China crypto paradox
China bans cryptocurrency trading but supports the underlying technology.
There are fresh concerns around the potential for China to manipulate the price of cryptocurrencies through its regulatory decisions, with a view to building momentum towards the integration of the digital Yuan, as part of their ‘Belt and Road Initiative’. Indeed, China began pushing the development of blockchain technology after 2019, when President Xi Jinping asked for tech giant companies to become leaders in the booming tech industry.
According to data from the official government channel, 84% of all blockchain applications are filed from China.
Although China’s relationship with cryptocurrency exchanges and the use of the cryptocurrencies in the country has been strict and widely reported, the government has always been supportive and even promotional of the underlying blockchain technology, hence the level of patent applications coming from the country.
The new technology was supported by President Jinping back in 2019, when he asked companies, startups and individuals alike to take part in the development of this promising new industry, as he believed it could potentially represent the global industry of the future.
Following this announcement, it was reported that 4,435 blockchain patent applications were filed by Chinese companies within a year.
In September 2022, deputy director of the Ministry of Industry and Information Technology, Wang Jianwei, stated that “China accounted for roughly 60% of the world's blockchain patent applications from 2015 to June 2021, followed by the United States and South Korea”.
Although there is a significant number of patent applications in China, the approval rates are nowhere near as high as the applications. In fact, according to the South China Morning Post, only 19% of the applications got approved.
It is also worth mentioning that with regards to China’s development of the digital Yuan, it is fair to say that they are no advocate of decentralization. In fact, it is being developed on a curated version of the blockchain, which means the central bank retains full control over its functionality.
analyst opinion
Eda Tutkun
There are fresh concerns around the potential for China to manipulate the price of cryptocurrencies through its regulatory decisions, with a view to building momentum towards the integration of the digital Yuan, as part of their ‘Belt and Road Initiative’. Indeed, China began pushing the development of blockchain technology after 2019, when President Xi Jinping asked for tech giant companies to become leaders in the booming tech industry.
According to data from the official government channel, 84% of all blockchain applications are filed from China.
Although China’s relationship with cryptocurrency exchanges and the use of the cryptocurrencies in the country has been strict and widely reported, the government has always been supportive and even promotional of the underlying blockchain technology, hence the level of patent applications coming from the country.
The new technology was supported by President Jinping back in 2019, when he asked companies, startups and individuals alike to take part in the development of this promising new industry, as he believed it could potentially represent the global industry of the future.
Following this announcement, it was reported that 4,435 blockchain patent applications were filed by Chinese companies within a year.
In September 2022, deputy director of the Ministry of Industry and Information Technology, Wang Jianwei, stated that “China accounted for roughly 60% of the world's blockchain patent applications from 2015 to June 2021, followed by the United States and South Korea”.
Although there is a significant number of patent applications in China, the approval rates are nowhere near as high as the applications. In fact, according to the South China Morning Post, only 19% of the applications got approved.
It is also worth mentioning that with regards to China’s development of the digital Yuan, it is fair to say that they are no advocate of decentralization. In fact, it is being developed on a curated version of the blockchain, which means the central bank retains full control over its functionality.
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