Examining China’s Blockchain Stance And Cryptocurrency Strategy For The Future
Trying to Make Sense of China’s Grand Strategy With Blockchain Technology
For the past couple of years, it might appear to some that the Chinese government was trying to have its pie and eat it too, this is when it comes to the blockchain technology and the crypto assets in the market. The one concept that has become the country’s defining strategy is the phrase ‘blockchain, not bitcoin’ when it comes to this market space.
Plus, the different approaches that the government would get into regarding the closed v. open ledgers and the assets has become a study in contrast.
Let Us Consider the Following
Let us try to consider the following that took place last month.
– The first one being the communist party website of China went ahead to release a primer of the blockchain technology. One that included various discussions points on the different key use cases, features and the challenges faced.
– The Central Bank of China, the PBoC Peoples Bank of China, has gone ahead to support the development that is taking place in a trade finance platform that is blockchain based. A platform that will be able to streamline the interbank payments that take place and be in a position to help the SMBs get easy access to the full range of financial tools available in the market.
– China Supreme People’s Court has gone ahead to release a set of new rules. The rules are stating that the blockchain technology has become an approved method to be used for storing plus authenticating the digital evidence.
– The Bank of China, which should not be confused with Peoples Bank of China has gone ahead to reveal their plans to aggressively invest in the current development taking place in blockchain technology and fintech.
While all this is happening the CPC has been a little hostile to any of the activities that are related to the crypto assets. The government had banned all the ICOs last September within the country; this was regardless the assets were security or not. But this was not all as in the same month the Chinese exchanges within the country were ordered to cease their operations.
Additionally, in the last twelve months, there have been about 90 different crypto exchanges and around 85 ICOs that have been closed in China. From here the government went ahead to extend the ban to over 100 international exchanges that have been serving the Chinese market. This ended one of the last options that most of the crypto investors would utilize without the use of VPN, Virtual Private Network.
This is not all as the government will be blocking any crypto related accounts that are found on the country’s major social media platforms, the likes of WeChat.
As a result, with all this happening it leads to two main questions that we would need to consider. The first one is, why exactly is the government a Jekyll and Hyde kind of approach? And the second question to think through is if the current strategy that has been put in place is really sustainable.
But with all these restrictions being put in place in the country it is important to note that the country will still be the most critical hotbeds when it comes to innovation space. Over time as the industry continues to develop the government might just be more amenable to the crypto assets in the market,