China’s Actions on Crypto Signals a Shift

Several major cryptos have seen rallies in the last few months, as the promise of new ETFs is around the corner. Bitcoin, Ethereum, Solana, and XRP have all flown up in their crypto signals.

Bitcoin alone has more than doubled in price in the last year. The crypto went to around $44,000 in this time period. Analysts actually expect some other cryptos to outperform Bitcoin in relative terms. Solana is a crypto token that has already accomplished this. 2024 is, therefore supposed to be a bullish year for crypto overall. There are also rumours going around about the creation of a sovereign Bitcoin in some countries.

China has taken note of this development, whereas earlier, it was more sceptical. In 2021, China put a ban in place on trading crypto and Bitcoin. This caused a major crash in the industry within China. We should note that China decided to actually use and develop blockchain technology after the original crypto ban. However, this was more for surveillance than trading.

Now, however, an official has stated that they are going to focus great attention on the Chinese crypto industry in the coming years. It seems as though the sentiment towards the sector has flipped quickly.

If we look at practical developments, the Chinese already seem to be taking proactive steps. China’s Ministry of Industry and Information Technology published a document recently that outlined its plans to boost crypto signals. It seems they are already putting funding into developing NFTs and applications with decentralised finance.

Web3 technology will be a major area of focus, being a brand new idea to take advantage of. It means using blockchain technology to create an internet without any centralisation. If such ideas work out, we could be looking at major competitors to the Silicon Valley model popping up, replacing Web 2.0. China may actually have a chance against giants like Alphabet and Meta.