Chinese President Xi Jinping Calls for Accelerated Blockchain Technology Adoption

Xi Jinping, President of China has recently asked his country to “seize the opportunity” and accelerate blockchain technology adoption across different industry verticals and applications.

Last Thursday, while delivering a speech at the 18th collective study of the Political Bureau of the Central Committee, Xi stressed that blockchain can be used for a wide range of application within China.

He also talked about blockchain use-cases for poverty alleviation, mass transit, as well as for financing businesses. Business blockchain technology also holds major application in public services, food security, healthcare, etc.

Talking to the committee members, Xi said: “We must take the blockchain as an important breakthrough for independent innovation of core technologies. [We must] clarify the main direction, increase investment, focus on a number of key core technologies, and accelerate the development of blockchain technology and industrial innovation.”

Although China has blocked cryptocurrencies since 2017, it has taken a lead when it comes to blockchain development. Currently, China holds the maximum number of blockchain-related patents.

Xi already knows that China is having a strong foundation and thus wants his country to double-down on their strengths and take a leading position in the blockchain industry.

“Major countries are stepping up their efforts to plan the development of blockchain technology. Greater effort should be made to strengthen basic research and boost innovation capacity to help China gain an edge in the theoretical, innovative and industrial aspects of this emerging field,” he said.

The Chinese president also stressed on the necessity to “implement the rule of law network” and the future blockchain systems. Thus, he insisted on a top-down approach for implementation and regulation of blockchain systems.

Moreover, citing major competition in the crypto space, China has also accelerated the development of its central bank digital currency (CBDC). China’s central bank officials recently stated that will companies like Facebook can pose a threat to the country’s financial stability by launching its global cryptocurrency Libra.

On the other hand, looking at China’s moves, the U.S. lawmakers are also debating about having a digital dollar in the global financial ecosystem. The U.S. is assessing that if any other digital currency gets global adoption, the USD will lose its position as the world’s reserve currency thereby significantly shooting up the interest rates for its national debt.