if you
had one of these with Teather or USDC, etc. Many

(09:47):
of the companies out there. Eventually, I think we'll see
some of these start to take place elsewhere. The other
thing you got to look at is the fact that
they're making this very friendly to the Japanese market because
that is a huge anime market. This just shows you
some of the card prints that they're using that will
probably create some adoption because anime is absolutely huge in

(10:08):
those markets. And you take that and you compare it
to just some of the other aspects of what they're doing.
From a education standpoint, this is one of the biggest
conferences there. Guess who's keynoting right there metallic butter in
that of course being eth But if you look through
all of the speakers and I want to go down
to the sponsors, it goes way down boom Sonium. Everybody

(10:29):
recognizes this, well, we talked about this not too long ago,
and it's supporting the ETH ecosystem. If you look further
into this, there's the stable coin right there supporting ethereum.
And this is kind of interesting because now it's kind
of an all in scenario where the Chinese are over
restricting the potential growth of blockchain, the Japanese absolutely on

(10:52):
the other side of things. And of course Animoka brand
guess what they just announced announced they're doing a full
scale digital asset treasure support now and they're going to
list this in the Japanese market. So this is just
another maybe this is the strategy that Yatsu and the
team over there is going to take, is shifting and
pivoting to Japan for this. And this is a video

(11:13):
we did not too long ago that was basically showcasing this,
and that was the Japanese going all in on crypto
and how Sonium would be a big part of this.
So go back and watch that video because it's a
good one to check out. We did it a few
weeks back, but it does put you in a position
right now to understand this is becoming a global war
in terms of finance, and crypto is dead in the

(11:36):
bullseye right now. Fortunately, the United States at least has
woken up we're starting to see a lot of activity
on that you look at just where Ethereum is right now,
starting to hedge up a little bit training around forty
four to twenty two. And this might be, you know,
as we start to see these adoption cycles start to
take place, especially with countries like Japan and others, maybe

(11:56):
this is the trigger that we start to see big
moves other than what we'll see you with, most likely
the FED next week. All right, if you guys are
not part of the Diamond Circle, make sure and get
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(12:17):
time right here on the Paul Baron Show.