China passes cryptography law; President Xi wants to increase blockchain adoption
It's been 10 years since the creation of cryptocurrency, first introduced through the Bitcoin whitepaper, yet the mainstream world is only now starting to realize the revolutionary opportunity of blockchain technology.
Some companies would go on to accept cryptocurrencies while others would implement it within their business plans, but countries were not so quick with adoption. Countries saw crypto as a threat, a global solution to their corruption, that was consuming their national currency and economic statuses. Regulations and bans were flying around as representatives sought out the 'safest' way to protect investors and their native economies. These regulations caused a scare among the cryptocurrency community, fear especially rising as China's cryptocurrency ban was announced. The Chinese crypto law, or more so statement, led to a lot of FUD in the community as the country accounts for more than 70% of Bitcoin's hash rate, which could have translated to a lot of cryptocurrency adoption loss. But instead of continuing in ignorance, China took it upon itself to educate the country and people of the opportunities. Instead of banishing the possibilities of growth or redundancy, China's relationship with cryptocurrency would begin to flourish.
China's crypto law pushes for adoption
The China-crypto relationship has found itself in multiple mainstream headlines as of recently, all announcements hodling great potential.
As the country feared another ban, the Chinese crypto community's concerns turned into celebrations as government officials revealed plans for a state-backed cryptocurrency. The token would work similarly to Libra. The Chinese project has recruited some big business names as it moves forward. Having already started research in 2015, it is set to partner with industry giants such as Alibaba, UnionPay, and Tencent, and is hoping to launch as soon as 2020. Meanwhile, quite recently, China has passed a law, which takes effect on January 1, 2020, allowing authorities to regulate all crypto-related activities in the country.
This is what Mu Changchun, a senior official at China's central bank, had to say about the thought process behind the Chinese crypto token:
“If [Libra] is accepted by everyone and becomes a widely used payment tool, then after some time, it is entirely possible that it will develop into a global, super-sovereign currency. We need to plan ahead to protect our monetary sovereignty.”
Alongside the positive Chinese crypto law, we see President Xi Jinping striving for the country to adopt blockchain technology. The law so far states that cryptocurrency will be recognized and treated as intellectual property, acting as a way of tracking criminals while allowing genuine users to engage in the space. President Xi believes that cryptocurrency can only better the economic status and goes on to greatly express this in his statement below:
“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.”
How does the Chinese crypto law affect users?
Although the laws are still being refined, this announcement hodls great potential for the entire cryptocurrency community. This announcement, backed by presidential enthusiasm means a more open-minded government space, leading to more lenient laws for those abiding. Blockchain technology has already revolutionized the financial sector through cryptocurrency and offering a safer, faster and more transparent transfer method. There is no saying how far blockchain can go in bettering the world, removing corruption and defining an era, but we are already clearly seeing the benefits from cryptocurrency.
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