The ruling Communist Party of China is notoriously suspicious of technologies and organisations that lie beyond its control, hence their recent clamp-down on bitcoin and other major cryptocurrencies. However, one cryptocurrency project that is seeing support from Beijing is Vechain (VET), a domestically developed decentralised finance operation that is similar to the Ethereum blockchain network. China’s President Xi Jinping is desperate to keep a firm hand on the inroads that the cryptocurrency revolution is making into the world’s second-largest economy.

A recent report published by the Chinese website ChainNews described the Deputy Director of China’s Changing District, Pan Min, “repeatedly” praising VeChain’s technology and business development.

All signs now point to Beijing working with Vechain (VET) to aid the development of China’s digital version of their domestic currency, the Yuan.

Speaking to Express.co.uk George Tung of Cryposrus said: “Most likely China is already working on their digital yuan with Vechain.

“China cultivates their own and Vechain is the biggest blockchain company by far within China.

“They have all the ins.”

It has been touted by many cryptocurrency analysts that Ethereum will likely outperform bitcoin over the next year, but with Chinese government support, VeChain could outperform even Ethereum.

The VeChain price prediction sentiment is currently bullish, with the price rising 3 percent today.

However, the cryptocurrency reached its highest price on April 19, 2021, when it was trading at its all-time high of $ 0.282922 (£0.20) and has risen by 1,823 percent in one year to date.

READ MORE: Inflation rise sparks fears mortgages could rage out of control – will you be affected?

“There is no way they are able to work with Vechain without some close ties.”

JP Buntinx of Cryptomode ranks Vechain highly in its list of 2020 “Ethereum Killers”.

JP Buntinx added: “Some of the world’s biggest brands are already experimenting with Vechain’s technology, including Walmart.”

However, the Cryptomode states that although there is “competition in the blockchain space, it won’t be easy to dethrone Ethereum”.

Express.co.uk does not give financial advice. The journalists who worked on this article do not own cryptocurrency.