Chinese President Xi Jinping's announcement that the country would invest heavily in blockchain technology, combined with a radical move to remove online publications suggesting that the technology is a scam, has fueled the long-held optimism of defenders of the crypto. Of course, the reality is that China's marked shift towards blockchain-friendly policies fits into a much broader trend that has seen multinationals and Asian governments exploit the considerable potential of distributed ledger technologies. .
Read also: China ranks 35 cryptographic projects as President Xi pushes Blockchain
A period of two years
President Xi's announcement was focused on creating a state-supported digital currency (a fixed currency linked to the renminbi), an idea in the making since the country's central bank began to explore this possibility as early as 2014. At the dawn of a new decade, a law will come into force on January 1 with the aim of "facilitating the development of the cryptography sector and ensuring the security of the cyberspace and information ".
It is expected that the currency in question will be launched shortly thereafter, although the possibility of blockchain technologies allowing the continued transformation of China's large industries is even more important. Xi specifically mentioned that the technology could be applied to areas such as finance, utilities, employment, training and infrastructure management. This is far from 2017, when the government imposed a general ban on all cryptographic activities and exchanges. From deep suspicion to state-supervised cryptocurrency (although closely watched), in just two years, it's all a reversal.
Shortly after this announcement, the local government of Guangzhou announced a $ 150 million fund for exceptional blockchain projects, with more initiatives planned in the near future.
The local government of Guangzhou has just announced a government funding of 10 billion RMB (about 150 million dollars) dedicated to the "blockchain grant" for "outstanding blockchain projects"
More details below
I believe that all other local governments will follow, the overall grant can be huge
– Dovey 以德服人 Wan 🗝 (@DoveyWan) October 30, 2019
Increasing interest across Asia
Needless to say, the news – which caused a huge spike in search traffic for terms like "blockchain" and "bitcoin" – did not hurt the prospects of Asian cryptography projects in general, with stocks of various blockchain companies in the region blaze. In the markets, Chinese blockchains are among the biggest beneficiaries this week, although there is no indication that they will receive an influx of new business from government enterprises. In fact, six of the top seven cryptographic assets in the top 50 this week are of Chinese origin. Bitcoin, up 38% over the last seven days, is the only outlier.
Other companies seem to be surfing the wave or, at least, enjoying the prevailing mood music: the South Korean conglomerate Samsung is coming ad The integration of Tron (TRX) to the Keystore Blockchain present on the Galaxy S10. In addition to facilitating the creation of decentralized applications (dapps) running on the Tron ecosystem, the Keystore will allow users to access TRX and negotiate it directly from the wallet. their handset. It may be by chance that industry sources are questioning rumors that Samsung would l & # 39; outsourcing part of its smartphone manufacturing in China.
Samsung has been experimenting with blockchain technologies for some time now and, with their growing arsenal of dapp, their long-term strategy looks positively crypto-centered. This is not the only smartphone company to test the waters of the blockchain; The Taiwanese electronics giant HTC has also invested heavily in decentralized services and in a handset powered by a chain of blocks, the Exodus 1, and its successor, the 1, capable of handling a complete bitcoin node .
The visualized effect Xi: Look on #bitcoin chain transactions during the days of soaring prices by 40%.
Chinese waking hours:
number of Txns: 169K
Volume Txn: 475K BTC
Average value Txn: 2.8 BTC
number of Txns: 175K
Txn Volume: 962K BTC
Average Txn value: 5.5 BTC
– TokenAnalyst (@thetokenanalyst) October 29, 2019
Where next for China?
The long-term effect of China's increasingly favorable prospects for blockchain remains to be seen, and as long as the cryptocurrency of its state has not hatched and various policies are implemented, we We will not be able to quantify the consequences for blockchain technology and digital currencies in general. That said, interest in the region is largely unrelated to the President's unwavering approval; According to a Financial Times report, Chinese companies have filed more blockchain patents than companies in any other region of the world. A significant percentage of bitcoin mining is concentrated in the region and many of the largest cryptocurrency exchanges are based or have been based in Asia, from Beijing to Hong Kong to Tokyo and Tokyo. Whatever its ramifications, Asian cryptography companies would never let President Xi's decree be lost.
Do you think that China's blockchain legislation will benefit Bitcoin? Let us know in the comments section below.
Images courtesy of Shutterstock and Coincodex.
Did you know that you can check any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply fill in Bitcoin address search to see him on the blockchain. In addition, visit our Bitcoin Graphics to see what's happening in the industry.