President Xi Jinping’s recent remarks about the importance of blockchain technology to China and the need to speed up development is timely. Chinese entrepreneurs have been at the forefront of the hi-tech trend from almost the beginning and the nation has a number of pilot projects under way. But for all the talk and hype, the uptake has been relatively slow and there is a need to spur innovation and progress. His endorsement led to a global frenzy of buying in related stocks, pushing up expectations and values.
Xi said blockchain was one of the nation’s core technologies and called for more research, support and investment. As a concept, it is a simple enough idea, being an unalterable digital log of records that can be applied to all manner of transactions. While Beijing has banned its best-known use, in cryptocurrencies, it has an undeniably beneficial place in commerce, banking and finance. Its role in government and the public sector is of particular interest to Beijing. Chinese hi-tech advantage is also an important element of the trade war between China and the United States.