Chinese President Xi Jinping lavished praise on blockchain technology in a speech today, arguing that it is imperative for China to accelerate its development. According to a local news agency, he said that building on blockchain will help to bring economic and social value.
His comments were made on the same day the Political Bureau of the Central Committee of the Communist Party of China released its 18th study on blockchain technology. Its findings were explained by Chen Chun, a professor at Zhejiang University.
Xi, who is general secretary of the CPC Central Committee, described blockchain as an important breakthough, and one that should be rapidly developed. He pointed to multiple use-cases, from supply chains to IoT technology, and argued that it is necessary for China to continue building out blockchain technology and widely promoting it. He pointed out that China already has a good standing with it.
Who is and who isn't working on a state-backed digital currency?
Editor's note: This story was originally published on August 31 and has been updated to include Japan's position, and comments on the US stance made by Federal Reserve Chairman Jerome Powell. China is pushing full steam ahead with its state-backed digital currency. But while it may be the first of the major economies to launch its own crypto, it’s unlikely to be the last. Russia, Iran and the UK have all revealed that they’re studying the option intently. Countries around the world are beginnin...
The President put forward a host of benefits from using blockchain technology, namely that it offers a lot of improvements on current systems, such as helping with data sharing and removing operating costs. And countries that use it, will gain a host of benefits, he said. Specifically, he said that it will help countries to develop their digital economies, while encouraging economic and social development.
This doesn't come as a huge surprise. While China has cracked down on certain use-cases of blockchain technology, such as when a project is a scam or when tokens are issued through ICOs, it hasn't banned the use of cryptocurrencies, nor Bitcoin mining—for now. The country is also developing its own Central Bank Digital Currency (CBDC), hoping to be at the forefront of such development. It even sped up its CBDC efforts in light of Facebook's Libra project, although the latter has been hitting roadblock after roadblock.
