China as a Prime Example of "Blockchain Before Bitcoin" Policy

China is a major player in the Bitcoin market, hosting a substantial share of Bitcoin miners and Bitcoin trading volume, although both factors used to be more impressive before a wave of regulatory suppression.

"As a China company, we have to be prepared", explained Bitmain's co-chief executive Jihan Wu. Repressive tendencies of the state have been certainly noticed by the global market: for instance, in January, when China introduced yet another crackdown on cryptocurrencies, Bitcoin was quick to drop to its lowest level in more than a month, with Ethereum declining 19% and Ripple collapsing 29%.Brief history of China's relationship with cryptocurrencies and ICOs.

Blockchain over BitcoinDespite the strict regulation of cryptocurrencies, China has been significantly more bullish on Blockchain.

China continues to communicate its appreciation of Blockchain on a nationwide level: on June 4, China Central Television, the country's leading state-run broadcaster, issued an hour-long special about Blockchain featuring government officials as well as foreign crypto experts.

During the opening, a $1.6 bln blockchain innovation fund was announced, with 30 percent of the total funds notably coming from local government, as well as a research institute established to provide academic support for the development of blockchain tech in the city.

Such involvement with blockchain doesn't stop Alibaba's founder Jack Ma from calling Bitcoin "a bubble", and that seems to echo the government's duality towards Bitcoin and other coins as well: while China has banned ICOs and crypto trading in the country, it seems enthusiastic towards Blockchain.

Other important players in China include auto behemoth Wanxiang Holdings that co-founded Wanxiang Blockchain Labs with Vitalik Buterin, the aforementioned Blockchain projects such as VeChain and NEO, China's largest online retailer JD.com, which has recently announced the first four startups for its Al Catapult Blockchain incubation program, and Baidu, 'the Chinese Google', which has recently announced its 'super chain' protocol.

"We have established verifiable blockchain programs in China, and nearly 200 private enterprises have expressed interests to join. will help blockchain technology and industry to become more transparent and open."

An extensive Blockchain Industry White Paper published by China's Ministry of Industry and Information Technology on May 21 seems to confirm that the domestic blockchain industry saw "Exponential" growth in 2017.

The government agents proceed to hop on the Blockchain bandwagon as well: in late May, the The Shenzhen Municipal Office teamed up with a blockchain-startup to fight tax fraud, while The National Audit Office of the People's Republic of China is considering a Blockchain solution to tackle the "Endless cycle of data storage and management".