Justina Zheng: Crypto ban does not suppress rapid growth of blockchain in China

Justina Zheng: Crypto ban does not suppress rapid growth of blockchain in China.

Crypto enthusiast Justina Zheng. Image source: Shutterstock / Private

Trijo News

info@trijo.co

OPINION. 33-year-old crypto enthusiast Justina Zheng lives in China. According to her, the ban on cryptocurrencies there does not influence the rapid development of blockchain in the country.

Blockchain, the cutting-edge technology, has experienced a lot in China during the recent four years. In 2016 and 2017, ICOs were very hot in China. A whitepaper, several lines of code and a so-called professional project spokesman could make many people invest and believe them.

Many people thought cryptocurrencies were a new chance for investment and wealth. However, instead of getting wealthy, many people lost their money, some even lost their house, savings and become penniless.

Banned by the Chinese government

On September 4th, 2017, ICO and cryptocurrency were regarded as illegal fund-raising and banned by the Chinese government. Many famous people in crypto went aboard to raise money instead of staying in China. In these years, many Chinese people believed that blockchain and crypto were scams and pyramid schemes.

In 2018, the Chinese government issued numerous announcements about the risk with crypto. And in August 2018, lots of we-media about blockchain and crypto were banned. However, the ban on crypto does not influence the rapid development of blockchain in China.

“The ban on crypto does not influence the rapid development of blockchain in China”

The Chinese government believes that blockchain is not equal to cryptocurrencies. Blockchain is the underlying technology of crypto and it is the most potential technology in the next decade. Crypto is just one application of blockchain.

Chinese national policy also supports the development of blockchain. From February 15th, 2019, a regulation on blockchain information management has taken effect, which can highly control and regulate the blockchain information and supervise the market. Many experts believe that the year of 2019 is the new beginning for blockchain development in China, which is very beneficial to the enterprises committed to developing this technology.

Blockchain industrial parks

Under the regulations, there are also blockchain industrial parks established in China, such as Hangzhou Blockchain Industrial Park in Hangzhou, Zhejiang Province, and Xingsha Blockchain Industrial Park in Changsha, Hunan Province. These blockchain industrial parks collect some blockchain enterprises to develop the blockchain technology together.

The companies in these parks also provide technical services for blockchain to foreign countries. For example, the technology of Ulord, a public blockchain, which belongs to Ulord Foundation in Singapore, is provided by Hunan Tianheguoyun Co., Ltd. in Xingsha Blockchain Industrial Park. Some Korean blockchain projects are provided by Chinese blockchain enterprises.

A good momentum

With rich experiences and innovative spirit, China has a high ability to research and implement blockchain technology. Recently, a health certificate based on blockchain was born and will be widely used in China. The health data can be checked directly on a blockchain and these data cannot be changed or destroyed. In this way, it reduces the work of the administrative departments and provides much convenience to the persons needing the certificate.

They do not have to go to the administrative department to get the certificate, rather they can just get it on the internet through scanning the QR code.

Besides, there are more blockchain applications in various industries, such as finance, government management and intelligent manufacturing. Many Chinese startups have begun to deploy blockchain as well as Chinese internet giants, such as BAT (Baidu, Alibaba, Tencent).

With a friendly policy and the joint effort of these enterprises, there is a good momentum to develop blockchain in China.

Justina Zheng,
Overseas marketing director at Ulord and crypto enthusiast

Interested in sending us an opinion article? Mail us at info@trijo.co.

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