China: All Hands on Blockchain again?

“Blockchain”, become a top issue in the Lianghui (Two Session) period in 2019

On March 15th, the biggest political festival in China, “Lianghui (Two Session)”has started and the National People’s Congress + National People’s Political Consultative Conference was held in Beijing, China. Surprisingly enough, at this time, there was a lot of discussion about the blockchain.

As the majority of people involved in crypto are aware, the Chinese government completely banned the issuance and trading of cryptocurrency in September 2017, causing a knock-on effect for the usage of blockchain technology and big data convergence, becoming a major issue.

A total of 34 agendas related to blockchain has been submitted during Lianghui, the number of agendas increased by 62%, trumping the previous Lianghui period when all of the cryptocurrency prices had been pumped.

Among these, the number of agendas regarding the development of blockchain technology was 14, easily becoming the most popular during the event, during which, five regulatory and policy for blockchain were also proposed. With the general consensus being that the Chinese government should keep more of an open mind towards blockchain and cryptocurrency.

They have previous dealings with the use of blockchain technology in various areas such as medical hygiene, smart city, battery recovery, supply chain, charity activities, copyright issues, and food safety issues. There was an optimistic atmosphere in congress towards blockchain, with the majority voicing that they should be more proactive on the integration of its technology.

The main point of the regulatory agenda was “Building healthy blockchain environment in 2019”, with officers voicing that China should note that there are issues that can be carried out on regulatory and policy agendas.

Jingwu Wang, head of the central bank of the People’s Bank of China, proposed a sandbox for blockchain, with Aoshuang Yan, deputy chairman of the People’s Committee of Beijing, emphasized that the government should use this innovative technology and block the illegal activities of financial products and financial activities proactively. Wang Fengze, a member of the ruling coalition government, said: “Regulation on blockchain and cryptocurrency is necessary but it is not right to prohibit unconditionally.”

“Many corporations have already started their business related to blockchain and crypto, but those regulations harmed their motivation and innovative power.” He suggested that using cryptocurrency licensing schemes and real-name systems, China should conditionally permit the issuance and trading of cryptocurrency.

Bitcoin Registers Large Influx of Capital From China

According to Coinlib, monitoring currencies, Chinese Yuan (RMB) seems to be one of the most popular currencies flowing into bitcoin and other major cryptocurrencies.

Over the past 24 hours, the amount of RMB that has flowed into the bitcoin surpassed USD 165 million, followed by Altcoin, which was slightly below USD 75 million.

Chinese Yuan came in second place to the US dollar, and the largest inflow came from the stable coin, Tether (USDT).

Contrary to the assumption that China regulators will keep pushing down all exchanges, users, and investors, China is constantly moving forward.

As you can see from the news of Lianghui, “blockchain and cryptocurrency” was a hot topic where top political Chinese leaders gathered to discuss plans for the year.

According to market research, the volume of transactions from Chinese users using Chinese capital is constantly growing.

Unlike other countries’ belief that China will always have a conservative attitude to blockchain, China’s blockbusting industries and its accompanying capital are moving very aggressively into 2019.