China Looks To Leverage Blockchain In Economy And Governance
China is looking to leverage the potential of blockchain technology, according to a government release. Even as it uses the nascent technology to foster its central bank digital currencies (CBDC) program, China aims to apply blockchain in every area of its booming economy.
China Eye Blockchain Technology
In a document authored by the Ministry of Industry and Information Technology (MIIT), the Chinese government is eyeing the myriad benefits that blockchain technology can bring to its economy and the running of its public services sector.
Listing out the areas it aims to use blockchain to improve the Chinese experience, MIIT said that it would leverage the technology's capabilities to deepen integrated applications by optimizing business processes, thereby cutting costs.
It would also use blockchain to improve the country's supply chain management and lead to better product traceability in key areas like healthcare. Blockchain will also create a multi-party data-sharing platform, while it would also be geared towards improving government services and fostering cross-departmental data-sharing services.
To achieve its aim of enabling a blockchain-driven future, the MIIT is looking at promoting a blockchain hub in the country through several blockchain-friendly policies like preferential tax policies for blockchain startups. Local officials have also been directed to help out in this regard through enabling policies.
The MIIT has also called for a blockchain-based competition and the creation of a “China Software Park” in the pilot zone of blockchain development. It is also looking at enabling home-grown blockchain talents and will create courses on blockchain technology in universities and colleges to create a new set of engineers.
The document was published in collaboration with the Central Cyberspace Affairs Commission.
Blockchain More Appealing Than Crypto
China was one of the first countries to accept cryptocurrencies and has begun to look into the underlying technology surrounding digital assets.
However, the country which mines about 50% of the global Bitcoin in existence has closed their doors on cryptocurrencies labeling the private currencies a threat to the continued use of the yuan.
Instead, it has outlawed the use of the embattled lines of code and further cracked down on BTC mining in its Inner Mongolia region. The decision that saw the crypto market lose about a third of its value has led to the country's suspension of crypto-related Weibo accounts. BTC -4.40% Bitcoin / USD BTCUSD $ 41,929.92
-$1,844.92-4.40% Volume 41.64 b Change -$1,844.92 Open $41,929.92 Circulating 18.82 m Market Cap 789.33 b 1 h Crypto Investors Approaching Large Institutions in Bond Market for Loans Against Digital Assets 2 h Cryptocurrency Market Tanks on the Same Old China Ban News, But Investors Who Sell Here Will End Up “Bummed” 3 h Twitter Chooses “Global, Barrier-Less Option” for Tipping and to Help Creators Join the “Decentralized Internet”
Meanwhile, the Chinese government has focused on designing a virtual rival with its digital yuan program. The Asian giant is also planning to run test pilots in the forthcoming Winter Olympics taking place in Beijing.