China Publishes Second Monthly Cryptocurrency Index

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The Chinese Ministry of Industry and Information Technology recently published the second edition of the Global Public Chain Technology Evaluation Index, a report that looks at 30 cryptocurrencies and ranks them according to their performance and development. The June report puts EOS at the top of the list, followed by Ethereum; as for Bitcoin, the most valuable digital currency in the world, the index ranks it in the 17th position.

Production of this index started in May 2018 with a press release issued by the Chinese government about the growth of blockchain and digital currency technologies. The evaluation is conducted by technology experts, researchers and economists who are tasked with providing advisory reports to the government on the future of cryptocurrency and blockchain applications.

China’s Unique History With Cryptocurrency

It is interesting to note that China is the only country currently engaged in ranking blockchains and their monetary digital tokens, and this is ironic given the fact that trading cryptocurrencies is prohibited by Chinese law, and the same goes for initial coin offerings.

In China, individuals can legally acquire digital currencies and use them to settle various transactions; moreover, this is a leading country in terms of mining for digital tokens, but the law specifically prohibits the organization and operation of cryptocurrency exchanges in the country.

Although the monthly ranking of cryptocurrencies is released to the public, it should be noted that this research is actually commissioned by the Chinese government with the ultimate goal of setting up a national blockchain, which would ostensibly be used for more than just cryptocurrencies. Unlike the blockchain that supports Bitcoin and most other digital currencies, the Chinese national blockchain will likely feature centralized control.

Regulations on Cryptocurrency Markets in China

Chinese officials expect to set up the standards, bylaws, and rules governing the national blockchain by the end of next year, with a possible implementation in 2020. It is very likely that the government will encourage third-party developers to create applications for this blockchain, which could also be used as a land registry system and records repository.

China has a solid track record of adopting existing technology and developing features that adjust to public needs; such has been the case with WeChat, a mobile app that started as a messaging platform and has grown to include features such as a digital wallet, scheduling service, music sharing, VoIP calling, video tutoring, public transportation maps, and more. A similar approach of multipurpose development could be applied to China’s national blockchain.
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