While China has recently expressed increasing support for blockchain technology, the government continues to be resistant to cryptocurrency. However, if new reports from the Beijing Blockchain Technology Application Association (BBAA) are correct, the bulk of China’s blockchain companies have been focused on issuing digital currencies rather than developing blockchain applications.
A recent report from state-run CCTV included remarks from the association’s president, Yedong Zhu, who noted that only about 4,000 of China’s known blockchain companies are focusing on developing applications using blockchain technology. According to Zhu, the remaining companies have issued or attempted to issue their own digital currencies:
“25,000 companies are issuing coins, and about 4,000 companies are doing applications. The first thing we must pay attention to is to prevent risks. Don't take these illegal fundraising and some companies such as financial scams, think that it is a blockchain application enterprise, high-tech enterprise to focus on support, or introduce blockchain technology. It is not that mature yet, or there is still a lot of room for improvement in the development process.”
That revelation comes as a new study from the People’s Bank of China, dubbed the Bluebook on Blockchain, provides new insight into blockchain and cryptocurrency activities inside China. The Bluebook reportedly found that more than half of the country’s blockchain enterprises are located in a single Chinese province – Guandong. The report also alleges that the online fraud portion of the so-called black industry now accounts for some 110 billion Chinese yuan.