Beijing. Source: Adobe / SeanPavonePhoto
The growth of China’s blockchain business expansion appears to be slowing down, according to a new report, a sign that the blockchain explosion of the past two years appears to be suffocating.
In October 2019, Chinese President Xi Jinping delivered a speech calling blockchain technology “an important advance”, vowing that China would “seize the opportunity” to adopt it. The event became a catalyst, sparking a huge surge in investment from blockchain startups, tech giants, and other companies from a variety of sectors.
But according to China Email, the pace of this growth now appears to be slowing, even though it still outstrips increases in most (if not all) other nations. Part of the reason for the slowdown, the outlet reported, may have been related to the coronavirus pandemic, which hit the nation and devastated the economy in early 2020.
The media published data published by the China Electronic Information Industry Development agency (CCID), which depends on the Ministry of Industry and Information Technology . The data showed that at the end of 2020, there were 1,384 specific blockchain companies in the Middle Kingdom, but when it comes to investments, the numbers are less impressive.
While there was a combined total of 751 major blockchain investment and financing events in the years leading up to 2020 (mostly held in 2019), Chinese companies only made a combined total of 114 such investments last year.
“Compared to 2019,” noted the news outlet, “the growth rate [de la inversión] it has slowed down. “
Regardless, the Chinese blockchain sector grew into a $ 776 million industry last year, a suggestion perhaps that companies are now focusing on product launch plans, rather than R&D and funding efforts. .
The CCID added that the growth of the blockchain business appears to be increasingly concentrated in the capital, Beijing, as well as key technology hubs, such as Shenzhen and Shanghai, as well as the Yangtze and Pearl River Delta areas.
In other parts of the Middle Kingdom, the People’s Bank of China (PBoC) has implemented two “international” blockchain standards.
According to Jiemian, the standards belong to the methodology of evaluation of the functionality of the distributed ledger technology (DLT) platform and were developed by the Digital Currency Research Institute of the PBoC, in association with the China Academy of Information and Communication Technology , a leading IT research center, also accountable to the Ministry of Industry and Information Technology.
The PBoC and other government bodies have insisted that standards are a necessity for the industry in the future, and some companies have been held back by the lack of central government-approved assessment frameworks.
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