The CEO of Binance, one of the largest cryptocurrency exchanges in the world, mentioned in an interview with Bloomberg Asia that the world is going to enter a technology race in developing as many blockchain systems in as many industries and government sectors as possible.
However, Changpeng Zhao, also knowns as CZ has mentioned that China has become extremely technology friendy and therefore will be a tough opponent even if every single Western country unites their efforts in developing this new technology sector.
According to CZ, China is already planning massive investments in the blockchain industry, billions of dollars could start flowing into just one sector of the country which will balloon it out of proportions.
Why The Sudden Shift In The East?
After Xi Jinping announced that the country needs to start focusing on the blockchain technology, almost every fintech and crypto firm in the country jumped on the exchanges. Cryptocurrencies also experienced a serious bump in their prices, outlining China's influence over such an in-demand market nowadays.
The blockchain technology, especially the Distributed Ledger Technology is extremely beneficial for the Chinese government, considering how well hidden they could keep their social data.
It's already widely known that the social structure and internal affairs of China are a thing of almost a different dimension. Many westerners fail to comprehend just how much information the Chinese government gathers on its and foreign citizens as well. And as we all know, the 21st century is the century of information. The more the government knows about the world, the more they will be prepared to dominate in its most lucrative sectors.
The Regulatory Spectrum Is Very Easy In China
The reason why the West has more or less failed to finalize its classification of the blockchain technology is due to the presence of a lot of arguing voices. For example, if a single member state of the European Union decides to be extremely crypto-friendly, it could be opposed by another member state, saying that crypto trafficking would increase due to one state being open.
Then a debate would ensue in the council, which has clearly declared its aversion towards cryptocurrencies. The member state would be forced to back down from its initiative of becomming a crypto hub, thus snuffing out competitive prowess.
This is what the back-and-forth could look like in the West, especially in the United States, which keeps on believing that the dominance of the USD is immortal. Once the Chinese digital currency is launched and the blockchain sector receives billions in investments, it will become obvious that the new digital money is the CBDC (Chinese Bank Digital Currency) and not the USD.
The reason why cryptos are so numerous in China is due to the easily-comprehensible regulations there. If the government doesn't like it, then they ban it, but if they do like it, they allow pretty much anything besides crime and tax evasion. That's about it, no year-long discussions or anything. The decisions are mostly unilateral, thus removing any speculation from the discussions completely.