Beijing (AFP)
A presidential directive, a new law and actions that flare on the stock market: China is throwing itself into the blockchain, determined to take the reins of digital technology of the future.
China is the latest country to have a law strictly regulating the encryption of data.
The text adopted on Saturday, which comes into force on January 1, regulates in particular the blockchain technology, which allows the storage and direct exchange of data without going through an intermediary.
Renowned unfalsifiable, the blockchain is a computer technology used in particular in the operation of a cryptocurrency such as bitcoin - which Beijing intends to replicate.
Although the law "is still rather vague," China is "clearly" one of the most active countries in terms of regulation, says AFP Stanislas Pogorzelski, editor of the specialized website Cryptonaute.fr.
According to experts, the blockchain is destined to become unavoidable in many key sectors of the future, with the proliferation of digital information exchanges to secure: finance, internet of things, big data, artificial intelligence, 5G ...
It will also serve to make administrative procedures "more efficient," according to analyst Kai von Carnap of the Mercator Institute for Chinese Studies (Merics).
"China has understood very well that to remain a superpower, you have to be at the forefront of new technologies," says Pogorzelski.
- To give birth to giants -
The parliament passed the law two days after the Chinese president's remarks on blockchain technology.
"The blockchain must play a bigger role in strengthening Chinese power in cyberspace, developing the digital economy and promoting socio-economic development," said Xi.
The country, which has been working on these issues since 2014, has many companies in the sector.
But at odds with its libertarian philosophy, this technology could also be used by the Communist Party to control the "ideological loyalty" of its members, said AFP Mr. Von Carnap, referring to an application sitting on the blockchain.
Launched last weekend, it allows CCP members to register their communist profession of faith forever, the People's Daily reported.
The new law "aims to accelerate the development of cryptography by supporting local companies exploiting this technology," says Pogorzelski.
After President Xi's remarks, more than 70 of them saw their share price rise on Monday and reach the 10% threshold of daily fluctuation allowed in Mainland China.
"By calling for the development of the blockchain, the Chinese president encourages the acceleration of uses and the injection of capital into local specialized companies," warns Stanislas Pogorzelski.
"His call aims to create and finance the Chinese giants of the blockchain of tomorrow."
The blockchain is "very important for the future and China wants to become the world leader" in a context of growing rivalry with the United States, said Anthony Pompliano, author of a newsletter dedicated to cryptography.
Beijing, which banned two years ago cryptocurrencies - escaping any regulation - accelerates the preparation of its own virtual currency, supposed to facilitate transactions and reduce costs.
- "Not a big fan" -
"The contrast is striking" with the "negative" position of the United States on the issue of cryptocurrencies and blockchain technology, observes Mr. Pompliano.
"I'm not a big fan of bitcoin and other cryptocurrency," Donald Trump tweeted this summer. And the American president to justify it: it is "not money, their value is very volatile and is based on wind".
Last year, several start-ups that raised funds in cryptocurrency were sanctioned by the US Securities and Exchange Commission (SEC) which forced them to pay a fine and pay their subscribers.
Last week, Facebook boss Mark Zuckerberg, attacked from all sides for his own digital libra project, had to defend him in front of the Congress.
"The general feeling is clear: bitcoin, blockchain technology and digital assets are not a priority for the United States," regrets Mr. Pompliano.
Libra faces criticism from many governments. They see it as a threat to their monetary sovereignty and money laundering and user data protection risks.
"I do not think libra will succeed," said Huang Qifan, vice-president of CCIEE, a think tank advising Beijing on international exchanges this week.
These remarks, which contrast with the usual restraint of Chinese officials, have been widely reported by the official press.
"It is better (...) to have sovereign digital currencies issued by a government or a central bank," said Huang.
© 2019 AFP