The ubiquitous mobile payment giants of China, WeChat Pay and Alipay, recently announced that the barrier of requiring a local bank account for foreign visitors, who wish to pay at Chinese retailers, has been abolished. Now, anyone can link their international credit cards, including Visa, Mastercard, and Discover, to pay via various methods such as scanning and being scanned, mini-program payment, and password-free withholding. One would think that this move comes as excellent news for customers who previously faced issues due to a lack of local bank accounts.
While this comes across as a considerable convenience for foreign users, the statement does not fail to promote Alipay’s partnership with the Hangzhou Asian Games. Could it be that the primary motive behind such a move is more strategic in nature? Synchronizing this feature rollout with the grand event might facilitate easy payments boosting the consumption behavior of foreign attendees which, in turn, aids the economic flow in China.
On the NFT front, there has been a downturn of sorts. The royalty volumes received by the NFT projects on the Ethereum Blockchain have dipped significantly. Despite NFT volumes being at 50.6% of 2022 levels, the YTD royalties amount to a mere 14.7% of 2022. The average royalty fee rate has also declined from 2.5% in 2022 to 0.6% in the first half of 2023, as per the Nansen report.
While the dip in royalty fee rates raises questions about the sustainability of existing business models, it also questions the claimed hype surrounding NFTs. Are they still the rage they once were?
In a rather curious development within the Korean banking sector, Hana Bank and Woori Bank are exploring the option of CD tokens. Perceived as being much more stable than the traditionally used stablecoins, CD tokens offer banks a financially secure alternative. However, without a solid game plan in place for a CBDC system, rushing into adopting CD tokens might appear precarious.
The crypto wallet sector has also seen some fascinating developments, with wallet Zengo introducing a premium subscription called Zengo Pro. While the introduction of additional security features and a $20 monthly subscription hints at increasing the financial security in the crypto world, questions about the necessity of a premium service, when fundamentally basic accounts were free, arise.
With Blockchain intelligence firms like Chainalysis further showcasing the evolution of money laundering strategies post the Bitfinex hack, the crypto world is pulled into a deeper debate about the security vulnerabilities existing within the crypto space. Despite having managed to crack the case revolving around the duo accused of laundering the stolen Bitcoins, question marks over the security of massive digital fund transfers still hang high.
These ongoing debates and developments within the Blockchain, crypto wallet, and digital payment sectors firmly highlight the contention between innovation and the questions of necessity, stability, and security that come along. Whether the benefits offered outweigh the risks poised, only time will tell. As we progress, the focus continues to be on striking a balance between advancement, prudence, and safety.
Source: Cryptonews
