China sets its foot even firmer towards accepting blockchain technology, as the country’s top 25 most important people gathered last week to discuss the development of blockchain technology.
The gathering did shift the layers beneath the crypto industry. China is one of the most conservative countries when it comes to crypto, banning the use of cryptocurrencies in 2017. Now, however, with the People’s Bank of China preparing to launch a yuan-backed stablecoin, and Facebook’s ongoing stablecoin project development, the Communist Party, seems to weaken its initial position on blockchain.
The gathering from last week managed to shift some fresh cash into Chinese blockchain-related companies, which also boosted Bitcoin’s price. The price increase, however, is secondary, mostly due to China’s plans to enter the fields of artificial intelligence and machine learning, which will rely on blockchain technology.
During the meeting, PBoC officials raised a flag of concern regarding the use of third-party instruments in its financial policies. That is the main reason why PBoC is relying on its own crypto project. And with Facebook’s CEO Mark Zuckerberg stating that a further delay in Libra’s schedule could be beneficial for China and their project, the trade war seems unpredictable.
China and the United States are in an open trade conflict, with the U.S. imposing higher import taxes than ever before. The situation, however, might change because of negotiations between the parties for a phase-one trading deal. The economic world expected for Donald Trump and Xi Jinping to meet in Chile, but protests and political uncertainty delayed the scheduled for mid-November APEC summit. Despite the political tension in Chile, the White House stated that the first phase of the trade agreement should be signed in the coming weeks. According to experts, it’s still early for a phase-two deal.
The West is concerned about China’s technical advancements. ByteDance, a TikTok app development company, was accused by U.S. senators Tom Cotton and Chuck Schumer in being a “national threat.”