China’s Blockchain Boom: Why 89% of Firms Are Chasing Cryptocurrencies

The Cryptocurrency Craze: A Surprising Statistic

According to a senior figure in the Chinese blockchain scene, a staggering 89% of blockchain companies in China have attempted to create their own cryptocurrencies. Yedong Zhu, president of the Beijing Blockchain Technology Application Association (BBAA), has drawn attention to this trend, urging focus on the technology behind blockchain rather than just the tokens themselves.

Understanding the Numbers: The Bluebook Report

A recently published report, dubbed the “Bluebook on Blockchain,” adds further context to this phenomenon. Compiled by the People’s Bank of China along with key financial and tech authorities, the study reveals that China is home to about 28,000 blockchain enterprises.

• Co-authors: Chinese Academy of Social Sciences, Payment and Clearing Association of China, BBAA, and Social Sciences Academic Press.
• Focus on Tokens: A whopping 25,000 of these companies are reportedly dabbling in the token creation game.
• Pure Blockchain Firms: Only about 4,000 are dedicated to pure blockchain technology.

Government Stance: Blockchain Yes, Cryptocurrency No

Interestingly, this trend of token-centric strategies comes in the wake of a governmental push for serious blockchain development. Back in October, President Xi Jinping called on the nation to embrace blockchain technology while ensuring that crypto-related ventures are kept in check. It’s clear that state-led publications emphasize keeping the blockchain narrative strictly about the technology, steering clear of any association with cryptocurrency trading.

Geographical Trends: Where Blockchain Lives

While the allure of blockchain and tokens spreads across China, it’s important to note that more than 50% of these enterprises are concentrated in the Guangdong province and especially in Shenzhen. This area is practically the epicenter of China’s blockchain ecosystem.

Dark Realities: The Rise of the Black Market

But it’s not all sunshine and rainbows in the blockchain landscape. The report sheds light on the alarming size of the “black industry” associated with online fraud, claiming it has ballooned to about 100 billion Chinese yuan (which equates to a jaw-dropping $15.6 billion). As the appetite for rapid development grows, authorities are stepping up enforcement against those who are venturing into illegal trading operations.

So, while China’s blockchain ambitions are incredibly bold, the reality might be much more complex—with many firms being tempted to chase crypto rather than focus on the solid foundations of blockchain technology.