China is leaping ahead into becoming a fully cashless economy. That’s why it will soon find that it can’t do so without incorporating Bitcoin and other cryptocurrencies.
China has become cashless and blockchain-friendly. As BeInCrypto previously reported, the country is embracing emerging technology in an attempt to out-modernize its geopolitical rivals. It also sees it as the best means of bettering its state institutions.
The Chinese economy has in the past few years been accelerating its focus on cashless payments. Powered by Alipay, Weibo, and others, you can pay for almost anything in China with your phone. As Bloomberg reports, the big jump happened between 2015 and 2016—when transaction values for cashless payments in China jumped 382%. Now, cashless payments have, by far, become the norm in the country.
In China you can pay for almost anything with a phone and almost everyone does https://t.co/cLlwRrdhYr @NewEconForum pic.twitter.com/TKFqOj2gwW
— Bloomberg Technology (@technology) November 18, 2019
What this seismic shift means for Bitcoin and other cryptocurrencies is quite simple: they will get a boost. The cryptocurrency industry initially came about to solve the problem with payments and irregular banking practices. However, with cashless payments already being big in China without cryptocurrencies, it’s far more likely we’ll see cryptocurrencies be incorporated into existing systems. That’s why many of the leading tech giants in the country are investing in blockchain in growing numbers, like Alibaba. As of now, two-thirds of all blockchain-based patents come from China.
In other parts of the world, cryptocurrencies are still trying to be incorporated into everyday consumer activity. However, in China, the fintech infrastructure is already quite mature. This means that cryptocurrency projects can effectively be ‘plugged into’ existing models, thus making adoption that much easier.
Of course, President Xi and the Chinese government has expressed skepticism over ‘cryptocurrencies’ and have preferred to focus solely on blockchain technology. However, they will soon be forced to realize that ‘blockchain without cryptocurrencies’ is a misnomer. You can’t have one without the other.
Images are courtesy of Shutterstock, Twitter.
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