The China blockchain space has been hard to read. During the epic rally in crypto prices last year, China blockchain support was hard to come by. The state media in China came down hard on the blockchain, and cryptocurrency exchanges had to look for other nations that would receive them.
Now it looks like China blockchain technology is gaining support from the central government. The deputy director of China’s Ministry of Industry and Information Technology (MIIT), Xin Guobin, spoke at the 2018 National Expert Forum on Manufacturing Powerful Countries yesterday, and he had some very supportive words for China blockchain development.
Mr. Guobin said this about the importance of blockchain at the forum, “[Blockchain] can make up for the deficienc[ies] of traditional credit system, prevent information tampering and forgery, and save [money for] society. [This would apply to] finance, e-commerce, smart medical care, social security, Internet of Things, energy and other fields, and will have an important impact.”
China blockchain stance improves competitiveness
The about-face in Chinese blockchain policy probably has a lot to do with the rush to develop the technology internationally. There are numerous public and private initiatives around the world that are all working to design blockchain platforms to boost industrial efficiency.
Xin Guobin said that blockchain should be “grasped from a strategic perspective”, which would suggest that he understands the risks that China faces if it had continued to shun DLT technology. The Hong Kong Monetary Authority (HKMA) announced they would be using a blockchain-based platform to radically change how trade finance works. The platform they chose to use was designed by Ping-An and is already in use throughout mainland China.
China blockchain development efforts will be met with stiff competition from other nations. South Korea recently announced a blockchain program that seeks to fund development in numerous industries, with new blockchain platforms as the goal. In addition to FinTech, South Korea sees blockchain as a solution for international logistics and property rights.
Vague laws don’t help anyone
Mr. Guobin also stated that the regulatory framework for China blockchain development needed to be aimed at the “core goal” of creating a “break-through” in blockchain technology on an industrial scale. This language does little in the way of creating concrete action, but it is very supportive of blockchain development. He went on to emphasize the necessity of “optimizing” the environment for blockchain technology, which could involve easing the current regulatory environment.
While blockchain may be moving closer to widespread development in China, cryptocurrencies are still not welcome. This may put China at a disadvantage as the crypto space continues to develop in other parts of the world. Nations like Malta, Taiwan, and South Korea are creating laws that allow the free and responsible trade in cryptos, which has attracted both talented people, and lots of working capital.
Nicholas Say was born in Ann Arbor, Michigan. He has traveled extensively, lived in Uruguay for many years, and currently resides in the Far East. His writing can be found all over the web, with special emphasis placed on realistic development, and the next generation of human technology.