China’s Blockchain Technology Weathering a Storm Amid COVID-19

Apr 23, 2020 09:00 UTC

| Updated:

Apr 23, 2020 at 09:00 UTC

By Rajat Gaur

With the widespread COVID-19 pandemic the economy of the world is rapidly falling down since the Great Depression and deprives global economies of $5.5 trillion over the next two years. China’s gross domestic product dropped down to 6.8% in the first quarter compared to previous years. Shops, factories, and offices are now starting to reopen, but people remain anxious and movement is restricted.

China’s business is currently recovering from the horrible financial hangover caused by the virus. It has been reported, Cointelegraph Consulting talks to the leading players in the Chinese blockchain industry to find out whether the surge is relevant for them.

Bitcoin and other currencies have witnessed a lot of fluctuations due to the COVID-19 pandemic yet it might be white noise hiding the real change in the crypto landscape, surging interest both from the governments and masses.

The pandemic has resulted the financial market with a major fall down so users are shifting their focus to cryptocurrencies. There are over three main reasons for wider crypto adoption including quality control of the levers of the economy by authorities, inflation of traditional money, and reducing interest rates of traditional assets.

Most of the government have freezed their monetary policies in response to the COVID-19 pandemic. Central banks have reduced interest rates to zero or near-zero rates and investors who have greater return may project to world of crypto. Alysa XU, the Chief Strategy Officer of OKEx states that the assets will shift from low interest-bearing traditional investment vehicles to crypto ones for higher returns.

As Blockchain has been a major part of Chinese news coverage, President Xi Jinping backed the technology and set a course for the country to freeze the opportunity. The virus has indeed failed to slow this notion down. With major national initiatives regarding consortium chains and a central bank-issued digital currency with the constant ethu and excitement.

Rajat Gaur