Your current location:Index -> Research Report

China competes for the pricing power of digital currency

———— Release time:2020-02-13   Edit:  Read:25 ————

Political Bureau of the CPC Central Committee held the 18th group study on the status and trend of block chain technology on the afternoon of October 24. Xi Jinping, General Secretary of the Communist Party of China, stressed that the integrated application of blockchain technology plays an important role in new technological innovation and industrial transformation when he chaired the meeting. We should take blockchain as an important breakthrough in independent innovation of core technologies, make clear the main direction of attack, increase input intensity, focus on a number of key core technologies, and accelerate the innovation and development of blockchain technology and industry.

The author studies the related report and obtains the following enlightenment.

Firstly, the Chinese government's understanding and application of blockchain has exceeded expectations. Previous politburo studies on a single technology only involved the Internet and artificial intelligence. Xi Jinping pointed out that blockchain is an important breakthrough point for independent innovation of core technologies, and put forward "blockchain +" for the first time. These expressions put blockchain, together with artificial intelligence and Internet, into an important national policy. It is foreseeable that the term "blockchain" will appear for the first time in the work report of the central government next year, and it is likely to be mentioned many times. In the coming years, there will be tens of millions of RMB investment in the blockchain industry.

Secondly, other industries will accelerate their embrace of blockchain. Xi Jinping pointed out that we should seek the use of "block chain+" in the field of the people's livelihood, actively promote block chain technology in education, employment, pensions, precision out of poverty, health, product security, food security, public welfare, social assistance in the areas of application, provide people with more intelligent, more convenient, more high-quality public services. We should promote the combination of the underlying technology services of the block chain and the construction of new smart cities, explore the promotion and application of information infrastructure, smart transportation, energy and electricity, and improve the level of intelligent and precise urban management. These statements clearly indicate that some industries whose market size is hundreds or thousands of times larger than the current block chain industry will develop in coordination with block chain in the future.


Thirdly, Xi Jinping has brought the blockchain into a new era. Everyone needs to re-examine the blockchain. The author believes that block chain is not only a technology, but also an organizational behavior, an economics, and even a philosophy. Its features of distribution, tamper-proof, trustworthiness, self-motivation, and self-distribution, along with blockchain, may be redefined, or "restarted." With the help of blockchain, it may be form "community consensus" which is different from consanguine consensus, regional consensus, national consensus, institutional consensus, religious consensus, etc., and may be form communities which are cross-regional, cross-industry, cross-market, cross-network, cross-law, cross-culture. These new consensus and community will be born in China first.


Fourthly, China will contribute more to the global blockchain. China has led the global blockchain movement in technology standards, regulatory laws, related patents and digital asset transactions. As a large country with a population of 1.3 billion and a vast territory, it takes a lot of courage and a good system to be able to experiment first. Next, the author predicts that the investment and financing institutions in China's blockchain industry will develop in a spurt, and even the pricing power of some digital assets will be controlled by China. A coincidence happens on October 23rd, which is Libra received the longest hearing in its history, lasting six hours.The CEO of Facebook, Mark Zuckerberg,has repeatedly mentioned China's central bank digital currency will be a major competitor. He reminded the dissenters: we are slow and China will win.


Last weekend, we saw that in terms of the layout of the block chain industry, the United States really got up early and caught up with the late gathering. China will lead the world in blockchain.