Yahoo Finance 
Chinese Authorities Probably Want to Exploit Blockchain to Secretly Monitor Citizens
By CCN.com: In modern times, China has worked to consolidate state power over individuals. Local authorities are trialing systems to control peoples’ social standing, access to jobs, and even where they can go. Until now, one refuge for its citizens has been in the wooliness of time; not even the all-powerful Communist party can always measure where people go, when, and what they do.
But, with a state-mandated blockchain, this could begin to change.
Those inside China will be aware of the fate that awaits Bitcoin and other major cryptocurrencies; these will not survive if the state is unable to exert control. Types of blockchain adopted by the Chinese will become, like so much else in the country, an instrument of state power.
The National Development and Reform Commission (NDRC) shows open hostility to crypto and moved early last month to eliminate Bitcoin mining under an initiative to stop “wasteful and hazardous activities”. The world’s largest cryptocurrency now risks seeing a widespread shutdown of its biggest mining operations.
China is discussing a blanket ban on bitcoin mining, a move that could have drastic repercussions for the ongoing rally. | Source: Shutterstock
Dreaming in Bitcoin
The People’s Bank of China holds a tight grip on the yuan and has placed severe restrictions on cross-border transfers. And, unlike similar institutions in other countries, monetary policy is directed by top government officials rather than the bank itself.
Key to state aims is restricting the ability of wealthy Chinese looking to untie themselves in part from the national economy by sending capital abroad. Though a sound move to diversify personal risk, it is not one that the government looks upon favorably: their crackdown on Bitcoin ramped up after it became apparent the coin was being used to circumvent strict controls on the movement of money abroad.
