- The highly centralized Red Dragon had always opposed the crypto-verse and the blockchain technology.
- The official announcement was made by the Standardisation Administration of China(SAC).
- Today the ban and the sentiment against cryptocurrency still exist in some parts of the governance but China is forging ahead now working on blockchain.
China, a country where the government controls every bit of it. Any news, business activity or any development in the world can say “hello” to China only if their government permits it officially.
China is famous to study the global technologies profoundly and then coming up with its technology, either it is a new Google version or the recent blockchain technology which it is pondering upon.
The highly centralized Red Dragon had always opposed the crypto-verse and the blockchain technology. In 2017 it officially banned the technology, but the statement made by Chinese President Xi Jinping about embracing blockchain technology has completely changed the direction of the crypto-verse in China, the second-largest economy of the world.
This Wednesday witnessed a new step taken by the Chinese government to strengthen the relationship with the blockchain technology as it emerged with a new announcement about the formation of a national level committee for the regulation of blockchain. The official announcement was made by the Standardisation Administration of China(SAC).
SAC is one of the prominent branches of the Chinese government serving the purpose by representing China on the global platform for Standardisation. The SAC announced that it is looking for all the steps that can be taken for the economic development and the social governance of China.
Focusing on these developments, it has decided to form several committees focusing on the technological sector and this, of course, includes the blockchain technology.
The Red Dragon never seemed to be interested in the digital currency and the blockchain and when it had banned the initial coin offerings(ICOs) two years before, bitcoin saw an immediate downfall by 6 %. Xi Jinping also termed decentralized cryptocurrency as a fraud.
Today the ban and the sentiment against cryptocurrency still exist in some parts of the governance but China is forging ahead working on blockchain. People’s Bank of China in August made an announcement about rolling out China’s Central Bank digital currency (CBDC), and this was an integration with the blockchain.
This reality is revealing the two faces of China, on the superficial level it seems to condemn the cryptocurrencies but the inner sector is working ambitiously to build such a technology, which of course is not too surprising as China is famous for the same.