Crypto Media Site Claims China’s PBOC Stablecoin Is Inevitable, Plans To Rule $102 Trillion Blockchain Market
Unless you are fairly new to the crypto world, you have certainly witnessed the disruptive potential of the blockchain technology. Without a single doubt, the blockchain is one of the most important technologies in recent years and some people have even been calling it Web 3.0.
China has blocked many cryptocurrencies and Initial Coin Offerings (ICOs) from its territory, but this does not mean that the second largest potency of the world would stand still while other countries used this technology alone. China is rocketing ahead of many countries and creating many blockchain patents that will help it to use this powerful technology.
Ban On Bitcoin And ICOs
China is known for its blockchain technology, however, it has a very tough stance against cryptocurrencies and Initial Coin Offerings (ICOs). Trading cryptos in China are illegal and more than 150 exchanges went out of business because of this.
However, according to data from Genome, the research wing of the Digital Currency Research Lab, has 41 blockchain patents and Chinese companies occupy six of the top ten slots in the patent lists with Alibaba having 90 patents.
David Li, the founder of Trinity, understands China. He affirms that, for the Chinese, it is not the price that matters, but the underlying technology. Price means nothing when you cannot own it, so you have to focus on the technology more, he believes. This is a massive shift from the Western view of cryptos.
The President of China, Xi Jinping has stated that the blockchain technology is accelerating breakthroughs via applications and that it will be worth $102 trillion USD in the future. This is three times the value of the internet today.
Because of this, it is simply easy to see how China stands on the crypto world. The Chinese State wants to dominate the technology and use it while removing its potential of being a speculative asset, something that sometimes gets in the way of the development of the technology in the West.
A Chinese Stable Coin
All of this culminates in the Chinese stable coin. A report from 2017 states that a stable coin is inevitable in the country and that the central bank can easily upscale the existing circulation of fiat using it.
While nobody is sure if this asset will really be a stable coin, it probably will. This powerful token would be able to compete internationally with the USDT (Tether USD) and even Bitcoin, some people believe.
Everybody knows how the Chinese government loves centralized control, so a state-based cryptocurrency that works in a centralized way can be a good way to achieve it, especially for the revenue collection of the government. Because of this, we have no doubts that we will still hear about China and blockchain in the future.