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Almost daily we receive requests. Even from government institutions', says Lu. Rumors that VeChain is in talks with the Chinese government for the largest blockchain contract in the world he denies nor confirms. In many different areas VeChain already works with the Chinese government, such as in making food products traceable.
This is an important theme in a country where faith in the food industry has diminished after a multitude of scandals. Another project focuses on tracking imported goods in order to, inter alia, combat import tax fraud. A luxury brand fights fakes using VeChain's blockchain technology. This is a system that has proven itself multiple times. The value of VeChain according to him is in the 'right to use public infrastructure' and 'the speed' with which it works.
The market currently gives VeChain the benefit of the doubt. A few months ago it was an unknown crypto startup, monday it stormed into the top 20 of largest cryptocurrencies in the world.
Since the ICO the coin has multiplied over a hundred times in value. Lu combats the notion that the valuation is too high. Now we know that internet technology has changed the world. It is my firm conviction that a similar role will be played by cryptocurrencies, and blockchain technology in particular. Two steps forward, one step back. That is how the authorities in Beijing try to lead the opportunities and threats of the cryptomarkets in the right direction.
China sees blockchain technology as the key to solving all sort of problems, amongst which food safety. The state on the one hand wants to make room for innovation, but is fearful for its negative side effects. Since the start of September ICO's have been illegal. Trade platforms have been closed at the order of the government. Earlier this month a document was sent, inter alia by the Chinese central bank, requesting provincial governments to shut down bitcoin mining operations.
With little succes so far. Since the platforms are closed trade mostly takes place through informal transactions in message app WeChat. Owning bitcoin is, contrary to openly trading them, not illegal. Being a Dutch citizen this was a very nice read. Also interesting to mention is that worldwide the Netherlands show the highest interest per region for search term "Vechain" on Google Trends. Probably because you guys only pay box three 1.
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