Blockchain is the most significant revolution since double-entry accounting gave the world a transaction between two parties. It's similarities to double-entry, from being part of the supply chain to it's application as a financial transaction, are inherent.
Blockchain emergence as a technology of many sides finds use in almost all business niches. Many countries have welcomed this technology. However some nations which were initially not confident on the technology or the need for it, have now looked at its increasing pace and applicability, the parameters are changing.
I am talking about China here.
This is hugely significant.
We know that in September 2017, China banned Cryptocurrencies and considered it illegal. The Cryptocurrency market cap crashed. However now, by April 2018 the situation has changed somewhat. I will explain why.
The Blockchain is at a budding stage. Despite the fact the platform provided the world with Bitcoin and ensuing crypto currencies, there are insecurities associated with 'bubble' theorem. It is the reason China backed off from Blockchain and Bitcoin. However, recently 2018 has brought about some changes to the way China are approaching blockchain.
For any G20 nation to compete in the world economy and the competitive market and to establish a strong foothold in this market, it is vital to adopt the most advanced technologies. and use it for a solution.
Although there are many nations adopting blockchain trying to tap into the benefits, we are still not witnessing it be part of the mainstream economy. China has now taken the initiative to use Blockchain as a part of the mainstream economy and therefore reap the benefits out of it.
The use of Blockchain is going to be a strategic move for China. The launch of Central Bank-issued Digital Currency (CBDC) in unison with the belt and road initiative is a prominent move in the right direction. Belt and road Initiative is China's international association with China-Japan-South Korea free trade area Eurasian Ecnci Union
The increased prominence on CBDC is due to the fact cryptocurrency exchange is free from processing fees, it is way more efficient and convenient, and will have an automated implementation which will save time and reduce errors.
China see this being crucial because other countries would pay with RMB thus dramatically enhancing the liquidity and internationalising the RMB.
Chinese start-ups like VeChain have come up with a commercial Blockchain platform and cryptocurrency. This phenomenal company is managing and tracking the import of red wine from other countries. Consumers can use their mobile phone to scan the IoT tags which are attached to wine bottles. Doing this they can access all the information related to manufacturing, logistics, and distribution.
There are many Chinese Internet companies establishing Blockchain laboratories. These high tech labs are identifying the uses of blockchain and its application in real life. The aim is to integrate blockchain in the Chinese financial sector. They are integrating Blockchain n Business to Business (B2B) and Business to Consumer (B2C)
The importance of China, bearing in mind its growth forecasts for the next twenty years, is a very promising sign for the Blockchain community. China are striving to establish a seamless and regulated system of the Blockchain. The technology will revolutionise the way the Chinese economy runs. The power of this economy is hugely misunderstood. China will dwarf the rest of the world by 2050. By 2030 alone they will have overtaken the U.S. and be one third larger. These are projections without considering the revolutionary Blockchain technology.
For China to be a Blockchain based solution provider on the global front this will be very good for this super-power nation.