Over the course of 2019, the Chinese government has issued bonds totaling about 404 Billion Chinese Yuan (CNY). However, it’s the latest batch of 20 Billion worth of Chinese Yuan (approximately $2.8 billion) that has people’s necks turning.
It’s because this $2.8 Billion worth of bonds was issued through a blockchain-based platform. That’s a pretty radical move for a country that has stayed within its “digital walls” for decades.
For one, China isn’t a country that could be considered as exactly crypto-friendly, and cryptos are basically based on the blockchain technology. In fact, just a few years back, the Chinese government took a drastic step of banning all crypto activity within its borders. Crypto exchanges like Binance vacated the region and had to set up shop in a more receptive region.
However, the Chinese government isn’t the only national authority that dislikes cryptos, especially since the crypto technology takes the power away from the centralized systems controlled by governments. But while most other governments have decided to either leave the crypto business in a legal gray area or look for ways to regulate the industry within their borders, China’s approach has been rather direct and far-reaching. That’s why such a country finally accepting to use the technology that created cryptos is interesting.
Besides banning exchanges, China also banned crypto trading of any form. However, crypto mining, especially Bitcoin mining, is still going on. In fact, it’s estimated that 69% of Bitcoin’s network hash rate comes from miners based in China. Bitmain is one of them. China is also home to the manufacturers of cheap crypto mining equipment.
Blockchain Is Okay
For some time now, the Chinese government has sought ways to employ the blockchain technology in various sectors, and now it seems that the bond issue could be the start of a process that could see the technology adopted in various sectors. In this sense, it would seem that China hates cryptos but loves the technology underlying them.
Of late, there have been rumors that the Chinese government may be planning to create a national cryptocurrency, something that might sound a bit spooky given that the same government has banned all crypto activity in the country.
Could this be termed as a double-standard or could it actually be the gateway for cryptos back into China? In any case, the embracement of the blockchain technology could be a good start. Time will tell.