The news was being circulated on the ban of ICO and cryptocurrency exchanges in China. But, the research and survey findings suggest a different view altogether. Chainalysis reported that more than $50 billion of the cryptocurrency moved from Chinese digital wallets to other parts of the country. The possibility pointed towards Chinese citizens using the cryptocurrency and Blockchain mode to transfer their money.
Chinese Blockchain Market-An Overview
Chinese government cracked down over the private cryptocurrency platform, but it is backing the Blockchain application of its Central bank. People’s Bank of China is working on developing its own ‘fiat digital currency.’ A survey report states, the digital currency of China’s Central Bank has been used for 3.13 million worth of transactions that makes it almost 1.1 billion Yuan. Now, this is a whopping digital currency usage figure.
Besides, putting an axe over the private cryptocurrency market ‘China is said to be the heart of crypto mining’ globally. It hosts specialized chips making local factories, possesses inexpensive digital power, and has cheap labor to operate these crypto facilities. It shows that the Chinese Blockchain market is not shady but booming with Bitcoin currency millionaires.
Another foothold of China’s crypto market can be seen through the ‘pilot run’ of China’s cryptocurrency by its Ministry of Commerce. They have made the Central Bank Digital Currency or CBDC available in the major cities like Hong Kong, Beijing, and Macau. Even the Ministry said they would test the digital currency during the Winter Olympic Games in Beijing.
In 2019, Chinese President Xi Jinping stated that China would set the standards for investing in this ‘emerging technology, i.e., Blockchain. After this announcement, the Blockchain and crypto activities accelerated in the country. Moreover, the search for Blockchain platforms and cryptocurrency on China’s top search engine ‘Baidu’ jumped to almost 1,400%. The Chinese top finance companies and banks, and leading tech companies, have started adopting the Blockchain.
Crypto: An Innovative Asset for China
With the Chinese government being optimistic about the future of digital currency and the Blockchain platform, the private and government funding has already started. China wants to dominate this innovative technology area too. The country has included the development of Blockchain in their 5-year-plans also.
China is beginning to reap this digital currency’s benefits, as it sees potential advantages in using Blockchain and cryptocurrency. It is now supporting crypto mining as top corporations are investing heavily in this technology. Like, China’s eCommerce giant ‘Alibaba’ has already filed some ’43 international patents’ on varied Blockchain technologies since 2017. Even currencies like QTUM, NEO, and VeChain are leading Chinese cryptocurrencies.
Will China Become Future Blockchain Hub?
Yes, as China is progressively moving to include cryptocurrency and Blockchain technology in its priority list. With funds coming from government authorities and corporations, Chinese companies are already providing decentralized applications.
Thousands of companies are already attracted to China’s Blockchain-based Service Networks. It shows how the country is minimizing the risk, increasing the security, and maximizing its control over the Blockchain technology. This rapid adoption of this technology makes Blockchain the present and future both for the country.