China Confirms It Doesn't Want Blockchain For All Payments
The Digital Currency Research Institute, which comes under the People's Bank of China has published a statement further hindering one's hope for adoption of blockchain in almost all technology fields as it was presumed with the President's call.
China's adoption for blockchain technology made a continuous buzz within the media. The rising high power observed the blockchain as having the potential to provide the country with an edge in today's fast-changing global economy. For this, China planned to start its native bank-issued digital currency, called DCEP.
China In No Mood To Power All Payments With BlockchainThe country has embraced the blockchain technology ever since President Xi formally committed to it. However, it never became apparent how far the adoption of this technology would go. Recently, the Digital Currency Research Institute published a paper, stating that it has not intended to use blockchain for all the traditional payments. Instead, use of blockchain within the country would focus on trade financing, settlements and the property market.
Cashless options such as WeChat and AliPay already have dominated traditional payments within the country. As there was no importance for transitioning to blockchain in these areas, the country intended to bring blockchain technology for extensive dealings in the economy. These usually included areas were paperwork and difficulties often hindered performance, such as in the field of foreign currency trading.
Just in: the Digital Currency Research Group from China Central Bank just posted an article , saying that “due to the conflict between blockchain decentralization and central bank centralization, they don’t recommend to change the traditional payment system with blockchain. pic.twitter.com/CBOhO8ymQJ— BlockBeats (@BlockBeatsChina) February 21, 2020
China Has Been Favorable Towards BlockchainAlthough the recent comments which emerged from the Digital Currency Research Institute have not shown a withdrawal of previous policy, they clarified the specific objectives of China's blockchain dream. It was evident that blockchain adoption would come on the institutional level—for instance, last year, some reports came about the government's blockchain-based platform for paying bills.
All these initiatives marked the country's strong position in supporting blockchain and not cryptocurrencies. This signature policy had been mentioned several times by the census from the country, and it illustrated a severe problem to the industry all around the world. Although China leads in adoption of blockchain, perhaps someday it would realize the security of blockchain always relied on cryptocurrency.
About The Author
Shailesh PanwarShailesh is an ardent follower of the crypto world and keenly watches every development taking place in the cryptocurrency space. He loves to voice his opinions through well-curated blogs and articles, which throw light on different facets of the crypto industry.
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