In October President Xi Jinping emphasised how the country will focus on a blockchain strategy that includes Chinese government initiatives, regulations, and spending by various regional governments. Following this, an announcement was made to focus on blockchain commerce in a move that will influence overall global development.
This new focus could set China apart in 2020 as the U.S and Europe have continued to voice cautions to the approach of blockchain. Another factor to consider is that the US and Europe have well-established economies mature banking sectors, a move to change to blockchain could cause disruption.
The benefits of the initiatives in China will be seen top-down, not only will spending be seen by the government but also local businesses who want to keep up with the latest innovation.
With the governments backing private businesses will eventually need to implement the technology to remain competitive. This will result in government and local businesses embracing blockchain technology at a rapid rate that ultimately the world will react to.
On the other hand, the US struggles against slow regulation. There is still no clear guidance to crypto and blockchain industries with companies continuing to self-collaborate.
Katherine Johnson is a vice president of compliance and general counsel for Storj Labs (a storage provider that uses blockchain). Johnson comments on the issues of blockchain in the US saying:
U.S.-based companies will continue to mitigate the risk posed by the uncertain domestic regulatory landscape by branching out into crypto- and blockchain-friendly jurisdictions,
innovation-friendly jurisdictions (i.e., not the U.S.) will begin to see efficiencies, trust, and transparency in government services as blockchain-based products begin to leave the lab and gain wider adoption.
As the US provides no clear guidelines or jurisdiction companies will not take the risk of creating blockchain-based companies and projects to later have them damaged by the change of procedure in the future.
This is why China will take the lead in 2020 as the country can provide a stable environment for companies to embrace blockchain and also receive backing from the Chinese government.
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