By Nicolas Abington | Crescent City Capital Market Analyst Intern
China’s leader Xi Jinping recently made announcements about his support of blockchain technologies being implemented into financial services and markets. With 1.38 billion people and rising, support for blockchain by the Chinese government has been a long-awaited event in the crypto community as an opportunity for growth. With the massive amounts of wealth accumulation in China, adoption into the crypto markets could make a trillion-dollar market cap happen even faster than previously predicted. Having the Chinese market open to cryptocurrencies is obviously positive for investors but more importantly, Chinese citizens already are used to a paperless payment system. Having a population that can easily adjust to using cryptocurrencies would accelerate adoption and financial literacy all throughout the world.
So if China wants to adopt blockchain, where are they putting their investments? The ministry of industry and information has just released its 14th version of their cryptocurrency project rankings giving us some insight to answer that question.
As you can see the top 11 list is not reflected in their respective market caps. The lack of investment shows that there is an opportunity to be had involving coins that consistently stay in the eye of the Chinese investors. You should also notice how low Bitcoin is on its list. This could be due to a number of reasons but the most likely is that Bitcoin is seen as a rival to China’s currency the renminbi demonstrating the country’s bias in its reporting. Overall we should keep a close eye on the ministry’s opinions as China continues to adopt cryptocurrencies and blockchain innovations.