The State Council of China ordered local financial authorities and government-funded research centers to focus on the development of blockchain technology and accelerate the commercialization of the blockchain.

The official statement of the State Council of China released on May 24 read:

“To build a regional equity market in Guangdong, according to the opening up of the capital market, timely introduction of Hong Kong, Macao and international investment institutions to participate in transactions. We will vigorously develop financial technology and accelerate the research and application of blockchain and big data technologies under the premise of legal compliance.”

“Vigorous” Development of Blockchain

Throughout 2018, the Chinese government and the local authorities have demonstrated a pro-blockchain attitude, funding multi-billion dollar initiatives to develop blockchain-based networks. In April, Hangzhou city government funded the $1.6 billion Global Blockchain Innovation Fund to financeemerging blockchain startups and development teams.

The Guangdong Pilot Free Trade Zone, an area within the province of Guangdong that encourages the development of technologies to be utilized in the Fourth Industrial Revolution such as the blockchain, AI, and Big Data, houses 71 blockchain startups.

Blockchain startups co-exist with other startups and development teams working on innovative technologies with an identical vision of commercializing revolutionary technologies.

A local analyst stated that China has never restricted the development of innovative technologies that could further bolster its economy. In fact, China is considered to be one of the very few countries that is actually near to becoming cashless, due to the migration of individuals and businesses from banking services to fintech networks like Alibaba’s Alipay.

Zigor Aldama, an award-winning journalist who extensively covered the financial industry of China for several years, stated that China is “light years” ahead of other leading regions in financial innovation. Speaking to Aldama, AliExpress executive Pello Zuniga said:

Speaking to Aldama, Chinese e-commerce consultancy 2 Open founder Luis Galan said:

“I believe cash will eventually disappear in the way we know it now. With current biometric systems, it’s just a matter of time before we won’t even need a device to pay. Our fingers, our irises, even our ears will be payment devices. But that means it will be possible to keep track of all the things a user buys in real time – not only what, but also where and when.”

China has never shied away from innovation and technology development. Its local market is so large that instead of adopting Twitter, it can create its own called Weibo. Instead of YouTube, China adopted Tudou and rather than adopting Facebook messenger, it adopted WeChat.

Essentially, the Chinese government wants to create its own social media network, blockchain network, and technology. Rather than adopting Ethereum, it wants to create its own blockchain network that the world can use. This vision of the Chinese government is one of the main reasons why it has been open towards VeChain, Qtum, and other China-based blockchain networks.

Aggressive Approach

Chinese authorities will aggressively accelerate the development of blockchain technology as ordered by the State Council to demonstrate that the country could be at the forefront of the Fourth Industrial Revolution and lead the development of an emerging technology like the blockchain.