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New Developments in China's National Blockchain

19 August 2020 11:34, UTC
Devin Partida

China is edging closer to their goal of being the world's leader in blockchain technologies. The country announced their nationwide Blockchain-based Services Network (BSN) in November 2019 and has made significant strides since then. It launched locally in April and globally in June, and since then, the national blockchain in China has shown no signs of slowing down.

Famously, China had initially banned cryptocurrency, but now it's embracing crypto's underlying technology and issuing digital currency. These are some of the first instances of national-level recognition for blockchain and crypto. As such, developments in China's national blockchain could affect the crypto world as a whole. Here's what's happening in the BSN now.

BSN Now Has an Official International Website

While BSN launched internationally in June, it took another step toward international legitimacy. On Aug. 10, China unveiled the official BSN international website, revealing more about their national blockchain. Most notably, the site features support for other, more established blockchains.

This feature will enable the BSN to integrate with Ethereum, EOS, Tezos, NEO and IRISnet. Developers from all nationalities and backgrounds can take advantage of the BSN as a result. Interchain services between these blockchains will be available in October of this year. The BSN's website also lists some notable tech giants as partners. It cites Hyperledger as a blockchain supplier, and, more notably, Google and Amazon Web Services as cloud service providers.

DCEP Testing Expanding

Government-backed digital currency is one of the most exciting developments of the national blockchain in China. The digital currency electronic payment (DCEP) will be the world's first sovereign digital currency. China began testing DCEP in four smaller cities earlier this year, but just announced an expansion to this trial.

The Chinese Commerce Ministry will bring DCEP to the nation's wealthiest regions, covering cities like Beijing and Hong Kong. In addition to these cities, the ministry announced that other areas could begin testing when they meet requirements. They didn't announce a specific timeline for this trial expansion but indicated that it should happen before the end of the year.

It's also still unclear when DCEP will launch in full, but it may not be far off. With testing expanding so rapidly, China could be preparing to release it to the public in only a couple of years.

What BSN and DCEP Mean for Blockchain and Crypto Worldwide

These developments in BSN and DCEP could affect the blockchain and crypto economy across the globe. China is the first to establish these systems on a nationwide scale, and its size makes these changes significant. China has the second-highest GDP in the world, and such a substantial economy could drive global crypto and blockchain adoption.

Blockchain and crypto are already becoming increasingly legitimate. More investing experts are recommending crypto as an asset to diversify portfolios. A government-backed cryptocurrency in a country as significant as China could push that even further.

While crypto and blockchain technologies have been experiencing something of a boom, they still lack global support. The backing of the world's most populous country could change that. The BSN and DCEP could give these technologies the push they need to see worldwide legitimacy.

The World Is Moving Toward a Blockchain Revolution

With China adopting blockchain technologies so fast, it may only be a matter of time before the world follows suit. Blockchain and cryptocurrency have been gaining legitimacy for a while now, and this may provide a needed boost. How the BSN and DCEP work out could determine the fate of blockchain technology.

Whether the BSN and DCEP will be a success remains uncertain. If early promising signs prove successful, these developments could be a turning point for the blockchain world. While there are no guarantees, it seems the world is moving toward blockchain, and China is leading the way.

About the author:

Devin Partida is a technology and cryptocurrency writer. She is also the Editor-in-Chief of ReHack.com.