Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Geopolitical Effects on VeChain

CryptocurrencyJul 28, 2021 07:30AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
Geopolitical Effects on VeChain

  • VeChain has a favorable relationship with the People’s Republic of China despite cryptocurrency fallacies.
  • Local media reports VeChain is participating in China’s 5 year national development plan.
  • VeChain’s enterprise-grade blockchain solution is resilient to China’s cryptocurrency restrictions because of its part decentralized governance nature.

Technology’s purpose is to create a cohesive global ecosystem fostering faster data and information access. However, regulations and political standing mean nation-states can dictate the role technology plays in their societal spectrum. Blockchain’s anonymity and immutability has been a cause for concern for nations that already control the flow of information. Developing an audited and controllable blockchain solution is a countermeasure that is taking shape, with China already planning a nationwide Blockchain Service Network.

VeChain’s Resilience to Disruptive Decentralization

VeChain was initially developed as a subsidiary of the Chinese blockchain firm, Bites. While decentralized blockchains have garnered a bad reputation in China for their anonymity and lack of traceability by governmental tracking, permissioned enterprise blockchains have gained traction.

China viewed blockchain as a concern before researching new avenues of expanding blockchain into a comprehensive governmental tool to enforce their state laws above anything else. An EU Institute for Securities Studies brief underlines China’s interest in a “highly centralized” blockchain, where the government can guarantee “state-controlled” governance and development.

VeChain, and other enterprise-oriented blockchain solutions, are becoming impervious to the Chinese authorities’ clampdown on cryptocurrencies. VeChain’s proof of authority consensus mechanism and its business clients make it easily auditable, thus meaning it poses minimal concern. Moreover, servicing enterprise clients such as Walmart (NYSE:WMT), and sovereign nations like San Marino, necessitates trust-building through company transparency and examination. As a result, VeChain is becoming a favored blockchain solution in China.

A local media report indicates that VeChain had been included in China’s 5 year national development plan, as the country intensifies its focus on blockchain’s application; specifically their digital e-yuan and their local Blockchain Service Network.

In a tweeted report, VeChain Foundation confirmed a meeting with Chinese government officials from Shanghai, Changing, and Huangpu provinces. In their Singapore held meeting, Deputy Director for the Changing District, Pan Min, “repeatedly” lauded VeChain’s development and integration. Furthermore, the meeting included the scope of explaining how VeChain integration can influence the corporate sector, as it has done both within and without China.

VeChain is thus overcoming governmental bottlenecks by increasing its exposure within China itself, and partaking in China’s 5-year blockchain plan alleviates some of the geopolitical pressure. Additionally, on July 7th, VeChain participated in the Chinese Food Safety Summit as the only enterprise blockchain provider at the conference.

On The Flipside

  • The price of VeChain could become more heavily influenced by the global perception of China than by Bitcoin’s volatility.
  • VeChain could be susceptible to international embargos if countries were to decide the protocol has stronger ties to China than other countries.
  • VeChain could be faced with the difficult choice of deciding where to conduct business.

Geopolitics for Chinese Crypto

Global concerns about a Chinese digital hegemony are growing, as a report from Pew Research Center indicates, China’s public perception is heavily decreasing outside Asia. Martha Bennett has also asserted that there are growing concerns of the number of Chinese state-owned or controlled entities that engage in international activities. Regardless, China is expected to have the highest growth in blockchain adoption as it favors its already digitized infrastructure.

Still, Jim Breyer posits that geopolitical divisions are harmful to the global good. While his statement doesn’t directly refer to blockchain, it could be argued that a worldwide blockchain solution similar to that “applied at scale in China” could help to achieve the “best outcomes.”

China’s attitude so far has been to become the global “rule-maker” in blockchain. The US and other countries have already cautioned against using Chinese blockchain applications such as the e-yuan. In that regard, VeChain has managed to bypass suspicion on both sides.

While VeChain is a stand-alone blockchain service, it services more than one entity and is not solely interested in serving China’s interests, at least not yet. VeChain has implemented its VeTrust solution on a large scale in over “200 public spaces” in China. Additionally, VeChain has also been implemented in San Marino. In that regard, VeChain has avoided the ire of national governments as its driving force is financial.

EMAIL NEWSLETTER

Join to get the flipside of crypto

Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.

[contact-form-7] You can always unsubscribe with just 1 click.

Continue reading on DailyCoin

Geopolitical Effects on VeChain
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email