China expands national crypto-currency project in 19 provinces

China is close to launching the digital Yuan, in the development of the government of the last 5 years has worked. In the same train China is pushing ahead with the development of a number of Blockchain-initiatives.

The Chinese State Administration of Foreign Exchange (SAFE) has extended the pilot program for cross-border Blockchain. The pilot project, which consisted of since its launch in March, nine provinces, was extended to 19 out of 23 provinces in China. By the end of October, the platform had settled 6.370 transactions and 6.8 billion dollars in loans to a customer base of over 1.262 companies, most of which are small and medium-sized enterprises, reported the global times.

According to the report, the Use of ZhongChao Blockchain Technology Research Institute developed the Initiative lies in the fact that it reduces the machining times of up to two days to 15 minutes, a mountain of paperwork one part and fraud “excludes” (freely translated):

The traditional financial processes that require a lot of human work to the Review and authorization of information, leave a lot of room for financial fraud

said the block chain analyst Cao Yin to the global times. He also (freely translated):

But since the Blockchain System promises to be a decentralized and encrypted trace of each capital flow, it can be potentially little to no room for human Agency.

The expansion of research in this area follows on from a strong Pro-Blockchain-sentiment from China and the sudden opinion turning to the government. Furthermore, the Chinese state news Agency Xinhua today published an editorial about Bitcoin, and referred to it as a “breakthrough”. The article reached several million people, and showed both the advantages and disadvantages of Bitcoin and the Blockchain technology.

Although Bitcoin has been associated with money laundering, overall, the article is written is neutral and refers to Bitcoin as the “most successful application on the Blockchain”. Until a few months ago, a negative sentiment towards crypto prevailed in China currencies. The first signs of an easing began a few months ago, as a negative criticism of politicians on the Blockchain from all Social networks was removed. In the next step, the President has praised Xi Jinping last month, the virtues of the Blockchain and described, and that on this basis, the economic and social value can be created.

Also, Bitcoin Mining in China is not prohibited, as it has been removed from the catalog, the to 01. January 2020 is restricted. Exactly on that date, the new crypto-law in China comes into force, all legal questions relating to the topic of crypto-currencies, Blockchain and Fintech to rules. The law is very broad, since the Chinese government first has to collect experience, to be able to make adjustments.

Overall, these developments are positive for the crypto-currency market. However, all these efforts could pursue the goal of population on the introduction of digital Yuan to prepare. This should be placed in the first quarter of next year on the market. The digital Yuan is covered by the Central Bank of the country and to provide 1.4 billion Chinese have access to cheap and fast financial services.

To what extent the economy as well as the everyday life of the people runs a Verämnderung through, remains to be seen.

Featured Image: Wit Olszweksi | Shutterstock