China’s involvement with blockchain technology has had a visible shift from anti-crypto to pro-crypto in a span of less than a year. There seems to be no turning back for China in the involvement with blockchain technology as they have made an investment plan for blockchain development that exceeds $2 billion before 2023.
Imminent China’s Digital Currency Involvement
The release of the Yuan-backed government cryptocurrency is the main factor contributing to the massive blockchain technology adoption. The launch is scheduled for early 2020. Meanwhile, China will be making changes, allocating more funds for other sectors such as manufacturing and retail.
President Xi Jinping announced the Distributed Ledger Technology endorsement stating that china will not stay aloof from blockchain technology but instead should be on top of the ‘blockchain food chain’. According to IDC, a global market intelligence company, this announcement by the president will push the blockchain application further forward.
China’s top officials of the communist party called for an acceleration in the adoption of Distributed Ledger Technology, pointing out the important role of blockchain technology in the current technological and industrial transformation.
Just recently, the Chinese government passed a law to regulate the use of cryptocurrencies. The law describes password management as well as the terms and conditions of using cryptocurrencies. There will also be a new agency, a central bureau of cryptography, which will be responsible for creating policies and guidelines for the Chinese blockchain industry. The law will form the basis of the rules that will govern the China government’s digital currency. This law is set to take effect in 2020.
Different Countries Involvement in Blockchain Technology
Besides China, more countries are showing more involvement with blockchain technology. Tunisia is another country that has announced to issue their own central bank digital currency. On the other hand, there’s Singapore, which is adding more and more crypto projects to its sandbox accelerator program. Malta has also made steps towards becoming the blockchain island where multiple blockchain-related companies are moving their operations there.
The United States, however, along with other major economies, is still lagging behind when it comes to blockchain involvement. China wants to be the first major economy to make proper use of the blockchain-centric government approach despite Facebook’s Libra, which is considered a direct rival to China’s digital currency.