China has more than 1,400 crypto companies

If there’s one country where “it’s complicated” applies to the crypto industry, it’s China. Last year, the Chinese government took tough measures and virtually banned crypto companies. Still, the young industry is indirectly booming in China. In fact, we are now hearing that directly from the Chinese government itself.

Chinese companies big on blockchain

Last year it became illegal not only to mine cryptocurrencies, but also to trade and spend them. But the legislation in China is not exactly unequivocal, for example, it is not forbidden for Chinese companies to work with blockchain.

The Chinese government concludes in a study titled ‘2022 blockchain whitepaper’ that more than 1,400 companies from China are engaged in blockchain.

In the whitepaper states that China and the US together represent 52% of the market value of the entire crypto industry. Chinese companies are said to be developing and using blockchains on a large scale. For example, China Mobile and China Unicorn state on public blockchains what your telephone subscription costs. And with Zhejiang Cold Chains, you can check the origin of food using a QR code on the packaging.

Unfortunately, blockchains and cryptocurrencies can hardly be seen separately these days. Whether and how China forms a ‘link’ with the crypto ecosystems of the rest of the world is not clear. In any case, China does use blockchain, although ‘crypto’ is less prominent.

Is China really that far in blockchain?

Meanwhile, there are also reports that China’s progress in this sector is not as strong as you might think. For example, China’s Central Bank Digital Currency (CBDC) is in a test phase. So the ‘digital yuan is already being used by a limited number of people, but it turns out not to be as popular as it should be.

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The government also boasts that no less than 84% of all patent applications for blockchain techniques come from China, but only 20% are approved. That means that a net 17% of the approved patents are Chinese. So you can ask yourself whether China is really that progressive in blockchain.

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