Blockchain Technology Rising in Red China

By | June 10, 2018

Blockchain technology is something relatively new within the last two decades. However, China in a way is considered the last frontier. Just like the last great frontier when millions flocked to the United States for dreams of freedom and wealth, blockchain companies will soon be wanting these same aspirations as they try to enter the market in China. These last few years have been tough for the development of blockchain technology in China. There has been a mass exodus of cryptocurrency exchanges from China and financial institutions are still prohibited from dealing with cryptocurrencies.

However, there is optimism that the barriers to entry will soon be taken down. The president of China recently stated in a speech that China must stay competitive in the world. If the rest of the world continues to adopt blockchain technology, then so must China. Even though citizens of China are still able to have transactions with the use of blockchain technology via their own private platforms or overseas exchanges, WeChat Pay and Alipay fail to recognize this. Crypto Jade is a company based in the United States that has taken advantage of this lack of competition in Mainland China.

Crypto Jade uses the Ethereum blockchain to host its cryptocurrency, Jade token. The token will be used to bring security and ease to the purchase of jade globally as a digital currency. The jade market is one the most profitable markets in Asia. Crypto Jade plans on using blockchain technology to fix the inefficiencies that are left by its competitors, Alipay and WeChat Pay.

Alipay and WeChat Pay have a duopoly over the payment industry in Asia. As a result, there are massive fees for both buyers and sellers that use their app to pay for goods and services. For example, Alipay has an overall service fee of 0.1% of each transaction value. There is a remittance fee when you try to pay in other currencies. If there is any fee from the intermediary bank and receiving bank when doing this cross-currency transaction, the consumer and supplier would be responsible to pay this fee. Recently, Alipay has tried to limit these fees by offering a free transaction service. Their marketing strategy is to get as many users as possible and try to make money from them in some other way. The downside of this strategy is that there is a major cost incurred that Alipay itself must pay.

WeChat pay has an overall transaction fee of 0.1%. If they would choose to use blockchain technology, their transaction fees would be considerably lower on purchases of high value. The benefit of using Jade token is that there is one minimal transaction fee for any amount of money transferred. Currently, the fee on the Ethereum blockchain is less than 1$. Jade is usually expensive and can have prices upwards of 10$ million dollars.

If buyers and sellers chose to use Jade token as their digital currency when trading jade, they would be saving a lot of money. The jade market is the perfect industry for blockchain protocol to be used as the primary payment system because the transaction fees are considerably lower than what its competitors can offer on high valued purchases.

 

Cameron Kallhoff

CEO of Crypto Jade LLC

 

Check it out Crypto Jade

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