“Many developing countries, where just to start with they don’t even have credit cards, there’s no particular infrastructure, it’s almost easier to see sort of blockchain-enabled payments, to see in Asia, you will see more action happening in Asia more than U.S. and Europe,” said Yeung.
Ripple CEO Garlinghouse is anticipating more widespread adoption of blockchain in the next five years. However, Hutchins said the primary focus of consumers will be the results that blockchain delivers as opposed to the technology itself.
“When you send an email out today, you don’t think about the underlying technology you are using … So you can hear us talk about … what protocol, what token, what technology solutions, how many transactions per second, but eventually what’s going to happen is you are going to put something of value in, something of value will come out the other side and you are not going to care what the underlying technology is,” said Hutchins.
“And that’s when you know we’re successful,” he added.
China already boasts a “blockchain wall” that consists of the following ecosystem:
- Institutional investors with ties to major corporations
- A network of universities and thinktanks that facilitate the growth of blockchain initiatives
- A dynamic financial environment combined with quick-to-respond regulatory implementation
More Foreign Investment
Additionally, China is becoming less resistant to safeguarding its businesses, which will open the pathways to more foreign investment that could also flow into blockchain technologies. Forbes reported this week that Chinese officials are meeting to discuss which sectors to give access to foreign investors.
China ETFs have also been the beneficiaries of index provider MSCI Inc. announcing recently that it would quadruple its weighting of large-cap Chinese shares in its benchmark indexes. In a press release, MSCI Inc. said it would increase the weight of China A shares in the MSCI Indexes by increasing the inclusion factor from 5% to 20% in three steps.
The decision came after an extensive global consultation with a large number of international institutional investors, including asset owners, asset managers, broker/dealers and other market participants worldwide. MSCI said the proposal to increase the weight of China A shares garnered overwhelming support from investors.
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