China’s Paradox: No to Crypto, Yes to Blockchain

July 1, 2024

Since China’s blanket ban on crypto transactions in late 2017, it has been clear in its approach toward cryptocurrency. The Chinese authorities persist in their belief that decentralized digital currencies are more harmful than beneficial. The concern arises from the tendency of cryptocurrencies to mask capital outflows, a behavior that Chinese regulators seek to limit, as well as their association with money laundering.

Despite stringent measures placed on crypto trading, the country shows ongoing support for blockchain technology as a fundamental tool for driving innovation in fields such as digital identity, supply chain management, and transborder payments.

Ant Group: Increased Registered Capital for Subsidiaries

Ant Group, the fintech division of Alibaba, is demonstrating its ongoing dedication to blockchain technology by making a substantial investment in two of its blockchain ancillaries.

Ant Blockchain Technology recently raised its nominal capital from 100 million yuan ($13.9 million) to a remarkable 1.5 billion yuan ($206.4 million). Formed in December 2018, this subsidiary concentrates on software development, hardware distribution, and information technology (IT) services associated with blockchain technology.

Meanwhile, AntChain, Ant Group’s dedicated blockchain brand, also recorded a significant increase in its registered capital, jumping from 100 million yuan to 2.1 billion yuan ($288.9 million).

These developments demonstrate that Ant Group’s dedication to blockchain technology surpasses mere financial investments, solidifying its position as the foremost player in China’s growing blockchain sector.

Blockchain Project for the ‘Belt and Road Initiative

On March 30, China announced the launch of a blockchain project for the “Belt and Road Initiative” called the Ultra Large-Scale Blockchain Infrastructure Platform, according to a report from Wu Blockchain.

Through the Belt and Road Initiative (BRI), China is strategically advancing its economic and political interests to reinforce its position as a global superpower. This initiative allows China to expand its investments into over 150 countries and global organizations as part of the Chinese government’s strategy to elevate security, efficiency, and transparency.

Reports emerged in December regarding China’s utilization of blockchain technology to authenticate the identities of its 1.4 billion citizens through RealDID, a blockchain-based digital identity system.

Alibaba Cloud x CertiK: Combating Cybersecurity Risks with Blockchain Technology

Blockchain security company CertiK made a move today to migrate its cloud infrastructure in Asia to Alibaba Cloud, a cloud computing subsidiary of the Chinese global marketplace Alibaba. Under the agreement, CertiK will deploy its collection of 12 blockchain applications on Alibaba Cloud and leverage its cloud capabilities to deliver Web3 services.

“For over five years, we have believed in the transformative power of blockchain technology. We look forward to empowering developers with secure blockchain development and deployment through Alibaba Cloud’s platform,” CertiK co-founder Ronghui Gu said in a press release.

CertiK shared the announcement on its X account, emphasizing its close ties with Alibaba Cloud, which can be traced back to May 2023, when a partnership was formed to provide blockchain security services to cloud-based Web3 projects.

China’s next steps in integrating blockchain technology while sidelining cryptocurrency remains to be seen. However, the Chinese government has taken a calculated approach in overseeing the blockchain industry, as evidenced by the introduction of the “Blockchain Information Service Management Regulation.”  

The Chinese government’s strategy of veering away from the detrimental aspects of cryptocurrency and using blockchain technology in established sectors allows various companies to incorporate blockchain’s technological benefits into the political and economic framework of the Chinese system.

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Malaya has positions in SHIB, ETH, USDT, MATIC, etc. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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