China adopting blockchain had a big part for there rise

Few days ago we talk about some issue and state of crypto currency in the two biggest influencer of world which Europe and USA, now lets move in Asia which is said to be where the crypto Currency adoption was on rise. Lets take a look the state and issue of crypto currency in the biggest country in Asia, the China which is holding the title of "sleeping giant".

Over the past few years the Chinese Government has been focusing on nurturing the blockchain technology which accelerating the blockchain adoption over the country due to the fact that the country's president applaud the trending technology and identified blockchain as a strategic technology to ensure competitiveness into the next decade.

Majority of China's top financial technology companies are looking into it. about 80% of the financial technology companies listed on SCMP's leader board for top-funded start-ups have run a blockchain pilot or are otherwise investing in the technology.

According to the data from Chinese company information site Qcc.com there is more than 45000 blockchain companies have registered with the Chinese government. more than half of this 45,000 companies are located in China's economic powerhouse.

July 8 2020 written by of 8btc.news

Since 2016, the country has seen an exponential rise in the number of blockchain companies especially in 2018 with over 16,000 companies emerging throughout the year, a 246% increase from the previous year. Though the growth was slowed down in 2019, this year is witnessing another spike in the number of blockchain startups.

Despite the impact of the coronavirus, the number of registered blockchain enterprises recovered quickly after the outbreak was controlled in March and exceeded the pre-epidemic level. In April, more than 1,900 were registered, well above the monthly average for 2019. In June, the number of blockchain-related enterprises reached a new high, with 2,406 new firms registered, up 34.49% month-on-month.

because of this massive adoptions of China in blockchain there is some new career and jobs was been open and rise.

Blockchain among most popular career options

Apart from the blockchain frenzy at the business level, the formal introduction of blockchain jobs has also sparked heated discussions. China is taking another step toward blockchain adoption by officially recognizing blockchain engineers and blockchain application operators as new occupations along with seven other jobs.

In a statement, China’s Ministry of Human Resources and Social Security, which is responsible for national labor policies and regulations, noted that the formal introduction of the new occupation types are in line with China’s growing demand to promote employment amid the COVID-19 outbreak. The inclusion of blockchain posts will undoubtedly further expand the industrial scale.

A report on the supply and demand of blockchain talents in 2019 shows that the sector continues to attract a large number of talents, with the supply much larger than the demand. In the third quarter of 2019, the number of blockchain job seekers was 7.12 times that of recruitment intake. But with 45,000 companies getting involved in the sector, this might be set to change

With this action by China which is racing ahead with it ambitious currency plan where they launched there own digital currency which we already witnessed there pilot test for there own digital yuan.

What is Digital yuan?

DCEP stands for digital currency/electronic payment; otherwise known as China’s central bank digital currency project. The digital yuan is expected to function more like a counterpart to paper money than a cryptocurrency. Unlike Bitcoin, its value is stable. And the central bank will be able to monitor every transaction.

A team within the People's Bank of China has been silently working on the project since 2014. And while the central bank has been typically vague and secretive about the work, rumors have been swirling for months that a launch was imminent.

The app is a fairly straightforward implementation, which includes a wallet and a way to transfer the digital currency with a QR scanner. Graham explained it uses NFC technology, possibly useful for rural or unwired areas. "First impression is that the app looks slick, it’s a pro job in the Silicon Valley tech sense," he said.

Mobile payments are already hugely popular in China. Residents in big cities often only carry their smartphones and pay for everything with apps such as Alipay or WeChat that are linked to their bank accounts.

How does the DCEP works then?

The DCEP will function both as legal tender and electronic payment. Like physical cash—and unlike debit cards or a private digital pay system like Apple Pay—retailers will eventually not be allowed to refuse it. Although China’s digital yuan doesn’t incorporate the decentralized elements of blockchain technology, it does make use of smart contracts, cryptography and tracking to enhance anti-money laundering efforts and combat tax evasion.

Because it would be state issued and controlled, central bank digital currencies (CBDC) like the DCEP would respond much more to monetary policies than credit cards or cryptocurrencies like Bitcoin that are independent of the government. The digitization of cash can also help governments keep tighter control over money in circulation, known as M0, which otherwise is harder for central banks to track.

Economists say the digital yuan would also give the PBOC, China’s central bank, greater ability to change interest rates to spur consumption. Increased consumption is one of China’s goals set out in its 13th Five Year Plan, which lays out long term economic strategies up to 2020.

The China is already a cashless society?

In China, mobile payments through apps like Tencent’s WeChat Pay and Alibaba’s Alipay are already in wide use, with most people using their mobile phones to scan a QR code at points of sale. Indeed, cash is so rarely used that even street beggars in China use printed QR codes to receive handouts. Credit cards have also fallen out of favor, since they require stores to set up processing infrastructure and charge high fees for transactions.

Last August of this year 2020 China expands there digital yuan trial to more cities which being rolled out for testing in several major cities across the region

August 14 2020 written article of 8btc

The long-anticipated digital yuan will be piloted in more cities across the country, announced China’s ministry of commerce on  August 14.

According to the official statement, these cities include those in the northern Chinese region of Beijing-Tianjin-Hebei, eastern region of Yangtze River Delta, the “Greater Bay Area” around the Pearl River Delta, and some cities in Midwestern China.

The document states that the People’s Bank of China (PBoC) shall formulate policy safeguards. Cities like Shenzhen, Chengdu, Suzhou, Xiong’an New Area and future winter Olympic scenarios will assist in the pilot project, and then it will expand to other regions as the case may be.

On the news, digital currency-related stocks in the country surged. By midday, the digital currency sector was up 2.65%, with several stocks rising nearly 10%.

The spate of digital yuan related news over the past few months indicates that the DCEP (its official name) might be ready to come out.

Earlier this month, 8btc reported that China’s major state-run commercial banks had been conducting large-scale internal testing of the digital wallet designed for the digital yuan, which indicates the official launch of the country’s central bank digital currency is one step closer.

On August 3, the PBoC pointed out in a video conference for the second half of 2020 that the “closed trial of legal digital currency has been successfully launched” in the first half of the year, and the research and development on it will be “actively yet prudently promoted” in the second half.

In April, employees of administrative units in Xiangcheng district in Suzhou city were reportedly required to install a digital wallet to receive 50% of their transport subsidies in the new digital currency.

The digital economy is an increasingly important driver of global economic growth. The R&D and application of legal digital currency are conducive to efficiently meeting the demand of the public in the digital economy, improving the convenience, security and anti-counterfeiting level in retail payment, and boosting the development of China’s digital economy.

As early as 2014, the People’s Bank of China set up a special team to study issues regarding the framework of digital currency issuance, key technologies, circulation environment and relevant international experience. In 2017, the PBoC organized some heavyweight commercial banks and institutions to jointly develop the digital yuan. DCEP has basically completed the work of top-level design, standard formulation, functional research and development, joint testing under the premise of adhering to two-layer operation, cash (M0) substitution and controllable anonymity.

And after few months trial for DCEP on October 6 2020 there is a report that China Central Bank transact $160 Million in digital yuan.

The People’s Bank of China (PBoC) has processed over three million transactions—worth 1.1 billion yuan ($162 million) as part of its trial of the DCEP (Digital Currency, Electronic Payment), its pilot for a central bank digital currency (CBDC).

Speaking at virtual conference Sibos 2020 on Monday, the PBoC’s deputy governor Fan Yi Fei noted that, “An aggregate of 113,300 personal digital wallets and 8,859 corporate digital wallets have been opened […] up until late August.”

DCEP “red envelopes” for key workers

According to FinTech Futures’ report, the deputy governor confirmed that “internal closed pilots” have been launched in Shenzhen, Suzhou and Xiong’an. The PBoC also plans to test its digital yuan during the upcoming Winter Olympics in Beijing.

The bank has reportedly researched over 6,700 use cases for a CBDC, including areas such as bill payments, catering services, transportation, shopping and government services.

Additionally, around 5,000 medical workers in Shenzhen’s Luohu district have received “red envelopes” containing digital yuan for their contributions to fighting the coronavirus pandemic. These funds can be spent at specified merchants in the district.

The global implications of China’s DCEP

Yi Fei also reportedly noted that the “evolution of currencies” is the key element that would allow banks to improve cross-border payments. “We could achieve interoperability and address the trilemma—low costs, low risks, high efficiencies—by using digital fiat currency,” Yi Fei explained, adding that, “To protect fiat currency from these cryptoassets and safeguard monetary sovereignty, it is necessary for the central banks to digitize banknotes through new technologies.”

The PBoC regards the DCEP as an important financial infrastructure for the future, Yi Fei explained, adding that “In recent years, with the development of distributed ledger technology and cryptoassets such as Bitcoin, stablecoins have emerged and triggered a new wave of competition attempting to reap profit from substituting the fiat currency in circulation.”

As Decrypt reported, China is likely to reduce its holdings of US Treasury bonds to just under $800 billion—from the current level of more than $1 trillion—ahead of the digital yuan’s launch.

The emergence of a Chinese CBDC could have global implications. US lawmakers have already met to discuss the need for a digital dollar in light of China’s DCEP, while the country’s Office of the Director of National Intelligence has sought out researchers to explore the effects of the US dollar losing global dominance.

Source :

decrypt.co

yuqing.people.com.cn