Chinese cryptos that Could Benefit from China’s Policies
China’s stance on cryptocurrency has been a mixture of strict regulations and technological innovation. While the government has banned Bitcoin mining and crypto exchanges, it has also heavily invested in blockchain technology and the Digital Yuan. This creates a unique landscape where certain crypto projects may thrive under China’s approach. In this article, we will explore which chinese crypto and blockchain projects could benefit from China’s policies and why.
1. Neo ($NEO) – The “Chinese Ethereum”
Why NEO Could Benefit
Neo is often referred to as the Ethereum of China, as it provides a smart contract platform similar to Ethereum but with government-friendly compliance features.
- Government Cooperation: NEO has positioned itself as a regulation-compliant blockchain within China.
- Enterprise Adoption: NEO’s integration with China’s blockchain initiatives could make it a preferred platform for developing decentralized applications (dApps).
- Integration with the Digital Yuan: Given China’s preference for state-controlled financial ecosystems, NEO’s smart economy vision aligns with the government’s approach.
Potential Growth Factors
- China’s continued investment in blockchain development could increase adoption of NEO-based projects.
- If the government relaxes some crypto restrictions, NEO could be the first to benefit due to its long-standing presence in the Chinese crypto space.
2. VeChain ($VET) – Blockchain for Supply Chain Management
Why VeChain Could Benefit
VeChain is a supply chain-focused blockchain with strong ties to Chinese enterprises and government agencies. It specializes in improving transparency and traceability in global trade and logistics.
- Enterprise Partnerships: VeChain has partnered with major Chinese firms like Walmart China to track food supply chains.
- Alignment with China’s Blockchain Push: China’s Blockchain Service Network (BSN) aims to integrate blockchain into state-backed businesses, making VeChain a strong candidate for adoption.
- Non-Crypto Use Case: Since VeChain is not purely a cryptocurrency but an enterprise blockchain, it is less likely to face heavy government scrutiny.
Potential Growth Factors
- China’s push for more efficient logistics and supply chain transparency makes VeChain a prime candidate for nationwide adoption.
- If China’s blockchain policies favor enterprise solutions, VeChain’s technology could see massive expansion.
3. Conflux ($CFX) – The Only Government-Approved Public Blockchain
Why Conflux Could Benefit
Conflux is the only regulatory-compliant public blockchain in China, which gives it a unique advantage over other decentralized projects.
- Backed by Chinese Authorities: Conflux was developed with support from the Shanghai government.
- Integration with China’s Digital Initiatives: Since Conflux complies with Chinese regulations, it has potential for wide-scale adoption within the country’s blockchain ecosystem.
- Collaboration with BSN: Conflux is integrated into China’s Blockchain Service Network (BSN), making it one of the few projects permitted to operate within China’s borders.
Potential Growth Factors
- Being a government-approved blockchain, Conflux is in a strong position to power China’s digital transformation initiatives.
- Potential partnerships with Chinese banks and institutions could increase adoption of Conflux-based applications.
4. The Digital Yuan (e-CNY) – China’s Own Cryptocurrency Alternative
Why the Digital Yuan Could Benefit
While not a traditional cryptocurrency, the Digital Yuan (e-CNY) is China’s official Central Bank Digital Currency (CBDC). Unlike decentralized cryptos, it is fully controlled by the Chinese government.
- State-Backed Adoption: The government is actively pushing for nationwide usage, integrating it with WeChat Pay, Alipay, and major banks.
- Regulatory Advantage: Since it is fully compliant, the Digital Yuan has no legal barriers within China.
- Cross-Border Payments: China is testing international transactions with the Digital Yuan, positioning it as a global alternative to the U.S. dollar in trade agreements.
Potential Growth Factors
- The Digital Yuan’s mass adoption in China will solidify its role as a leader in digital payments.
- If China integrates the Digital Yuan with state-backed blockchain projects, it could replace stablecoins like USDT in Asian markets.
5. BSN (Blockchain Service Network) – China’s Blockchain Infrastructure
Why BSN Could Benefit
BSN is a government-led blockchain infrastructure designed to integrate China’s financial institutions, enterprises, and government services.
- Massive Institutional Support: BSN is backed by major state-owned firms like China Mobile, China UnionPay, and Red Date Technology.
- Enterprise-Focused Blockchain Services: BSN provides blockchain solutions for government agencies and businesses.
- Decentralized Without Being “Too Decentralized”: BSN allows blockchain innovation while still keeping it under state control.
Potential Growth Factors
- As China’s official blockchain network, BSN will likely play a major role in future blockchain developments.
- More businesses will adopt BSN-based solutions as China continues its digital transformation strategy.
