China Eyes National Blockchain Amid Stablecoin Gaps

On August 2, insiders highlighted China’s lack of a globally influential public blockchain, emphasizing the necessity for a self-reliant financial infrastructure amid stablecoin policy discussions.

This gap poses risks amid China-U.S. tensions, shaping market dynamics as Hong Kong pioneers new stablecoin regulations without a mainland national initiative yet announced.

China Advocates for Self-sustained Blockchain Infrastructure

Calls for a national blockchain highlight the absence of a globally influential public chain in China. Insiders emphasize the need for state-led efforts in creating this infrastructure. The idea is proposed to ensure a safe and efficient financial system for the digital era.

The focus is on strengthening public blockchain investment to establish a self-controlled infrastructure. Insiders suggest a layered development approach for these public chains, allowing state enterprises to lead national chains while industry-level chains face market competition.

Community reactions highlight the potential political risks of relying on US blockchain infrastructure. Industry voices stress the importance of developing an autonomous system to avoid future geopolitical conflicts that might affect cross-border blockchain operations.

China’s Blockchain Strategy Weighs on Political, Market Dynamics

Did you know? The last major regulatory attempt by China to control the blockchain space included a comprehensive ban on onshore public blockchain activities in 2021. This highlights the ongoing struggle between control and innovation.

Tether USDt (USDT) remains stable with a current price of $1.00. It has a market cap of 163,848,330,048.00 and dominates 4.45% of the market. Despite a slight 0.01% price rise over 24 hours, its 24-hour trading volume fell by 15.55% to 117,409,763,259.00, as detailed by CoinMarketCap.

Coincu Research Team highlights that China’s move towards establishing a national blockchain could facilitate safer participation in digital finance. They stress that aligning technological infrastructure with national security interests can mitigate exposure to external political pressures and bolster the digital currency landscape.