In an unexpected turn of events on Friday, President Xi Jinping of China caught the world by surprise, particularly those involved in the cryptocurrency and blockchain sectors. He emphasized the need for blockchain technology, highlighting its potential as a key driver for innovation in key technical areas. In the wake of President Xi's announcement broadcasted by state media, China immediately mobilized, racing to initiate new projects in the crypto and blockchain spaces.
Financial institutions began channeling funds into Bitcoin ventures, educational platforms started offering courses on blockchain, and the term 'blockchain' surged in popularity on China's main online platforms.
Recently, a voice from within China's think-tanks noted that the People's Bank of China is moving steadily towards launching an unparalleled digital currency, spearheading a revolutionary step globally.
During the Shanghai Bund Summit, Huang Qifan, an experienced former congressional finance chair, expressed confidence in China's approach to digital currency issuance, given the longstanding efforts of the central bank in this field.
China’s Crypto Nears
Analyzing his words, Huang predicts the inevitable rise of a national cryptocurrency, propelled by myriad benefits it promises, such as increased economic connectivity, and a reduced impact of existing alternatives like Bitcoin or Libra.
According to a Sina Finance report Huang also described the global SWIFT system as outdated and cost-inefficient, calling for a modernized approach.
He stated that SWIFT, despite its vital role, has lagged in adopting new technological efficiencies since its inception over four decades ago.
Oh, the Hypocrisy
The notion of an imminent Chinese digital currency, alongside fresh blockchain initiatives, has sparked excitement within the crypto world, as evidenced by the enthusiastic discussions on Crypto Twitter.
This excitement is logical on the surface; the world's most populous nation making strides in a nascent technology can only bode well for those who have a vested interest in it.
However, beneath the surface, divides are emerging within the community, particularly among Bitcoin advocates who find themselves in a conundrum over endorsing a government-led initiative.
Renowned Bitcoin advocate Peter McCormack expressed his skepticism, hinting at the irony of applauding blockchain advancements under a government notorious for oppressive measures.
Similarly, Nic Carter from CoinMetrics voiced his disdain for compromising values for short-term gains driven by authoritarian strategies.
The future impact of these ongoing debates is uncertain, yet China's embrace of blockchain could further distinguish public blockchain systems from their centralized counterparts. writing a thread Having followed cryptocurrency trends since 2013, I've penned pieces for numerous respected industry publications such as LongHash and Decrypt. Outside writing, I contribute to HTC's EXODUS division and hold some Bitcoin. Reach me at [email protected]
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