China Approves a new law To Commercialize Blockchain Technology

China is trying to become a region of importance again, at least where cryptocurrencies are concerned. Despite banning the trading of Bitcoin and altcoins several years ago, things are slowly changing in the country. The new cryptography law that passed in the country will go into effect on January 1, 2020. The main order of business is to embrace blockchain technology, rather than allow Bitcoin again. 

China Likes Blockchain Technology

Very few forms of technology have made a global impact over the past few decades. Following in those footsteps won’t be easy, given the regulatory red tape that exists in virtually all countries today. China is no exception in this regard, albeit the country has built up a reputation of not looking to be included in most ventures unless they are developed within the nation’s borders. 

The recently approved cryptography law aims to promote the use of blockchain technology in China. President Xi Jinping sees many opportunities ahead in this industry. The technology can be sued for a wide array of purposes, including digitization, record keeping, and so forth. Come January 1, 2020, it seems the focus will shift to blockchain technology and development. A new regulatory framework will be established to ensure this industry can thrive for many years to come. 

What About Cryptocurrencies?

Unlike what some people might have expected following this announcement, cryptocurrency trading will remain banned until further notice. The Chinese government has shown no indication they are looking to change this particular aspect now or in the foreseeable future. Not entirely surprising, considering how the decision to ban Bitcoin trading came somewhat out of the blue as well. 

It is certainly possible that the situation comes to change. The government is effectively working on its own national digital currency. That in itself would explain this renewed push to explore blockchain technology all of a sudden. Albeit it remains uncertain if this currency will use a distributed ledger of sorts, it is not difficult to put one and one together. 

Commercializing the Technology

In the end, China wants to research and develop new commercial applications based on blockchain technology. Which commercial cryptography technologies that will encompass exactly, is anyone’s guess these days. With China leading the charge in this industry, it seems plausible to expect an international response on a large scale.