China: blockchain strategy and responses from the crypto world
Blockchain

China: blockchain strategy and responses from the crypto world

By Stefania Stimolo - 23 Nov 2019

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In the last month, China, the most populated country in the world, has continued to be active in the crypto and blockchain scenario, issuing statements and plans for a future strategy that will have an impact on the entire ecosystem. 

Since the announcement of Chinese President Xi Jinping on October 25th, who stated “We must take blockchain as an important breakthrough for independent innovation of core technologies”, there has been a wave of propaganda and strategies surrounding the blockchain within China itself.

Chinese cities raised funds for subsidy programs, Chinese investors rushed to buy shares vaguely associated with the blockchain, censors declared a ban on calling the word blockchain a social scam and, in the crypto scenario, the price of bitcoin had risen by 12% the day after the speech. 

Not only that, even the People’s Bank of China (PBoC) has attracted a lot of attention, in its mission to launch its own digital currency (DCEP) and, given the country’s strong interest in blockchain technology, nothing can deny that it could be based on the blockchain itself. 

But behind this continuous development and openness, there seems to be something that is not being accepted. Indeed, Xi’s latest statement seems to confirm that the famous crypto ban on trading fiat currency for cryptocurrencies, could now turn into a ban on their use, making them illegal. 

This is because the use of crypto, especially bitcoin, is continuously associated by Chinese regulators with purely criminal activities and therefore uncontrollable and risky. 

As a result, the PBoC issued a new regulatory update yesterday, stressing that it would strengthen regulation and control and block cryptocurrency trading. According to the report, after identifying the activities related to the crypto world, the authorities can immediately terminate them.

A total distrust which caused the bearish sentiment of recent days in the crypto market, with bitcoin that reached $7000, a low that hadn’t touched for six months. 

The lawyer, also a blockchain expert for the MiSE, Tamara Belardi, commented on the Chinese situation:

“China is trying, on the one hand, to keep up with innovation, promoting blockchain technology in the field of industrial transformation and technological innovation; on the other, however, it doesn’t want to give up its monetary sovereignty, strengthening its power of control through the creation of a Chinese digital currency, the so-called DCEP (Digital Currency Electronic Payment). The spread of the latter should be supported by the use of payment platforms such as WeChat Pay and Alipay, challenging private projects, such as Libra, and decentralised systems, such as the one underlying bitcoin.

We don’t know if the DCEP will be successful or not. One thing is certain though, which is its different nature compared to decentralised cryptocurrencies”.

The President of Billion Team Enterprise, Marinella Andaloro, also spoke on the subject:

“We have been dealing with the Chinese (but even more with Hong Kong residents) since 2013, first of all the crypto world and then the blockchain with a focus on financial services…

The Chinese who are most enterprising and eager to enter the sector are trying to circumvent the obstacle of the ban by turning to third-party companies with locations in crypto friendly jurisdictions… but this phenomenon has become more frequent already in 2016”.

 

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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