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yandel

Ripple and China

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I already commented about BTC in China. I believe there is a very interesting article http://allcoinsnews.com/2016/01/04/bitcoin-monthly-market-report-dec-2015-review-huobi-overtakes-okcoin-new-investors-sustain-price/   that gives some insight into BTC in China. There are basically two important cc exchanges in China: Huobi and OKCoin. They have a combined worldwide share of 90% in BTC in Dec. 2015. Here is a quote from the article:

... You may also have noticed that the combined volume of @Huobicom and @OKCoinBTC is more than ninety percent ( 90% ) of all reported volume worldwide in December.

There is a good explanation about the policies for the Renminbi (CNY) https://www.quora.com/If-Renminbi-is-non-convertible-how-do-foreigners-invest-in-China

It is difficult to get any kind of currency into China but not out of it! But with BTC you can of course super easily.

 

Otherwise it is very easy to open a bank account in China for a foreigner, you can work into a bank, fill out a simple form and 5min later you have your account...  In comparison with USA, foreigners are not allowed to have US checking accounts, credit cards or the like. US citizens are prosecuted when having foreign accounts etc. There are many more countries, jurisdictions which have restrictions of these kinds, or embargos enforced (basically by US because no other countries are doing such things). Here is the challenge for becoming a true bridge currency!!

In addition to BTC, LTC is traded at Huobi and OKCoin. I believe that's why Litecoin is still in second place on marketcap and still has some importance.

 

 Let's say XRP is traded at Huobi and OKCoin, and they also become Ripple gateways. It would certainly boost the volume to new levels. I am not sure what kind of regulatory obstacles exist, most probably there are many.... But that's the real challenge for a cc, and why BTC is good.

 

 

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1 hour ago, yandel said:

It is difficult to get any kind of currency into China but not out of it! But with BTC you can of course super easily.

I made a mistake, it is exactly the other way around: Easy to get foreign currency into China, but not out of it.

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2 hours ago, rippledigital said:

I feel like there's going to be one final attempt to push the price into a mega bubble. Just my hunch, I don't analyse the BTC "markets".

Here is another article:

http://www.ibtimes.com/bitcoin-rally-digital-currencys-surge-driven-china-speculators-blockchain-ponzi-2169480

where it says:

Bitcoin is a useful way for consumers and small businesses to sidestep the country's capital controls, which stop individuals from moving more than $50,000 out of the country in a single year. Gil Luria, a leading digital currencies analyst at Wedbush Securities, said that this could be a factor in the rising price.

“Part of it is Chinese citizens that have capital they want to get out of the country are using bitcoin,” said Luria. BTCC’s announcement makes it easier than ever to do so. “Those types of changes do seem to have an impact on the price of bitcoin,” he said.

It doesn't hurt to analyze the BTC markets in order to learn something. BTC and to a lesser extend LTC are the only vehicles suitable for moving some non trivial amounts. If they would have XRP, or even better comfortable Ripple gateways on Huobi and OKCoin, it should boost XRP a lot. Here XRP would serve as a necessary bridge currency for regulatory compliance. There is no shortage in trickery in tax "evasion" by way of all kind of corporate vehicles, offshore accounts/set ups etc. in cross border trading. Now bridge currencies as legal "non currencies" may see utility in undermining GOVs in a legally correct way, nothing else what tax advisers were dealing with since decades in tax issues. Needless to say what a big business offshore banking is/was on Cayman Islands etc.

 

 

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1 hour ago, rippledigital said:

Others have also hypothesized the stock market troubles as being a factor.

It's the same factor, and the connection with the BTC spike is for a reason. China stocks are denominated in CNY, so when you sell you have a lot of CNY, but cannot really buy anything else with it than China stuff....

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I feel like there's going to be one final attempt to push the price into a mega bubble. Just my hunch, I don't analyse the BTC "markets".

All we need is for 100 million chinese savers to purchase xrp and it's over. There are 1.3 billion savers in China.

Sent from my SM-N910P using Tapatalk

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3 minutes ago, Altcoinbonanza said:

All we need is for 100 million chinese savers to purchase xrp and it's over. There are 1.3 billion savers in China.

Sent from my SM-N910P using Tapatalk

5000 FIs/investors could only get 20M XRP each for example

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31 minutes ago, RobertHarpool said:

@AltcoinbonanzaThere was a promising and budding relationship between Coinbase and RL a couple years ago .... I never understood why it didn't pan out ...

It may still happen – Coinbase and Microsoft are working together closely on a few projects.

EDIT: no wait I am getting confused with BitPay's recent news. Still, there are some MS Azure/Bing and Coinbase projects out there too.

Edited by rippledigital

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22 hours ago, yandel said:

Otherwise it is very easy to open a bank account in China for a foreigner, you can work into a bank, fill out a simple form and 5min later you have your account...  In comparison with USA, foreigners are not allowed to have US checking accounts, credit cards or the like. US citizens are prosecuted when having foreign accounts etc. There are many more countries, jurisdictions which have restrictions of these kinds, or embargos enforced (basically by US because no other countries are doing such things).

I think it's due to the Foreign Account Tax Compliance Act(FATCA) of the US.
It is being expanded to the other countries recently.
For example, Japan started "New Tax Identification System" from this year and it became so difficult to send money to other countries from Japan.

http://www.japantimes.co.jp/tag/my-number/

Also, 61 countries already agreed to use OECD's Common Reporting Standard(CRS) as of June 2015.
All our tax information will be exchanged between counties.

http://www.oecd.org/tax/exchange-of-tax-information/MCAA-Signatories.pdf

This means that we will have the same problem as US citizens in the near future.
Bitcoin and Ripple would not be the exceptions.

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