The legal takeover of Hong Kong turned out to be aimed at satisfying a need for political, legal and economic unity for China. We understand all the better the importance of this decision when we accept that the Chinese Financial Doctrine is being developed. But for a coherent financial system to exist, it needs two strong aspects: a territory where the law is unified, the law being the guarantor of its operation, and a currency. In recent days, in the United States, banks have been faced with a shortage… of cash! The lack of metal and paper money in circulation reveals the importance of a fluid and efficient medium, the digitization of this medium is therefore central in our time. And it would seem that this is the line that China is advancing on the issue of its cryptocurrency.
Chinese financial doctrine and monetary conquest: cryptocurrency
American power and its impact on the West, including on European financial doctrine, combines its doctrinal perception, its ingenuity with risk-taking and its control by… the American dollar (USD). The American currency is the instrument of the world market, of globalization, and the most powerful instrument for promoting the American Dream . It also creates a real dependence of the administrations in favor of the United States and the goodwill of the American Treasury. A will that is not political, of course! It is moreover because of this very ” fair play ” character» that the Europeans have set up their own single currency, on a larger common market, normally in order to prevent the small domestic markets of each European nation from being vectors of the weakness of States and peoples.
It is quite natural that the Chinese doctrine must also equip itself with a monetary interface capable of transcending borders simply, while offering however what is necessary of control to perfectly represent its own financial doctrine. So why cryptocurrency?
Cryptocurrency is a transactional mechanism that makes it possible to get rid of international, and therefore American, regulatory constraints, while facilitating the deployment of transfer points. Concretely, a simple Smartphone makes it possible to transfer cash from account to account, in an optimal way, without the need to deploy different tools, contracts, human organizations for this. By way of comparison, European finance is happy to comply with KYC (” Know your Customer“) in order to fight against various frauds. Today, the bulk of the retail banks see their activity mainly oriented towards regulations. Cryptocurrency makes it possible to automate all these aspects. Traditional banks have outdated computer interfaces, little desire to modernize, and risk terrible social and human impacts, if they realize their change. China knows this and the use of cryptocurrency is a way to offer a currency that moves quickly, in a secure environment and with a set of services capable of attracting users. So to exploit the weaknesses of the aging European institutions.
Strategically, however, it is only a matter of following the plan of world conquest and influence. This brings up an important question: What is cryptocurrency for?
Bitcoin was initially designed for everyone to be able to manage their money without having to go through intermediaries. It had the particularity of allowing physical hoarding, as well as autonomous transaction and also self-regulation. It is a work deeply marked by the Free culture which advocates the autonomy of people and citizens. In this sense, the recourse by China to a device of this kind is quite consistent, the Nation wants to avoid foreign interference, therefore to know again the humiliations of colonization. The Chinese financial doctrine is therefore a sovereign doctrine. She advocates sovereignty.
What exactly does sovereignty mean? Ultimately, the National Security Law lays the foundations of what will be the Chinese financial doctrine. And the use of the so-called e-yuan cryptocurrency (currently) will certainly support this desire. The doctrine will also manifest in small touches with intriguing results. On July 14, 2020, Investing.com headlined, ” Chinese government bonds lure investors, high yieldsand the rate was effectively 3% versus 0.3% to 0.5% for US Treasuries. This is also the Chinese financial doctrine, a particular balance between financial industry, strong commercial liberality, culture of negotiation and harmony, and rigor of the State. It is certain that this practice, this guarantee of stability and commercial liberality will be found in the device of payment by cryptocurrency, freed from the American doctrine.
What about European doctrine?
And during that time… the Europeans were copying! It is not a question here of practicing a ” European bashing “, but it is clear that there is no plan and no coherent unity in what is done in Europe in general, in France in particular . As we mentioned earlier in this file, 80% of the time and resources of banks are mobilized to bring the models into line with the regulations, without actually realizing change and profound change. The reason is purely structural and purely social: today’s technological means make it possible to get rid of an excessively heavy payroll. Several redundancy and non-renewal plans have already been launched to this end, but the process remains slow.
As an example of “ political ” resistance, the question of the alternative to VISA and MASTERCARD, the famous PPE, was “ in the pipeline ” more than ten years ago! TEN YEARS ! Today, it is presented with great fanfare as a viable alternative, a great boost to European sovereignty. But a seasoned eye can only smile at this candor because, at the same time, Apple is consolidating its positions and catching up in mobile payment by freeing itself from VSEs/SMEs, as reported by Presse-Citron in its July 12 article. 2020: ” Apple Pay is preparing a feature that will change everything in its use “. Apple is developing a more “ human-to-human” “ user friendly ” approachwhich should give it a head start over its competitors and traditional financial institutions.
The European financial doctrine is, today, clearly no longer in the race. It offers neither stability nor support for entrepreneurship. Its tools of control and its distant ” Test, Learn & Go ” mentality spawn cases like Wirecard, combining both flawed Due Diligence as well as intrigue linked to the influence and interference of much more aggressive nations and concerned about their power. Is it possible that this doctrine reinvents itself?
Eventually, but it will start from the base and in no case from the upper echelons. Will it be influenced by American doctrine? Still for a while, yes. Will it feed on Chinese doctrine? Even if the European rulers, the legislators want to be reassured about their real authority in the matter, apart from acting on the Operators of Vital Importances ( ie companies considered strategic by the governments – around 250 structures to 1000 in an enlarged circle ), the power looks rather weak. The rest of the “people”, the “companies” which are not OIVs, have to fend for themselves. And it is ultimately common sense, too, not to always wait for rulers but to show ingenuity. If we can paraphrase Shakespeare by saying “There is something rotten within European finance ”, one can also remember the famous words of JFK: “ Ask not what your country can do for you, but what you can do for your country ” . This file clearly presents the difference in financial doctrine, and it also makes it clear that the financial question is a question of the “ living ”, of the human. It is therefore important for everyone to create and develop this doctrine, as a real collective. It is important for everyone to work to build a doctrine, without necessarily waiting for bodies stuck in their processes and their pasts to come up with the solution on their own.