The Chinese government has shown a growing interest in supporting blockchain technology, even as it has banned cryptocurrency trading in the country. This has led to some confusion about the government’s stance on blockchain and cryptocurrencies, but it seems clear that officials recognize the potential benefits of blockchain for a wide range of industries.
The Chinese government’s support for blockchain can be seen in a number of ways. For example, the government has invested significant resources in blockchain research and development, with state-sponsored initiatives like the China Blockchain Institute and the Blockchain Industrial Park aiming to promote the technology and encourage its adoption.
In addition, the government has been working to promote blockchain use cases in various industries, particularly those that are critical to the nation’s economy and social development. This includes areas like supply chain management, financial services, healthcare, and more.
One of the most notable examples of the government’s blockchain initiatives has been the formation of the Blockchain-based Service Network (BSN), which is a national blockchain infrastructure project. The BSN aims to provide a unified platform for developers to build blockchain-based applications, which can help to promote the adoption of the technology across various industries and applications.
The BSN has been actively supported by both the government and private sector, with major tech companies like Huawei and Tencent also participating in the initiative. With more than 100 public blockchain platforms supported and over 200 nodes deployed, the BSN has become one of the most significant blockchain networks globally.
The Chinese government has also been working to promote international collaboration on blockchain technology, emphasizing the importance of global cooperation and knowledge sharing. Chinese officials have participated in various international blockchain forums and conferences, including the World Economic Forum and the International Blockchain and Cryptocurrency Conference.
The government has also been leveraging blockchain technology to enhance its own operations, with initiatives like the Electronic Social Security Card and the Blockchain-based Energy Trading Platform. These projects are aimed at increasing efficiency and transparency in government services, as well as improving cybersecurity and data management.
Despite the government’s support for blockchain, it has also been firm in its stance against cryptocurrencies. In 2017, the government banned the trading of cryptocurrencies on domestic exchanges, citing concerns about financial stability and fraud. The ban was met with criticism from some in the cryptocurrency community but was ultimately upheld by regulators.
However, the ban has not stopped Chinese investors and entrepreneurs from seeking out cryptocurrency opportunities. Many have turned to overseas exchanges to continue trading cryptocurrencies, while others have turned to blockchain-focused projects that do not involve cryptocurrencies.
Despite the ban on cryptocurrency trading, it is worth noting that the Chinese government has not completely shut the door on cryptocurrencies. Officials have continued to monitor developments in the cryptocurrency market, and there have been rumors of potential plans to introduce a national cryptocurrency, in part to counter the influence of other global cryptocurrencies like Bitcoin.
In summary, while the Chinese government’s stance on cryptocurrencies remains firm, it has shown a growing interest in supporting the development and adoption of blockchain technology. With major initiatives like the BSN and other blockchain-based projects, the government is demonstrating its commitment to supporting the growth of the technology in China and beyond. As blockchain continues to evolve and gain more mainstream adoption, it will be interesting to see how the Chinese government’s relationship with the technology and cryptocurrencies evolves over time.
China’s national blockchain research center has recently been launched, and it is looking to train 500,000 blockchain professionals. The center, which is located in Beijing, has been endorsed by the Chinese Ministry of Science and Technology. It is expected to work closely with universities, tech companies, and other research institutes to further the development of the country’s blockchain and Web3 industries.
Despite the popularity of digital assets as a use case for blockchain technology, the Chinese government has taken a tough stance on cryptocurrencies and has outlawed crypto trading in 2021. Thus, supporting the country’s blockchain sector means differentiating technology from its cryptocurrency use cases. The center aims to establish a nationwide blockchain network that will connect existing blockchains in China and promote cross-chain development.
One of China’s well-known blockchains is ChainMaker, also known as the Chang’An Chain, which is an open-source platform created by the Beijing Academy of Blockchain and Edge Computing. The government-backed research institute is also playing a significant role in the new center. The State Grid is among the entities looking to realize the potential of the Chang’An Chain, hoping to use it to record carbon lifecycle data on-chain.
Chinese healthcare players are collaborating on the Xiaotong Medical Chain, built using ChainMaker, to create trusted data links. With this platform, medical institutions, government authorities, and insurers will be able to share information via a verifiable and cryptographically secured channel.
Chinese digital asset firms have found ways around the country’s crypto ban, with some relocating operations from mainland China to Hong Kong, which has cultivated a hospitable climate for cryptocurrency businesses. Companies like Huobi have expanded their presence in the city, and despite the crippling effects of the 2021 crypto ban, they have been able to recover some of their mojo thanks to Hong Kong’s crypto-friendly policies.
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In conclusion, China is making significant strides in blockchain development with its national blockchain research center and plans to train 500,000 professionals in the field. This move can accelerate China’s blockchain industry and help leverage the technology’s potential while differentiating it from digital asset applications.
