Latest / The Paul Barron Crypto Show / China Panics and Considers Stablecoins!?🔥Trillions Incoming🚀

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China Panics and Considers Stablecoins!?🔥Trillions Incoming🚀 · The Paul Barron Crypto Show

• 0:00
  Speaker 1: A stable corn war is brewing. China and the United
• 0:02
  Speaker 1: States are now going head to head. I'll explain it
• 0:05
  Speaker 1: all for you. My name is Paul Barre. We'll come
• 0:07
  Speaker 1: back into the show. Let's get started today. I want
• 0:09
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  Speaker 1: reward to get started. All right, let's go into some
• 0:38
  Speaker 1: of the news today, and one of the things that
• 0:40
  Speaker 1: I think is interesting is what is going on in
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  Speaker 1: China right now around China considering the Yuan backed stable coin,
• 0:48
  Speaker 1: and the main thing is this is designed to boost
• 0:51
  Speaker 1: their currency usage. And I'll explain how this will affect
• 0:55
  Speaker 1: the maybe even tariffs, and there's a whole strategy that's
• 0:58
  Speaker 1: boiling around this. This is a big deal and it
• 1:01
  Speaker 1: could really start to play out. If you look at
• 1:03
  Speaker 1: what they're doing in terms of the announcement, this could
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  Speaker 1: possibly happen as early as August thirty first, during an
• 1:09
  Speaker 1: event that's being done. This could start to put them
• 1:13
  Speaker 1: back in play. Remember China was the one that pretty
• 1:15
  Speaker 1: much kicked out all the bitcoin miners. In twenty twenty one.
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  Speaker 1: We started to see a complete shift away from crypto
• 1:22
  Speaker 1: and now things are starting to turn the edge because
• 1:25
  Speaker 1: we are seeing now some concern around this. Now part
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  Speaker 1: of it has boiled down to this statement right here.
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  Speaker 1: Sluggish manufacturing, real estate, labor markets, all these kind of
• 1:36
  Speaker 1: things are dealing with an issue. This may be a
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  Speaker 1: potential stimulus to help support that. There's some analysts that
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  Speaker 1: are kind of pointing to that very very issue on
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  Speaker 1: the slowing economy compared to and for the reason of
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  Speaker 1: US tariffs. And remember some of the strategies that might
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  Speaker 1: be taking place. We don't know this yet, but my
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  Speaker 1: guess is this is a strategy that I would do
• 1:58
  Speaker 1: if I was in business in China. Is you may
• 2:00
  Speaker 1: have to lower costs to an American supplier or an
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  Speaker 1: American supply chain to be able to keep up with
• 2:07
  Speaker 1: being able to sell that product. And if that is
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  Speaker 1: the case, it might end up actually affecting their profitability,
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  Speaker 1: which seems to be happening in the Chinese GDP. Another
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  Speaker 1: thing that's happening right here, there's a company over there
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  Speaker 1: at one of the banks, merchant banks, launches a crypto
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  Speaker 1: exchange in Hong Kong. So what that means is this
• 2:25
  Speaker 1: is a process that these banks are going through. This
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  Speaker 1: is just one example of a bank right there. One
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  Speaker 1: point seven trillion right now. That's a twelve percent increase
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  Speaker 1: year over year. And you can kind of see the
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  Speaker 1: growth right here in terms of how much liquidity this
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  Speaker 1: could pour into a stable coin. If you look at
• 2:41
  Speaker 1: stable coins in general, they are clearly dominating the top
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  Speaker 1: of search terms. This of course, in comparison to all
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  Speaker 1: coin season prediction markets, crypto gaming, stable coin is the
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  Speaker 1: clear winner here. And there's a big reason why of
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  Speaker 1: why this is starting to boil down into a war
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  Speaker 1: between some of the companies are countries out there. Of course,
• 3:02
  Speaker 1: the stable coin versus digital yuon. The digital UoN was
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  Speaker 1: launched quite some time ago, clearly a nothing burger compared
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  Speaker 1: to what's happening in the stable coin market, and the
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  Speaker 1: United States is leading the charge around This an interesting
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  Speaker 1: development in terms of timing if you look at what's
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  Speaker 1: happening in China right now with the digital UoN or
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  Speaker 1: a potential stable coin for the UoN. Wyoming, a state
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  Speaker 1: here in the United States launches their own stable coin.
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  Speaker 2: This is FRONT. We talked about this earlier this week.
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  Speaker 1: If you didn't check that video out, go and do that,
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  Speaker 1: but not without a little bit of pressure. Front is
• 3:37
  Speaker 1: not currently available for purchase.
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  Speaker 3: Now.
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  Speaker 1: I want to go over to Anthony Apollo. We've had
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  Speaker 1: him on our show before. This is the guy who
• 3:43
  Speaker 1: pretty much spearheaded the movement, selecting the chains, getting the
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  Speaker 1: structure put in place.
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  Speaker 2: Listen to what he had to say.
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  Speaker 3: You issued the first state issued stable coin, and correct
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  Speaker 3: me if I'm wrong. I don't think anybody else has
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  Speaker 3: done that in the world, right The.
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  Speaker 4: First FIAT backed and reserved stable coin issued by a
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  Speaker 4: public entity really the culmination of nearly a decade of
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  Speaker 4: work within the state of Wyoming.
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  Speaker 3: And there's a caveat here. The token was supposed to
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  Speaker 3: be available to the public today and it's public launch,
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  Speaker 3: it's not. So can you tell us a little bit
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  Speaker 3: about what happened there?
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  Speaker 4: It is not lost on myself or the team or
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  Speaker 4: our commissioners that this is a tradfy problem, and I
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  Speaker 4: do believe when our chairman, Governor Mark Gordon is on
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  Speaker 4: stage on Wednesday, he may have more to say about
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  Speaker 4: all of this. We look at this as kind of
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  Speaker 4: a temporary setback. We're still way ahead by years of
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  Speaker 4: any other public body doing this kind of work. We announced,
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  Speaker 4: you know, the rain integration on Avalanche, we announced Kracken
• 4:38
  Speaker 4: and Solana. The hope would be by the time we
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  Speaker 4: actually get this thing rolling, we're on all seven chains,
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  Speaker 4: with a couple of partners and a couple of high
• 4:45
  Speaker 4: profile use cases.
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  Speaker 2: All right.
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  Speaker 1: So the issue, and we've raised this before, is that
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  Speaker 1: the banks are pushing back on this. Bankers want stable
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  Speaker 1: coin laws changed. We reported on this. This is I
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  Speaker 1: think going head to head not only with companies and
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  Speaker 1: groups like what we're seeing Wyoming, but also.
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  Speaker 2: With even Ripple.
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  Speaker 1: Ripple was the one of the biggest because of the
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  Speaker 1: lobby groups that are now pushing against many of these
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  Speaker 1: banking charters, which of course starts to make way for
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  Speaker 1: things like RILUSD and others. So this is all starting
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  Speaker 1: to boil because now you're dealing with a global stage
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  Speaker 1: around how China could be playing into this. Now, let's
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  Speaker 1: go back to China for a second. This is the
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  Speaker 1: dollar versus the yuon, and I want to show you
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  Speaker 1: something here because the yuon still holds a very low
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  Speaker 1: value in comparison to the US dollar and has been
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  Speaker 1: pretty much that way really since nineteen ninety five, when
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  Speaker 1: the digital euon came on, or really the Chinese yuon
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  Speaker 1: came onto the scene. Now, it's interesting here. Some of
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  Speaker 1: this probably was rising and I think a lot of
• 5:45
  Speaker 1: analysts have kind of pointed to this because of the
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  Speaker 1: sanctions on other countries and those countries started to trade
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  Speaker 1: in the rememby That is where I think we're seeing
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  Speaker 1: some of this growth. This could start to pivot, though,
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  Speaker 1: So I want to go to a clip real quick
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  Speaker 1: because this will get in to a little bit more
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  Speaker 1: of how the US stable coin market could be a
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  Speaker 1: dominant factor going forward.
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  Speaker 5: Take a look from a national security and economic policy perspectives.
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  Speaker 5: Hugely disrupted for China's plans to move away from the book?
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  Speaker 2: Can China control and limit the adoption?
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  Speaker 5: What do I need to get my hand on a
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  Speaker 5: dollar stable coin the internet and something of value to
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  Speaker 5: trade for it? So If I'm somebody in China and
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  Speaker 5: I've got anything I can sell, and somebody will send
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  Speaker 5: me a bitcoin or US dollars stable coin like done.
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  Speaker 2: You need them to somehow to buy a gold bar
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  Speaker 2: and then deliver the goal bar to someone, and then
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  Speaker 2: the person receiving this says.
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  Speaker 5: Okay, which is totally doable because China is an export
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  Speaker 5: based economy. I'm a Chinese company, I have products that
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  Speaker 5: i want to sell to a US company, and normally
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  Speaker 5: i'd quote them like in Remandi, let's say fifty thousand
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  Speaker 5: dollars equivalents. Now I'm going to quote them twenty five
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  Speaker 5: thousand dollars equivalent to The Chinese government doesn't need to
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  Speaker 5: know they sent me the other twenty five and crypto,
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  Speaker 5: because how are you going to police that. As soon
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  Speaker 5: as you're doing external trade or even in some way's
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  Speaker 5: internal trade, but mostly external trade, this becomes an unsolvable problem.
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  Speaker 5: You have to stop letting people use the internet and
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  Speaker 5: transacting with the rest of the world, which is why,
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  Speaker 5: again only the North Koreans really effectively interdicted this. The
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  Speaker 5: fact that.
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  Speaker 4: China has a big, expert economy actually creates their own vulnerability.
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  Speaker 2: They SUCCESCT payment in US stable coin and that's it.
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  Speaker 5: Yeah, this is why I've said it's a really underappreciated
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  Speaker 5: tool of economic warfare for the United States because it
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  Speaker 5: is explicitly a way to break China's currency controls. This
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  Speaker 5: would be way more effective than teriffs.
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  Speaker 1: So when you look at all of this, stable coins
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  Speaker 1: actually become the real weapon of choice rather than troiffs.
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  Speaker 1: Hopefully POTUS and the administration will start to look at this.
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  Speaker 1: Here's a good example right here. This, of course is
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  Speaker 1: Sony PlayStations and a lot of these which are starting
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  Speaker 1: to ramp up in terms of price. The switch to
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  Speaker 1: still the cheapest, but everything's going up and being effectively
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  Speaker 1: marketed to the US market now because of these teriffs.
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  Speaker 1: This is a huge factor going forward. Now, I want
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  Speaker 1: to play another clip for you guys. This is Arthur
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  Speaker 1: Hayes where he goes in into a strategy that might
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  Speaker 1: actually be in play.
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  Speaker 2: Take a look.
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  Speaker 6: Beston finally has a sanctions weapon. All the elites essentially
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  Speaker 6: steal from their people and put their money in US banks.
• 8:23
  Speaker 6: If you don't allow Western social media companies to bank
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  Speaker 6: all of your people with dollars, I'm going to sanction you,
• 8:29
  Speaker 6: and you're gonna lose access to the billions of dollars
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  Speaker 6: that you stole from you people. And so guess what's
• 8:33
  Speaker 6: gonna happen. Nothing. That is how you're going to get
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  Speaker 6: twenty twenty five trillion dollars tam of money that could
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  Speaker 6: flow into dollars stable coins and then basically was a
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  Speaker 6: stable cooin do They're going to buy treasury bills and
• 8:44
  Speaker 6: they'll buy it whatever you'll beston offers. He can completely
• 8:47
  Speaker 6: destroy the FED. He can put you know, short term
• 8:49
  Speaker 6: rates wherever he wants it. Now he's got a sink
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  Speaker 6: of tens of tillions of dollars that he can essentially
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  Speaker 6: fund the US government with until they do some sort
• 8:56
  Speaker 6: of yueal curve control to bring down the long end.
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  Speaker 6: That's what I would do if I was bessing.
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  Speaker 1: Let's break that down because the potential now for stable
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  Speaker 1: coins reverse engineering as a defense mechanism for global trade
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  Speaker 1: is huge because this starts to affect everything. It will
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  Speaker 1: affect the Chinese economy. I think it starts to also
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  Speaker 1: export the dollars at a scale in which he's talking about,
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  Speaker 1: because they're in a position where they pretty much put
• 9:19
  Speaker 1: everybody on queue of being able to say yes, you
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  Speaker 1: have to accept these stable coins if you want to
• 9:24
  Speaker 1: be able to do trade with the United States. And
• 9:26
  Speaker 1: again this starts to point into one direction, and that
• 9:30
  Speaker 1: is remember Eth wins the game here.
• 9:33
  Speaker 2: This is what we'll see overall.
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  Speaker 1: I think in terms of stable coin usage and the
• 9:37
  Speaker 1: continuation of it. Before we go further, because I think
• 9:40
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• 10:00
  Speaker 1: You don't have to really worry about it. Unless we
• 10:02
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  Speaker 1: link down below. All right, let's go forward here because
• 10:15
  Speaker 1: this is where we bring in Japan and Japan as
• 10:18
  Speaker 1: you know, has already kind of been moving in this
• 10:21
  Speaker 1: direction and kind of zoom in on that for you.
• 10:23
  Speaker 1: They are now approving the first yen stable coin and
• 10:26
  Speaker 1: this is going to be launching this falls. And when
• 10:29
  Speaker 1: you look at the company that's behind Sonium or Sonium,
• 10:32
  Speaker 1: who's the company behind the blockchain that essentially Japan is
• 10:36
  Speaker 1: building on. Listen to what their founder had to say.
• 10:40
  Speaker 7: Web three is definite need to be one of the
• 10:41
  Speaker 7: biggest opportunity japan Chan take in our variation exceed at
• 10:46
  Speaker 7: one point five billion, and then the Japanese government to
• 10:48
  Speaker 7: be allowed that if we make us die in Japan,
• 10:52
  Speaker 7: we how to do pay three hundred million, which is
• 10:53
  Speaker 7: not possible the eyes. And then from the last year
• 10:57
  Speaker 7: zay chains alow taxro now there is no tax. The
• 11:02
  Speaker 7: crypt issued by own company there is no tax, and
• 11:05
  Speaker 7: from this year there is no tax on anias. Again,
• 11:09
  Speaker 7: we are constantly changing the Japanese rowan tax. And now
• 11:13
  Speaker 7: we are backed by Sonny. We also lays from bas
• 11:17
  Speaker 7: Capital fund from samson and also you be we are
• 11:21
  Speaker 7: strategically doing this. It is very difficult for us star
• 11:25
  Speaker 7: to compete with let's say Arbitram or maybe Optimism in
• 11:28
  Speaker 7: a DeFi area. Probably it is very difficult. They have
• 11:32
  Speaker 7: networking effects, so we needed to find the sweeter sweet
• 11:36
  Speaker 7: spot which we can win. So our target is not
• 11:40
  Speaker 7: DeFi user. Our main target is the ordinary people who
• 11:44
  Speaker 7: are walking outside right now. This population is much more
• 11:47
  Speaker 7: than this the first one. I think polygons approach is
• 11:51
  Speaker 7: very pretty correct, very correct in terms of history.
• 11:55
  Speaker 1: All right, so reaffirming what Sota just said is now
• 12:00
  Speaker 1: APYC also approved Polygon, so this is another let me
• 12:03
  Speaker 1: kind of zoom in on that. So launching on polygons
• 12:05
  Speaker 1: soon and also on an avalanche. So this all starts
• 12:07
  Speaker 1: to bring in many of these other tokens and the
• 12:11
  Speaker 1: strength of where this might go because the Japanese market
• 12:14
  Speaker 1: I think may end up being one of the leaders
• 12:16
  Speaker 1: out there. Now if you compare this right now, you
• 12:19
  Speaker 1: can kind of see the prepaid source network, Avalanche, there's
• 12:23
  Speaker 1: Astar which he had mentioned, a Polygon, et cetera, and
• 12:26
  Speaker 1: obviously eth all of which will benefit from where this
• 12:29
  Speaker 1: could go. Okay, so let's continue into this because this
• 12:33
  Speaker 1: is where the activity continues to go on chain and
• 12:36
  Speaker 1: this gets into things like real world assets. And this
• 12:38
  Speaker 1: is talking about Anthony Scaramuci's Skybridge Capital planning to tokenize
• 12:43
  Speaker 1: three hundred million into AVAX. Now what would that do
• 12:47
  Speaker 1: if that were to occur. Let's go over and take
• 12:49
  Speaker 1: a look at the top list. There's Avalanche holding it
• 12:52
  Speaker 1: around one ninety three. If they start to pump that up,
• 12:55
  Speaker 1: let's say that's two hundred Europe around five hundred.
• 12:58
  Speaker 2: It's very possible that they fly right.
• 13:00
  Speaker 1: Underneath or maybe above Salana, so they could literally slide
• 13:04
  Speaker 1: into the number four slot, holding somewhere in the range
• 13:08
  Speaker 1: of three to five percent of the RBA holders out there.
• 13:11
  Speaker 1: So that would be significant for Avalanche, another good thing
• 13:14
  Speaker 1: for the avatch ecosystem. But it does start to accelerate
• 13:17
  Speaker 1: because Scaramucci is going to create a domino effect and
• 13:20
  Speaker 1: you're going to see a lot of these funds start
• 13:22
  Speaker 1: to do this. So watch out for that one.
• 13:24
  Speaker 2: Now listen.
• 13:25
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