China: Blockchain Is the Future But Keep it Rational — Avoid ‘Aircoins’

China’s official state-owned media has endorsed “orderly” blockchain innovation but cautioned the public to “keep it rational” and avoid the hype around “aircoins.” 

On Oct. 4, Dovey Wan — founding partner of blockchain-based investment company Primitive Ventures — tweeted two screenshots showing a rough translation of the new report from the CPC-owned English-language news portal China Daily.

China needs “inclusive and prudent” regulation

The People’s Daily article opens with the bullish statement that with blockchain “the future is here” — yet swiftly goes on to draw a sharp distinction between bonafide innovation in the sector and what it deems to be undesirable virtual currency speculation:

“Innovation in blockchain is not equivalent to speculation in virtual currency. The use of blockchain to hype up aircoins [...] should be prevented.”

The report continues to caution that blockchain remains in its early stages of development and still demands improvements in terms of security, standardization and regulatory oversight:

“The use of blockchain to store and spread illegal information, to enable illegal transactions, money laundering and similar activities should be severely punished.”

To conclude, the report advocates for “inclusive and prudent regulation” that allows for experimentation but prohibits transgressions. 

Only by avoiding a frenzied rush can China foster the development of the blockchain sector with “orderly competition, it states.

As the People’s Daily notes, China already has a solid foundation for implementing blockchain development with the participation of major internet firms in the sector as well as with over 20 of the country’s provinces already introducing policies to promote the industry. 

Blockchain-based ID system launching in China’s smart cities

Earlier today, the Global Times reported that a new, independently-developed blockchain-based smart city identification system has been jointly launched by three institutes based in the city of Shijiazhuang in North China's Hebei Province. The system has been made available for cities nationwide as of Nov. 3.

This week, over 10 million blockchain-based invoices were successfully issued in China’s tech capital Shenzhen, according to the city’s tax authorities.

Notably, Chinese President Xi Jinping  has recently called on the country to accelerate blockchain adoption, endorsing the technology “an important breakthrough.”