Cryptocurrencies are clearly not welcome, but blockchain technology may be fair game.
Despite basically choking the life out of cryptocurrencies in the country, China may be looking to use blockchain technology to “improve the data storage, management, transmission and other work modes in future big data audits.” At least, this was the suggestion released by the office of the National Audit of the People’s Republic of China.
In the release, the office outlines a “more optimistic” view and exploration of possible uses of blockchain technology in the country, particularly in processes that involve the audit office. A rough translation of the document points to perceived problems in the future when the amount of data the office handles increases.
“At present, audit data is managed using a centralized storage method, which is first collected by the accredited agencies to audit objects, then uploaded to the Audit Office Data Center (hereinafter referred to as the data center), and then centrally managed by the data center. The accredited agencies do not store relevant data. Although this management model has a high level of data security and legitimacy, it will also result in unlimited expansion of data center hardware and software equipment requirements. It will never be able to meet the endless cycle of data storage and management, resulting in more data center workload.”
The office also states that developments using blockchain technology would be in accordance with General Secretary Xi Jinping’s goals of strengthening the country in terms of science and technology and big data management. They add that it will help them keep up and streamline their processes to meet the development goals laid out at the 19th National Congress.
“There is still a distance between General Secretary Xi Jinping and the requirements of the Audit Committee Party Group, which requires us to Improve the system at work, earnestly implement it, and achieve results. The “blockchain” concept and technology will open a skylight for us to resolve this problem.”
The office wants to tap on blockchain technology’s capabilities to help monitor activities and automate records.
“The “blockchain” technology’s encryption algorithm, timestamp, and data self-management [will] enable the data center to track and record every auditor’s data events and other activities that require data collection, identity management, and the creation of auditor data operations.”
While blockchain technology may be getting a warmer welcome from the Chinese government, cryptocurrencies remain generally unwelcome in the country (except maybe for the one the government is developing themselves). It looks like this may not be changing for a while based on active enforcement by officials. Earlier this week, authorities seized 600 computers which they believed were being used for mining activities due to unusually high electric usage. Earlier this month, police even crashed and stopped a blockchain conference altogether. Yet cryptocurrency enthusiasts in the country are relentless, resorting to underground activities to continue their participation in the crypto economy.