China, a country known for its ban on cryptocurrency transactions, seems to have developed an affinity for blockchain technology, as evidenced by VeChain’s significant presence in the region. Over the years, VeChain has formed partnerships with major Chinese companies like Walmart China and the China Animal Health and Food Safety Alliance (CAFA).
VeChain’s success in China is particularly noteworthy considering the Chinese Communist Party’s (CCP) stance on cryptocurrencies, as they imposed a ban on financial institutions processing such transactions. However, VeChain has found common ground with China, as its headquarters are located in Shanghai. Reports indicate that China has consistently advocated for the adoption of blockchain technology across various industries.
One significant development that contributed to VeChain’s expansion in China was the Certification Standard for Blockchain Service, which was implemented on February 1st, 2022, by the Shanghai Municipal Administration of Market Supervision and the Shanghai Certification Association. This certification standard provided a green light for VeChain’s operations in the region. Notably, VeChain’s initiatives span across different sectors, with a strong presence in the food industry.
VeChain’s partnership with Walmart China has revolutionized supply chain management in the country. By leveraging VeChain’s proprietary toolchain suite, Walmart China can accurately track products throughout the entire cycle. The success of this alliance has led to additional deals between the two parties, with Walmart expanding VeChain’s services to cover more products and categories. The ultimate goal is to build consumer trust and transform supply chain management using blockchain technology.
Another testament to VeChain’s prominence in China is its partnership with the China Animal Health and Food Safety Alliance (CAFA). VeChain provides CAFA with its proprietary blockchain toolchain suite, enabling alliance members to record crucial stages of food products on the blockchain. With over 130 official members, including major companies and organizations from every stage of the food industry supply chain, CAFA holds significant influence.
Experts believe that China’s interest lies in developing a government-controlled, next-generation monetary technology while limiting decentralized cryptocurrency systems. However, the decentralized nature of blockchain technology poses a challenge to China’s desire for control and censorship. While China seeks to maintain control over applications and developments, regulators in Hong Kong are reportedly discussing providing banking services to crypto exchanges. In the US, the regulation of cryptocurrencies is still under discussion. Despite the concerns surrounding blockchain technology in different jurisdictions, VeChain continues to expand, recently extending its influence to Singapore.