China and its regulatory authorities might be wary of – and at times actively against – cryptocurrency, but its associated technology of blockchain gets their undivided attention and support.
The most recent suggestion made by the China Banking Regulatory Commission (CBRC) only adds to that notion.
While the CBRC had been quick to discredit initial coin offerings (ICOs) and offer its support in the decision of banning them, in a recent document that focused on the development of financial technologies, the institution’s committee suggests that blockchain should be one of the major initiatives that financial institutions across the country should take seriously.
The suggestion was made about developing the secondary loans market of China, a sector that the country’s banks are very interested in enhancing further.
It was advised to have blockchain technology adopted for sharing processes of “critical data” including, but not limited to balance sheets, to enhance the liquidity and effectiveness of the secondary loans market.
The organization provided its conclusion by stating that having the blockchain technology integrated for this purpose is imperative for the future.
China’s comments are interesting
While considering China’s approach to banning ICOs, shutting down the complete operations of cryptocurrency exchanges, and having the currently-rumored crackdown on cryptocurrency trading applications, one would think that the government and its institutions do not want anything that could remind them of cryptocurrency to remain in the country.
However, China seems to have segregated cryptocurrencies and the blockchain. While it does not think highly of the former, it seems to see the latter as a source of great potential. The government is appreciating the difference between an invention and the technology that was used to create it.
Some would argue that it does not really have much choice in the matter, as the suggestions that are being proposed in the document to utilize blockchain for asset products’ backend operations is something that European countries are already looking into (as specified in the document itself).
Whether China is considering blockchain out of the fear of missing out and being left behind by other countries or it is looking into it from its own decision of identifying it as a beneficial technology, the fact remains that it is considering blockchain. Seeing the technological innovations presented by the country in the past, it could mean big things for the blockchain industry as a whole.
Not China’s first blockchain adoption on a broad scale either
While the Chinese government is still deliberating whether to use blockchain, the private sector has already acted on its own decision to do so.
The country has very recently seen not just one but two blockchain platforms originating out of it, both involving the Singapore-based blockchain platform, Qtum.
In recent announcements, Qtum had shared its plans to join hands with Baofeng Bokocloud to develop blockchain solutions for the video industry giant. It had also confirmed that it would be a part of an extensive blockchain research lab with the BTN Foundation and 360 Blockchain Research Center.