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China vs America: two different approaches to blockchain technology
China vs America: two different approaches to blockchain technology
Blockchain

China vs America: two different approaches to blockchain technology

By Stefania Stimolo - 3 Nov 2019

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The latest news from China that have animated the markets with strong public and private interest shown for the blockchain, leave a bitter aftertaste on the behaviour of the American world power.

According to a post by Anthony Pompliano, co-founder of Morgan Creek Digital, it seems that China could somehow become the new world leader in blockchain innovation and digital resources with respect to an America that until now has purely ignored this technology, limiting itself to drastically discouraging any initiative in the sector. 

These are words of discontent on the part of the great American bitcoin and blockchain supporter who sees, in the current scenario, great potential for development and growth in the hands of a country, China, that from the beginning has sided against bitcoin and the entire crypto sector by introducing its official ban since 2016.

Despite this Chinese state ban, however, it seems that the population, companies and institutions in China have thoroughly monitored the crypto situation, accessing in different ways (legal and otherwise) to learn more, use and reassess it in their favour. 

Pompliano points out that, in contrast, the initial American institutional action of wanting to ignore this disruptive technology in its embryonic stages has been transformed into a progressive limitation to its application on the US territory.

For example, the latest decision of the SEC – Securities and Exchanges Commission – which after 8 months of waiting and postponements subsequently disapproved of the ETFs on Bitcoin proposed by the company Bitwise Asset Management.  

Two sides of the same coin: embrace or limit the innovation obtained by peer-to-peer blockchain technology that could either trigger new markets or reduce the potential of existing ones.  

In this regard, reference is also made to the statements of the presidents of the two countries. 

On the one hand, this summer the President of the United States, Donald Trump, had declared with a tweet, his disapproval of the crypto world. At the same time, Trump also discouraged Facebook’s Libra project with conservative comments on the American institution: 

In contrast, the reverse is the case today in China, where President Xi Jinping says he wants to accelerate the adoption and development of the technology to take a dominant position in the emerging blockchain sector.

Moreover, China has shown interest in digital assets through the Central Bank Digital Currency (CBDC), subsequently referred to as the Digital Currency Electronic Payment (DCEP), which will be issued at a date not yet directly determined by the People’s Bank of China (PBoC). 

On this point, just earlier this week, Huang Qifan, Vice President of the Chinese Center for International Economic Exchanges said that the PBoC has been studying DCEP for five if not six years and is likely to be the first central bank in the world to launch a digital currency

 

 

Stefania Stimolo
Stefania Stimolo

Graduated in Marketing and Communication, Stefania is an explorer of innovative opportunities. She started out as a Sales Assistant for e-commerce, and in 2016 she began to develop a passion for the digital world, initially in the Network Marketing sector, where she discovered and became passionate about the ideals behind Bitcoin and Blockchain technology, which lead her to work as a copywriter and translator for ICO projects and blogs, and organize introductory courses.

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