It has been interesting over the years to see the evolution of China’s attitude towards blockchain and cryptocurrency. Initially, China had seemed particularly hostile as it implemented a ban on cryptocurrency which wiped out most of the industry within China and led to most crypto users going underground and making use of VPNs in order to trade cryptocurrency. However, blockchain did find some favor within China and is been implemented even at a governmental level. Most recently, they have been rumors that the government is looking to create their own national digital token and this is believed to be in response to Facebook‘s upcoming Libra token.
Now, on October 24, 2019, China’s President Xi Jinping has called for an acceleration of blockchain implementation within the country as a means to boost innovation and these comments were made during a committee on blockchain technology.
The president obviously thinks very highly of blockchain technology as he stated during the committee that he believes blockchain’s implementation is the key to transforming and imputing innovation into various industries and this is why he believes that blockchain innovation should be given more attention.
“We must take blockchain as an important breakthrough for independent innovation of core technologies, clarify the main directions, increase investment, focus on a number of key technologies, and accelerate the development of blockchain and industrial innovation,” he said.
Despite Xi’s enthusiasm for blockchain as a technology, it does not seem that the country will be softening its attitude towards outside cryptocurrency anytime soon. Besides the ban on both cryptocurrency and ICOs, there are rumors that crypto mining will also be banned within China and this, many believe, will be the final death blow to the industry within the region. Even then, it has been stated that there is no official timeline for the upcoming Chinese national digital currency and from all indications, it seems the country would rather create their own in-house currencies and digital token system than rely on anything from the outside.
While China has not given an official time to before their own token, Facebook is currently still trying to sort through regulatory distrust to get the Libra token off the ground in time for their estimated 2020 launch.