• China is launching a research center for blockchain innovation in Beijing, called the National Blockchain Innovation Center.
• The center will focus on basic blockchain theory, key technologies’ software and hardware, including basic platform and verification networks.
• The Chinese government has also launched e-yuan (e-CNY) to promote CBDC adoption across China.
China Moves Deeper Into Blockchain Technology
China has announced plans to move deeper into blockchain technology after its ban on cryptocurrency transactions in 2021. A recent report from China Daily noted that the country is set to launch a research center for blockchain innovation in Beijing – the National Blockchain Innovation Center.
Research Goals of the Center
The innovation center will work with local universities, blockchain experts, and firms to explore core blockchain technologies. It will focus on basic blockchain theory, key technologies’ software and hardware, including basic platform and verification networks. The Beijing Academy of Blockchain and Edge Computing (BABEC) will take charge of the new research institution; BABEC is famous for its ChainMaker blockchain which currently executes 240 million transactions per second (TPS).
China’s Digital Infrastructure Push
China’s push towards digital infrastructure has been bolstered by its efforts in developing a Central Bank Digital Currency (CBDC). In September 2022, it was reported that China accounted for 84% of all filed blockchain applications worldwide; however only 19% of these applications were approved by the state. The Chinese central bank has rolled out e-yuan (e-CNY), worth millions of dollars, across the country to promote CBDC adoption.
Cryptocurrency Ban Still Stands
Despite China’s active involvement in exploring innovations related to blockchain technology, its stance against cryptocurrency trading still stands firm; meaning citizens are still prohibited from engaging in such activities within the country or abroad.
It appears that China is actively making moves towards becoming a leading player within the field of distributed ledger technology through various initiatives such as launching national research centers focused on innovation and rolling out e-yuan currency as part of its CBDC project. Despite this progress being made, its ban on cryptocurrency remains firmly intact for now at least.