Develop Blockchain in China – Really a good thing?

The crypto market presently is still down cool from an enormous bout of FOMO that originated from China last month, which President Xi Jinping endorsed that blockchain, the technology most associated with cryptocurrencies like BTC, would play an important role in the next round of technological innovation and industrial transformation.

That created a shock wave of excitement throughout the space, as the nation prepares to launch its own sovereign digital currency. However, is this move actually a good thing for space?

The new wave of technology in China

As of recent reports, China has expressed ambitions to become a world leader in blockchain technology. The Communist Party and local governments all the country considered the comments of the president on the tech as a call to action.

“Officials and party cadres must understand that the highest leadership attaches great importance to blockchain technology because of its application prospects in the real economy, people’s livelihood, and state management”.

From that time, state media has been giving the public with many articles about blockchain and the necessity to embrace the technology. Additionally, local governments have set up industrial estates to attract blockchain startups, in response to the call to support innovation.

Develop Blockchain in China - Really a good thing?

Especially, on Nov 24, authorities in Deqing – a small city in the eastern province of Zhejiang became the first place to host an international blockchain summit. According to that, Zhang Feng, a chief engineer at the Ministry of Industry and Information Technology shared that China would seek to establish a national committee for blockchain standards and prioritize research into developing applications for it.

Besides, Mu Rongping, the director of the innovation and development research center at the Chinese Academy of Sciences said that blockchain could likely become a key feature in China’s future governance. He also emphasized the potential is huge for the use of new technologies, such as in areas of public security, public transport, crime investigation, and anti-corruption campaigns.

The technology “could open a new chapter on the integration of governance and technology if proved a reliable technology”, Rongping added.

On the other hand, China has continually crackdown on the buying and selling of digital property because it clearly sees them as a risk to its personal centralized crypto-forex when issued. Changpeng Zhao – CEO of Binance lately revealed that holding BTC was not unlawful in China and the regime has simply been flexing its muscle tissues and reminding the individuals who are bosses.

Big brother on the Blockchain area

China has a diabolical record with regard to human rights, therefore, more development technology will only allow those abuses to be extended, and the state surveillance to increase. Moreover, it has enforced draconian capital controls which strictly limit the amount of money people can take out of the country.

Chinese internet and tech monopolies such as Baidu, Alibaba – which owns the South China Morning Post, and Tencent are fully behind any state initiatives and are likely to ‘swim with the tide’ to placate autocracy and maintain profits. So, blockchain is maybe to be the next piece of artillery in the country’s ongoing efforts to weaponize its currency.

A digital yuan, mostly based on a centralized state-controlled distributed ledger, would provide unprecedented ranges of monetary knowledge on its inhabitants. A further push to a cashless society will promote people into going digital by using the already heavily monitored payments platforms within the nation. However, digital currency helps the central bank easily to control and manipulate.

Now the crypto yuan is just the begin. If China impulses its ambitions, blockchain is likely an integral part of creating the complete nation from synthetic intelligence to finance monitoring to facial recognition.

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