China has been all over the cryptocurrency industry in the past week, with many lauding the endorsement of blockchain by the country’s commander-in-chief. So far, private companies have been making blockchain moves, but the Communist party is also now working on utilizing the blockchain to keep every member in check as well.
Pledge your Loyalty
On October 30, local news medium the South China Morning Post (SCMP) reported that the Community Party of China has launched a new app that allows members to pledge their loyalty to the party, and explain why they joined. After the reasons are written down, they are stored in a transparent, unchangeable blockchain ledger.
The new app is called Lian Shang Chuxin, which loosely translates to “Chain of Aspirations.” Per the SCMP, it was launched by the People’s Daily, a news medium that has been seen by many as the leading propaganda media house of the Community Party. However, while it might not be the most advanced application of the blockchain (especially when you consider what individual companies are using the technology for these days), it is also indicative of where the party sees the technology in helping to push its agenda.
More Blockchain Developments Expected
The Chinese government is known to have a proclivity for controlling just about anything, and in blockchain, they may have seen a tool with which they can make the consolidation of information even more absolute.
First, it is mandating that every member of the party is to keep their information on a public blockchain. Where does it go next? Will citizens be made to do the same? Will people be mandated to start using blockchains when recording some of their daily activities (such as transactions)? The jury is definitely out on all of that.
Regardless of what the goal for this is. It is rather evident that Beijing has something major planned for blockchain (and perhaps even cryptocurrencies), and this is most likely no more than a pilot program for what is coming.
As for the prospects of launching a cryptocurrency, the links are still being built. On October 28, Dovey Wan, a founding partner at blockchain investment firm Primitive Ventures, tweeted that the China Merchants Bank, a commercial banking institution based out of Shenzhen, had invested BitPie, a non-custodial crypto wallet platform.
China… China Merchant Bank just announced invested in BitPie, the Bitcoin wallet with longest history and most users back in China …
Tho it's a non-custodial wallet there can be a non-zero chance ….[redacted] 🤐🤐🤐
— Dovey 以德服人 Wan 🗝 🦖 (@DoveyWan) October 28, 2019
Although there hasn’t been any confirmation from any party, Wan noted that it could be the beginning of an attempt to nationalize the Chinese cryptocurrency infrastructure, thus leading to government control over the country’s crypto space that will be completed by the launch of a state cryptocurrency.
At this point, everyone knows that there is something brewing in the Chinese cryptocurrency and blockchain space that is sponsored by the government. Whatever it was meant to prove, this party loyalty platform is just the beginning.