China and Blockchain: what is actually going on
The entire world has been watching the recent East-Asian cryptocurrencies struggle with buckets of popcorn in both hands. If we take into consideration what exactly lays in the basis of the restrictions, we will see why China has or has not the chance to revive the gone economical power.
First of all, we must draw a line between Blockchain technology and digital currencies. While China is aggressively forbidding Bitcoin, the technology itself is being welcomed for multiple purposes. Among them — a state cryptocurrency. People's Bank of China is closer to this crucial step than any other central bank. Obviously, a centralized cryptocurrency contradicts the whole idea of the crypto market, but this is not the today's topic.
China's policy has never been see-through as it happens to closed, opaque states. Due to this issue, China's innovational opportunities are being narrowed. Similar to Japan during the World War II times, the country denies the benefits it would get by emerging from the turbid water.
BRICS (Brazil, Russia, India, China, South Africa) share the relevant issue that has been disturbing and burdening the allies continuously. The union aims the struggle with the domination of the USD in the global market and end the age, yet the US's counter reaction is not expected to be positive.
So, what are the plans of the East, specifically China? The suspiciousness towards Bitcoin is caused by the risk fuelled by illegal issuance, frauds, and pyramids. China's next step is to ban foreign sites correlated with the digital market. But, once again, they don't go against Blockchain, quite the opposite: the country is seeking to direct to use of the technology to support local interests. Together with Russia, it aims to place securities on Blockchain basis and launch an e-platform for processing and monitoring of transferring named E-Port.
Looking at the conflict, we see that the idea of decentralized cryptocurrency opposes the Communist essence dominating in China. The state controls the financial side as well as ideas and moves. No wonder they are so distrustful in relations with Western tendencies. In the battle against US dollar, the States won't win, considering where president Trump leads the county to, but China hasn't much of a chance either.