Chinese Government Launches Monthly Ratings Index On 28 Crypto Coins
China is the first country to have a government that provides ratings on cryptocurrency. It is quite shocking as it is the same country where people are banned from using it.
On Thursday, May 17, the CCID (China Center for Information Industry Development), a research unit under the industrial ministry of China, launched a monthly ratings index that will rate 28 crypto coins and the blockchains underpinning them.
The CCID has already released the first issue of ratings according to which, Ethereum is the top performer. Surprisingly, Bitcoin stood at 13th position in the index. According to the CCID, the deciding factors include innovation, application, and technology. However, it refrained from publishing its methodology.
This initiative was by announced by the CCID last week, citing the lack of any credible and independent rating index on crypto and blockchain that could prove to be a useful guide for governments, investors, enterprises, research institutions and other key audiences. Some other financial agencies around the world have published such ratings before, but they were solely focused on trading. Weiss in the U.S. would be one such example.
Although the Chinese government has made it clear that it doesn’t support cryptocurrency because of its volatile nature, it is ready to welcome the development of the underpinning blockchain technology that could potentially transform a range of industries. ICOs and crypto trading got banned last September by Chinese authorities, followed by the ban on crypto mining. In the meantime, China’s tech giants are busy exploring blockchain technology to find potential business applications. In 2017, more than half of the patent applications filed related to the blockchain came from this nation alone.
Zhou Xiaochuan, Governor of China’s central bank, announced a couple of months back the bank’s intentions to develop a digital currency called DCEP, where DC stands for digital currency and EP for electronic payments.