Recently, at the Fourth Plenary Session of the 19th Chinese Communist Party (CCP) Central Committee, Xi Jinping stressed that there should be a focus on blockchain technology. The CCP Politburo also held a group study on blockchain’s status and trends related to blockchain. Some media interviewed China experts on why the CCP is eying blockchain.
Deutsche Welle interviewed a senior IT practitioner in China who stated, “In fact, China has long been talking about digital finance. In 2014, People’s Bank (China’s Central Bank) created a group to research the feasibility of issuing digital currency. In January 2017, it officially established the Digital Currency Institute. Maybe it is to help People’s Bank launch the Digital Currency Electronic Payment (DCEP).
Blockchain relies on 5G technology to provide fast transportation speed.
VOA interviewed an economics observer, “This policy is more for the political agenda. There are three reasons for the CCP to promote blockchain.”
First, the CCP wants to participate in this “de-centralization” technology early so that it can participate in and control the standard settings and data control areas.
Second, the CCP has the financial ambition to promote a national digital currency. It has been trying to promote China’s national digital currency via the Belt and Road Initiative so as to further compete with the U.S. for financial control.
Third, blockchain can be extended to finance, to supplying China, to manufacturing, and to military areas. Having a first mover advantage or having greater power in controlling and implementing these technologies will help the CCP to reach its ambition of world domination.
1. Deutsche Welle, October 28, 2019
2. VOA, October 29, 2019