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The Chinese government in the process of adopting the blockchain – Cryptocurrencies

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The new silk road passes through the blockchain. China continues to “blockchain” its utilities and businesses.

10,000 new blockchain companies were created there this year.

Xi Jinping’s blockchain race, however, raises concerns. Will his government be able to hijack a tool in the service of a “better” democracy, of accountability, for espionage purposes?

Blockchain in Chinese companies and government institutions

According to a local newspaper, the government of Beijing hashad published its first blueprint on the use of blockchain in public services on July 15, 2020.

The document says 140 government service apps are already on blockchain.

These applications fall into 3 main categories:

  • data sharing and exchange;
  • collaborative management of business processes;
  • Storage and issuance of certificates.

According to an October 26, 2020 article from Beijing News, the director of the blockchain research center of the Zhejiang University, Cai liang, said Beijing has adopted around 100 blockchain applications so far.

He adds that Chinese government institutions and businesses have quickly found concrete use for blockchain.

Besides the People’s Bank of China who is about to launch his digital yuan, the Central Administration of Cyberspace of China – the authority in charge of internet regulation and censorship in the country – would also be ready according to Liang to deploy blockchain solutions.

It would be the same for the Ministry of Industry, Technology and Information.

Liang also evokes the case of State Grid Electric Vehicle Service, the branch of State Grid Corporation of China which is one of the largest energy suppliers in the world.

The organization manages 400 million kWh of green energy on a blockchain-powered traceability platform.

Blockchain – China: decentralize to better spy?

The interest of China for the blockchain is ambiguous. The government of Beijing is far from known for his love of democracy and freedom of expression, while blockchain advocates decentralization of processes.

The China worried with the creation of its hub, the Blockchain-based service network (BSN). The latter could be a way to absorb all the major blockchains like Ethereum (ETH), EOS or Tezos (XTZ) in order to better spy on the activities of network users.

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China is ahead of its Western rivals in the race for CBDCs and blockchain. Would this decentralization tool be more difficult to find its place in Western democracies?

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