Former Chinese Science Minister: the blockchain is still an immature technology

Wu Zhongze believes that China is not particularly advanced in the development of the blockchain compared to Europe and the US, at least for the time being.

Wu Zhongze, former Chinese Deputy Minister of Science and Technology and a well-known digital economy expert, believes that blockchain technology is still quite immature.

In an interview with The Paper, the former minister said that there is „not much difference between China and the world’s major economies, such as the US and Europe“ in terms of the development of blockchain projects.

However, Wu noted that China has made progress in a number of areas necessary for blockchain growth, including hardware production, security services, industrial investment and financial development:

„With the innovative development of blockchain technology and industry, its adoption is accelerating and the size of the industry continues to increase. We expect this sector to become a new driver of economic growth in the future“.

In what he called the „rapid advancement“ of blockchain infrastructure in China, the former minister said that the distributed registries will open new opportunities to integrate and develop new technologies, such as 5G, artificial intelligence, data centres and industrial Internet.

A recent Securities Daily report analyzed how listed Chinese companies are spending millions of dollars on blockchain research and development. The study was conducted by interviewing 23 Chinese companies, who have been working with blockchain since 2016. The figures suggest that companies spend an average of 20% of their annual revenues on these purposes, but most of these funds are spent on central government projects.