The timeline has been accelerated. Last week, Xi Jinping, President of the People’s Republic of China, said the country needs to “seize the opportunity” of blockchain technology. (By Rhythm)
“[We must] clarify the main direction, increase investment, focus on a number of key core technologies, and accelerate the development of blockchain technology and industrial innovation.” – Xi Jinping
These comments by Xi come only months after reports that China’s central bank will begin launching a state-backed digital currency within the end of the year to seven institutions. From there, these institutions will begin circulating the stablecoin to China’s 1.3 billion citizens.
Following up, the Standing Committee of the 13th National People’s Congress in China passed a new cryptography law, stating that:
“Clear guidelines and regulations are needed to evaluate commercial cryptography technologies used in the major fields related to the national interest as the current ‘loose’ system is not suitable for the industry anymore.”
Notice that this provision is aimed at encouraging nationwide educational efforts to promote cryptography among government officials, companies and social groups. If Xi’s goal wasn’t already clear enough, we may already be seeing a “sign of the beginning of the nationalization of Bitcoin/Cryptocurrency related infra in mainland [China]”.
What’s America Thinking?
The news of China’s blockchain support came only days after Mark Zuckerberg’s testimony in front of Congress. He spent nearly six hours attempting to calm the fears of legislators about Facebook’s intentions with their own digital currency, Libra. His point mainly boiled down to a slightly chilling, “Let us launch this, or China will.”
“As soon as we put forward the white paper around the Libra project, China immediately announced a public private partnership, working with companies . . . to extend the work that they’ve already done with AliPay into a digital Renminbi as part of the Belt and Road Initiative that they have, and they’re planning on launching that in the next few months.”
If you’re still not sold on the idea of monetary policy run by math and code instead of people in power, do yourself a favor and watch the six hour testimony. After only fifteen minutes, you’ll come to realize that many people in power are seemingly inept at managing the world’s largest economy, let alone any economy. The hearing was meant to discuss the implications of disrupting the entire global financial system as we know it. Many representatives instead took their few precious minutes with the microphone to dispute anti-vaccinators being censored from a website. Read more …