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Blockchain Race Between China and USA

By November 21, 2019 No Comments

“I really think the United States needs to hurry up; to have a strong thinking and policy, at least a direction for virtual USD.” – Edith Cheung, partner at Proof of Capital

Blockchain race between China and USA has started a long ago. Both countries did their best to embrace the new technology and put it to the best possible use. However, the latest data from the research company Astamuse claim that China took the lead in this race.

Where Is China on the Crypto Map?

China has developed 3 times more blockchain applications than the US. Sounds odd, I know. But it is a fact.  How is that even possible in a country that has imposed ban on trading in foreign currencies, for instance?

Interestingly, China has passed a long way when it comes to developing new technologies and their applications in many fields. The adoption of Bitcoin stirred a debate. Nevertheless, the latest news show that China has passed the first law regulating cryptography. This law will come into effect on January 1st, 2020. It stipulates the role of a new cryptographic agency that will regulate guidelines in the field of blockchain.

According to crypto analysts, the mentioned law should create the firm background for the launch of China’s official crypto currency. There are still no exact data on when this would happen, let alone the details of the currency itself. Nevertheless, it seems to be the ultimate goal.

Reactions From the US

Maybe you remember that Mark Zuckerberg officially stated the following while discussing the launch of the Libra Coin:

“China is moving quickly to launch a similar idea in the coming months. We can’t sit here and assume that because America is today the leader that it will always get to be the leader if we don’t innovate.”

How Does it Concern Blockchain Applications?

When it comes to embracing blockchain and its possible uses in various industries, the USA and China are fighting a battle. Namely, both countries have entered a race with China seemingly taking the lead.

Reportedly, there are 32,000 companies in China that have incorporated blockchain to their businesses. The exact information as to whether this is completely true is not available. On the other hand, what we do know is that Alibaba, for example, has 512 registered blockchain patents. This retail company is at the very top of entities using blockchain successfully. The UK company called nChain took the second place with 468 applications. The IBM came in third with 248. The data was compiled by Innography and NGB.

What it comes down to is that China has three times more blockchain patents and applications than the US. Moreover, the situation is changing with incredible speed. We wrote about the similar topic in July. If we compare the numbers of patents, we will see the immense increase in just a few months’ time.

Do you think the USA should do their best to overthrown China in the blockchain race?

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