1.World Turmoil Provides A Stage For Digital Currency
1)Digital Currency Donates To Ukraine
On February 24th, 2022, Russia launched a full-scale armed attack on Ukraine. For a while, the world’s situation was changing, and international finance was ups and downs.
On the 27th, although NATO has not yet intervened in the Russian-Ukrainian war in military operations, the passage of the “SWIFT Expulsion” bill, which is known as a financial nuclear weapon, jointly promoted by the United States and EU countries, marked the beginning of a financial war.
During the war, digital currency is playing a new role. Ukraine has legalised Bitcoin is receiving accepting aid from the whole world through cryptocurrencies. Currently, digital currency is providing Russia with a new decentralised economic corridor.
Let’s talk about Ukraine. On the eve of the war, Ukraine has become the top 5 country in the world for cryptocurrency usage. Ukraine is the second country in the world to recognise the legitimacy of Bitcoin. It is also a “mining” place that uses a lot of Bitcoin and Bitcoin computing power. According to relevant data, Ukraine’s daily cryptocurrency transactions have surpassed its national legal hryvnia.
Before the outbreak of the war, the continuous decline of the hryvnia against the dollar had caused Ukraine to complain, and the bill to legalise Bitcoin was also a choice that had to be made to maintain the stability of the value of its national currency.
After the war, with the decline of funds and stagnation of the domestic economy, Ukraine can only seek external help economically, and cryptocurrency has become the only way to help Ukraine externally.
The Deputy Prime Minister of Ukraine announced on Twitter that he would accept cryptocurrency donations such as BTC, ETH and USDT. Ukraine’s published data on donations showed that Ukraine has received more than 36 million dollars in donations from the crypto world.
Among them, the Ukrainian government announced that they have received 113 BTC and 2001 ETH (a total of nearly 10 million dollars), Binance has pledged to donate 10 million dollars to Ukraine, and Binance has received about 155 related crowdfunding activities (approximately 6 million dollars). Ukraine’s armed group “Come Back Alive” received 181 Bitcoins (about 7 million dollars), and UkraineDAO raised 1279 ETH (about 3.3 million dollars) through Ukraine’s state-owned NTFS.
After publicly expressing his support for Ukraine, the co-founder of Ethereum, Vitalik Buterin, used Twitter to call for support to help Ukrainian locals through UkraineDAO.
UkraineDAO is an organisation launched by political activists and founding members of the punk rock band Pussy Riot Nadezhda Tolokonnikova along with members of Trippy Labs (Trippy Jetpack DAO) and PleasrDAO. At present, UkraineDAO raises funds for Ukraine by casting the Ukrainian flag NFT, all income will be donated to the Return Alive Foundation and the NGO Proliska to provide humanitarian relief to Ukraine.
In this Russian-Ukrainian war, cryptocurrency has become one of the main channels for Ukraine to receive donations.
2)Russia Is Brewing Digital Currency Against The Blockade
On the other hand, economic sanctions are horrible for Russia. After SWIFT sanctions were issued, the Russian ruble plummeted by nearly 30% today, reaching an all-time low of 119 rubles against 1 US dollar.
In this context, the digital currency will undoubtedly be a very ideal economic corridor for Russia to break through the economic blockade. Although digital currency is still unable to become the payment currency and ideal channel for mainstream countries in terms of market volume, for Russia, digital currency is almost the optimal solution in terms of evading the impact of sanctions.
According to the data released by Cambridge University in August 2021, Russia is the third-largest country in the world for Bitcoin mining, and the proportion of cryptocurrencies in Russia’s financial system is much higher than in most countries. A report by the Russian government estimates that Russian citizens have more than 12 million cryptocurrency wallets to store digital assets, totalling about 2 trillion rubles, or roughly 23.9 billion dollars.
According to the report of the government analysis centre quoted by local Russian media, The Bell estimates that Russia accounts for about 12% of the global encryption market. Last year, the average market cap of the global cryptocurrency market was 1.87 trillion dollars, and Russia’s share was about 214 billion dollars.
Such a mass base of cryptocurrencies also provides a good ground for separating from US economic sanctions through digital currency channels, which will largely offset the international settlement problems caused by the devaluation of the ruble.
However, for Russia, the blockchain-based transaction system will still be a supplementary means of reducing the impact of economic sanctions outside the SPFS system, and Russia has been actively promoting the process of digital ruble if it can eventually bring emerging markets into the blockchain market. It will be a powerful blow to the hegemony of the US dollar and reduce the world’s dependence on the US-centred international monetary system.
2.The Trade War Calls For Digital Currency
In Bitcoin’s early emergence, there was a lot of confusion due to the underdeveloped technology. However, over time the situation has improved considerably. In 2018, a series of new blockchain technologies were experimented with and solved challenges that might have been less obvious at first, culminating in the Segwit protocol, which created Bitcoin Cash, a relatively successful than Bitcoin. Other interventions were proposed to develop the Bitcoin Lightning Network. Ethereum has also developed Plasma and Casper. With the development of technology and infrastructure, we are seeing more and more people showing interest in cryptocurrencies. Institutional investors are expected to join soon after Goldman Sachs got interested. At the same time, heavyweight companies such as IBM, Starbucks and IEC began to accept encrypted crypto payments on their platforms.
On May 5th, 2019, Trump announced on his Twitter that this week will increase tariffs on 200 billion dollars of Chinese imports to the United States, and will soon impose additional hundreds of billions of dollars in imports to the United States. The unexpected news reversed previous market optimism about the outcome of Sino-US trade talks.
After Trump’s tariff threat, trade relations between China and the United States became tense again. On May 6, the three major stock indexes in the A-share market dropped which led to panic. The Shanghai Composite Index fell 3000 points. It fell more than 6% at that point. Coinciding with the popularity of “Avengers 4”, someone soon linked the two: Thanos snapped his fingers to destroy half of the population, and Trump wiped out half of the shareholders with one tweet.
We know that the existing real economic system is built based on national credit. National credit guarantees the payment and circulation of currency, the normal operation of finance, and the healthy development of the stock market. Based on national credit, investors’ optimistic attitude towards the overall economic situation has created a prosperous market. Therefore, some people say that “confidence” is the most valuable thing in the entire investment market.
Around the national credit, all fluctuations in the stock market are orderly and controllable. Whenever market confidence is low, the government will appear to stimulate the economy, boost confidence, and promote the whole market to turn in a healthy direction.
Today, Trump brazenly launched a trade war that directly targeted the foundation of the entire economic system. Investors suddenly find that when the overall “confidence” is under threat, all response measures within the traditional economic system will be invalid. Therefore, we see that any ups and downs of the Sino-US trade war will cause a violent reaction in the stock market.
It can be said that in this trade war, Trump has found the biggest weakness of the real economy. When “confidence” is threatened, it’s easy to use Twitter as a weapon to achieve results that previously required real money.
Every time Trump “snaps his fingers”, a large number of investors will suffer heavy losses.
Digital currency such as Bitcoin has long been regarded as the replacement and successor of fiat currencies. Compared with legal currency, digital currency relies on consensus to complete credit construction, spanning counties and races, and is independent of the traditional national credit system. In the view of the traditional credit system, this is a natural disadvantage of digital currency.
When Trump shattered the fragile shell of “national credit”, investors suddenly found that national credit is not so reliable, and in some cases, even more, fragile than the spontaneous consensus system. National credit may become the target of hostile countries, and transnational consensus cannot be shaken by any country.
In recent years, Syria, Iran, North Korea, Venezuela, and other hot spots are bound to see digital currency be active.
In the context of the Sino-US trade war, many people have turned their attention to the digital currency market: the digital currency market is more stable than the war-torn physical market.
With such huge opportunities in the field of blockchain and digital currency. The most important thing is how to give full play to the powerful advantages of blockchain and digital currency to solve the practical problems we face.
3.The Global Business Landscape Is Facing Challenges
Since the 1980s, the development of science and technology and the improvement of transportation conditions have promoted the in-depth exchange of global information, trade, culture and ideas, and the concept of globalisation has become a household name. The process of globalisation is changing the world economic and trade pattern visibly, and the international trade network is gradually taking shape. In the three decades from 1980 to 2011, the world merchandise trade grew at an annual rate of about 7%, reaching a total of 18 trillion dollars in 2011.
However, behind the prosperity, there are also many problems with the existing cross-border trade. These problems are particularly prominent in the context of the trade war.
1)Lack Of Trust
Trust is an important element in cross-border trade. The logistics, capital flow and data flow in the business all need to rely on trust to maintain. However, in the current cross-border trade environment, there are relatively few technologies that can be used to support trust, but a large number of traditional paper documents, handwritten signatures, third-party escrow and other modes are used, which not only cannot effectively reduce the risk of fraud, but also affect the processing efficiency of cross-border trade to a certain extent.
2)Inefficiency
The whole process of cross-border trade is not only full of participants and complex businesses, but also involves collaborative cooperation between participants and processes. Among them, most of this involves multiple participant in different countries, and even regulators in different countries. Due to the business particularity of cross-border trade, the absence or problem of any link in logistics, capital flow and information flow may lead to inefficient coordination of the entire business process. Which will directly affects the efficiency of trade and customs clearance.
3)The Risk Is Huge
In the current environment where blockchain technology is not used, almost all technical solutions that can digitise cross-border trade provide centralised services or platforms. This type of system is characterised by a high degree of centralisation at the technical level and governance level. Each user is connected to the centre, which has very asymmetric rights and obligations far higher than ordinary participants. At the same time, such systems also have the problem of low transparency and strong dependence on the centre. Once the centre defaults, the entire system will suffer great damage if loses its connection.
4.OEG Was Born
To solve the above problems, we issued the OEG digital currency. OEG is the acronym of Online, Economics, and Ground, which means “Online Economics Ground”. It aims to provide users around the world with a secure, efficient, and circulating trusted trading system through the issuance of digital currency.
Through the circulation of OEG, the characteristics of currency investment can be used to help ordinary users in various countries in the world in regional crises and wars, ease the capital needs of enterprises in real situations, accomplish investors, internet investment platforms, physical enterprises and other aspects.