It is hard not to get too excited about the recent waves that have been coming out of China in the last few days, especially considering Bitocin’s big move, but it is also a time to be measured in weary. China does look to be slowing changing its tune on blockchain and crypto, but it is early days.
That being said, if the ship is now sailing in the right direction again, and the government has taken this time to get involved, there could be a big change in the market on the horizon. The president is backing blockchain again, there are crypto-like laws coming into place, and suddenly, the government made cryptocurrency looks to be fitting in well.
China has a huge and powerful population, and its sway in a nascent space like the cryptocurrency one could be huge. It could be the catalyst that sparks much bigger adoption, even if China is not ready to accept the likes of Bitcoin etc.
It all began with the president of the country, Xi Jinping, reiterating his stance on blockchain and its importance to China and the technological revolution of the coming years.
Xi stressed that the implementation of integrated blockchain technologies is key in promoting technological innovation and transforming industries.
“We must take blockchain as an important breakthrough for independent innovation of core technologies, clarify the main directions, increase investment, focus on a number of key technologies, and accelerate the development of blockchain and industrial innovation,” he said.
More so, there has been a first-ever cryptography law passed in China. Again, this may not directly refer to Bitcoin or even cryptocurrency, but it is linked to the key component of blockchain tokens.
In order to understand the greater implications of this, Dovey Wan, who is an authority on Chinese crypto happenings, explained: “The key takeaway is — the development of new cryptography, hashing algo, even the usage of the tech, will be in the official legal realm. This means you need to follow the CCP standard for all ‘encrypted’ behaviors, which can be VERY broad, from mining to block propagation.”
The general feeling is, as to be expected in China, the importance of the control of this space is now key for the government, At first, they clamped down when there was no control of the decentralized space, but it appears they may be more willing to embrace their own types of blockchain and cryptocurrencies.
Indeed, China is edging closer and closer to launching its own official cryptocurrency through the central bank. The Chinese coin has been in the works for some time now, but it is believed that it will soon launch and be the replacement for SWIFT.
As is often the case in the crypto space, when there is some good news, it can be blown out of proportion. And watching Bitcoin spike 40 percent on China’s small inclination towards changing their ways on crypto is a little too much.
However, it is something to keep an eye on. China has been a missing piece of the puzzle for some time now, and it looks as if they could be returning to the table – at their pace, though.