The world is evolving faster than ever and the blockchain theme is starting to catch on. Let’s check out the extreme paradigm shift that China has made and what is happening in Korea right now as well.
Nothing should be considered investment or financial advice. Enjoy the ride.
China Loves Blockchain
As we can see below, the Twitter acc, cnLedger, has been keeping up with all of the development happening over in China. Since the formal announcement of the Libra project from Facebook, China has relentless started to ramp up their blockchain propaganda.
Anything that the government wants to enforce or promote in China is done on a nation wide scale. The media and TV will be censored, laws will change, and subliminal marketing will fill the ad spaces to make sure the government’s message is heard. This time however, it seems that China is on blockchain’s side. To be clear, China is not promoting cryptocurrency or the decentralized market. They are in fact promoting the development and research of blockchain as a technology and centralized digital assets that could create friction-less payments.
China has historically been very aggressive against the crypto community, and trading within the country is still banned to some degree. It is legal to own crypto currency, but there are very strict rules on what you can do with it otherwise. Today, the government seems to be trying to change their previous sentiment by going as far as banning media and articles that declare blockchain as a scam.
China’s Digital Asset
Clearly, China is preparing for a shift in their financial ecosystem. Following Libra’s announcement, China too announced that they will be launching their own centralized digital asset. More than likely, it will be similar to a stable coin that is pegged to the yuan (also known as “kuai”) or pegged to some type of portfolio of indexes. This is similar to the strategy that Zuckerberg and his team are taking.
China has a immense need for friction-less payments due to their recent transfer to a more digitalized economy. Soon, machine to machine payments will also increase this need as well. China understands this now because even the president of the country recently announced the importance of blockchain for the future of the economy and technological advancements.
Korea’s Blockchain Policy
Korea, upon hearing China announce the importance of blockchain research, also took to the media. Recently at the end of October 2019, the presidential committee recommended clearer legal status for cryptocurrency. Korea however has already been one of the more advanced countries in the world in terms of asset classification. On top of this, Korea has consistently had strong volume and exchange participation in the region for several years. There is a strong market for not only blockchain technology, but also for trading digital assets in general.
Currently, Korea seems to be heavily influenced by two main projects. The first is ICON which reticently announced the switch from a centralized ecosystem to a fully decentralized one. ICON lost a lot of its market cap over the previous bear market, but it seems to still have a strong following and over 12 developmental teams working to build out the project. The other main project in the region is the Walton Blockchain which has partnered with Korean ministry of Science and ICT to train and educate students at the newly renamed, Korea Blockchain Institute.