Tencent Survey: Chinese Economists Divided on Future of Crypto

A survey by the Chinese internet giant Tencent revealed that the country’s top economists are divided on the future of Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term and cryptocurrency in the country, according to a recent report by local news outlet Jiemian.

Tencent’s Financial Science and Technology Think Tank conducted the questionnaire survey and as many as 100 chief economists from banks, research institutions, and universities took part in it.

According to the report, most of the questions revolved around the Chinese government’s monetary policy for 2019 along with the impact of various factors on the economy such as yuan’s future Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term, the stock market, and aging population.

The result of the survey attracted the attention of Chinese market watchers as there are stark disagreements in six areas including blockchain.

The survey shows that 51 percent of the respondents support the idea of a centralized bank digital currency (CBDC) issued by Bejing. However, 40 percent of the economists are against any such prospect.

When it comes to the blockchain technology as a whole, the economists are divided into three major groups - 33 percent in favor of the technology, 32 percent holding a neutral ground, while 19 percent are unenthused about the technology.

The Complicated Relationship of China and Crypto

China, once the largest crypto trading market, saw an overnight eradication of the entire industry in late 2017, as the authoritarian government ordered a blanket ban initial coin offerings (ICO) and the cryptocurrency exchanges. Though a few crypto activities like mining were still legal, the government’s unpredictable fury towards the sector forced many players to set up their camp outside the country.

However, the scene is entirely different when it comes to the blockchain technology as many top officials including President Xi Jinping endorsed it.

In addition, the People’s Bank of China (PBoC), the country’s central bank is also exploring the idea of issuing its own centralized digital currency, as reported by Finance Magnates earlier.