Blockchain, the most significant technological revolution has taken the world by storm. From being a part of the supply chain to its application is a financial transaction, Blockchain has emerged as a multifaceted technology. It finds use in almost all business niches. Many counties have embraced this technology with open arms. However, there were some nations which were not confident in this technology, but, looking at its increasing pace and applicability, the scenario is changing. I am talking about China here. We all know that in September 2017, China entirely banned cryptocurrencies and considered it illegal. After which the prices of Bitcoin crashed. However, by 2018, the scenario has changed. In this blog, I will be highlighting, how this is happening and why it is happening.

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Why Chinese are Funding Blockchain Startups?
Blockchain, the most significant technological revolution has taken the world by
storm. From being a part of the supply chain to its application is a financial
transaction, Blockchain has emerged as a multifaceted technology. It finds use in
almost all business niches. Many counties have embraced this technology with
open arms. However, there were some nations which were not confident on this
technology, but, looking at its increasing pace and applicability, the scenario is
changing.
2

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I am talking about China here. We all know that in September 2017, China entirely
banned cryptocurrencies and considered it illegal. After which the prices of Bitcoin
crashed. However, by 2018, the scenario has changed. In this blog, I will be
highlighting, how this is happening and why it is happening.
3

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Chaina on Blockchain and cryptocurrency-
The Blockchain is at a nascent stage. Although there are vulnerabilities associated
with it at the same time, it aided the transaction of Bitcoin. Despite the fact that
Bitcoin gained growth and rapid popularity, but, the fact of the matter is that it is
still considered to be a bubble and doesn’t hold a future. It is the reason China
backed off from Blockchain and Bitcoin. Conversely, 2018 has brought forth some
new changes which are looking promising.For any nation to stand in the
competitive market and to establish a strong foothold, it is imperative to adopt the
most advanced technologies and use it for preparing solution.
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The First Mover Advantage
Although many nations are trying to tap Blockchain and use it for their benefit, we
are still not witnessing it be a part of the mainstream economy. China has taken
the initiative to make to use Blockchain as a part of the mainstream economy and
thus reap benefits out of it.
Let’s understand how it’s going to happen-
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The Chinese CBDC
A Chinese CBDC Despite the fact that in 2017, China banned cryptocurrency, but in
February 2016, Mr. Zhou Xiaochun, the president of People’s Bank of China
(PBOC) president acknowledged that they are analyzing the implementation of
Central Bank-issued Digital Currency (CBDC). Moreover, in January 2017, China
successfully tested the digital note exchange platform. As per Tsinghua Financial
Review, the commercial banks in China used a digital currency for exchange of
notes, some of the prominent banks included names like Bank of China, We Bank,
Industrial and Commercial Bank of China, Bank of Hangzhou, and Shanghai
Pudong Development Bank 6

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A Strategic Play
The use of Blockchain is going to be a strategic play for China. The launch of
Chinese CBDC in sync with the Belt and Road Initiative is a move in this direction.
Belt and Road Initiative is China’s international association with the China-Japan-
South Korea Free trade area, Eurasian Ecnci Union. It will help China to get the
upper hand over this nation as the CBDC will be a platform for cooperation.
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The reason for the emphasis on CBDC is because cryptocurrency exchange is
free from processing fees, it is more efficient and convenient, and will have an
automated implementation which will save time and also reduce the errors. It will
also increase the probability that other countries would pay with RMB thus
enhancing the liquidity and internationalizes the RMB.
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Business Growth
In China, many startups like VeChain launched have come up with a commercial
Blockchain platform which is managing and tracking the import of red wine from
other countries. Consumers can use their mobile phone to scan the IoT tags which
are attached to wine bottles, and they can access all the information related to
manufacturing, logistics, and distribution.
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Many Chinese Internet companies have established a Blockchain laboratory in
2017. The objective of these laboratories is to identify the use of Blockchain and
its application in real life. They will try to integrate Blockchain platform inB2B, B2C,
and financial business.
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Conclusion
The crux of the matter is that China plans to make use of this technology for the
benefit the nation. Whether it is about making it a part of the mainstream financial
transaction, retail business or other, if China can establish a seamless and
regulated system of the Blockchain platform, the technology will revolutionize the
way Chinese economy is running and will help China become a Blockchain based
solution provider on the global front.Learn more about Blockchain
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Blockchain Council Certifications
You can check out our certifications, and kick start your career in the Blockchain
space today.
● Certified Blockchain Expert
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● Certified Solidity Developer
● Certified Ethereum Developer
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