Donald Tapscott, recently stated that the official Chinese currency would become a cryptocurrency.  He stated that he had been involved in a meeting with the vice-chairman of the Communist Party in China.  

He recalled that Xi Jinping, president stating that blockchain is one of the important technologies for the future of the country.

Xi Jinping also spoke about how the governments are banning cryptocurrency exchanges and cryptocurrency mining as well by stating, “It’s not really necessary to do that [to ban exchanges and mining] because in 20 years we are not going to be using Bitcoin in China. Chinese people will use the RMB; only the RMB will become a cryptocurrency. The central bank of China will turn it into a digital currency.”

From Jinping’s statement, it is evident that they are going to compete with Bitcoin by making RMB a cryptocurrency. Despite the government having a serious stance concerning digital currencies Tapscot opined that decentralized exchanges might operate in China.

Tapscot stated that ultimately decentralized exchanges would dominate the centralized exchanges.  The National Development and Reform Commission (NDRC) said that crypto mining is a part of their draft for a revised list concerning industrial activities, which the government is intending to shut down.  This is because these companies “lacked safe production conditions, seriously wasted resources, polluted the environment,” among other issues.

The country continues to be a major player in the Bitcoin market with several local organizations controlling the Bitcoin Mining Pools.  The reported plans of the NDRC would mainly affect the 11 mining farms in China, which are operated by Bitmain.

This is while China continues to lead the world in several blockchain projects.  China accounts for nearly 25% of the global total, and there are more than 263 blockchain related projects in China.

In the past year, a multi-year project was launched, which was mainly focused on the Jiangsu Province where the blockchain will be the main technology used by the local authorities to overhaul the local transport infrastructure.

In the overall market, investors are looking for some kind of stability, but trends always do not move the way investors want it to.  Markets continue to be a mix of trends hitting new lows, and some tokens were overpriced per analysts.  The bulls are finally making their line up now. While it has been boring to watch the cryptocurrency market trends, it is all trending in a positive way and analysts are wondering if we are heading towards a rally for ages.