Do not underestimate the cascading effect of China’s President Xi Jin Ping’s declaration of “embracing blockchain to become the leader in technology”. It means that China is gunning to be the innovation country of the world. Remember the context of their trade war with the USA. Silicon valley and their multi billion exits of unicorns or billion dollar companies have been the sole bright spot in USA’s economy for the last decade even half-century. China sees an opening to steal that gem. China has recognized a while ago that the next big wave is blockchain and the so called Web3 — the decentralization of the internet and the birth of native digital nationless currencies. We had the very disruptive liberalization of information from gatekeepers in Web 2.0 the next is the liberalization of store of value from the moneykeepers in web 3.0.
The correct interpretation of this major shift is that the Blockchain Race of Nation is on.
China is running with this and every other nation envious of China has no choice but to join this race. The winner has some sway over what flavor of decentralized currency will be the main internet currency in the Web3 revolution.
Xi Jin Ping’s declaration is calculated move to capture external innovators into the fold. Build your innovation here with our citizens and our nation will not try to kill you like America is killing Facebook’s Libra. I am willing to wager that their own digital crypto pegged to RMB is almost ready (2020) hence the showing of hand.
Welcome to the bull market, and unlike the proverbial bull in a china shop this bull has China on its side.
Note:
Beijing Financial Association Research Institute Dean Yi Huanhuan has made nine predictions on governments’ action and industrial trend based on XI’s remarks.
1. The Cyberspace Administration will likely oversee this [blockchain] field;
2. To establish a national association of blockchain;
3. A large number of blockchain pilots will appear first in the financial industry, and then in government administrations;
4. Chinese national digital currency will play an important role in the world;
5. There will be state level digital banks, digital asset exchanges, digital investment banks and digital asset management;
6. The global blockchain network standards are likely to be set by China;
7. China will generate a large number of world-class leaders, entrepreneurs, and scholars in blockchain;
8. The performance of blockchain will be improved significantly in the next three to five years;
9. Mathematics, cryptography, and computational theory will become the most popular subjects.
Personal notes:
1. South Korea will still lead the charge as they are already in a good position to move forward.
2. China and India will be the most aggressive to fund blockchain projects.
3. USA will be the slowest to turn the ship.
4. The Malta, BVI, Switzerland, Cayman will be busy as ever.
5. Binance will be the biggest winner here to me as well as China native projects like Neo,ONT, NKN and others.
