Ethereum (ETH), the second-largest cryptocurrency in the world has been ranked at the top in the Ministry of Industry and Information Technology of China’s recently released public blockchain rankings. Surprisingly, Bitcoin (BTC) which is the most dominant and the largest digital currency in the world has been ranked 13th because of the limited use of its network.
However, the most popular virtual currency has been given highest points for innovation because it is the first cryptocurrency empowered by a completely decentralized blockchain network.
China’s Anti-Cryptocurrency Stand Is Softening
According to experts, the new index ranking by the Chinese government indicates that slowly the anti-crypto sentiment at the core of the country is undergoing a massive change. The Assistant Professor of Finance at Warwick business school, Daniele Bianchi said that this move is important because it indicates that a massive market like China is thinking openly to boost productivity through blockchain technologies.
Secondly, he said, it also changes the viewpoint that Chinese government is not supportive of cryptocurrencies and their use. The CEO of cryptocurrency exchange CoinMetro, Kevin Murcko said that the thought process of the Asian country is slowly changing as it has realized that as a global economic super-power it must lead the digital economy era. On the low ranking of Bitcoin by the Chinese government, Murcko said that the country seems to be having a mixed feeling for BTC as China thinks that Bitcoin can challenge its financial stability.
The ranking has irked and even surprised supporters of Bitcoin as the cryptocurrency did not come in among the first 10 in the blockchain rankings. But as compared to other virtual currencies like ETH, BTC network has highly limited application. Also, it does not run any type of smart contracts neither does it offers a platform for any other decentralized applications. That is why China ranked it at a low position among all the other cryptocurrencies in the index.
Cryptocurrencies Ranking Based On Three Criteria
The ministry ranked the cryptocurrencies based on three basic criteria including innovation, technology, and application. Other digital currencies to get a spot in the first five include Steem (STEEM), Lisk (LSK), Neo (NEO), and Komodo (KMD). These currencies were ranked at the top because they efficiently use smart contracts to process information in a decentralized manner.