Communist Blockchain

China is no longer an agrarian country with a backward industry. To the world, China has become an example of perseverance and industriousness, qualities that many believe the West is gradually losing.

However, there is a point of view that in the future China will remain without growth drivers, as labor becomes more and more expensive. In particular, World Bank experts predict a crisis for the country if the economy does not become fully market-based. But is this true?

We tried to analyze the current situation and we think that you will be interested to know how China is now changing its development prioritiesespecially if you are familiar with the world of cryptocurrencies and blockchain.

One Belt, One Way

While the U.S. is trying to revise existing trade agreements, China thinks globally and prefers to build without destroying. One after another, global projects are emerging with the aim of establishing China as the world's economic (and possibly political) leader.

For example, China's "One Belt, One Road" project involves the development and integration of existing transport and economic infrastructure in more than 60 countries. The world first heard about this plan in 2013, and since then China has been consistently implementing it.

What does blockchain have to do with it?

In May 2015, Chinese Communist Party President Xi Jinping said that new financial technologies would help bring this ambitious project to life. Whether Xi was hinting at blockchain or not is irrelevant, because later on the authorities did not impede either the development of mining or the creation of blockchain projects, as long as they worked legally.

In October 2018, China launched a research project dedicated to studying the technology, and the country's People's Bank has patented more than 40 blockchain-based technology solutions. Most countries cannot boast even a tenth of this progress.

There has also been much discussion about People's Bank of China's idea to issue its own cryptocurrencywhich has the power to become the new - and main - Stablecoin. Such a monopoly could increase China's investment appeal and the yuan's popularity as a global reserve currency. There is no doubt that China will continue to develop in the digital sphere.

Control - a tool for optimization

The global economy has made unprecedented strides in recent decades. Human well-being has increased, but it is increasingly difficult to keep up the pace.

The issue of streamlining processes, including banking, business and citizen responsibility, is becoming acute. And here China has a chance to become a legislator of new trends and to strike a blow to the credibility of the United States, as well as to undermine the authority of such institutional monsters as the World Trade Organization.

However, it is unlikely that China can strengthen its international position without solving urgent domestic problems. For example, in 2017, a number of municipalities in the Middle Kingdom submitted false financial statements. At the moment, the financial community began to talk about the impending wave of bankruptcy of China's state institutions.

Nevertheless, it is this problem that the authorities dealt with quickly. However, the issue of overall control over 1.4 billion citizens remains open. Blockchain can help standardize audits of internal processes and improve their quality, while oversight will be carried out without any visible manifestation.

By subordinating absolutely all monetary flows within the country, the state apparatus will be able to make timely and effective decisions. Unlike in the United States, where Democrats and Republicans prefer to have endless debates.

In conclusion or between the lines

Speaking at the opening ceremony of the 19th Congress of the Communist Party of China, Xi Jinping said that Between 2020 and 2035, China will reach the level of the leading innovative countries. And in the PRC, as we know, it is customary to comply with Communist directives.

Interested in cryptocurrencies? Read the latest market news On your Telegram!

You will also be interested in

What do the Winklevoss brothers believe? Bitcoin price forecast and the future of cryptocurrencies

Cryptocurrencies: the most pro-Islamic payment instrument or haram?