China is known as a technically inclined nation with the tendency of rapid growth thanks to its centralized governance. The president of the most populated country in the world recently addressed the nation and called for accelerated adoption of the emerging technology blockchain.
The announcement created quite a frenzy in the political sphere as well as the decentralized space. The announcement also came on the heels of China's central bank launching its own digital currency which make use of blockchain technology as well.
Now a report by global market intelligence firm IDC suggested that China might see a compound rise in spending towards blockchain technology. As per the report China's spending is set to surpass $2 billion by 2023, registering a growth of 65.7 percent in spending from 2018 to 2023.
Blockchain technology has seen a meteoric rise in adoption over the last couple of years, where in 2019 most of the spending by government on this tech has been towards the banking sector. Apart from that, other established industries such as retail, manufacturing, supply-demand have also registered significant spending towards the blockchain tech.
China is Moving Fast, and the rest of the World Needs to do a lot to Catch Up
China focused itself in researching the still new technology from as early as 2014, and although from 2014-2019 it had quite a passive stance towards one of the most prominent use cases of blockchain i.e cryptocurrencies, where it banned crypto exchanges and crypto trading. But a lot has changed in 2019 as China realized the potential of the tech in shaping the future of the financial world.
Many believe China might also go back on its decision of banning crypto exchanges and the use of Bitcoin. A recent report from the largest local daily published an article calling Bitcoin the first successful use case of blockchain.
Given China is also the mining hub of the world, the rest of the world really needs to ponder on their stance towards crypto use, as China already has an unprecedented advantage over others thanks to its large population and ability to adopt rapidly.