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The ruling Communist Party of China is notoriously suspicious of technologies and organisations that lie beyond its control, hence their recent clamp-down on bitcoin and other major cryptocurrencies. However, one cryptocurrency project that is seeing support from Beijing is Vechain (VET), a domestically developed decentralised finance operation that is similar to the Ethereum blockchain network. China’s President Xi Jinping is desperate to keep a firm hand on the inroads that the cryptocurrency revolution is making into the world’s second-largest economy.<\/p>\n
A recent report published by the Chinese website ChainNews described the Deputy Director of China’s Changing District, Pan Min, “repeatedly” praising VeChain’s technology and business development.<\/p>\n
All signs now point to Beijing working with Vechain (VET) to aid the development of China’s digital version of their domestic currency, the Yuan.<\/p>\n
Speaking to Express.co.uk George Tung of Cryposrus said: “Most likely China is already working on their digital yuan with Vechain.<\/p>\n
“China cultivates their own and Vechain is the biggest blockchain company by far within China.<\/p>\n
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“They have all the ins.”<\/p>\n
It has been touted by many cryptocurrency analysts that Ethereum will likely outperform bitcoin over the next year, but with Chinese government support, VeChain could outperform even Ethereum.<\/p>\n
The VeChain price prediction sentiment is currently bullish, with the price rising 3 percent today.<\/p>\n
However, the cryptocurrency reached its highest price on April 19, 2021, when it was trading at its all-time high of $ 0.282922 (£0.20) and has risen by 1,823 percent in one year to date.<\/p>\n
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Mr Tung suggests that China will always “look after its own” and Vechain is headed by a domestically based cryptocurrency development team.<\/p>\n
The VeChain Foundation has recently confirmed that it had a meeting with Chinese government officials.<\/p>\n
Chinese government officials and Vechain talked about “potential transformative collaborations”.<\/p>\n
Mr Tung added: “Look at the partnerships Vechain have, China Unicom, PICC, Shanghai Gas among others, these are all Chinese state-run companies.<\/p>\n
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