The Chinese government is establishing a national blockchain innovation center in Beijing to focus on industrial applications and major use cases of blockchain technology, particularly those related to the Chinese economy.
China sets up a new blockchain hub
China’s Ministry of Science and Technology has approved the establishment of a blockchain research center called the National Blockchain Technology Innovation Center, state-run Beijing Daily reported on Wednesday.
The new blockchain hub will be based in Beijing and run by the Beijing Academy of Blockchain and Edge Computing (BABEC), which is backed by the Beijing municipal government. The center will focus on the development of blockchain-related technologies and their industrial applications, the post conveyed, adding that it will also explore major use cases related to the Chinese economy and personal livelihoods.
Despite the country’s anti-crypto stance and continued crackdown on cryptocurrency-related activities, China has supported development around blockchain technology. In 2019, Chinese President Xi Jinping said that blockchain would play “an important role in the next round of technological innovation and industrial transformation.” He called for more efforts to speed up the development of the sector.
Following Xi’s endorsement, many tech companies, startups, and investors flooded into the blockchain space. The number of blockchain companies registered with the Cyberspace Administration of China (CAC) increased to 1,821 in July last year.
Hong Kong-based Red Date Technology, a founding member of China’s Blockchain-based Service Network (BSN), launched a new project last month to implement stablecoins and central bank digital currencies (CBDCs) in cross-border payments. The BSN is backed by entities linked to the Chinese government, including the State Information Center (SIC) under the National Development and Reform Commission of China (NDRC).
Meanwhile, China has continued its anti-crypto stance. A former adviser to the country’s central bank, the People’s Bank of China (PBOC), recently called on the Chinese government to reassess its cryptocurrency ban. He warned that a permanent ban on cryptocurrency-related products could lead to missed opportunities in technologies like blockchain, which are “very valuable” to regulated financial systems.
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