China, Japan Leveraging Blockchain to Gain Global Superiority in Web3
While the United States has backed off of blockchain and cryptocurrency as major aspects of financial tech, its competitors have not, according to a story in POLITICO.com’s Digital Future Daily.
The story quotes Brandon Possin, a Foreign Service Officer at the U.S. embassy in Tokyo, who expressed his concerns about U.S. reticence to make the most of Web3 aspects after seeing a POLITICO story about the Japanese government’s efforts to make the country a Web3 leader.
“Possin points to China’s Blockchain-based Services Network, a state-backed suite of tools for developers that provides Web3 infrastructure. The network, rolled out in 2019, is meant to act as a platform on which private-sector developers can build apps with features like self-executing smart contracts.”
Subsequently, China has enticed Web3 developers to build on the network by offering dramatically reduced fees for services like cloud computing storage, while maintaining control of the network. Possin says China will strongarm trading partners into using its Services Network and other online systems, like its digital yuan.
“Just as capitalist and communist trade blocs squared off in the 20th century, companies wishing to export their goods to select markets will soon have to navigate competing trade blockchains,” he said. “They’ll have to choose between permissionless — or interoperable — systems built on open blockchains versus firewalled, permissioned closed systems like those preferred by China.”
He’s concerned that the United States will fall behind as China becomes the preferred provider. Part of the reason for that lack of interest is that the country already dominates in older financial systems, such as banking and new financial systems feel disruptive and a threat.
Possin argues that the United States can’t afford to ignore a threat to its financial future and to that of Americans.
read more at politico.com