China, backed by Chinese President Xi Jinping, is likely to become the king of blockchain. The lack of U.S. policy or clear support for blockchain technology is one of the biggest motive, the CNBC reported Tuesday.
In October, Xi delivered a speech that encourage his government to support blockchain. It was the first case in which the leader of a major world country supported the technology. Xi said the blockchain is also an important breakthrough in the independent innovation of key technologies.
Blockchain refers to a technology that started Bitcoin, a cryptocurrency. The role of blockchain in cryptocurrency is to leave a public record of unalterable and impracticable distribution activities. There is also a property that does not allow possession of either side by its ‘distribution’ function.
The concept of blockchain has evolved as it applies to other areas such as finance.
In China, blockchain transactions such as bitcoin are technically illegal. However, not all cryptocurrency-related activities are entirely illegal.
Garrick Hileman, research director of blockchain estimates that more than half of Bitcoin and other cryptocurrency mining takes place in China. And millions of citizens have or invest in it.
China has never challenged the blockchain issue, the fundamental technology of cryptocurrency
After Xi’s remarks, the price of Bitcoin surged. It was in the hope that the Chinese government may ease restrictions on cryptocurrency transactions. Experts, however, said that would not happen and that Chinese companies would instead focus on developing blockchain technology.
Lawrence Wintermeyer, co-chairman of Global Digital Finance, told CNBC that for the foreseeable future, the Chinese government is likely to stick to its push to develop blockchain technology rather than cryptocurrency.
Han Jung-chu, co-founder of Kinetic Capital, told CNBC, “China has clearly stated that its future technology base is blockchain, and China will be the first country to go that month.As AI (Artificial Intelligence) and big data (like in previous cases), the inflow of capital will trigger a wave of innovation at the central government and local governments.”