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China PANICS and Censors Stablecoins!🔥Ethereum Strategy Winning?📈 · The Paul Barron Crypto Show

• 0:00
  Speaker 1: Let's talk about China versus stable coins today. We'll break
• 0:02
  Speaker 1: it down for you what does this mean for the
• 0:03
  Speaker 1: crypto market. My name of S. Paul Barre will come
• 0:05
  Speaker 1: back into the show. I want to thank our sponsor
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  Speaker 1: you on your journey to self custy. Let's get into
• 0:41
  Speaker 1: it today. This is an article that is stocked full
• 0:44
  Speaker 1: of issues that the Chinese government is now in play on.
• 0:48
  Speaker 1: Chinese firms may now may face limitations on stable coin
• 0:53
  Speaker 1: activity in Hong Kong, and within this I'll zoom in
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  Speaker 1: on this to kind of give you guys an idea.
• 0:59
  Speaker 1: This is according to Thursday report by local news outlet.
• 1:01
  Speaker 1: This is a news outlet that kind of reports on
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  Speaker 1: where things are happening within mainland China, and firms are
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  Speaker 1: now operating in Hong Kong may be forced to withdraw
• 1:09
  Speaker 1: from the cryptocurrency relative related activities. There are seventy seven
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  Speaker 1: institutions that expressed interest in applying. This is in reference
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  Speaker 1: to the stable coin structure that was being built, and
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  Speaker 1: then Chinese banks and other institutions now are applying for
• 1:25
  Speaker 1: a Hong Kong stable coin license. All of that is
• 1:29
  Speaker 1: going to be going away. Further in the article, a
• 1:32
  Speaker 1: source familiar with the matter said, don't worry, don't rush
• 1:36
  Speaker 1: into any participation. This is in reference around stablecoin businesses.
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  Speaker 1: Coin Telegraph reached out to HKMA for a comment but
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  Speaker 1: could not get a response. And then now restrictions will
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  Speaker 1: also be placed on investments by those companies in any
• 1:50
  Speaker 1: kind of crypto or crypto exchanges. So not only are
• 1:52
  Speaker 1: they saying back away from stable coins, but also any
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  Speaker 1: of these companies who are holding digital assets acting now
• 2:00
  Speaker 1: will be asked back away from it. Early August, Chinese
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  Speaker 1: authorities reportedly also instructed local firms to cease publishing research
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  Speaker 1: and holding seminars related to stable coins. That's the kind
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  Speaker 1: of oppression that they've put onto crypto and stable coins.
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  Speaker 1: This of course slows down everything in China, but it
• 2:19
  Speaker 1: does push everything over to a centralized banks digital asset
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  Speaker 1: or digital currency a CBDC, and I think that's what
• 2:27
  Speaker 1: we're dealing with right now. Further into the report, let
• 2:31
  Speaker 1: me go over to this right here, because this was
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  Speaker 1: HKMA announcing stable coin issuer. This was the sandbox participants,
• 2:37
  Speaker 1: and you guys will probably remember Animoka Brands was part
• 2:40
  Speaker 1: of this, So it looks like that would be terminated
• 2:43
  Speaker 1: and Animoka's Brands we've had Yah Sue on the show
• 2:47
  Speaker 1: many times, may be forced into another strategy here. So
• 2:50
  Speaker 1: what this boils down to is China basically panicing because
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  Speaker 1: of the growth that we've seen in stable coins already
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  Speaker 1: just in a very short period of time. Also the
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  Speaker 1: fact that the country is faced with a deflationary situation.
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  Speaker 1: And this is where it gets interesting. If you look
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  Speaker 1: at some of the charts here, let me kind of
• 3:08
  Speaker 1: just jump over to this one. This is the deflation
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  Speaker 1: or the inflation rate there in China, as you can see,
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  Speaker 1: this is where deflation began. But remember this was kind
• 3:16
  Speaker 1: of their Chinese New Year.
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  Speaker 2: This was a.
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  Speaker 1: Whole component of where you see a big bump in
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  Speaker 1: economic activity, but in reality, this was the regression off
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  Speaker 1: of that. So if you were to balance that out,
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  Speaker 1: a lot of analysts say, this is really probably going
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  Speaker 1: to be like a point one. So this would have
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  Speaker 1: been going back for the entire year of twenty twenty
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  Speaker 1: five and where we are now in August to its
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  Speaker 1: biggest drop down to negative point four. So this means
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  Speaker 1: that what you're dealing with in terms of a deflationary economy,
• 3:48
  Speaker 1: the kind of impact that this would have. And I'll
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  Speaker 1: show you a video on this. This explains a little
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  Speaker 1: bit more of what it really looks like. Take a look.
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  Speaker 3: Hotels across the country have started selling food from their
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  Speaker 3: restaurants on the street. This is a way to drum
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  Speaker 3: up business amid a consumer spending slot. We used to
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  Speaker 3: sell only sixty to seventy a day, Wong says, now
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  Speaker 3: we sell around two hundred. But it cut prices before
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  Speaker 3: each cost eight dollars today five point thirty. Falling prices
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  Speaker 3: is a problem across China's economy excess capacity across industries.
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  Speaker 3: Food delivery is one of the most fiercely competitive battlefields.
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  Speaker 3: All are offering coupon discounts, bringing prices down.
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  Speaker 4: This superstore of secondhand luxury products opened just this summer
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  Speaker 4: in the heart of Beijing. We hardly go to the
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  Speaker 4: luxury stores anymore, she says, so why not shop at
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  Speaker 4: places like this?
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  Speaker 2: And say? The government is worried that deflation could become entrenched,
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  Speaker 2: so the authorities have been stepping in with a combination
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  Speaker 2: of pressure as well as price controls to try to
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  Speaker 2: control what they've described as excessive competition.
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  Speaker 1: Frank, it's the whole blind box create with the lab buboos.
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  Speaker 1: It seems like people are willing to spend there and
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  Speaker 1: to spend pretty freely, but in other areas you're looking
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  Speaker 1: to cut back.
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  Speaker 5: It's not in a crisis in the way that you
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  Speaker 5: see sudden massive job losses and it's all over the
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  Speaker 5: news or something, but people just feel it day to day.
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  Speaker 5: I think I'm just going to be a little bit
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  Speaker 5: more measured, and I think that's how the kind of
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  Speaker 5: the affordable splurge of a blind box fits in.
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  Speaker 1: So as you can see what this does is it
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  Speaker 1: continues to push prices down, which creates excessive competition. This
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  Speaker 1: eventually will put businesses out out of business, and that
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  Speaker 1: of course gets into kind of this whole cascading effect
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  Speaker 1: that could immediately cause pressure, which is why we're seeing
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  Speaker 1: the reaction we are right now. Other things that are
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  Speaker 1: happening is China is investigating their former stock market regulator.
• 5:39
  Speaker 1: This course is similar to our SEC, so we're already
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  Speaker 1: seeing the kind of corruption there that in often cases
• 5:47
  Speaker 1: we see here in the United States. But the point
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  Speaker 1: is is that this is happening in multi levels there
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  Speaker 1: in China. We've got the SEC and NASDAQ, both who
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  Speaker 1: have been putting a lot more pressure on Chinese stocks
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  Speaker 1: for stock fraud. Of course, is starting to escalate. Most
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  Speaker 1: likely we're going to see some actions on this pretty quickly.
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  Speaker 1: I'm going to go to a clip real quick because
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  Speaker 1: this is some of the legislators that are starting to
• 6:08
  Speaker 1: take a look at this. Watch this one.
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  Speaker 3: Will you ask for those stocks Chinese stock to be
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  Speaker 3: delisted from the mocking exchanges?
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  Speaker 6: See, that's one possibility, and we don't want the exposure
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  Speaker 6: from companies that are not providing the information needed for
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  Speaker 6: a typical listing on the US.
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  Speaker 7: Is all this part of the trade negotiations.
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  Speaker 6: Potentially, although you know we aren't as state financial officers, all.
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  Speaker 1: Right, So this was the Utah State rep that was
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  Speaker 1: hinting at that point, being is that a lot of
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  Speaker 1: these states have pension funds, et cetera that are layering
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  Speaker 1: into some of these kind of stocks that they're trying
• 6:45
  Speaker 1: to protect those investors. That's something that could get a
• 6:48
  Speaker 1: little bit more broad based. RFK, in fact, has already
• 6:52
  Speaker 1: started to go after some of the consumer products. Take
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  Speaker 1: a look at this one.
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  Speaker 7: Chinese products flood at the market.
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  Speaker 6: Only twenty seven percent have FDA approoves.
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  Speaker 7: These products are illegal in China and they're dumping them
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  Speaker 7: here in our country, and the Chinese are getting richer,
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  Speaker 7: a lot of children get sicker. The result is today
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  Speaker 7: we are doing raids, these kind of operations across the
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  Speaker 7: country to confiscate the mags.
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  Speaker 3: All right.
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  Speaker 1: So you can see there's activity across all of government
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  Speaker 1: now that are really taking a heart or closer and
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  Speaker 1: closer look to what's happening not only the publicly traded companies,
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  Speaker 1: but in general, how a lot of these supply and
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  Speaker 1: manufacturing companies are dealing with this. You combine that with deflation,
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  Speaker 1: you combine that with control on digital assets. Now that
• 7:35
  Speaker 1: starts to create a bigger factor. I still think we
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  Speaker 1: are not seeing the effect of China because most of
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  Speaker 1: the crypto market worldwide has already counted China out. That'd
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  Speaker 1: be great if they jump in, but they are not
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  Speaker 1: necessarily making that play. Now when you talk about countries
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  Speaker 1: trying to jump in, well, the market structure act is
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  Speaker 1: now in play. We'll most likely see some more pressure
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  Speaker 1: on this. However, John Can comes in and says GOP
• 8:01
  Speaker 1: is not ready to advance the crypto bill just yet
• 8:03
  Speaker 1: because the banks are calling for more time. So this
• 8:07
  Speaker 1: is something that we've talked about before, guys, is that
• 8:09
  Speaker 1: the banks do have a very powerful lobbying group. It
• 8:11
  Speaker 1: could be one of those things where they do slow
• 8:13
  Speaker 1: things down, especially in market structure. All right, So I
• 8:15
  Speaker 1: want to jump into our next sector here because this
• 8:18
  Speaker 1: will start how to play into how Japan's actually playing
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  Speaker 1: a role in this. Before I do that, I do
• 8:23
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• 8:59
  Speaker 1: Going over to Japan, they've started accepting payments. This of
• 9:03
  Speaker 1: course is the next generation credit card that they're launching,
• 9:07
  Speaker 1: and it's called Nudge speaking of credit cards, and this
• 9:10
  Speaker 1: is their first stable coin. This is the Jpboy. See
• 9:12
  Speaker 1: this is a point where Japan is actually going the
• 9:16
  Speaker 1: alternate route and going all in on where this is going.
• 9:19
  Speaker 1: And I think when you compare what they're doing versus
• 9:22
  Speaker 1: what we've seen in China, the Japanese market could end
• 9:25
  Speaker 1: up being one of the meccas for blockchain in a
• 9:28
  Speaker 1: very short period of time. Here I'm talking about Thank
• 9:31
  Speaker 1: you for all the responses as noted this is a
• 9:32
  Speaker 1: prepaid type credit card, but it's actually a credit based
• 9:35
  Speaker 1: credit card and a pay later option. That's something that
• 9:38
  Speaker 1: I think we'll see more of interesting that we're going
• 9:40
  Speaker 1: to see this on a stable coin. Imagine if you
• 9:44
  Speaker 1: had one of these with Teather or USDC, etc. Many
• 9:47
  Speaker 1: of the companies out there. Eventually, I think we'll see
• 9:49
  Speaker 1: some of these start to take place elsewhere. The other
• 9:53
  Speaker 1: thing you got to look at is the fact that
• 9:55
  Speaker 1: they're making this very friendly to the Japanese market because
• 9:59
  Speaker 1: that is a huge anime market. This just shows you
• 10:01
  Speaker 1: some of the card prints that they're using that will
• 10:04
  Speaker 1: probably create some adoption because anime is absolutely huge in
• 10:08
  Speaker 1: those markets. And you take that and you compare it
• 10:11
  Speaker 1: to just some of the other aspects of what they're doing.
• 10:14
  Speaker 1: From a education standpoint, this is one of the biggest
• 10:17
  Speaker 1: conferences there. Guess who's keynoting right there metallic butter in
• 10:20
  Speaker 1: that of course being eth But if you look through
• 10:23
  Speaker 1: all of the speakers and I want to go down
• 10:25
  Speaker 1: to the sponsors, it goes way down boom Sonium. Everybody
• 10:29
  Speaker 1: recognizes this, well, we talked about this not too long ago,
• 10:33
  Speaker 1: and it's supporting the ETH ecosystem. If you look further
• 10:37
  Speaker 1: into this, there's the stable coin right there supporting ethereum.
• 10:42
  Speaker 1: And this is kind of interesting because now it's kind
• 10:44
  Speaker 1: of an all in scenario where the Chinese are over
• 10:48
  Speaker 1: restricting the potential growth of blockchain, the Japanese absolutely on
• 10:52
  Speaker 1: the other side of things. And of course Animoka brand
• 10:55
  Speaker 1: guess what they just announced announced they're doing a full
• 10:58
  Speaker 1: scale digital asset treasure support now and they're going to
• 11:02
  Speaker 1: list this in the Japanese market. So this is just
• 11:04
  Speaker 1: another maybe this is the strategy that Yatsu and the
• 11:07
  Speaker 1: team over there is going to take, is shifting and
• 11:10
  Speaker 1: pivoting to Japan for this. And this is a video
• 11:13
  Speaker 1: we did not too long ago that was basically showcasing this,
• 11:16
  Speaker 1: and that was the Japanese going all in on crypto
• 11:19
  Speaker 1: and how Sonium would be a big part of this.
• 11:21
  Speaker 1: So go back and watch that video because it's a
• 11:23
  Speaker 1: good one to check out. We did it a few
• 11:25
  Speaker 1: weeks back, but it does put you in a position
• 11:27
  Speaker 1: right now to understand this is becoming a global war
• 11:31
  Speaker 1: in terms of finance, and crypto is dead in the
• 11:36
  Speaker 1: bullseye right now. Fortunately, the United States at least has
• 11:39
  Speaker 1: woken up we're starting to see a lot of activity
• 11:41
  Speaker 1: on that you look at just where Ethereum is right now,
• 11:43
  Speaker 1: starting to hedge up a little bit training around forty
• 11:47
  Speaker 1: four to twenty two. And this might be, you know,
• 11:50
  Speaker 1: as we start to see these adoption cycles start to
• 11:53
  Speaker 1: take place, especially with countries like Japan and others, maybe
• 11:56
  Speaker 1: this is the trigger that we start to see big
• 11:58
  Speaker 1: moves other than what we'll see you with, most likely
• 12:01
  Speaker 1: the FED next week. All right, if you guys are
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• 12:17
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