China and Blockchain Technology
According to the news of South China Morning Post, China’s blockchain market continues to grow day by day. Although China has banned cryptocurrency trading, new applications for Chinese blockchain companies continue to increase. China Cyberspace Administration published 197 lists in 3 years with blockchain projects covering legal, financial, agricultural and intellectual property protection services. This accelerated publication program demonstrates the country’s determination to develop blockchain applications in line with its economic and technological goals. According to a study by research firm IDC, it is said that the blockchain market in China could be worth over US$3.2 billion by 2025. If we look at the companies with blockchain technology in China, we can see names such as Tencent, an IT and game company, JD.com, Xiaomi and Baidu among these companies.
What is BSN?
When we look at China’s attitude towards blockchain technology, we can say that China positions this technology among national priority plans. The People’s Republic of China also has a blockchain project called BSN, or Blockchain Based Service Network. With this project, China offers a similar solution to companies using cloud computing infrastructure. This project, named BSN, which offers access from the business world to individuals, is defined as the blockchain internet. BSN positions itself as a one-stop-shop for deploying blockchain applications in the cloud, aiming to save cost and time between companies. With a statement made in September 2021, it was announced that the BSN project would launch two new portals in Turkey and Uzbekistan.
Why Is China Against Crypto Assets?
So, why is China taking such a strict attitude towards cryptocurrencies, let’s examine this issue a little bit.
As a state policy, we can say that China is very opposed to virtual activities that cannot be followed in its country and is fighting hard to prevent this. This is one of the biggest reasons why China bans crypto assets. That is, cryptocurrencies are uncontrollable. Due to this situation in China, it decided to issue its own digital currency. Because in this way, they would have a chance to control with the money under control. While the People’s Bank of China banned the trading of Bitcoin and other crypto assets, they pointed out that the economic and financial order was disrupted, increasing illegal criminal activities such as money laundering, illegal fundraising and forgery.
We said it banned crypto assets and went to issue its own digital currency, so let’s see what is China’s digital currency digital yuan.
What is the Digital Yuan?
The digital yuan is the digital version of the Chinese currency Yuan. With the move to issue the digital yuan, China aimed to both control the money flow and become the first country to switch to the digital payment system.
So Why Did China Kick the Miners?
According to the statements of Chinese officials, harsh measures were taken against the miners in order to reduce the energy used to achieve China’s climate goals, and the miners here left the country after China’s harsh attitude and settled in other countries for mining.
