Report: Majority Chinese companies falsely claim of using blockchain technology

• Around 32,000 Chinese companies claim to be using blockchain technology.
• The technology is being used by less than 10% of those firms.

According to a Chinese news program Focus Report, around 32,000 Chinese companies claim to be using blockchain technology. Reportedly, the number is not even 10% of that. CCTV, a state television broadcaster in Mainland China, also aired an episode by Focus Report. The episode was titled “Blockchain is not a Cashchain.”  

The episode briefly portrays the misuse of the concept of blockchain technology by the companies. This is reportedly done to create business momentum and financial gains. Wu Zhen, head of the Key Laboratory of Internet Financial Security Technology of the National Internet Emergency Center, recently had an interview with Focus Report. He said that around 32,000 companies use the word blockchain in its business scope is. He said:

There are more than 32,000 blockchains […] However, we found that there are actually not many companies that have blockchain technology or chain ownership […] About 10%, or even less than 10%.

The episode claims that China’s blockchain industry is at the forefront of the world. It comes second to the US in the total number of blockchain enterprises. However, the technology is being used by less than 10% of those firms. To date, the legal rulings regarding blockchain technology in the country have reached a total of 566. Due to this, professionals in the field request haste in implementing relevant legislation. Yu Jianing, deputy director of the China Communications Industry Association Blockchain Committee, said:  

Cracking down on illegal crimes is actually an important measure to promote further innovation, development and integration of the blockchain industry.

In October, China’s President Xi Jinping encouraged the mass to adopt blockchain technologies as central to innovation. According to Jinping, implementing integrated blockchain technologies will promote technological innovation and transforming industries. He said:

We must take blockchain as an important breakthrough for independent innovation of core technologies, clarify the main directions, increase investment, focus on a number of key technologies, and accelerate the development of blockchain and industrial innovation.

Mike Novogratz, the founder at crypto investment bank Galaxy Digital, stated that the statement by President Xi Jinping gave credibility to blockchain and cryptocurrencies.