Why China Won’t Miss Opportunity With Blockchain
Hui: China’s President Xi called for higher levels of research and investment into blockchain during a meeting with Communist Party officials, saying blockchain would serve an essential role in the next round of technology innovation and industrial transaction. I think there are two key points and one expectation indicated in his speech.
The first point is that China should be engaged in setting industry standards during the research and development of blockchain. It is known that the United States established the rules for the Internet. Blockchain, being the core technology of the fourth industrial revolution, its standards will determine who leads value interconnection. China will not miss such an opportunity, and this is perhaps also the reason why president Xi gave a critical speech on the day of the programmer.
The other key point is inclusive finance. The failure of P2P in China can be attributable to the misuse of technology. While inclusive finance needs to be driven by emerging technology, blockchain seems to be the best solution to the promotion of personal credit system and inclusive finance. As to the expectation, the advancement of technology not only contributes to China but also to all humanity. Blockchain will be an opportunity for China to connect with the world, including internationalization of RMB or the exchange of culture and technology.
Hui is a co-author of Blockchain and Coken Economics: A New Economic Era. He currently lectures in Finance and Fintech at the Westminster Business School, teaching courses in finance, financial derivatives, blockchain and financial big data. His research interests cover most territory of the Fintech industry, including Algorithmic Trading and High-frequency Trading, Blockchain, Cryptocurrencies, and Artificial Intelligence.