Chinese Politician Suggests a State Blockchain Assets Trading Platform


Potentially bullish news from China: A high profile official has called for a national digital asset trading platform to be established.

Chinese People's Political Consultative Conference (CPPCC) member Wang Penjie made the statements earlier this week.

The move would follow strict guidelines, with resources undergoing a vigorous «approval system» and users of the platform would also have to undergo a vetting procedure, confirming real identities. Penjie suggested providing greater investor education regarding blockchain technology as well as opening the platform.

The report says:

"[A]fter sound domestic legislation and regulations, under the unified cooperation of the Central Bank and the CSRC, a regulated, efficient and clean blockchain digital asset trading platform will be set up for enterprises to raise funds [and trade digital assets."

Whilst Penjie's suggestion is not an official statement of intent by Chinese authorities, it does represent a noticeable shift in perceptions of blockchain engineering by officials.

These developments may be signs of a changing policy towards blockchain and cryptocurrency in China. Whilst official sanctioning of this technology is not yet a reality, there's certainly a highly positive sentiment emanating from several circles in Chinese society.

A post from Sohu yesterday is one example.

Prominent Zeng Ming, chairman of the Academic Committee of the Alibaba Group, which reported revenue of $23.82 billion last year, said

«the blockchain is a revolution in the relations of production and will inevitably bring about significant changes in productivity and a true supply-side revolution»

This sentiment was shared by Yao Jinbo, founder of 58. Com, China's biggest classified website and with a private valuation of $1.2 billion.

«we take the initiative to adopt, to explore the blockchain. Blockchain has the decentralization and intermediation characteristics, which may be as good as the Web, which may be a [larger] historical opportunity than artificial intelligence»

Others were equally enthusiastic. Cai Wenshseng Chairman of technology giant Meitu talked of blockchain technology as both a cognitive and technological revolution. Meanwhile Xu Xiaoping, founder of True Fund, issued a literal call to arms, imploring CEOs to join him «all in on blockchain». His words couldn't have been more confident: " Do not doubt the blockchain, do not hesitate, immediately mobilize all staff to adopt the blockchain."

The statements from big industry players in China are not just hot air. This month it was announced that a subsidiary of the consumer giant Alibaba had successfully implemented blockchain technologies to deal with logistics data. At the time of writing over 30,000 imported goods, ranging from Shanghai to Shenzen had been photographed together with the system.

It appears that China will enthusiastically adopt blockchain technology across industries, using a wide range of use cases. However, there has been some distinction between decentralized digital currencies, including Bitcoin and Ethereum. China has banned overseas cryptocurrency trading platforms, blocking access to sites using its nationwide firewall.

Whilst there has not been official confirmation the project will go ahead, and it is also uncertain whether Bitcoin, Ethereum, and other decentralized currencies would be included, today's news marks a ray of hope.

That is because Pengjie's suggestion did not explicitly rule out decentralized monies from being contained.

The reopening of Chinese markets could be hugely bullish for cryptocurrency costs — in the time of the closure of exchanges, Chinese traders represented a 40% of total market share. We would likely find a massive flood of investors looking to get involved.

Whether this will come to pass is currently speculative, but with enthusiasm for blockchain technology growing significantly, we might not need to wait long to discover.