China Has Many Strategic Reasons To Invest in Blockchain

In October, China's President Xi Jinping said China should "Seize the opportunity" to use the blockchain.

He's actually in a different mindset entirely: somewhere between corporate blockchain consultant and ICO scammer.

Officials at the Chinese Communist Party know that blockchain is a popular technology, and they probably know the applications are presently limited.

There are two reasons for him to care about using blockchain.

Pessimistically, a new digital currency would give China a head start in escaping dollar hegemony, tying China's economy more closely with Belt and Road Initiative investment recipients and Russia.

It's the latter scenario that represents the most interesting and important blockchain application.

In the China/Taiwan case, China can threaten to interfere with companies' business in China.

Anyone who has spent time in the blockchain space develops a certain skepticism and a nose for hype.

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