China is racing ahead in becoming a fully digitized economy, which explains why it will soon have to adopt Bitcoin and other digital assets in order to cope with the upcoming nature of its economy.
It is apparent that China is becoming a blockchain-friendly nation. and warming up to new technologies in a quest to get ahead of its closest competitors. It also believes in order to enhance state foundations they will need to be on board with Blockchains technology.
In the past few years, the economy of China has witnessed notable progress on cashless payments delivered by tech-based companies in the country such as Alipay and Weibo among others. Consequently, it’s possible to purchase nearly anything with a Smartphone. A report by Bloomberg revealed that the big jump occurred between 2015 and 2016 during which transaction values for digital payments in China rose by a whopping 382 percent. Currently, the country has so far embraced cashless payments as the norm.
— Bloomberg Technology (@technology) November 18, 2019
What Does it Mean for Bitcoin?
With universal adoption of cashless payments, Bitcoin and other digital assets are likely to get a boost. The implementation of cashless payment is in line with the crypto industry’s initial goal, which was to encourage peer-to-peer settlements without irregular banking procedures.
Since China is already using cashless payment system without cryptocurrencies, it’s quite likely that the country will incorporate digital money into the existing systems. Against that backdrop, many tech giants in the country such as Alibaba are investing heavily on blockchain. Currently, China controls 2/3rds of all blockchain-based patents worldwide.
China is Ahead With Fintech Infrastructure
While everyone else is striving to incorporate cryptocurrencies in their systems, China’s fintech infrastructure is already mature. This puts the country in a better situation to simply plug cryptocurrencies into their existing models. This would lead to faster and easier adoption.
Judging by President Xi Jinping’s recent remarks, the government seems skeptic about cryptocurrency but warming up to blockchain technology. However, the country will soon realize that cryptocurrency is part of blockchain and one cannot exist effectively without the other.