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The Great Wall of China
For a couple of years it seems that the Chinese government is trying to" have its cake and eat it ". it "When it comes to cryptographic resources and blockchain technology. The simple phrase" blockchain not Bitcoin "has become the strategy of defining the country when it comes to space, and the difference in approaches that the government has adopted regarding closed v is an opposite study.
Consider the following – all this happened in the last month:
- The website of the Chinese Communist Party published a primer on blockchain technology that included discussion on its key features, use cases and challenges
- The Chinese central bank, the People's Bank of China (PBoC), supports the development of a blockchain-based commercial financial platform that will simplify interbank payments and help SMEs g access to a wider range of funding instruments
- The Chinese Supreme People's Court has published new rules which state that blockchain technology is an approved method of archiving and authenticating digital evidence
- The Bank of China, not to be confused with the PBoC, & nbsp; revealed & nbsp; plans to invest aggressively in the development of & nbsp; fintech and blockchain technology
At the same time, the CPC has been openly hostile to all activities related to cryptographic resources. Last September the government banned all ICOs in the country, regardless of whether or not they were titles, and in the same month Chinese local exchanges were condemned to cease operations . The final result, in the last 12 months, has closed in China 90 different exchanges of cryptocurrencies and about 85 Ico. Now the government extended this ban to more than 100 international exchanges that served the Chinese market, putting an end to one of the last options that cryptocurrencies had without using a virtual private network (VPN). In addition, the government blocks the encrypted accounts on the predominant social media platforms of the country, such as WeChat.
This leads to two critical questions:
- Why is the government adopting a similar approach to Jekyll and Hyde?
- Is this strategy sustainable?
A little anecdote and an example can help shed light on the Chinese mentality.
10 years ago, a senior administration official George W. Bush gave a speech in New York on American foreign policy. Eventually the discussion shifted to the relationship between the United States and China and the official shared a conversation he had with a counterpart in Beijing. The American started discussing what held him back at night, mentioning the invasion of Afghanistan, the global war on terror and the future attack in the US as key concerns. He then candidly asked the Chinese representative the same question, expecting an answer along the lines of the control of Tibetan disorders or peacekeeping through the Taiwan Strait. Instead, he got a one-word answer, number 8. Upon request for clarification, the gentleman said he was referring to the need to maintain at least 8% of GDP growth on an annual basis to keep unemployment low and the stable country. He clarified that nothing less was at stake than the stability and legitimacy of the Chinese Communist Party (CPC). & Nbsp;
The prelude to this conversation: the Chinese government focuses mainly on internal stability, and economic growth is the key to promotion. Therefore, Beijing officials will not let the encryption, or any other technology, threaten its authority or legitimacy to govern.
As a sign of the government's commitment, it is important to note that this is not the first time that China has readapted a revolutionary technology for its market. While most of the enthusiasts praise the business models and the success of the main Chinese technology companies like Alibaba and Tencent, today they exist in their current state largely due to the protection provided by the Chinese "Great Internet Firewall" and the protectionist regulatory measures. that delay or even prevented American companies like Facebook from entering the market. In addition, these companies enjoy close ties with Beijing officials and collaborate with Internet monitors to prohibit speech and content contrary to internal stability, showing that censorship and success are not mutually exclusive.
Having said that, the stakes are higher around the time and the same approach to blockchain technology is nothing less than a double down of its strategy compared to –vis Google and Facebook. Firstly, blockchain technology is naturally distributed, which is a significant, but not insurmountable, complication factor. However, never before did the government deal with crypts and cryptocurrencies that can not be banned or sanctioned without blocking the Internet as a whole. Monetary policy plays a key role in China's economic strategy, and if Bitcoin or another cryptocurrency or cryptocurrency were to gain widespread acceptance, it would limit Beijing's ability to keep the country in constant prosperity in more than one way.
For example, if bitcoin or a stablecoin became a medium of exchange, especially for international trade, they would limit the effectiveness of China's foreign exchange policies that historically support the export sector. Furthermore, cryptographic resources are extremely volatile and space investors often hear the common disclaimer that they must be prepared to lose all their holdings. China has almost 1.4 billion citizens and, even if a small percentage of these individuals lost 90% of their properties, like many investors in the United States last year would have caused a considerable effort on their social service programs
Therefore, while it is easy to defend open policies, it is also necessary to provide for emergency interruptions in the system.
Looking to the future, it is clear that China will continue to rely on strategies that have worked in the past. However, it remains to be seen whether government officials in Beijing will see the same results. Even with these restrictions in place, the country will continue to be one of the most critical focal points of innovation in space. As time passes, as the industry develops, the government may be more inclined to encrypt resources.
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For a couple of years it appeared as if the Chinese government was trying to "have its cake and eat it too" when it comes to cryptographic resources and blockchain technology. The simple phrase "blockchain not Bitcoin" has become the strategy of defining the country when it comes to space, and the difference in approaches that the government has adopted regarding registers and open resources is contraindicated.
following – all happened in the last month:
- The website of the Chinese Communist Party published a primer on blockchain technology that included points of discussion on its main features, on the cases of use and on challenges
- The Chinese central bank, the People's Bank of China (PBoC) is supporting the development of a blockchain-based commercial finance platform that will simplify interbank payments and help SMEs access a wider range of instruments of financing
- The Chinese Supreme People's Court issued new rules stating that blockchain technology is an approved method for storing and authenticating digital evidence
- The Bank of China, not to be confused with the PBoC , revealed Plans to invest aggressively in the development of technology fintech e blockchain
At the same time, the CPC has been to pertly hostile to all activities related to cryptographic resources. Last September, the government banned all ICOs in the country, regardless of whether or not they were securities, and in the same month were ordered to local Chinese stock exchanges to cease operations. The final result, in the last 12 months, has closed in China 90 different exchanges of cryptocurrencies and about 85 Ico. Now the government has extended this ban to over 100 international exchanges that have served the Chinese market, putting an end to one of the last options that the cryptographers have had without using a virtual private network (VPN). In addition, the government blocks the encrypted accounts on the country's predominant social media platforms, such as WeChat.
This leads to two critical questions:
- Why is the government adopting a similar approach to Jekyll and Hyde?
- is this strategy sustainable?
A small anecdote and an example can help shed light on the Chinese mentality.
10 years ago, a senior official of the George W. Bush administration gave a speech in New York on the United States foreign policy. Eventually the discussion shifted to the relationship between the United States and China and the official shared a conversation he had with a counterpart in Beijing. The American started discussing what held him back at night, mentioning the invasion of Afghanistan, the global war on terror and the future attack in the US as key concerns. He then candidly asked the Chinese representative the same question, expecting an answer along the lines of the control of Tibetan disorders or peacekeeping through the Taiwan Strait. Instead, he got a one-word answer, number 8. Upon request for clarification, the gentleman said he was referring to the need to maintain at least 8% of GDP growth on an annual basis to keep unemployment low and the stable country. He made it clear that nothing less than the stability and legitimacy of the Chinese Communist Party (CCP) was at stake.
The prelude to this conversation: the Chinese government focuses mainly on internal stability, and economic growth is the key to promotion. Therefore, Beijing officials will not let the encryption, or any other technology, threaten its authority or legitimacy to govern.
As a sign of the government's commitment, it is important to note that this is not the first time that China has readapted a revolutionary technology for its market. While most of the enthusiasts praise the business models and the success of the main Chinese technology companies like Alibaba and Tencent, today they exist in their current state largely due to the protection provided by the Chinese "Great Internet Firewall" and the protectionist regulatory measures. that delay or even prevented American companies like Facebook from entering the market. In addition, these companies enjoy close ties with Beijing officials and collaborate with Internet monitors to prohibit speech and content contrary to internal stability, showing that censorship and success are not mutually exclusive.
Having said that, the stakes are higher than the time spent and the same approach to blockchain technology is nothing more than a double down of its strategy towards Google and Facebook. Firstly, blockchain technology is naturally distributed, which is a significant, but not insurmountable, complication factor. However, never before did the government deal with crypts and cryptocurrencies that can not be banned or sanctioned without blocking the Internet as a whole. Monetary policy plays a key role in China's economic strategy and, if Bitcoin or another crypt asset or cryptocurrency were to achieve generalized acceptance, it would limit Beijing's ability to keep the country in constant prosperity over one way.
For example, if bitcoin or a stablecoin became a medium of exchange, especially for international trade, they would limit the effectiveness of China's foreign exchange policies that historically support its export sector. Furthermore, cryptographic resources are extremely volatile and space investors often hear the common disclaimer that they must be prepared to lose all their holdings. China has almost 1.4 billion citizens, and even if a small percentage of these individuals lost 90% of their holdings, as many investors in the United States did last year, this would cause considerable pressure on their social service programs.
while it is easy to defend open policies, it is also necessary to provide for emergency interruptions in the system.
Looking to the future, it is clear that China will continue to rely on strategies that have worked in the past. However, it remains to be seen whether government officials in Beijing will see the same results. Even with these restrictions in place, the country will continue to be one of the most critical focal points of innovation in space. As time passes, as the industry develops, the government may be more inclined to encrypt resources.
