Will China soon dominate the crypto market?

Only shortly after announcing its plans to become the world leader for blockchain technology, China dropped another bombshell stating that the country is home to over 700 blockchain businesses.

The development in the crypto sector is accelerating as more and more capital flows into the development of blockchain technology and related assets. While some countries are still debating whether the technology is worth pursuing China is already developing the space rapidly.

The Central Committee of the Political Bureau of the Communist Party of China announced on October 27 that there are already over 700 blockchain businesses operating in the country of which over 500 secured significant investment capital for the development.

A look at the statistics shows that out of theses 700 business 83 are research institutions and 34 are banks. Interestingly only 200 of the currently operating businesses aim to operate on the international market, while the majority is focused on the domestic Chinese market.

Another indicator that the Chinese blockchain market is growing rapidly is the number of blockchain patents filed in 2019. The Chinese authorities registered over 3.500 blockchain patent filings in the first six month of 2019 which surpassed the numbers for 2018 by nearly 50%.

Why is there suddenly a lot of interest in Chinese blockchain developments?

Last Friday the Chinese government under President Xi Xinping announced its plans to become the global leader for blockchain technology.

Xi’s statement:

“We must take blockchain as an important breakthrough for independent innovation of core technologies, clarify the main directions, increase investment, focus on a number of key technologies, and accelerate the development of blockchain and industrial innovation.”

After this announcement the interest in Chinese blockchain development spiked with all major news outlets taking a closer look at China. While the prices surged for all cryptocurrencies overall, the largest gains were seen for China-based cryptocurrencies such as NEO.

Under this new attention from the media it has come to light that the supposedly restrictive China has seen a rapid expansion of the blockchain industry. The sleeping giant may not be quite as asleep as we thought over the past few years and China may be starting to dominate the industry quite soon.