- Yao Qian proposes for China to focus more on Web3 adoption.
- China`s digital yuan might pose a significant threat to the U.S. dollar in the future.
- Web3 adoption takes a global center stage.
For many years, China has been the crypto-dominant world power. The majority of mining rigs, cryptocurrency exchanges, and investors were all based in China. However, when China’s central bank announced a total ban on all crypto transactions and mining activity in that nation, everything changed. The news caused the market to plummet.
China has been a harsh opponent of cryptocurrency. Still, the country is now highly interested in blockchain’s underlying technology, and Web3 infrastructure appears to be the next big technology on China’s radar.
Web3 future internet improvements in China
The worldwide economy has embraced new technology and supported the crucial shift from Web2 to Web3. In China, Yao Qian, the director of the country’s Securities Regulatory Commission’s Science and Technology Supervision Bureau, has urged for an increased emphasis on the new iteration of the World Wide Web.
Yao Qian has pushed for Web3, arguing that it will be the future of the Internet. The “China Finance” issue 6 of 2022 stated that The Internet has now reached a crucial stage in shifting from Web2 to Web3. In addition, strengthening China’s forward-looking Web3 research and strategic prediction is unquestionably important in laying the foundation for future Chinese internet infrastructure.
The research evaluated the many types of Web3, according to the development approach of the internet at home and abroad, as well as technological evolution, in order to shed light on how the new internet phase might take shape.
In its purest form, the shifts from Web1 to Web2 to Web3 describes as “readable,” “readable + writable,” and “read + write + own.” According to Yao, Web3 will rebuild the organizational structure and business model of the internet economy, and it expects to boost the current internet environment substantially.
The Chinese regulatory executive believes it will effectively address the problems of monopoly, lack of privacy protection, and malevolent algorithms that plagued the Web2 era, allowing for an even more open, inclusive, and secure Internet. Web3 is a three-dimensional virtual hologram internet that would be global and inclusive.
Digital Yuan dominance challenges the U.S. dollar
Following the blanket crypto ban, China demonstrated that it is not a supporter of decentralization and distribution of power. Their central bank digital currency initiative demonstrates the case. Digital Yuan (CBDC) is highly centralized, with the national government having total control over it.
On March 17th, 2022, a fintech specialist alleged that China’s digital Yuan might pose a significant threat to the United States’ dominance. According to Richard Turrin, when trading among various countries, some governments want to decrease their reliance on the U.S. dollar, accelerating the adoption of China’s currency.
To better comprehend, China is the biggest trading nation, and as a result, the digital Yuan will gradually take over as a payment currency when purchasing goods from China. As a result, in the following five to ten years, the digital Yuan may play an essential role in reducing dollar usage in international trade.