China Is Pushing Blockchain Adoption, Seizing the Momentum From US

Recently, the National People's Congress in China cleared a new law that will allow local authorities to start regulating all of the country's cryptography-related activities starting from Jan. 1, 2020.

On Oct. 24, President Xi Jinping called on his country's tech community to accelerate their efforts in blockchain adoption as a core for digital innovation.

"We must take blockchain as an important breakthrough for independent innovation of core technologies, clarify the main directions, increase investment, focus on a number of key technologies, and accelerate the development of blockchain and industrial innovation."

Xi's apparent willingness to adopt blockchain comes against the backdrop of China's long-standing aversion to cryptocurrencies - with the nation having banned initial coin offerings as well as all activities relating to digital currency trading a couple of years back.

"President Xi Jinping recognizes the inevitability of blockchain technology integration across industry verticals and wisely seeks to place China in a leadership position when it comes to the development, application, and regulation of cryptocurrencies and blockchain-based products."

"We reach a completely different geopolitical level when competition arises not between companies and state regulators, but between global leaders, as we see with the latest announcement by China's President Xi Jinping who wants to take a leading position in the blockchain industry. The competition between political leaders in the fintech industry will sparkle with completely new colors, benefiting all those states that contribute to development, and not resist it."

According to Ermakov, there are many groups currently vying to consolidate their control over blockchain - something that goes against the very essence of what the technology stands for.

Brian Young, CEO of Cuvia Labs blockchain platform, is of the mindset that a Chinese cryptocurrency issued by its central bank could pose a credible threat to the reserve currency status currently enjoyed by the U.S. dollar.

He told Cointelegraph that this is a Sputnik moment for the Federal Reserve, since China seems to have a substantial lead and has the necessary governmental control to ensure widespread adoption.

"This statement is a positive one, as blockchain has the power to change how currency and even society functions, providing an anonymous, peer-to-peer, highly accountable transaction, while it is decidedly counterintuitive coming from China."