Blockchained China: Ban or No Ban, the Crypto Sun is Refusing to Set

  • Alexander Goborov

    While China has indeed imposed a ban on ICOs and crypto exchanges, its relationship with the Blockchain is far from over

Blockchained China: Ban or No Ban, the Crypto Sun is Refusing to Set
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Contents

With the population of 1.4 billion people, the largest of any in the world, and GDP of 12.5 trillion USD, China is, without doubt, one of the major global players. Nevertheless, there have been talks about the Chinese government’s unwillingness to accept the many benefits of the Blockchain technology, which culminated in China’s official crypto ban last year.

Does it mean that China’s romance with the Blockchain is bound to wither? The answer is not even close: this is a gross misreading of what has been actually happening.

The Ban

China banned ICOs in September of last year and soon after outlawed all cryptocurrency exchange platforms. Incidentally, that did not stop the price of Bitcoin from skyrocketing, but it did make many think that it would be China’s Blockchain finale.

As a matter of fact, this is not what the Chinese government had in mind. Their goal was not to prohibit Blockchain per se, but rather to combat ICO fraud which was ubiquitous on the mainland. Paradoxically enough, China is making a centralized effort to develop a decentralized phenomenon; after all, the Blockchain technology did make a mainstage appearance in China’s 13th Five-Year Plan for IT Development in December 2016.

In addition, the chairman of People’s Bank of China (China’s central bank), Zhou Xiaochuan, said earlier this year that digital currencies were, in fact, an inevitability, including those backed by nation-states, giving his reasons for the imposed ICO ban:

“For Blockchain projects with technological potentials, they should conduct thorough testing before rolling out services. Otherwise, a reckless expansion may incur serious security and financial stability issues.”

The Situation Right Now

The fact that the Chinese government acted decisively to fight fraud and instability (which was to be expected) by pushing the ban on ICOs and crypto exchanges does not mean that China’s relationship with the Blockchain is finished. Not by a mile.

Lest we forget that, to this day, three of the major crypto exchanges are de facto Chinese. The giants HitBTC and Bitfinex are based in Hong Kong. Sure, Hong Kong is not mainland China, so a different set of rules applies; however, it still is an administrative region of People’s Republic of China and has been since Hong Kong’s transfer from the UK in 1997. Most definitely, the Chinese government were well aware of what this ban would (or rather, would not) mean for Hong Kong’s crypto industry when they finally put their foot down.

Another huge player in the game is Binance, the world’s largest cryptocurrency exchange by trading volume, whose founder Changpeng Zhao is Chinese. Binance started out in Shanghai and later moved to Japan to avoid the ban, but it wouldn’t be unreasonable to assume that both the company and the Chinese government were well aware of each other intentions, well in advance. It is also quite possible (and even probable) that Binance maintains some ties with China to this day, since the company’s predecessor, Fusion Systems, is still operating from within China.

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Crucially, according to the most recent statistics by Datalight, today 56% of all patents in the world related to the Blockchain come from China. Furthermore, this year 47% of all attracted venture capital globally has also been Chinese. The month of January alone saw over 100 million USD in Blockchain-related projects in China.

The Future

Evidently, China’s affair with the Blockchain is not going anywhere; instead, the government wants to turn China into a global centre of innovation by adopting the Blockchain technology at the national level, including state commerce, government, and academia, as opposed to letting the ICO scammers roam free.

It has also been reported that China is extending its hand to Venezuela in their support of the latter one’s switch to the state-backed cryptocurrency, the petro, and DLT. This, too, must be indicative of something.

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In May of this year, China’s president, Xi Jinping, made it clear what direction the country is set to take in relation to the Blockchain, having declared:

“A new generation of technology represented by artificial intelligence, quantum information, mobile communications, internet of things and blockchain is accelerating breakthrough applications.”

Ban or no ban on ICOs and crypto speculators, it appears as though China is planning to make good use of what the Blockchain technology has to offer, and it has proceeded to do so already.

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LTC Price Predicted to Keep Rising After Sparking Crypto Spring — Five Positives from Litecoin

  • Jack Thomas

    🌱☀️Litecoin has been one of the best performing cryptocurrency assets in the first quarter of 2019, and there are a few reasons why it is boosting the crypto spring. From its impressive mainstream adoption, and with its speedy and cheap transactions, as well as added privacy and impending halvening, the price of LTC is set to do well

LTC Price Predicted to Keep Rising After Sparking Crypto Spring — Five Positives from Litecoin
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It would be wrong to call the cryptocurrency bear market over – the same low-performing market that has lasted well over a year now – however, there certainly is a change in the air. Bitcoin is over $4,000 and other altcoins have flexed their muscles, but none more so than Litecoin.

Litecoin, the fourth-biggest coin, which is currently trading at $60.52, has doubled its value in the first quarter of 2019, having started the year at $30.29. This coin, dubbed the silver to Bitcoin’s gold, has made some significant strides heading into the cryptocurrency spring.

The cryptocurrency spring, which is seeing prices in the market slowly come right and rally again, may have well been helped get off the ground thanks to Litecoin’s good performance through these first three months.

Many have dubbed this crypto spring as the beginning of altcoin season, and with that, there have been some big boosts from the top 20 altcoins that have aided in bringing positive sentiment to the market – none more so than Litecoin.

Reasons for the boom

Litecoin has always been in the shadow of Bitcoin, but it was created to be something different, much more of a cash system. It is this direction that is starting to be evident with Litecoin’s movement as the coin looks to forge ahead.

Reasons for the boom

One big boost for Litecoin has been its mainstream adoption that has picked up significantly with the goal of the coin’s team to get the cryptocurrency into payment systems. For example, Bob Moore Auto Group has signed on with Aliant Payment to accept Litecoin at their dealerships, starting with an Oklahoma City location. This means customers can buy a Subaru with LTC.

Additionally, Litecoin has always been about having fast transaction times as well as low fees in order for it to be usable as a digital cash, and the way things are going currently, it is hitting those attractive targets.

For instance, a November 2018 transaction worth $62 million only cost the sender $0.50 in fees on the Litecoin network. And with these low fees teamed up with the scaling layer of the Lightning Network, there is not much slowing Litecoin down.

Litecoin is also looking to boost user privacy as the team believes it is something that is missing from both LTC and Bitcoin. The Litecoin Foundation announced last month a collaboration with privacy coin Beam to potentially integrate the Mimblewimble protocol, which would add scale and privacy to the cryptocurrency.

Finally, the Litecoin halving is due soon, and historically, this kind of event has always been a catalyst for further growth and rallies in the cryptocurrency. The last one in August 2015 saw a serious downturn be broken, and even in the run up to this halvening, there looks to be a break in the downturn already.

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