Living next door: China, South Korea and crypto
Sep 20, 2018
Fueled by the rise of payment technologies, Chinese consumers are becoming used to going ‘cashless’. With smartphones and apps, it has become super easy to make payments for goods and services. When Chinese tourists go abroad, they mainly shop for luxury products, and especially in Korea, which is a favourite destination for the booming business of daigou ‘shopping agents’ from China.
Blockchain technology seems to be the ideal bridge to cross from cryptocurrency in Korea to a stable and legally acceptable fiat currency in China.
Living next door
An active and growing business in domestic trade between Korea and China is carried out by small traders or daigou ‘shopping agents’. They travel from China to buy Korean goods, especially beauty products and cosmetics, for sale to Chinese customers back home, and are making good money.
What is unique about this big business is that on a daily basis a huge transactional value is being remitted across the border in both directions to facilitate this trade. The number of ‘shopping agents’ and online traders conducting such business is estimated to be 75,000 - 100,000, and the trade volume per year is valued at US$3 billion to US$10 billion annually.
Trade is not the only thing that connects the economies of China and South Korea. So does tourism. Chinese travel agencies are again resuming group tours to South Korea. And Chinese tourists visiting the country topped over 400,000 in July this year, up from 280,000 in 2017.
Another startling development is that 65% of Chinese tourist shoppers visiting Korea are now using cashless payments during their travels.
Still, one of the biggest challenges faced by the business and tourism sectors in China and Korea is the exchange rate fluctuation between CNY and KRW. Сryptocurrencies and blockchain are able to facilitate the conversion to local currency offline or online, thus streamlining trade and tourism between countries. However, there are challenges to overcome.
Two different approaches to crypto
Chinese financial regulators do not recognize virtual currencies as a tool for retail payments and the banking system is not allowed to accept them or to provide any direct or indirect support.
Despite this, the fact is that cryptocurrency is an excellent means of storing value. It is possible to issue cryptocurrencies without fees, and reduce transaction costs to almost nothing. Therefore, it is an ideal mechanism of payment while traveling as a tourist and for making purchases in retail establishments.
On the contrary, South Korea currently leads the world technologically in regard to cryptocurrency and smart wallets that enable cashless payments. South Koreans were responsible for a third of all Bitcoin trades occurring in cryptocurrencies by the end of last year, and the country has some of the world’s most developed legal frameworks related to token sales, blockchain, and digital proof.
WCDC: connecting the two worlds
Recognizing the potential for cryptocurrency and seeing that the China-Korea market needs a fast, safe and easy payment solution in e-commerce and trade, an innovative project called World Credit Diamond Coin (WCDC) started to develop a blockchain platform for real-life payments in virtual currency. It enables quick processing of transactions and provides the ability to easily convert crypto to fiat currency and transfer to bank accounts worldwide.
The team believes the WCDC technology will help tourists and small businesses in China and Korea overcome the operational difficulties they face. It will provide an innovative payment system which satisfies the legal requirements of the Chinese financial regulators, and utilizes the technological advances in Korea to expand the retail, tourism and e-commerce business volumes between both countries.
To enable people to make crypto payments anytime and anywhere, WCDC implements its centerpiece solution - the BR card that is promised to become a bridge between crypto and fiat currency.
The BR card works in conjunction with an e-wallet technology, which was developed by KCASH, a fintech company listed on the Korean Codex Exchange and which has been working on blockchain platform development in collaboration with Braincore Company to provide a real-time payment solution to users in both Korea and China.
The technology will be compliant with traditional financial institutions in Korea and China enabling users to pay for goods and services in both countries, both online and offline with the BR card.
WCDC has all the chances to become a real-life solution that will open up the new era of payments powered by cryptocurrency to everyone. Get on board and start the digital adventure today!
About the project
World Credit Diamond Coin or WCDC develops a project aimed to bring a real-life solution for crypto spending. It enables next generation e-payments using fiat and crypto that will work across multiple countries, business-to-business, and for consumer purchases. Using the cutting-edge technology, WCDC ecosystem ensures quick processing of transactions and provides the ability to convert crypto to fiat currency and transfer to bank accounts worldwide. With all these features the project creates one of the most complete visions of what the cryptocurrency ecosystem could look like when it finally reaches mass adoption.
The company is actively developing and reaching new milestones on its roadmap. Recently, WCDC has announced the listing on CoinSuper - one of the largest exchanges in the whole world, which is included in the TOP-10.
Moreover, now the project conducts a massive Airdrop, where the first 20,000 lucky participants will get free 40 WCDC tokens. You can find out more about the Airdrop campaign and how to join it in the official Telegram chat.