“Seize the opportunity,” Xi Jingping exclaimed to the people of China at a government meeting on Thursday, causing Bitcoin value to skyrocket over the $10,000 value, as well as 8 altcoins that would be featured and tracked on China’s new Dragon Perpetual Index (DRGN PERP), through the derivative exchange, FTX.
As promising as this may seem, Chinese regulations and Blockchain developments are fairly unlike the rest of the world’s use of Blockchain. Why?
The MIT Technology Review does a wonderful job of explaining that China has been heavily invested in Blockchain technology since 2014. Tech giants such as Tencent and Alibaba are soon to introduce their blockchain systems, and China announced over the summer that the country will have its own national digital currency. But China might be hiding their true intentions behind the world’s over-zealous interest in Blockchain.
China is currently in crisis as the Trump Administration has crushed their economy with trade-war tariffs, and Hong Kong Riots reached their 21st week of pro-democracy protests. China is trying to reclaim its identity of economic power and media censorship, while the rest of the world is witnessing the nation’s struggle.
Blockchain sounds like a great idea for China, but there is one aspect of the Blockchain that we should fear about China, and that is the ability to track information through Blockchain technology.
Most of us believe in Blockchain because it executes immediate transactions with utmost transparency. Transparency, in China, could could only go so far. China is implementing only its own Blockchain technology, and in doing so, the Chinese Government is observing every transaction that is made. In a sense, the Chinese Government is using Blockchain to further its censorship ideology. This is speculation, but it is certainly possible.
China prohibits the use of Bitcoin in its central banks, CoinDesk notes, but the nation has also declared that it is implementing a new regulatory system that will be controlled by the People’s Bank of China.
Instead of viewing China’s Blockchain frenzy as a innovative statement, there is certainly a possibility that Xi Jingping’s statement on Thursday was subtly implying that there’s more than meets the eye when it comes to China’s Blockchain implementation. We may be blinded by Blockchain’s endless potential as even China understands its greatness, but we must be cautious; China may be “seizing” more than we know.