The ruling Communist Party of China is notoriously suspicious of technologies and organisations that lie beyond its control, hence their recent clamp-down on bitcoin and other major cryptocurrencies. However, one cryptocurrency project that is seeing support from Beijing is Vechain (VET), a domestically developed decentralised finance operation that is similar to the Ethereum blockchain network. China’s President Xi Jinping is desperate to keep a firm hand on the inroads that the cryptocurrency revolution is making into the world’s second-largest economy.
A recent report published by the Chinese website ChainNews described the Deputy Director of China’s Changing District, Pan Min, “repeatedly” praising VeChain’s technology and business development. All signs now point to Beijing working with Vechain (VET) to aid the development of China’s digital version of their domestic currency, the Yuan. It’s common knowledge that China has already worked on a digital Yuan for a while now, and Vechain is by far, the biggest blockchain company in China. Also, it is headed by a domestically based cryptocurrency development team. Since China cultivates their own, Vechain is the perfect cryptocurrency match.
It has been touted by many cryptocurrency analysts that Ethereum will likely outperform bitcoin over the next year, but with Chinese government support, VeChain could outperform even Ethereum. The VeChain price prediction sentiment is currently bullish, with the price rising 3 percent today.
The VeChain Foundation has recently confirmed that it had a meeting with Chinese government officials. Chinese government officials and Vechain talked about “potential transformative collaborations”. When you take a look at all partnerships Vechain have, China Unicom, PICC, Shanghai Gas among others, these are all Chinese state-run companies.
Nevertheless, there is plenty of competition in the blockchain space, it won’t be easy to dethrone Ethereum.
