Blockchain technology is receiving great welcome in China. The state council of China has ordered the research centres and financial authorities to gear up the development of blockchain technology and its commercialization. Central administrative branch of China issued the order on May 4, 2018. Various strategies that required reformation of the Guangdong pilot free trade zone have been included in the order.
Guangdong pilot free trade zone is a free trade zone situated between Hong Kong and Macau. It aims to build a huge international free-trading market. The state council authorized it in 2014 and it was officially launched in 2015 .
The official statement of the State Council of China reads:
To build a regional equity market in Guangdong, according to the opening up of the capital market, timely introduction of Hong Kong, Macao and international investment institutions to participate in transactions. We will vigorously develop financial technology and accelerate the research and application of blockchain and big data technologies under the premise of legal compliance.
The official document issued by the state council of China does not throw any light on the extent of blockchain technology usage in the free trade zone.
Guangdong free trade zone has 71 blockchain startups and Fourth Industrial Revolution technologies like blockchain, Big data and AI are being given due focus. Country’s 13th five year economic development plan ( 2016-2020) had introduced the concept of blockchain and cryptocurrency.
China has always promoted development of technologies to make the momentum of economic development keep going. Its worth noting that China is stepping closer to become a cashless country. People are easily opting for fintech networks than banking services.
Yu Kequn, the director of National Research Centre for Information Technology Security said :
The development of blockchain technology may become an important step for China to grasp the global technological competition (…) It can be applied in the production chain, management chain, and transaction chain, and it will bring the entire life cycle of restructuring to different areas so that the life cycle can be managed and traceable.
I believe cash will eventually disappear in the way we know it now. With current biometric systems, it’s just a matter of time before we won’t even need a device to pay. Our fingers, our irises, even our ears will be payment devices. But that means it will be possible to keep track of all the things a user buys in real time – not only what, but also where and when.
It’s highlighted that China is marching ahead to to create it’s own social media network and blockchain technology in place of adopting Ethereum. In the coming months you will see China ‘s own blockchain network instead if Ethereum just like it’s Weibo and Tudou in place of Twitter and YouTube respectively .