The Chinese government has dealt a number of hard blows to the cryptocurrency market over the past year. Although the market took the hits like a fighter, many investors have lost their faith in the market. 2017 was a record year for the cryptocurrency market, with all the attention it received and the growth it achieved. Extreme price volatility forced the Central bank into taking more drastic measures, including banning initial coin offerings (ICOs), and clamping down on domestic cryptocurrency exchanges. Due to excessive electricity consumption, many Chinese mining factories were forced to close within a short time. Many factories and exchanges have moved overseas to avoid regulations, but they remain accessible to Chinese investors.

Chinese Dragon

They still fall under the Chinese Dragon’s wrath. China has extended its “Eagle Eye”, a government-led initiative to monitor and ban cryptocurrency trading among Chinese investors. Companies and bank accounts that are suspected of transacting with foreign crypto-exchanges or related activities are subject to a range of measures, including the restriction of withdrawal limits and even the freezing of accounts. There are rumors in China that more severe measures will be taken against foreign platforms that allow trading between Chinese investors.

Imagine your child using his or her savings to invest on a digital product (in this instance, cryptocurrency). He or she will not be able to verify its authenticity or value. He or she could be lucky and make it big, or they could lose it all because the crypto-bubble burst. Now, imagine millions of Chinese citizens. We are talking about billions upon billions of Chinese Yuan. There are many scams in the market and ICOs that don’t make sense. Many investors who are not savvy are only interested in the money and have no regard for the technology or innovation behind it. Market speculation is what drives many cryptocurrencies’ value.

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ICO

Participate in any ICO during the crypto-boom of 2017 with either a prominent advisor onboard, a promising group or a decent hype to get at least 3X your investment. The combination of ICOs and a lack of knowledge about the company and its technology is a recipe to disaster. The Central bank members report that nearly 90% of ICOs involve illegal fundraising or fraud. The Chinese government wants cryptocurrency to remain ‘controllable’ and not too large to fail within its Chinese community. China is making the right steps towards a safer and more regulated cryptocurrency market, even though it is controversial. It may be the most important move China has made in decades.

China will issue an ultimatum to make cryptocurrency illegal. It is absurd to think so. Currently, financial institutions cannot hold any crypto assets. Individuals are permitted to trade but are prohibited from doing so. A State-run Cryptocurrency Exchange A State-run Cryptocurrency Exchange? Wang Pengjie, a member NPCC, explored the possibilities of a state-run digital assets trading platform and also initiated educational projects on blockchain in China. To trade on the proposed platform, however, an authenticated account is required. Excerpts from Wang Pengjie’s presentation at the Two Sessions. The rise in popularity of cryptocurrencies has been a challenge for governments and central banks around the world. But one thing is certain: everyone has adopted blockchain. Despite the crackdown on cryptocurrency, blockchain is gaining popularity and being adopted at various levels.

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Den kinesiske regering

The Chinese government has been supporting blockchain initiatives and embracing this technology. The People’s Bank of China has been working on a digital currency, and they have performed mock transactions with some of China’s commercial banks. It is not yet clear if the digital currency will be centralized and offer features like anonymity or immutability. It would not surprise if the digital currency turns out to be a digital Chinese Yuan, as anonymity is what China wants. The digital currency was created to be a substitute for the Chinese Yuan. However, it will still be subject to existing monetary laws and policies. Zhou Xiaochuan, Governor of People’s Bank of China. Excerpts taken from Zhou Xiaochuan’s interview on Friday, March 9th.

Zhou Xiaochuan, Governor of People’s Bank of China made a media appearance Friday, March 9th. He criticized cryptocurrency projects that capitalized on the crypto boom to cash in and fuel speculation. Many Chinese cities are promoting blockchain technology to boost growth in their regions. Hangzhou, the home of Alibaba, has declared that blockchain technology is one of its top priorities for 2018. The Chengdu City government has also proposed the construction of an incubator center to encourage the adoption of blockchain technology within the city’s financial services.

Konklusion

Tencent and Alibaba, two local conglomerates, have formed partnerships with blockchain firms or started projects on their own. VeChain, a blockchain firm, has also secured partnerships with Chinese companies to improve transparency in China’s supply chain. All indications point to China’s desire to become a blockchain nation. China has always been open to new technologies like artificial intelligence and mobile payment. It is certain that China will soon be the first country to use blockchain technology. Will we see China’s government relax and allow its citizens to trade again?

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Blockchain Research Institute In China

Cryptocurrency swap heavyweight Binance has released the Lingang Study Institute in China within initiatives to foster wider blockchain adoption and encourage emerging advancements in the digital assets sector.

Binance Establishes Blockchain Study Institute in Shanghai

According to a news release released on Sunday (March 29, 2020), crypto swap behemoth Binance has released a blockchain analysis institute in China.

Back August 2018, as China happens to be chasing its central bank digital currency (CBDC) and contains established itself as a hotbed for decentralized ledger technology (DLT) development lately, Binance Academy has launched the Lingang Blockchain Technology and Industry Research Institute in Shanghai.

Helen Hai, hai remarked:

“In establishing the Lingang Research Institute with this local partners, Binance Academy endeavors to create a respected think tank and research hub that plays a part in large-scale developments in blockchain technology to help expand the growth of the.”

Furthermore, the Lingang Research Institute has appointed CEO of the Tapscott Group and Co-Founder of the Blockchain Research Institute (BRI), Don Tapscott, being an Honorary Dean. Regarding his appointment, Tapscott said :

“Research, and skill development are critical to continue, ”

Several crypto-focused firms have partnered with universities and institutes to invest in academic programs targeted at delving deep in to the potential usage of blockchain technology in solving real-world problems.