China, known for its ban on cryptocurrency transactions, has surprisingly shown support for blockchain technology, particularly with VeChain’s presence in the country. VeChain has established partnerships with major Chinese companies such as Walmart China and the China Animal Health and Food Safety Alliance (CAFA).
VeChain’s success in China is noteworthy considering the Chinese Communist Party’s (CCP) stance on cryptocurrency. China implemented a crypto ban a few years ago, prohibiting financial institutions from processing crypto-related transactions. However, VeChain has found common ground with China as its office is located in Shanghai.
China has been vocal about its support for blockchain technology, advocating for its adoption in various industries. On February 1st, 2022, the Shanghai Municipal Administration of Market Supervision and the Shanghai Certification Association introduced the Certification Standard for Blockchain Service, which has contributed to VeChain’s presence in the region.
VeChain’s partnership with Walmart China has revolutionized supply chain management. Walmart China utilizes VeChain’s proprietary toolchain suite to accurately track products throughout the entire cycle. The success of this alliance has led to further collaborations, with Walmart China expanding VeChain’s services to cover more products and categories. The goal is to instill consumer trust and transform supply chain management using blockchain technology.
Another testament to VeChain’s prominence in China is its partnership with CAFA. VeChain provides CAFA with its blockchain toolchain suite, allowing alliance members to record crucial stages of food products on the blockchain. CAFA has over 130 official members from various sectors of the food industry supply chain.
Experts believe that China’s interest lies in developing a government-controlled version of next-generation monetary technology while limiting decentralized crypto systems. Blockchain’s decentralized nature poses a challenge for China, as it allows for a level of freedom that goes beyond direct control, threatening cyber sovereignty and government censorship.
While China aims to maintain control over applications and developments, Hong Kong regulators are reportedly in talks with banks to provide banking services to crypto exchanges. In the US, discussions about crypto regulation are ongoing. Despite concerns in different jurisdictions, VeChain continues to expand its influence and recently extended its presence to Singapore.