Chinese City ‘Chongqing’ Causes Disarray with Digital Asset Exchange Plan

Chinese City ‘Chongqing’ Causes Disarray with Digital Asset Exchange Plan

The municipal government of Chongqing city, China, has sent the crypto community into a frenzy after it mentioned in a website statement that it will work on a “blockchain digital asset exchange.”
As part of efforts to advance blockchain technology in the area, the States Economy and Information Committee listed “establishing a blockchain digital asset exchange” in a list of five agendas it would carry out in the near future.
The agency is an arm of the state’s executive, thus leading to an early conclusion by the public that they were working on a government-backed cryptocurrency than would be used a means of exchange.
That, however, will not be the case, at least not yet, as the agency deleted the statement on Thursday amid reports that such project would conflict on the central government’s ban on ICOs in the country.
Whether the said project was aborted following a central government order or it was a misunderstanding is yet to be fully understood.
The fact, however, remains that the Chongqing government has re-published the same report with a mention of a “blockchain digital asset exchange.”
A Chinese news source has provided further insight into the nature of the project the government is looking forward to carrying out, notably stating that,

“No tokens will be issued, and the general public has no way to participate in the project. Also the digital assets mentioned are not virtual currencies.”

Remarkably, the project would involve an exchange platform for non-standard assets based on blockchain technology, the first of its kind in China.
Given this new meaning, the agency has not published a statement to clear the air and doesn’t seem ready to do so anytime soon.
A Welcomed Confusion
There is little doubt that the misconception about “blockchain digital asset exchange” raised the hope that a positive change was coming to the Chinese crypto trading market.
That would not be!
However, even though talks of a government-backed cryptocurrency has been ruled out, crypto enthusiasts in China would continue to hope that the central government will soon soften its stance on ICOs in order to promote the growth of new cryptocurrencies and the economy at large.