• 6 hours Trump Tweet Sends Oil Soaring 25%
  • 23 hours Why The Coronavirus Economic Crash Is Worse Than You Think
  • 1 day Is A Global Currency Necessary?
  • 2 days America Has Shed 500,000 Millionaires Since The Coronavirus Lockdown Began
  • 2 days Trump Wants Another $2 Trillion Economic Intervention
  • 3 days The Surprising Businesses Deemed “Essential” During The Coronavirus Lockdown
  • 3 days Priceless Van Gogh "Spring Garden" Painting Stolen
  • 3 days Oil Falls To $20 For First Time In Nearly Two Decades
  • 3 days COVID-19 Could Be The End Of U.S. Coal
  • 4 days How Much Does Your Social Security Number Cost? $4 On The Dark Web
  • 5 days Silver Stocks Have Been Decimated In The Coronavirus Sell-Off
  • 6 days How Blockchain Tech Could Make Mergers And Acquisitions More Efficient
  • 6 days America’s Shortage Of This Metal Keeps Trump Up At Night
  • 7 days Bidet Bonanza: Defying The Toilet Paper Shortage
  • 7 days U.S. Auto Sales Fall By 75%
  • 8 days Violating Quarantine? Big Brother Is Watching
  • 8 days Does Gold Still Have Some Room To Run?
  • 8 days Major Acquisition Gives The World’s First Green Ride-Share Another Edge
  • 9 days U.S. Pushes For Digital Currency For Immediate Stimulus
  • 9 days The Impossible Challenges Created By Growing Population
Blockchain Startup Wants To Bring Microgrids To Japan

Blockchain Startup Wants To Bring Microgrids To Japan

Blockchain technology has already found…

How Tech Is Decentralizing The Energy Industry

How Tech Is Decentralizing The Energy Industry

Decentralized energy solutions are sprouting…

Big Oil Doubles Down On Blockchain Tech

Big Oil Doubles Down On Blockchain Tech

Two more supermajors have joined…

  1. Home
  2. Cryptocurrencies
  3. Blockchain

China Goes All In On Blockchain Tech With $100M Deal

BTC

Huobi Group--China’s crypto conglomerate that invests in digital assets including blockchain incubators, mining pools and research--has announced plans to invest $100 million to build the country's first public blockchain, the Huobi Chain.

Interestingly, Huobi has already raised $300 million for the project through token sales with the extra funds to be pumped into the company's $1-billion blockchain fund that it launched in May. The fund will be used to invest in blockchain companies.

And so the world indeed seems a strange place considering that China has made several rabid attempts to completely stamp out cryptocurrency trading by its citizens not only within its borders but also on offshore platforms .

And now the country suddenly seems to have developed a new fondness for blockchain technology.

It all began about three weeks ago when, in a rather strange move, Beijing's Center for Information Industry Development released a cryptocurrency index that's supposed to rank public blockchains. The index rates blockchains using parameters like usefulness of the application, innovativeness of the project and  technological capability.

About  week ago, government-controlled main broadcaster, CCTV, touted the value of blockchain technology declaring it was “10x that of the internet”, as SafeHaven reported recently.

But with the Huobi deal, China is putting its money where its mouth is.

Yes To Blockchain, No To Crypto

China's stance of embracing blockchain but rejecting cryptocurrencies is meant to inspire its citizens and corporations to come up with blockchain-centric projects of their own. Related: Technical Flags Suggest Trouble Ahead For Gold

That much is evident going by some of the claims made during the show, including by the country's academia and corporate leaders that blockchain is capable of creating companies 10x bigger than Google or Facebook.

But there is still some level of schizophrenia coming out of Beijing. While cryptocurrency is not blockchain in itself, Beijing rejection of cryptocurrencies means that it is at least rejecting some of the fundamentals of blockchain technology.

These include the concept of tokenization, which is the main currency used in blockchain projects as well as free movement of assets and decentralization (non-government controls).

In fact, it's quite disingenuous because Huobi itself has raised millions of dollars by selling tokens at $5 a pop.

To give you a further glimpse into Beijing's rather twisted view of crypto--the country's central bank is trying to build a centralized cryptocurrency.

So, this is really all about control, as it nearly always is with the Beijing government.

Emerging economies like China stand to benefit the most from blockchain where the technology could streamline inefficient service delivery systems, property registrations, government and corporate record keeping systems and smart contracts to name a few. As long as every aspect of it is controlled by Beijing …

By Alex Kimani for Safehaven.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment