China is known to have banned crypto-related transactions, however, it is reported to have developed a soft spot for blockchain with VeChain making a huge presence within the region. 
VeChain has over the years established a partnership agreement with Chinese-based companies including Walmart China and China Animal Health and Food Safety Alliance (CAFA). 

VeChain’s presence in China is undoubtedly one of the most interesting achievements in the blockchain industry considering the position of the Chinese Communist Party (CCP) on crypto. It can be recalled that China issued a crypto ban a couple of years ago, prohibiting financial institutions from processing related transactions to individuals.

However, it has found common ground with VeChain as its office is located in Shanghai, China. Many reports suggest that China has always been clear on its stance on blockchain, as it has severally advocated for the adoption of blockchain technology across different industries. 

On February 1st, 2022, a joint effort of the Shanghai Municipal Administration of Market Supervision and the Shanghai Certification Association made effective the Certification Standard for Blockchain Service. This greenlight is reported to have contributed to the move of VeChain within the region. Interestingly, its initiatives cut across different sectors with one of the most popular presence recorded in the food industry.

VeChain partnered with Walmart China to transform the area of supply chain management. This partnership paved the way for more products and categories to be covered. Walmart China leverages the proprietary toolchain suite of VeChain, to enable it to track products accurately across the entire cycle. 

The mutually beneficial alliance has seen such substantial success that it has led to additional deals being signed between the two parties. Aiming to extend its impact on customer trust, Walmart decided to expand VeChain’s services for more products and categories. The goal here is simple but profound: instilling faith in consumers about the origins of their purchases and revolutionizing supply chain management using blockchain as a pivotal tool.

VeChain Makes Waves in China

Evidence of VeChain’s prominence in China can also be seen in its partnership with China Animal Health and Food Safety Alliance (CAFA). According to the requirements of the partnership, VeChain facilitates CAFA with the proprietary blockchain toolchain suite. On top of that, all members of the alliance have access to recording the crucial stages of food products on the blockchain. 

Since its inception, CAFA is proud to have onboarded over 130 official members. Comprising a broad spectrum of hefty companies and organizations from every stage of the food industry supply chain, it’s an alliance that commands considerable influence.

Experts believe that China’s interest is in providing a next-generation monetary technology version with considerable control by the government while limiting decentralized crypto systems. The challenge China has with emerging technology is reportedly embedded in its nature. Coupled with its decentralization, blockchain facilitates freedom that transcends direct control. This poses a big threat to cyber sovereignty and government censorship modalities. 

While China seeks to give control over applications and developments to the state, Hong Kong regulators are reportedly negotiating with banks to provide banking services to crypto exchanges. In the US, the conversation about its regulation is still ongoing and could be finalized soon. Regardless of the concerns around the technology in different jurisdictions, VeChain keeps expanding as it recently extended its influence to Singapore. 

 

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Filed under: Bitcoin - @ February 2, 2024 11:25 am