During the 18th Collective Study of the Political Bureau of the Central Committee, China President Xi Jinping stated that the country should increase its usage of blockchain technology. This comes just a few days after the CEO of Facebook, Mark Zuckerberg, told the U.S. Congress that if the United States doesn’t adopt blockchain, it risks falling behind countries such as China.
China to Invest More in Blockchain
The 18th Collective Study of the Political Bureau of the Central Committee is taking place today in China. The president of the country, Xi Jinping, who is also the General Secretary of the Communist Party, offered his views on numerous topics, including blockchain. He emphasized the importance of adopting the technology:
“The integrated application of blockchain plays a critical role in technology innovations and industrial revolutions. Blockchain should be made an essential way and main direction to drive China-led technology innovation. We must increase investments in the blockchain sector, resolve critical technical problems, and accelerate the development of blockchain and industrial innovation.”
China has been linked to blockchain and cryptocurrencies before. In fact, earlier this year it was announced that the country would launch a state-backed cryptocurrency. It will be distributed through institutions and major corporations such as Alibaba, Tencent, and the Bank of China.
Zuckerberg Was Right
The CEO of Facebook appeared before the U.S. Congress on Wednesday. The hearing was focused on Libra, the social media giant’s planned cryptocurrency project. However, the discussion touched upon other topics as well.
While Congressman Brad Sherman said that Bitcoin and other cryptocurrencies might be a potential threat to the U.S. dollar and its role in the financial world, Zuckerberg warned Congress about the consequences of inaction. According to him, the U.S. must take necessary steps to adopt blockchain innovations, as “China is moving quickly to launch similar ideas in the coming months.”
With the most recent announcement by the President of China, it appears that Zuckerberg’s prediction might actually be correct.
Featured image courtesy of Flickr