China has start a country wide initiative to rapidly adopt Blockchain Technology and ‘urgently’ develop use cases. China’s President Xi Jinping personally appealed for a greater urgency to develop blockchain in-front of the Communist Party of China Central Committee. This sentiment was echoed in by state media People’s Daily published a front page article on “Placing Blockchain as one of the countries core initiatives, with a target on key breakthroughs“. On top of this, national TV station CCTV-2 had various news segments dedicated to discussion blockchain technology – with a key emphasis that Blockchain, not Bitcoin is China’s key focus.China’s leading newspaper, People’s Daily, calls for Blockchain Adoption
This huge initiative to push Blockchain is clearly related to the launch of China’s National Digital Currency – “DCEP” (Digitial Currency / Electronic Payment). This new currency is issued by the People’s Bank of China (PBoC), and will act as both a replacement for Researve Money (M0) and as a digital cash. DCEP will initially be rolled out to banks affiliated with PBoC and eventually to the general public via Tencent and Alibaba.
It is important to point out the DCEP will be a centralized & private blockchain. New currency on the network will be issued by the PBoC via authority from the Chinese Government. There will be no public participation in the network, unlike the decentralized Bitcoin network which uses Blockchain to form an open public consensus.Blockchain, Not Bitcoin
One of the key areas of contention in the cryptocurrency space is whether a private or centralized Blockchains have value.Opinion 1: Bitcoin, not Blockchain Opinion 2: Blockchain, not Bitcoin
Proponents of Bitcoin argue that Blockchain’s key value is that it allows for a decentralized network, a leaderless network where anyone can join, participate and verify transactions. The argument is that if the purpose of...