China’s IT Ministry Reveals Thoughts About Blockchain

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Thoughts About Blockchain

What does China’s IT Ministry think about blockchain?

“[Blockchain] can make up for the deficienc[ies] of [the] traditional credit system, prevent information tampering and forgery, and save [costs across] society. [This applies to] finance, e-commerce, smart medical care, social security, Internet of Things, energy, and other fields, and will have an important impact.”

– Xin Guobin, deputy director of China’s Ministry of Industry and Information Technology (MIIT)

A post on China’s Ministry of Industry and Information Technology (MIIT)’s official website delivered deputy director Xin Guobin’s message to the country. He urged the Republic of China to ‘unite’ its forces to foster blockchain as a ‘core’ technology for the new digital economy.

During the deputy director’s speech at the 2018 National Expert Forum on Manufacturing Powerful Countries, Guobin highlighted the important role of blockchain and how it should be grasped from a strategic perspective. To accelerate the adoption across all areas of the economy and society, the blockchain technology must be developed on an industrial scale.

The deputy director, who is also the director of China’s National Leading Group of Manufacturing Power Construction, further added that it is necessary to have comprehensive planning for the creation of a positive institutional and regulatory environment. With this, it’ll help achieve the ‘core goal’ of securing a ‘break-through’ in blockchain applications on an industrial scale.

To accomplish the stated goal, Xin Guobin underlined the need for strengthening the official policy guidance, easing institutional constraints, and ‘optimizing’ an environment conducive to the blockchain space.

The Chinese government policy still stands toughly against decentralized cryptocurrencies thus resulting in a negative impact on domestic crypto trading.

Nevertheless, a quick search into some of the blockchain initiatives of the Chinese government will give yield a result that they are actively trying to embrace the advancement and adoption of blockchain technology. An in-depth report mentioned the gathering pace in momentum of China’s blockchain space thanks to the endorsement from highest echelons of the political class. A few cryptocurrency projects have gained official favor by staying within official boundaries and seeking partnership with local governments.

Chinese President Xi Jin Ping openly praised blockchain as an example of a new generation of technologies that are “reconstructing the global innovation map and reshaping the global economic structure.”

Major companies and government bodies are doing thorough blockchain research. Four major state banks are going over blockchain applications for security and transparency. The twin giants of international shipping, Alibaba, and Tencent are experimenting with blockchain platforms to aid and track their cargos.

People’s Bank of China (China’s central bank) has been pursuing a long-term vision for blockchain integration by recently filing a new patent for a digital currency wallet. In the same month, it has also revealed its new blockchain-powered system designed to tokenize paper checks. This state-developed digital currency and electronic payment systems offer benefits all the while maintaining a high level of control over its usability and traceability. The digital currency is anticipated to be the digital alternative of the fiat currency.

The longest-serving governor for the People’s Bank of China, Zhou Xiaochuan stated that “…the digital currency is inevitable due to technology development. In the future, the use of traditional banknotes and coins will shrink or even disappear.”

Chinese policymakers are eager to work with setting the framework and standards that will help accelerate the industry adoption of blockchain technology. All the while protecting the investors and educating them in the middle of the promising and unregulated cryptocurrency ecosystem.

A Chinese regulator, knowing about the technology’s significance, warned this month against ‘mythologizing’ blockchain’s potential amidst the ascent to lead in the global innovation. China has taken concrete steps to make blockchain part of their core technology even so its features could undermine the communist ideology and centralist system that is governing its country. It’s a half and half battle that will tip off to one side sooner or later.

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