The Blockchain China relationship has an intriguing past and an exciting future. The connection has a love-hate tag. But, On the other hand, China has wholly endorsed the technology than underpins Bitcoin; blockchain.
Before the end of 2017, the interaction between Bitcoin and Chain was very tight. It made China to be the biggest Bitcoin market in the world. This included housing the largest Bitcoin mines and crypto exchanges like Binance.
However, towards the end of 2017, the Bitcoin China relationship turned into hate when the government criminalized Bitcoin and cryptocurrency activities such as mining and exchanges. Bitcoin miners were forced to close shop while most exchanges like Binance relocated to safer grounds. This removed China from being the largest to the smallest, almost insignificant, cryptocurrency market.
Instead of criminalizing everything, they embraced the technology that underpins Bitcoin; blockchain.
China is fighting to be a leading force in blockchain usage. The country’s major cities such as Hangzhou, Shanxi, Shanghai, Guangzhou, and Henan have developed policies to encourage the development of blockchain products. Minus cryptocurrency.
For example, towards the end of 2018, Hangzhou announced a 10-billion-yuan investment fund centered around blockchain activities.
Notably, most of the blockchain activities conducted in China favor the enterprise side. Apart from cities, technology giants in the country, e.g., Tencent, Alibaba, and Baidu are investing in the blockchain sector.
For instance, in late 2017, Alibaba and Changzhou city partnered to develop a blockchain solution that would be used in the medical field. In early 2018, the China Federation of Logistics & Purchasing inked a partnership with Tencent for a blockchain-based application.
Although the Bitcoin China relationship has never been reversed since its sour and abrupt ending in 2017, the crypto community in the country is optimistic that this will change in the future. Additionally, the technology employed by Bitcoin is in heavy usage.