Blockchain In China Is A Hype Says Chinese State Media

20. Nov 2019 Posted by Akolkar B on News

Over the last few months there have been multiple stories of accelerated blockchain development taking place in Asia’s most powerful economy China. Last month, Chinese President Xi Jinping also asked local companies to step up their blockchain developments.

However, the latest report from Chinese state media Focus Report that the claims of “accelerated” blockchain developments are not completely true. On Monday, November 18, Focus Report aired an episode dubbed “Blockchain is not a Cashchain”.

The episode discusses that around 32,000 companies in China say to be using the blockchain technology but in reality not even 10% of the companies do so. The episode mentions that 90% of the companies misuse the concept of blockchain just for financial gains and business momentum.

The episode agrees to it that China is certainly giving a major push to blockchain and is only second to the U.S. But the actual reality if far from what is being claimed currently.

As a result, China is also witnessing a massive in the number of legal rulings involving blockchain. Yu Jianing, deputy director of the China Communications Industry Association Blockchain Committee, said: "Cracking down on illegal crimes is actually an important measure to promote further innovation, development and integration of the blockchain industry."

Recently, there have been multiple reports making rounds about China’s Central Banks - People’s Bank of China (PBoC) - is working aggressively on the CBDC project. Citing global competition from the likes of Facebook Libra, the PBoC plans to launch a Digital Yuan.

Since China banned cryptocurrencies back in 2017, it has now passed a separate state law to accommodate its CBDC plans.

In another latest development, a publication named Chinese Military reported that China is currently planning to bring blockchain technology to streamline its military operations. The publication wrote: “The Chinese military could adopt blockchain technology to manage personnel data, boost training and mission performances, and provide soldiers with earned tokens that could be used to collect rewards, a move that experts said could give more immediate incentives to military personnel compared to previous reward systems”.