China’s President Endorses Blockchain Technology

The cryptocurrency technology has “breakthrough applications”, according to Xi Jinping.

by Marin Marinov
30 May • 3 min
In Tech

China’s President Xi Jinping has endorsed blockchain, the technology behind cryptocurrencies, while speaking at 19th Annual Conference of China’s Academy of Sciences this week, the country's state-run Xinhua news agency reported. The leader of the world's second largest economy noted that the blockchain technology has “breakthrough applications”.

“A new generation of technology represented by artificial intelligence, quantum information, mobile communications, internet of things and blockchain is accelerating breakthrough applications,” China’s President said as quoted by Xinhua.

Jinping, who recently begun his second term as head of state, wants to make China a global center for science and called for more efforts to build an innovative economy.

“Since the 21st century began, global scientific and technological innovation has entered an unprecedented period of intensive activity. A new round of scientific and technological revolutions and industrial changes is reconstructing the global innovation map and reshaping the global economic structure,” Jinping told the scientists.

China and the crypto world

China’s blockchain industry has rapidly grown in recent years. By the end of March this year, 456 blockchain companies were registered in the country, according to a newly published state report last week, dubbed White Paper. The firms operate in various industries, form hardware manufacturing to application services, and from investment and financing to media and human resources.

“The white paper pointed out that the industry is still in a nascent stage. More projects are under way as rapid industrial expansion continues,” Yu Jianing, the author of the White Paper, told Xinhua.

Last year was the peak period with 178 new companies entering the blockchain market. China is in the process of developing standards for blockchain businesses that should be introduced by the end of the year. In April, a blockchain park was opened in Hangzhou along with a state-backed USD 1.6 billion investment fund.

However, the world's most populous country has a different approach towards cryptocurrencies and their technology. In the autumn of 2017, Beijing banned virtual coin trading, a move that provoked several countries to compete as crypto trading hubs in the Asia-Pacific region.