Cryptocurrencies

China absorbs blockchains by the dozen amid technological espionage – Cryptocurrencies

China has been talking about it for a few days with the launch of BSN (Blockchain-based Service Network) which has set itself the pharaonic ambition of creating a hub bringing together all blockchains via Ethereum, EOS or even Tezos. Is this a breath of fresh air for Altcoins or industrial-scale espionage? …


The great Fire Wall

To say the least, China’s official position on cryptocurrency is to say the least ambiguous.

The country sports one of the strictest laws in the world so that the largest exchange in the world, Binance, originally founded in Shanghai, had to pack his bags and leave the country to settle in Malta. You can’t buy Bitcoin in yuan unless you have a VPN and are cunning. And while the Chinese exchanges represented 90% of cryptocurrency trading in 2017, the BTC / CNY pair now represents only 1% volumes.

Share of the yuan in Bitcoin trading
Red curve: Bitcoin price
Blue curve: trading BTC in yuan

It’s been now soon 4 years that cryptocurrency exchanges have been banned by Chinese authorities who see Bitcoin as a way to get money out of the country. But such capital flight are a direct threat to the control of the Yuan exchange rate and the central planning of overseas investments.

Paradoxically, the bitcoin mining is not (yet) prohibited. As of 2013, areas like Sichuan Province have become the mecca for large mining operations thanks to very low cost of electricity and easy access to the latest ASIC chips from Bitmain (by far the world’s largest manufacturer).

And yet, the power of Chinese mining would represent 65% of world power. This is what the Cambridge Center for Alternative Finance reveals, which analyzes data from 3 large mining pools representing 37% of the hashrate Total Bitcoin (BTC.com, Poolin and ViaBTC).

China's share in Bitcoin mining
Data from April 2020

Without forgetting that Xi xinping said in 2019 that blockchain development should be a priority. This schizophrenia is not trivial and brings to light a rather murky double game. Why take an approach pro blockchain-but-not-Bitcoin while the creation of Satoshi Nakamoto remains to this day what it does best in decentralized blockchain?

It is with all of this in mind that we will now talk about BSN (Blockchain-based Service Network) created by the Chinese tech company Red Date Technology.

Who is behind the BSN?

He Yifan, CEO BSN (Blockchain-based Service Network)
He Yifan, at Great Bay Area International Blockchain Week August 5-7, 2020 in Shenzhen, China

He Yifan, the CEO of Red Date Technology aims to help developers build decentralized applications and build “interoperability” between blockchains. The company says it wants be the glue between blockchains to allow “The exchange of tokens / datas“. On the verge of inventing an exchange …

Ethereum, EOS, French Tezos, Neo, Nerves or IRISnet (Shanghai) have joined the BSN platform which is therefore a blockchains hub already existing. The goal ? Offer a Single portal for developers looking for solutions to create decentralized applications. Nothing new under the sun…

Worse, there is something to be suspicious of when looking at the project partners. UnionPay, China mobile and the State of Information Center (SIC). UnionPay (a larger bank card issuer than Visa and Mastercard) and China Mobile (Telecom) are public enterprises. The CIS, meanwhile, is nothing less than a government think tank which, like Western think tanks, is an intellectual arm of the deep state.

“The Chinese Communist Party is opposed to democracy and free speech. It operates one of the most restrictive Internet firewalls in the world to suppress its population and crush dissent 2) BSN is controlled by the Chinese Communist Party 3) So it cannot be trusted. ”

In the United States, for example, the most powerful think tank is the Council of Foreign Relations (CFR). Its members are considered the high priests of US imperialist foreign policy. The majority of its founders were bankers from Bank of America, Citigroup, Goldman Sachs, J. P. Morgan, or oil companies. Nowadays there are “celebrities” such as the Clintons, Soros, George Bush, Kissinger, Janet Yellen (former president of the Fed), Lloyd Blankfein (CEO of Goldman Sachs), Rupert Murdoch (owner of a media conglomerate) , etc.

“The CFR is the closest thing to a ruling elite in the United States. “

Richard Harwood editor-in-chief of the Washington Post (the equivalent of Le Monde in France)

The SIC is affiliated with China’s highest administrative authority, the National Development and Reform Commission. A ministry which merged in 1991 with the department of propaganda. He will even be in charge of Chinese internet censorship until 2011. In other words, the BSN is in good hands …

Is there a link with the cryptoyuan?

In any case, that’s what you can guess if you look at the BSN twitter feed:

Pub

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

TheCointelegraph article here

And this even though He Yiefan He was careful not to mention it in his bombastic speech at the beginning of August in Shenzhen at a conference organized by our colleagues from Cointelegraph China.

All the ingredients are there to assume that BSN is a Chinese government espionage office whose mission is to suck up all the technology related to the various blockchains. And probably recruit the best developers. For what purpose exactly? Build a blockchain compatible with the banking system and on which the famous “Cryptoyuan”.

More and more journalists suspect that the “cryptoyuan” will be an additional weapon to torpedo the hegemony of the dollar and compete with global payment systems such as the international payment system SWIFT.

In recent years, China has been stepping up its plans for independence from Western infrastructures. Indeed, the overwhelming majority of the network’s board members SWIFT are European or American bankers. This mafia serving the interests of Uncle Sam who already disconnected from Iran … So the Middle Kingdom knows what to expect. This dependence is the Achilles heel of his imperialist ambitions.

It should now be remembered that the “cryptoyuan” in its current version is not based on a blockchain. He Yiefan conceded when Thecointelegraph reporters snapped the worms out of him:

“In its current version, cryptoyuan is not much different from already existing applications such as Alypay or Wechat

He Yiefan, boss of SBN

Indeed, it mostly looks like an attempt to make disappear the cash …

Application of cryptoyuan under test in 4 major Chinese cities
Cryptoyuan app under test

The main innovation of cryptoyuan for the moment is to allow phone-to-phone transactions (without internet). An option that could prove to be very useful for the new Silk Roads if some countries play the United States’ game by blocking financial transactions from China

Bitcoin vs Cryptoyuan

It goes without saying that the chinese communist party is not exactly the archetype of decentralization … The cryptoyuan will not be a tool for emancipation … it will instead be a new mass monitoring tool preparing the end of cash and anonymity.

We often recall it on Thecointribune: China has set up a system of social credit. Each citizen is noted by an algorithm passing through their smallest facts and gestures (data). Purchase history includeds. Buying too much alcohol, for example, is exposing yourself to a loss of credit which means deprivation of liberty. Notably l‘Ban on buying luxury products like a train ticket, a plane ticket, and more. The cryptoyuan prepares for the advent of theapartheid 2.0. A open-air prison where those who refuse the party’s philosophy of life no longer enjoy their money …

The cryptoyuan will also be a imperialist tool. The fact that the FED is in motion to create a ” Digital Dollar Must put us on the alert. Especially when you know that 90% of dollars in circulation are already in digital form… See you on this article in which we dissect the last speech of the governor of the FED Lael Brainard.

Once again, let us stress that China has banned cryptocurrency exchanges. It only tolerates Bitcoin mining for two reasons:

  • Foster an ecosystem of blockchain professionals who will be able to contribute their know-how in order to serve its own totalitarian ambitions.
  • Don’t be caught off guard if Bitcoin ever ends up being twenty-first century gold.

This last point is far from being far-fetched since China is buying gold without counting in order to accelerate the internationalization of the Yuan.

Pub

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

We all tend to get carried away as soon as a “game change” arises, giving rise to a massive resurgence of interest in cryptocurrencies as well as a gargantuan bull run… We unfortunately too often forget what Bitcoin represents… It is a guarantee of our freedoms, protection against inflation, an anonymous means of payment, a stateless currency. EIn short, it is a counter to the monetary slavery system. Conversely, BSN is just an outgrowth of the Chinese Communist Party seeking to turn blockchain technology against us

China mass surveillance
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