The blockchain space in China is fast growing as more local authorities consider the opportunities hence a green light to projects within the space. People’s Daily, an official state-owned media in China, recently reported that they have endorsed the digital ledger technology but warned the residents to be wary of airdrops.
In the article, People’s Daily termed blockchain as the future although still in its early development stages. They further noted that more security and regulation is needed within the existing blockchain ecosystems to prevent the illegal use of the platforms;
“The use of blockchain to store and spread illegal information, to enable illegal transactions, money laundering and similar activities should be severely punished.”
According to the People’s Daily, blockchain ought to be regulated uniformly to create an inclusive environment for the growth in this industry. China’s upper hand in a couple of projects so far places them in a better position compared to other economies. However, the exposure to these products should limit speculative assets;
“Innovation in blockchain is not equivalent to speculation in virtual currency. The use of blockchain to hype up aircoins […] should be prevented.”
China’s Blockchain Cities
China has been at the forefront of blockchain adoption despite the tight crypto regulations within its laws. The most recent development is smart cities built on the blockchain; these will use modern tech to increase efficiency in services like data sharing. It is also noteworthy that the East Super power processes over $5 million blockchain-based payments in a week.
The smart cities that were pioneered join the likes of Smart Dubai and Cambodian Capital which are UAE and Singapore projects respectively. China’s smart cities will have a unique blockchain ID’s meant to facilitate data sharing amongst them. This innovation is not a new concept given China’s involvement in the Internet of Things technology as well.