Cashless options like WeChat and AliPay already dominate everyday payments in China. Given that there is no imperative for transitioning to blockchain in these areas, the state has instead focused on bringing the technology to large-scale dealings in the economy. These often include areas were paperwork and complications often hamper efficiency, like in the realm of foreign currency trading. Although the latest comments by the Digital Currency Research Institute do not indicate a reversal of previous policy, they clarify the explicit goals of China’s blockchain dream. It’s clear that adoption will come on the institutional level—for example, BeInCrypto reported last year of the government’s blockchain-based platform for paying bills which is currently live in Zhejiang province. All of this underscores China’s firm position on being for “blockchain, not cryptocurrencies.” This signature policy has been enumerated many times by state censors, and it illustrates a deep problem for the industry globally. Although China leads the world in adoption currently, maybe someday it will realize that one cannot have secure blockchain-based networks without cryptocurrencies.
Just in: the Digital Currency Research Group from China Central Bank just posted an article , saying that “due to the conflict between blockchain decentralization and central bank centralization, they don’t recommend to change the traditional payment system with blockchain. pic.twitter.com/CBOhO8ymQJ— BlockBeats (@BlockBeatsChina) February 21, 2020
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