China: Bitcoin makes the headlines

So far, the topic in the Chinese media has been more about the blockchain than the Bitcoin itself. The state news agency People’s Daily has described the blockchain as an important milestone for the country. Xinhua’s article, in which the Bitcoin is viewed rather critically, has now shown the significant change in attitude of Chinese policy towards the Bitcoin and crypto currencies.

 

The headline that featured the Bitcoin, which revolves around the first successful application of blockchain technology, immediately led to speculation that China might consider lifting a controversial ban on Bitcoin trading in September 2017. Despite the positive headlines, the article focuses mainly on the negative aspects. These include energy-intensive consumption during prospecting, the problem of possible centralisation and price volatility. It also mentions that the main uses of the Bitcoin are to use the digital currency on the black market or for money laundering.

Perhaps the article is just a small preparation for China’s planned digital crypto currency, known as Digital Currency Electronic Payment (DCEP).

The news was published by the CEO of Sino Global, based in Beijing. Matthew Graham told Decrypto that the latest media content on Blockchain in China, including the last article, is part of the overall effort to create a powerful and strategic technology.

 

Graham pointed out that this is not an easy task:

“They can’t ignore Bitcoin, but they don’t really want to promote it. They want to slowly push people towards their own vision. What is the vision about? State-controlled DCEP in conjunction with blockchain technology throughout the economy.”

 

Xinhua’s article follows an avalanche of recent activities by China in relation to blockchain after China’s President Xi Jinping made a positive mention of the technology in a speech. Two weeks ago, Xi called on the industry to accelerate the development of the blockchain industry. The country has properly introduced new measures to accelerate its adoption. They have even started to take action against articles that the blockchain does not describe as good.