Nearly 90% of China’s blockchain firms have attempted to create their own cryptocurrency, according to the president of the Beijing Blockchain Technology Application Association.
Yedong Zhu recently revealed to the state-run CCTV network that the vast majority of blockchain firms in China are focused on tokens, not blockchain, Cointelegraph reported.
CCTV’s report also focused on a new study led by the People’s Bank of China (PBoC).
According to the “Bluebook on Blockchain” report, co-authored by local financial and technology authorities, there are 28,000 blockchain enterprises in China. As many as 25,000 have tried to issue their own cryptocurrency or token, said Yedong.
The Chinese Academy of Social Sciences, the Payment and Clearing Association of China, the Beijing Blockchain Technology Application Association and the Social Sciences Academic Press collaborated on the report.
The news comes amidst a recent Chinese push into blockchain technology development that was triggered by President Xi Jinping’s call to embrace the new technology in October.
However, Xi’s promotion of blockchain tech was accompanied by renewed pressure on local crypto-related businesses.
On November 21, the PBoC’s Shanghai unit announced it was cracking down on entities allegedly involved in trading cryptocurrencies such as bitcoin. On November 22, the authorities in Shenzhen province claimed that 39 exchanges were violating the country’s cryptocurrency trading ban.
State-run media outlets have declared that the country’s blockchain firms should abandon cryptocurrency-related initiatives and focus exclusively on blockchain technology.
The majority of companies in the nascent sector are based in Guangdong and Shenzhen provinces.