2016 First World Blockchain Conference: Blockchain is praised by Chinese government leaders, Bitcoin shines

The Chinese government is seeing the potential of blockchain technology in a new light. That was particularly evident at the first World Blockchain Conference, held over two days in Changsha this week. Speakers at the conference had no qualms about using the once-dreaded B-word: Bitcoin.

The conference was jointly organized by the World Blockchain Foundation, Hunan AsiaCoin Blockchain Charity Foundation and Hunan AsiaCoin Business School, supported by China's Ministry of Industry and Information Technology (MIIT), and attended by many government and industry leaders.

Last month, the Ministry of Industry and Information Technology released a white paper on blockchain industry research, the White Paper on the Development of China’s Blockchain Technology and Applications. It is worth noting that the white paper pointed out that financial services is the first industry to feel the benefits of blockchain.

Chinese government officially encourages industry to develop blockchain

The invitation-only event was designed to introduce blockchain technology to Chinese industry leaders and government representatives. Several high-level speakers gave their views on blockchain, Bitcoin and China's stance on blockchain.

Li Yizhong, former Minister of Industry and Information Technology, outlined his government’s role in promoting innovative industries (robotics, quantum computers or 3D printing, etc.). Sheng Songcheng, Director of the Survey and Statistics Department of the People’s Bank of China, also spoke. Out of caution, Sheng did not mention Bitcoin or even blockchain, but mentioned the danger of a real estate bubble currently facing China.

Bitcoin Still Gets a Lot of Attention

Interestingly, Ji Xiaonan, Chairman of the Supervisory Board of the State-owned Assets Supervision and Administration Commission of the State Council, not only praised blockchain, but actually referred to Bitcoin as 'the only mature blockchain technology at present'.

He added:

“China is the largest blockchain market.”

He said there are still a lot of challenges and risks surrounding this technology. He surprised the audience again by praising the decentralized and P2P nature of blockchain and its trustlessness. He said blockchain will lead the next technological revolution.

Blockchain innovation new impetus

Some attendees were surprised by the size and composition of the conference. Blockchain is definitely on the radar of the Chinese government now. The Ministry of Industry and Information Technology is very positive about the application of this technology.

Thomas Glücksmann of the Gatecoin exchange spoke at the Chinese roundtable at the event. He also noticed the change in the Chinese government’s attitude towards blockchain. He said:

“This libertarian technology is at the center of socialist China’s innovation-driven economic development strategy. Now that the government has expressed support, Chinese banks have expressed excitement about the technology, and Chinese tech giants have created their own blockchain research departments, expect to see some major developments in China in the coming months and years.”

Glücksmann described a WeChat ecosystem on the blockchain, a national ‘RMB’ cryptocurrency and a smart city project the size of Shanghai (also managed on a blockchain-based system).

He added:

“These are global game changers.”

Hong Kong-based Gatecoin is expanding its operations in mainland China, and Glücksmann said it is willing to contribute to and benefit from all state-led projects.

Foreign guests give international perspectives

The organizers of the conference also invited several foreign guests from Asia as speakers. The first one was Willson Lee, an active Bitcoin evangelist who has been conducting Bitcoin World Tour around the world for the past two years. In his speech, Lee pointed out that there is more than one way to create a blockchain, and regulators understand this and are not worried about the technology or its impact.

Adam Vaziri of BitLegal.io spoke about Bitcoin regulation from a lawyer's perspective, calling for the creation of a regulatory sandbox for Bitcoin startups. Glücksmann and Stephen DeMeulenaere of Digital Billions talked about how China can play a leading role in the Bitcoin and blockchain economy. They both proposed building a cautious but relaxed regulatory environment to allow these two technologies to thrive.

DeMeulenaere said Bitcoin's advantages could ease China's path to economic superpower.

Is blockchain now more developed than Bitcoin?

None of China’s large bitcoin mining communities or bitcoin exchange organizations attended the conference — though they were represented by a few individual attendees. While several speakers spoke at length about bitcoin, the event description did not specifically mention the cryptocurrency.

China is looking to introduce blockchain into its burgeoning economy, and the government has become a real promoter of blockchain this time. However, the Chinese government's focus is on the wider application of this technology in many industries. Currency is just one of the applications of blockchain.