China Embraces Blockchain and Crypto: Bright Future Ahead

• KPMG’s latest research report shows that blockchain technology was the 5th most popular innovative tech amongst Chinese fintech companies as of 2022.
• The Chinese government has increased its support for blockchain-related initiatives, including the launch of the Blockchain Service Network (BSN).
• Recent reports suggest that China may be planning to lift its blanket ban on cryptocurrencies, as authorities are reportedly set to integrate crypto into its financial system.

The usage of blockchain technology has seen a significant rise in the past few years, particularly in the Chinese financial technology industry. According to a new research report released by KPMG, one of the “Big Four” professional services firms, blockchain technology was the fifth most popular innovative tech amongst Chinese fintech companies as of 2022. This was preceded by big data (76% share), artificial intelligence (68% ), cloud computing (41% ) and knowledge graph (34%).

The report also highlighted the Chinese government’s increased support for blockchain-related initiatives across the region as a major factor in driving DLT adoption. In 2020, the Chinese government launched the Blockchain Service Network (BSN), which serves as China’s Web3 standard. This has encouraged more companies to explore the potential of blockchain technology and its applications in the financial sector.

Furthermore, recent reports suggest that China may be planning to lift its blanket ban on cryptocurrencies, as authorities are reportedly set to integrate crypto into its financial system. The Chinese government had previously outlawed all crypto-related activities within its shores, including bitcoin mining. However, if the reports are anything to go by, it appears that the president Xi Jinping-led government may be nursing plans to make a comeback in the crypto space.

The increasing support for blockchain technology and its potential applications in the financial sector, coupled with the possibility of China lifting its ban on cryptocurrencies, bodes well for the future of the industry. It remains to be seen how the industry will develop moving forward, but one thing is certain: blockchain technology has come a long way in a short period of time, and its future looks bright.