Since the inception of the cryptocurrency industry, China has made its presence known.
Despite negative price movements, global powers have positively shifted their sentiments toward the cryptocurrency market. Many countries are further exploring this new digital landscape and developing legislative frameworks. The global consensus seems clear: innovate with blockchain or fall behind the rest of the world.
China is proving itself to be a leader within the digital currency arena. The country has already amassed superior mining power for several blockchains, and the country continues to increase its already near-majority stake in the crypto market. Even with the government banning all initial coin offerings (ICOs) and cryptocurrency trading in late 2017, developers continue to introduce innovative blockchain applications.
The Past of Crypto in China
China had one of the largest crypto trading volumes worldwide, before the ban on ICOs and trading that took place on Sept. 4, 2017. The immediate interest of cryptocurrency in the world’s most populous country spoke volumes to the technology’s potential. While many argued that the crackdown happened for the government to survey any money-laundering or other illegal activities.
Even though it looked like China was anti-crypto and anti-blockchain, in reality, the scenes, crypto companies in China kept working. In fact, Chinese crypto exchanges were thriving following the ICO ban.
Huobi and OKEx, two major exchanges migrated to Hong Kong — an area free from the economic restrictions of the mainland — to serve Chinese investors and international traders. Within weeks after their relocation, these crypto exchanges experienced a massive surge in daily trading volume and demand.
Expansion and Progression of Crypto in the Present
China has one of the largest shares of blockchain-based startups, miners, and crypto-mining farms in the world. China has not just grabbed the attention of only crypto enthusiasts but of the public at large. Last May, President Xi Jinping made a public announcement about the importance of pursuing technological research. President Xi declared that blockchain technology, artificial intelligence, and the Internet of Things (IoT) are reshaping the global economic structure.
The local government-backed Xiong’An Global Blockchain Innovation Fund began offering $1.6 billion (10 billion yuan) to Chinese blockchain startups. The announcement took place during the opening of the Hangzhou Blockchain Industrial Park, which would serve as the incubation center for these startups. Hangzhou has grown to become one of China’s top fintech hubs and is a primary reason why MOAC has decided to station our Blockchain Application Center there.
Conclusion
To better understand China’s blockchain technology innovation, one needs to take an overview of the growth that has been accumulating over the years. The number of use cases are increasing, over time for blockchain technology that optimizes IoT, traditional Big Data, cloud computing, and artificial intelligence. The popularity of these emerging technologies among Chinese citizens is catching the attention of the rest of the world. It is here that we will witness the versatility and use cases of cryptocurrencies. China’s increasing stake in crypto has just begun, and it isn’t backing down any time soon.
