China ‘Blockchain Day’ could become reality after Xi Jinping’s endorsement of technology
- Communications Industry Association proposes that October 24 become the designated day to celebrate technology behind cryptocurrencies such as bitcoin
- China is also looking to launch its own digital currency that would rival Facebook’s Libra having been a frontrunner in research into the technology
China’s new appetite for blockchain after it was endorsed by President Xi Jinping could see the technology be given its own commemorative day, although some analysts remain sceptical over its use.
The technology, which is most notable for its use in cryptocurrencies such as bitcoin, was singled out as “a key breakthrough that can facilitate China’s progress in core technologies” by Xi last week having previously been only a topic of conversation between scientists, technology professionals and financial investors.
But now, with interest in the technology increasing from the likes of tech start-ups, cryptocurrency traders, stock market investors and news organisations, the China Communications Industry Association on Monday proposed that October 24 become the day to draw additional focus on the technology.
“[President Xi] blew the horn of progress for the future. It is our full aspiration that we will start our businesses with the [Communist] Party, speak out for the technology, and applaud its applications.”
But some analysts are worried about the increased interest, with many utilising the opportunity to advance their personal goals, while investors are starting a new round of financial speculation.
“It’s certainly a good technology and can be used for many good causes, including the prevention of financial fraud. But it’s definitely not for the purpose of crypto speculation,” said Wu Qi, a senior fellow at the Beijing-based Pangoal Institution.
[President Xi] blew the horn of progress for the future. It is our full aspiration that we will start our businesses with the [Communist] Party, speak out for the technology, and applaud its applications
But while there remain questions over the decentralised nature of blockchain technology, the government may use it to support the creation of a Chinese digital currency, which would be the first among major economies, Wu added.
Blockchain, which is an extremely secure linked chain of digital information, has allowed private groups to create cryptocurrencies, with decentralised control among the users and no central authority to control its issuance.
The People’s Daily, the mouthpiece of the ruling Communist Party, renewed its warning this week on the dangers of blockchain-based crypto asset speculation.
“Blockchain is still in the early stages of development, and needs to be improved in terms of safety, standards, regulation and so on. The major direction is not wrong, but we must avoid a rush, and redundancy and have orderly competition,” said an editorial published Monday.
The Chinese leadership has organised a series of group studies on specific topics, including the use of the internet, big data and artificial intelligence, in an effort to innovate and move up the economic value chain given that the country’s traditional manufacturing economy is now being weighed down by rising labour costs at home and higher trade tariffs overseas.
In addition, China’s technological advance is facing growing resistance from Washington, with telecommunications giant Huawei and other Chinese hi-tech companies having been placed on a blacklist by the United States that bars their access to American-made technologies and components.
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