China Supports Blockchain Development, Continues Crackdown On Cryptocurrencies

The Chinese government is setting its sights on blockchain technology with the establishment of the National Blockchain Technology Innovation Centre.

What Happened: The centre based in Beijing will focus on developing key technologies and industrial applications within the realm of blockchain.

Quoting an article by the state-run Beijing Daily, South China Morning Post reported the centre will concentrate on fundamental theory, software and hardware with an aim to make blockchain a critical foundation for China's digital infrastructure.

Although China took a tough stance on cryptocurrencies, it offered increased support for the growth of blockchain technology.

In 2021, the government clarified that all cryptocurrency trading was banned in the country, but President Xi Jinping emphasized blockchain would play a vital role in the next round of technological innovation and industrial transformation.

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The country's main tech industry regulators, the Ministry of Industry and Information Technology and the Cyberspace Administration of China, also set guidelines for the widespread use of blockchain across various industries by 2030.

Why It Matters: China's investment in blockchain technology had seen a surge, with an influx of investments from both Big Tech firms and start-ups.

As of July 2022, the country had 1,821 blockchain companies registered with the Cyberspace Administration of China, covering a range of industries, including legal, financial, agricultural and intellectual property protection.

An official from the Ministry of Industry and Information Technology boasted China held the most blockchain patent applications globally, accounting for 84% of the world's total.

In addition, the state-backed blockchain-based Service Network was rapidly moving forward with domestic and overseas projects, including the Spartan Network, aimed at getting businesses outside mainland China to adopt blockchain for uses beyond cryptocurrencies.

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