Despite China’s frosty relationship with the cryptocurrency industry, the country’s firms are increasingly embracing the industry’s underlying technology.
Notably, blockchain has emerged as the fifth preferred technology among China’s leading fintech companies, with a 33% share as of 2022. KPMG.
The technology emerges behind big data with a share of 76%, followed by artificial intelligence at 68% and cloud computing in third place at 41%. Knowledge Graph comes in fourth at 34%. Interestingly, blockchain ranked higher than his 5G and robot processing automation.
Chinese Government Blockchain Support
The study notes that the growing adoption of blockchain technology is due to increased government support. According to research:
“Blockchain is an important part of the ‘new infrastructure’ and its core value lies in the realization of decentralized trust that can effectively solve the problem of information asymmetry between both sides of a transaction in the financial system. The prospects for application are very broad, and the country continues to promote the construction of blockchain infrastructure.”
It is worth noting that the Chinese government supports the development of blockchain technology despite the ban on activities such as cryptocurrency trading. As such, the government is actively supporting the sector through various initiatives such as establishing blockchain pilot zones and launching national blockchain standards.
However, despite the ban on cryptocurrency activity, China continues to dominate the share of digital asset investors. In this line, Finbold reported that the country has started taxing cryptocurrency investors and miners at 20% of his.
China’s demand for AI
With AI ranking top among the technologies employed in fintech, a recent Finbold report shows that the country is among the largest in the region adopting related products such as the text-based platform ChatGPT. It ranks among the top.
This row hit the highest Google Trends popularity score of 100 for China interested in ChatGPT as of January 13th. The country has not yet officially licensed the tool, but there is demand for it.