China Loves Blockchain Technology, But Not Bitcoin!!

Last week, China recognized the importance of Blockchain technology.
Chinese President Xi Jinping has even described the technology as “part of the technological revolution”.
Moreover, the Chinese have learned from the largest TV channel in the country that “the Blockchain value is ten times higher than that of the Internet. “
This recognition has not remained with the unique affirmations; in recent days, the Chinese central bank has introduced the use of the Blockchain to digitize paper checks.
As for the giant Alibaba, he wants to promote this technology in the health industry.
Like what, the Chinese state, although rather opposed to cryptocurrencies, can be open to Blockchain technology.

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The regulation of cryptocurrencies in China

Indeed, China is better known for its strict regulation of Crypto currencies than for its adoption of Blockchain technology.
For example, last January, China cracked down on cryptocurrency, causing Bitcoin to fall to its lowest level in more than a month.
This fall had also affected Ethereum and Ripple with respective falls of 19 and 29%.
In addition, this regulation had pushed Chinese miners to cryptocurrency to relocate.
Another example, the mining company Bitmain, manufacturing ASIC chips, had been forced to turn to artificial intelligence to create alternative income.

It should be noted that China is a major player in the Bitcoin market.
On the one hand, by the number of mining companies exploiting crypto currencies.
And on the other hand, by the volume of Bitcoin transactions.
However, Chinese regulations allow to hold cryptocurrencies, but neither to negotiate them nor to exchange them for fiduciary money.

China and crypto currencies

Relations between China and Cryptocurrencies date back to 2013.
At the time, the Chinese state noted the craze for cryptocurrency and warned against the financial risks associated with the virtual currency.
It then prohibited banks and other financial institutions from carrying out operations related to Crypto.
In addition, all companies involved in virtual currencies were required to follow procedures to avoid money laundering or tax evasion.
In 2017, China banned all ICOs and forced trading platforms to halt transactions between crypto and fiduciary currencies.
As a result, large exchanges such as Huobi or BTCChina, relocate, or offer only exchanges between crypto.

In 2018, the Chinese state also banned peer-to-peer and blocked access to ICO’s trading platforms and sites.
In parallel with all these restrictive measures, the Chinese government has appointed a national committee of experts. This last May published a study of 421 false cryptocurrencies.

Despite all these restrictions and publications, three of the best-selling currencies on the world market are Chinese: Qtum, Ve-chain and NEO which are today in 19th, 16th and 11th positions.

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China and Blockchain, a love story

But China seems much more open to Blockchain technology than to cryptocurrency.
Indeed, in this history, we can add that in 2016, China has added Blockchain to its thirteenth five-year plan for development at the national level, until 2020.
And today, China recognizes Blockchain technology as revolutionary and more important than the Internet.
Chinese President Xi Jinping said: “The new generation of information technologies, represented by artificial intelligence, quantum information, mobile communication, the Internet of Things and the Blockchain, is accelerating the breakthroughs in its range of applications. “
In the wake, China Central, the country’s first television channel, broadcast on June 4, a special one-hour program devoted to the subject.
Moreover, it is undeniable that the relationship between China and the Blockchain is closely linked to the city where Alibaba was created.
This is Hangzhou where the Blockchain Industrial Park was inaugurated last April.
On the occasion of this inauguration, a fund of $ 1.6 billion was allocated to the Blockchain research. In addition, a research institute was also created to support the development of technology.
In addition, the Park is trying to attract startups in this area by offering them generous help.

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Alibaba and the Blockchain

Among the giants of the Chinese market, there is of course Alibaba. The company holds most blockchain patents worldwide.
Indeed, Alibaba has obtained 49 licenses, mainly focused on the area of ​​public welfare and supply chains.
Yet despite his involvement in the Blockchain world, Alibaba founder Jack Ma calls Bitcoin a “bubble”.

Apart from Alibaba, other important industries are related to Blockchain technology.
For example, Wanxiang Blockchain Labs, co-founded with Vitalik Buterin.
Or, Ve-chain, NEO and Baidu, the Chinese Google, which announced its “super chain” protocol.
In fact, China holds the largest number of Blockchain patents in the world with 55% of patents filed in 2017.
In comparison, the United States has deposited 22%, Australia, 3%, 20% divided among other countries.
Also, this year, 178 new Blockchain startups have sprung up in China, raising their total figure to 456 from 136 in 2016.

The future of Blockchains in China

This year, China is expected to launch new legislation to strengthen Blockchain.
In addition, the director of the Institute of Digital Currency, the PBoC, is optimistic about this new technology.
Moreover, the Chinese central bank has announced its interest in a digital currency based on the Blockchain, but not decentralized.
It is also the PBoC that developed the Blockchain system to digitize paper checks, as we saw above.

So it seems that the Blockchain is sunny days in the land of the rising sun.

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