China is known to be conservative towards the cryptosphere. ICOs and cryptocurrency exchanges are banned in the country. It seems that the blockchain should be treated appropriately. However, in recent years, the People’s Republic of China has shown an increased interest in this technology.
Fact 1. The Communist Party calls for the blockchain technology development.
The general secretary of the Chinese Communist Party delivered a speech on breakthrough technologies at the Congress. He mentioned blockchain as well. Later, China Central Television (CCTV) made a show about blockchain.
A government‐led research facility called the Trusted Blockchain Open Lab was launched. China became the leader of blockchain‐centric patents race: companies from China filed 56% of all applications to WIPO, while the U.S. is only responsible for 22% of them.
Fact 2. The number of blockchain startups from China is growing.
A document published by the Ministry of Industry and Information Technology of China (MIIT) points at the «exponential» growth of the blockchain industry. In 2017, the number of blockchain startups in the PRC increased by 64% with 178 new projects launched. In 2018, China became the world leader in investments attracted by startups: according to Crunchbase, in Q2 2018, Chinese projects raised 47% of world venture capital, while projects from the USA and Canada collectively share 35%.
Fact 3. China unbans cryptocurrencies within the country.
Chinese were allowed to own and transfer cryptocurrency. At the end of October 2018, it was officially allowed to accept and own Bitcoin in the PRC. The People’s Bank of China also softens its viewpoint towards cryptocurrency: the new PBoC head Yi Gang delivered an optimistic speech.
China’s ambition to massively adopt blockchain within the country is a trend of recent years. The number of blockchain startups and investments raised by them reached record level. The policy regarding cryptocurrency is softening. All this together will make China the world blockchain leader.