Could Government Authorities in China Utilize Blockchain to Secretly Monitor Its Citizens?


It is no secret that the Chinese government is not very friendly with the concept of Western concepts of freedom. In fact, it is no secret that China is a very centralized state as well and that it often tries to find new ways to have some control over its citizens. A third aspect which you may know is that China loves the blockchain technology but hates Bitcoin.

What could this all mean? It could mean that China will use the blockchain as a way to monitor its citizens in the future.

CCN has recently published an opinion piece in which the crypto media outlet affirms that the Chinese Communist Party could be planning to use a state-mandated blockchain to control its citizens.

The article affirms that people inside China are aware that the government is interested in the blockchain and that most decentralized initiatives are thwarted by the state. Recently, the National Development and Reform Commission (NDRC) has been openly hostile to crypto and wants to throw Bitcoin mining away from the country.

This could mean that miners would not be able to mine their cryptos in China anymore, which could affect the whole crypto industry since this would be a very disruptive move.

Part of the reason why the government is so against Bitcoin is that it takes away some of its control. If you have to use the fiat, for instance, you will have several restrictions in sending money abroad. Bitcoin was being used to circumvent governmental control and the government is not very happy with that.

Because of this, it is probable that China will simply decide to crush BTC even more in the future in order to stop its usage and to create its own blockchain will be controlled by the state.

The Blockchain Being Used To Control People

The main argument of the CCN article is that the blockchain technology if removed from its decentralized roots could be a very powerful tool for centralization. China already uses a social credibility ranking, so it makes sense to put the people on the blockchain, as it would be useful to have more control over the population.

Blockchain technology is already being used in court cases all around the country, so it is not a stretch to believe that it can be used by the government to track people as well, the article indicates.

This could help the government in order to punish the people which are considered the bad actors by it and to even disqualify people to buy plane tickets, for instance. Data on the blockchain cannot ever be altered, so it could work as a database to the government.

The article finished by saying that, while some other governments are already using the blockchain for similar activities, it would be worse in the case of the Chinese government because it is not a government that actually has a lot of respect for personal freedom.

In any case, most of this is still an early conjecture about how China may use the blockchain. While nothing is doubtful, the truth is that nobody has any idea of how China will actually use this technology and all the information that it has.

It is probable that it will not be in order to help people get more personal freedom, though, which puts China at the opposite side of what Satoshi Nakamoto was thinking when he invented the blockchain technology.

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