China as a Prime Example of “Blockchain Before Bitcoin” Policy

Last week, China’s president Xi Jinping took Blockchain-oriented domestic politics to another level: the country’s leader mentioned blockchain as “a part of technological revolution”. The sentiment was then picked up by China’s largest TV broadcaster, as the viewers were told that “the value of blockchain is 10 times that of the internet”.

Besides the high praises coming from the top of the state, there’s action, too: in the past few days, Chinese central bank developed a system to issue blockchain-based checks instead of paper ones, while Alibaba-affiliated insurtech firm promoted blockchain use in healthcare industry. Here’s how China got there, and how state-supported blockchain adoption can coincide with severe cryptocurrency regulation.

Strong, but troubled market

China is a major player in the Bitcoin market, hosting a substantial share of Bitcoin miners (in 2017, it was estimated that 50 to 70 percent of Bitcoin mining took place in the country) and Bitcoin…