China taking a leading role in blockchain development

A few days back, the price of bitcoin exhibited a bearish momentum falling to an almost staggering $7,300. Many anticipated Bitcoin was on the verge of another downfall.

Fortunately, the Bitcoin market soared from $7,300 to $10,500 in the days after Chinese President Xi Jinping expressed his support for blockchain, quoting that its time that China utilizes the advantages blockchain technology provides.

China is not being left behind in the new wave of technology revolution:

Despite being the most censored cryptocurrency region, it has nurtured a variety of big companies in the crypto ecosystem and blockchain space today. From the world’s largest cryptocurrency exchange market – Binance to the ever-growing blockchain platform – Tron, Chinese entrepreneurs, and startups have participated firsthand in the blockchain revolution and development.

China is also home to some of the world’s largest cryptocurrency mining operations and mining hardware manufacturers, including Bitmain and Canaan. Now with the top leadership endorsement, China’s involvement in the blockchain will be even more in the coming years.

Commenting on the growth of the blockchain project in China, Randolf Gioro, the Head of global operations at BaseFEX said:
“China is a big part of the global economy’s future. Since the beginning of this year, we have seen blockchain become a big chunk of this future. A large tide roll of this success is directly into Bitcoin’s future, platforms like BaseFEX and other blockchain projects”.  

What’s Next: Enterprise blockchain adoption will accelerate in China

Enterprises usually refrain from making the first move into a new technology unless they see promising potential and prospects of enduring success. Now after endorsement from China’s top leadership, in particular calling to clarify the direction and increase the investment, enterprises will make a big move into researching and investing in blockchain technology.

Recently, the Standing Committee of China National People Congress voted to pass cryptography law, which will go into effect on Jan 1, 2020. The new regulation gives direction and guidelines to use cryptography-based password management for products and services. A step towards encouraging blockchain adoption.

Earlier this year in April, China’s National Development Reform Commission (NDRC) proposed banning all cryptocurrency mining operations from the country. Now embracing blockchain, NDRC has decided not to pursue the plan.

China is slowly building a complete blockchain ecosystem to support and supply the coming techno-economic revolutions of distributed ledger technology. Although its goals for blockchain are not fully decentralized yet, it is almost ready to launch its state-backed digital currency.