The National People's Congress (NPC) in China has proposed the creation of a government-backed blockchain fund in its ongoing annual meeting.
The Chinese legislative body began consultative meetings last week as part of its political advisory role. According to its Deputy Director, Jieqin Tan, a blockchain fund would help spur growth in the industry.
This milestone comes shortly after the People's Political Consultative Conference (PPC), during which a regional stablecoin was proposed. Basically, the PPC operates as a lower legislative body compared to the NPC; proposals tabled by delegates of the latter are more weighty and likely to be considered.
However, going by the recent blockchain and crypto sunrise wave in China, a regional stablecoin would not be completely out of the picture.
The Government Blockchain Fund Proposal
Jieqin Tan suggested that the blockchain fund could be steered by the Chinese government. Once up and running, the fund would focus on nurturing innovations within the blockchain space. More especially, unicorns and startups with a promising outlook given the current state of blockchain integration and emerging challenges.
Should this initiative be successful, Tan is optimistic that it will improve China's odds in capitalizing on a first-mover advantage. In addition, blockchain tech has the potential to push China's oversight towards ‘smart governance'.
Tan, therefore, thinks that funding and supporting the industry would increase the security and sovereignty of the Chinese people. In his view, the industry should be consolidated based on a three-dimensional strategic plan:
“From the bottom technology standard, middle industry application development to the top-level system design, the national blockchain technology, industry and supervision three-dimensional strategic planning system should be well coordinated.”
Despite touting the proposal as a good initiative, Tan was keen to highlight that blockchain tech has had its fair share of challenges. Particularly, scaling issues have emerged as more players join existing ecosystems. Furthermore, the industry is still short of talent and operates on a huge knowledge gap making it hard for information to be impactful.