- In October 2019, Chinese President Xi Jinping announced that China would join the world in the emerging cryptocurrency network.
- China without any delay joined the blockchain industry with a total market capitalization of $702.26 billion, which is safe to say.
- China is centralizing a decentralized technology. This requires all nodes using the blockchain’s registration with the government.
Is China’s manoeuvre to master the blockchain, exhibit it’s technological and financial supremacy? Importantly, in October 2019, Chinese President Xi Jinping announced that China would join the world in the emerging cryptocurrency network. A recent report revealed that 247 listed Chinese blockchain companies exceed $700 Billion, Market Cap.
The Emergence of Cryptocurrency Network In China
The Interlink Pulse Institute (IPRI) released China’s first listed company +blockchain report, “Listed Companies 2019-2020 Blockchain Development Report”. It states, there are 247 Chinese companies according to their statistics, as of May 2020. Moreover, China without any delay joined the crypto industry with a total market capitalization of $702.26 billion, which is safe to say. Approximately 60% (142) of the companies are researching and developing technology. Further, 82% (202) has broadcasted immense development in application adoption, technical upgrades, blockchain services, etc.
Importance of President Xi’s Announcement on Blockchain
The President’s announcement invigorated China’s blockchain advances, where the state supports businesses ventures with easy financing and grants. Hundreds of blockchain projects have been registered as per Chinese regulations with the government including some of the biggest banks and technology companies.
China seems fixated on using the full potential of the Cryptocurrency network. Moreover, various sectors have already started incorporating blockchain mechanisms to drafting invoices, purchase, and shipment of luxury goods, settling disputes, etc. Xi’s announcement came as a beacon of light amidst the previously negative policies. Thus, put a stance towards the cryptocurrency industry.
What is China Aiming For?
China is centralizing a decentralized technology. This requires all nodes using the blockchain’s registration with the government. Hence, the usual privacy and transparency that comes with cryptocurrency are absent. This indicates that China is aiming high for technological supremacy. Further, this will feed revenues to new emerging business prospects, even though investing large sums into a new tool doesn’t always make it an effective venture. China’s blockchain industry is still in its infancy. Additionally, it seems to be viable without a problem but, the success rate of the ongoing cases is still in the process of being studied and understood.