The blockchain and cryptocurrency space in China is very different to most other parts of the world as there is a massive appreciation from the government on what the distributed ledger technology can provide, but when it comes to decentralized cryptocurrencies, there is less interest.
In fact, China became the first country to outright ban cryptocurrencies as it slammed the door on them in 2017 because of fears around capital control. This has led to the country curtailing the progression in this regard, but when it comes to blockchain, the government and regulators have stepped up their efforts.
China’s president Xi Jinping even reiterated his government’s stance on the power of technology and its role in the future in a now famous speech. This has seen much of China’s efforts in blockchain double with the central bank even looking to create its own cryptocurrency as well as a new blockchain committee being launched.
China’s Ministry of Industry and Information Technology (MIIT) has published a list of the 71 companies and public entities that have joined this new committee, which is named the “National Blockchain and Distributed Accounting Technology Standardization Technical Committee.” The group was formed to discuss and set industry standards for distributed ledger technology.
The Chinese government has leaned on some of its bigger tech giants before in the advancement of its blockchain sector — as well as the development of its own Central Bank Digital Currency. It was reported last year that Alibaba would be one of the companies to help roll out the currency.
Now, with this committee boasting delegates from Huawei, Baidu, fintech companies Tencent and Ant Financial, and e-commerce giant JD.com, as well as some of the country’s technical universities and relevant enforcement agencies, the nation looks to be taking blockchain into the next step.
Insurance and banking companies are also represented in the blockchain committee for the potential the technology can help there as conglomerates Ping An and Qianhai Wezhong Bank, as well as the car components manufacturer Wan Xiang are present.
In terms of the technological arms race, and the desire to be a world superpower, China looks to be taking the lead and the initiative with blockchain technology. It’s one rival, the USA, has taken a much more sceptical and maligned look at how blockchain and cryptocurrency can function as a tool for technological supremacy