China the Next Home for Crypto: 89% of Chinese Blockchain Firms Plan to Issue Crypto

More than 89% of the blockchain firms in China have purportedly tried to create a cryptocurrency, with many promising to release their token soon. 

According to the Bluebook on Blockchain report, China allegedly constitutes about 28,000 blockchain enterprises. This report is co-authored by five different local financial and technology authorities. On Nov. 21, Yedong Zhu, the President of the Beijing Blockchain Technology Application Association (BBAA), highlights that of these enterprises, a majority place a focus on the issuance of tokens, but not exploring the blockchain. 

The Bluebook constitutes information from the Beijing Blockchain Technology Application Association and Social Sciences Academic Press, the Chinese Academy of Social Sciences, and the Payment and Clearing Association of China.

1/7th of Blockchain Firms in China Focus on Pure DLT

Of the mentioned 28,000 blockchain firms, it is estimated that only 4,000 of these are focused on pure blockchain technology. On the other hand, 25,000 firms in this industry have attempted to issue their cryptocurrency or token. 

China has made further efforts, and earlier in the month, Jack Lee announced in an interview with CNBC the possible launch of China’s Central Bank Digital Currency in two to three months. 

However, challenges have arisen over time with pressure arising from PBoC’s Shanghai Unit announcing that it will be taking legal action against parties partaking in cryptocurrency trading, including Bitcoin. Different authorities are raising mixed feelings concerning the adoption of blockchain and cryptocurrency in China. 

According to state-led publications, China’s blockchain push should focus more on blockchain technology as opposed to cryptocurrency-related initiatives. 

Guangdong Province sustains 50% Plus of Blockchain Enterprises in China

Guangdong province holds more than 50% of the blockchain enterprises that are planning to venture into crypto. Shenzhen province is following closely regarding the number of blockchain enterprises present in China. 

The adoption of blockchain technology in the country is snowballing. However, CCTV News warns their citizens of increasing online fraud cases, which have recently risen to 100 billion Chinese Yuan.