30s Summary

Blockchain platform Flare and China’s Red Date Technology are piloting virtual financial services in Hong Kong, using China’s RealDID system for anonymous sign-ups. The first program lets users sign up for stablecoins on a regulated app, while the second enables buying of tokenized financial products with the stablecoin. The trial comes amid expected Hong Kong regulations allowing digital currencies on public blockchains. While China tends to back corporate blockchain projects, it generally restricts crypto dealings for its citizens.

Full Article

Blockchain platform Flare and decentralized cloud service Red Date Technology are launching two experimental programs that will allow Chinese folks who are visiting Hong Kong to get virtual financial services through a local app. It’ll use China’s RealDID system for anonymous sign-ups.

The first trial lets users anonymously sign up on a regulated app for stablecoins, which are a type of cryptocurrency designed to minimize price volatility. The second trial facilitates buying tokenized financial products using the stablecoin.

The companies involved say this is a big deal because Hong Kong might soon announce new regulations allowing digital currencies on public blockchains. They hope these trials will help integrate blockchain technology with China’s long-term strategies.

While China isn’t a big fan of its citizens dealing in cryptocurrencies, they’ve been investing heavy in blockchain tech. However, most of the state-backed projects tend to cater more towards corporate usage. They use things called ‘permissioned’ blockchains rather than ‘permissionless’ ones, and NFT projects are generally focused on collecting, not speculating.

For these trials, they’ll use the Chinese RealDID system. This is a fancy way of identifying yourself on the blockchain that China introduced last year. It’s backed by Red Date Technology and the Chinese Ministry of Public Security. Chinese law needs users on digital platforms to register using their real names, but RealDID lets users stay anonymous while still following the law. In Hong Kong, these users won’t need to submit passports or bank statements to access stablecoins or other token-based financial products.

It looks like big players in stablecoins, like Tether and Circle’s US dollar stablecoins, won’t be available for now.