Friday, June 2, 2023

Vechain: China’s Crypto Ban is Beneficial


According to Sunny Lu in a recent interview, China made the right decision by prohibiting cryptocurrency trading. As a result, he believes, the country can now help develop blockchain technologies.  It has eliminated all “bad guys” and can now help build blockchain technology with real-world application cases.

2019 Vechain

Despite an almost year-long bearish market, 2017 was indeed a big year for crypto! Along with the industry’s maturity, governments and businesses have shown increased interest.

Sunny Lu, CEO of Vechain, said it was a great year. Vechain’s year-on-year increase eclipsed the 2017 crypto market boom.

Lu told Nugget’s News Alex Saunders that 2019 would be a year of transition and challenges. Thanks to giants like Facebook, the crypto economy is no longer a niche market. He noted that more countries encourage crypto companies, mentioning Malta and San Marino as examples.

The most major blockchain development is President Xi Jinping’s open support for the technology. It was exciting for Lu and Vechain because China is now openly promoting a technology Vechain has been developing for four years.

Vechain Leads China’s Blockchain

It is rare for Lu to be so enthusiastic about China’s blockchain policy. The country’s monopoly on IT growth is a significant irritant. But Lu doesn’t see it that way. Banning crypto trading is good, Lu stated.

He further claims that it is necessary to enforce the legal provision to govern a quickly developing firm. Lu argued that a blanket ban on all trades was prudent given China’s 1.3 billion people and complex political system. Detecting crypto trade earlier allows the country to impose certain limits and prevent “bad guys.”

Xi Jinping Supports Vechain

Removing bad actors allowed China to invest heavily in blockchain development. Xi proclaimed October 25th the most important day of the year in his now-famous speech on the blockchain.

Lu furthermore said his backing boosted belief in the blockchain industry. Many billion-dollar companies approached Vechain after the lecture.

Vechain is used to this. Lu founded the firm since Ethereum lacks enterprise solutions. It connects cutting-edge technologies to a practical platform. Lu reported meeting around 40 C-level executives across various industries for his business-focused platform to get their views on blockchain technology.

The corporation is now constructing a platform like Amazon and Alibaba. With clients like BMW and Walmart and a trial with H&M, Vechain appears to be on track.

When asked about the firm’s plans to offer Blockchain-as-a-Service, Lu said more businesses are examining ToolChain. He identified Deloitte and PwC as interested parties. A few of our clients are Breyer Capital and LVMH.

Blockchain’s Path

Lu acknowledges that blockchain technology is still in its infancy despite her optimistic outlook. Even the most well-known and active networks, like Ethereum, have limitations.

Lu compared the present crypto business to Netscape in the 1990s. Like Netscape changed online browsing, Ethereum changed the blockchain industry. It may not reach the “next level” as other browsers appear, but Lu agrees.

Despite his critique of Ethereum, Lu indicated that the two companies were friendly. Greetings and appreciation notes to Ethereum’s Vitalik Buterin included in the genesis block of Vechain.

Not being built on Ethereum, Vechain is more future-proof. Token VET will be used in “financial applications,” according to Lu. Lu explained that Vechain debuted for this type of purpose at the wrong time.

Vechain had over 35 million transactions in 2019, much of the smart contracts.

Lu addressed some of Saunders’ concerns. Using Vechain may be difficult because its native coin has minimal trading activity and is only available on a few exchanges.

Due to resource restrictions, the company has not pursued listings actively. For now, Lu said Saunders; more listings will emerge as more companies join Vechain.

Rainy Naidoo
Rainy Naidoo
Rainy Naidoo is a writer for Cryptoconstellation. She has her Degree in Journalism and communications. Rainy Likes to spend her free time reading and exploring new places.

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