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The Communist Party of China’s certified media outlet, The People’s Daily, released a featured article on blockchain and its future in China on October 4th. The piece was titled ‘Blockchain, a breaking point for China to overtake.’ Dovey Wan, an investor, adviser and crypto analyst shared screenshots of the piece and its translation on Twitter, calling attention to specific parts.
The article claims that although blockchain is the future, innovation in blockchain does not guarantee that virtual currencies and digital stocks will increase in value soon and calls for citizens to avoid ‘aircoins,’ which aligns with China’s policy of ‘yes blockchain, no cryptocurrency’ as it’s being reiterated in the Chinese media. The piece also notes that blockchain is still in the early steps of its development and still has room for improvement, thus certain factors regarding security, safety and standards are yet to be upgraded.
Due to the increased use of blockchain and cryptocurrency in illegal activities, the feature points out that the use of electronic platform to store and spread illicit data, illegal transactions and the use of blockchain in money laundering should be a punishable crime.
Regarding the future of blockchain technology in China, the article suggests that to further develop crypto technology and promote its revolution, China should lay out and follow comprehensive and judicious regulations. These regulations should make sure that innovation is happening at a steady pace and has room for trial and errors. The regulations would also ensure that disobedience and breaking of those laws do not happen on electronic platforms, as to reduce the use of blockchain in illegal activities.
Claiming Not to Hamper Development of Blockchain Technology
The article concludes that there is no wrong direction for the growth and expansion of blockchain technology in the country. By avoiding the rush of development of blockchain, and the repeated construction of the technology there can be more room for organized and orderly competition.
Pointing at the fact that China already has a steady base for the development of blockchain technology, the piece states that the country has a ‘good foundation.’ The People’s Daily further mentions that several global companies for blockchain technology have already established layouts in the country and intend on further expanding its growth.
Currently, over 20 provinces in China have introduced policies and strategies to promote and grow blockchain industry. Previously, President Xi Jinping has also released statements about the future of blockchain as he endorsed its growth in China, a speech that was followed by a large increase in the prices of digital assets and stocks for blockchain companies.