Two Superpowers’ Contrasting Stance on Blockchain Technology

The world’s two superpowers, China and the U.S., have shockingly different opinions when it comes to blockchain and cryptocurrencies.

U.S. President Donald Trump had blatantly stated in July this year that he is “not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air”. With this statement, the United States has somewhat made it clear that such blockchain technology, cryptocurrency and digital assets are not important to the country.

On the other hand, Chinese President Xi Jinping has made a crucial endorsement to the blockchain technology, which can be seen as a signal that the government sees blockchain as an integral part of the country’s plan to become a high-tech superpower. Beijing is the latest in a handful of countries to have adopted a law strictly governing the encryption of data, and has plans to use the technology for purposes such as issuing digital money, streamlining a raft of government services and even tracking Communist Party loyalty.

Xinhua news agency said a blockchain-based system had been used for the very first time, to automatically generate and file an enforcement case in Chinese court against a party who had failed to pay damages in a mediation agreement. With blockchain’s application in court, there is less human intervention, and this could potentially make judicial enforcement in China “more intelligent and transparent”, according to the news agency. Going forward, such technology can disrupt not only the law and finance industry, but also countless other industries such as Internet of things, artificial intelligence and 5G.

President Xi, who is blockchain-pro, said “Blockchain should play a bigger role in strengthening Chinese power in cyberspace, developing the digital economy and promoting socio-economic development.” President Xi’s support of blockchain technology to better China’s economy was however seen by Mr Anthony Pompliano, Co-founder & Partner at Morgan Creek Digital, as an attempt to rise up to become the global leader.

The mixed feelings of different nations towards Blockchain technology and cryptocurrency makes the future of blockchain a rather uncertain one.

“The blockchain is the financial challenge of our time. It is going to change the way that our financial world operates.”

-Blythe Masters

True enough, blockchain has already begun to disrupt many different industries all over the world, and will continue to affect even more.

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Disclaimer: This article is not trading or investment advice. It is for entertainment and educational purposes only. Please do your own research before investing into any digital currency.

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