Blockchain in China Is a Bubble? About 50% of Chinese Companies Failed To Present Operations Using DLT

Almost every crypto-related person knows that the Chinese government treats cryptocurrency not in a good way, it is better to say, in the way it treats fonzi schemes and other illegal financial things. This attitude caused some consequences: a lot of domestic exchanges moved abroad, crypto accounts in WeChat were banned, etc. In all that negativity towards crypto, the Chinese authorities claim that blockchain is quite useful technology, and actively promote it everywhere. However, is this promotion a real attempt to implement technology in everyday’s life or is it just a hype of Chinese companies to attract the attention worldwide?

Shanghai and Shenzhen stock exchanges reportedly conducted some investigations regarding to the issue of application of the blockchain technology in the companies listed on the exchange. The results shows that less than half of the investigated firms are able to present the implementation of the DLT.

The mainstream of implementing blockchain started at the beginning of the 2018, when the price of Bitcoin was above the sky.  Many firms released statements that they planned to adopt DLT, in a result, their prices raised. However, nowadays, the real situation differs from what was told before.

According to the Chinese government, 23 companies of total 80 were investigated. The examiners sought “the specific model of the blockchain business, including application scenarios and profit models.” Yet, half of the companies failed to demonstrate any significant application of the blockchain. It means they use the word “blockchain” as a bait, but in fact, it is just a buzzword for them.

Unfortunately, in our modern world, the money is more important to some companies than the trust of their customers. Meanwhile, we would like to remind you:

China Aims To Strengthen Copyright Protection Using Blockchain Technology

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