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Recent Major Progress of China’s Blockchain indusry

As global efforts to bring clarity to the understanding of how the Blockchain technology works continue, Hong Kong-listed fintech company Credit China Fintech Holdings has just set up a joint venture with the Bitfury Group to promote the technology in China.

The US$30 million deal is the first major move to be made by the Bitfury Group since last week at Davos when it – in collaboration with international law-firm Covington – launched the Global Blockchain Business Council (GBBC) which comprises of 33 founding members who are mainly global business leaders and innovators from 25 countries including Australia, Canada, China, France, India, Nigeria, the United Kingdom and the United States.

This is a great boost for China and the technology particularly as many business executives still do not know much about Blockchain despite its potential as the latest and most interesting encryption technology for the secure transfer of digital assets among consumers, businesses, banks and financial institutions over the internet.

For example, according to a Deloitte survey conducted last year, only 39% of 308 senior executives at large U.S. companies had little or no knowledge about the technology – though those respondents with adequate knowledge about it believe its impact will be profound.

Yet, there are numerous suggestions that Blockchain presents opportunities for a fast-changing financial system that can accommodate the needs of a growing middle class and those people moving from cash to cashless.

Investments like Credit China Fintech’s confirms the view that China is a viable market for the adoption of Blockchain on a massive scale. Interest in the technology has also been kindled of late even before the Chinese government published a research paper detailing its benefits.

According to a report by Caixin this week, the People’s Bank of China (PBoC) completed a trial on December 15 in conjunction with major domestic commercial banks including Industrial and Commercial Bank of China (ICBC), Bank of China and WeBank to test how transactions and settlements might take place via a custom distributed ledger system.

Going by the report, China may become the first central bank in the world to issue its own digital currency. The country will also set up a digital currency research institute after the Chinese New Year holiday which starts on Friday.

Speaking on the current Blockchain landscape in China, the CEO of Decent, Matej Michalko, says the country is getting closer to being the first to use the technology on a large scale. He says:

“Right now, the potential is literally endless. Peers from the financial industry and capital investment see blockchain technology as a genuinely positive force. Many of them predict Bitcoin to explode in the following years, fulfilling Satoshi’s original vision. Yet, only after firm regulations are in place. China has a chance to become the first country where cryptocurrencies will change the financial market as we know it now. With strengthened transparency and security measures protecting the content of transactions, popularity of blockchain technology will probably sweep China’s financial community.”

 

Editor’s note: On the even of Chinese New Year, 8btc wish all people home and abroad of Bitcoin/Blockchain community a proserprous and fruitful year of rooster!

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