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China supports blockchain although cracking downs on crypto

www.thecoinrepublic.com 29 October 2021 04:21, UTC
Reading time: ~3 m

  • Blockchain technology has potential utility for government and businesses as per China
  • It is revealed that Beijing is pouring resources into blockchain for governmental and enterprise utility
  • China is working on to issue a national standard for blockchain next year

Blockchain is the underlying technology that powers the cryptocurrency industry. Such secure technology is being adopted by almost every industry. Such industries include, health supply, food supply, agriculture, and many more. However, China, the nation that prohibits the use of cryptocurrency in its province, also sees the potential of the technology. Although the country crackdowns on the cryptocurrency industry, its capital city is pouring resources into blockchain for governmental and enterprise utility. According to the recently published report by the news outlet Chuanguan, a Chinese official has revealed that the nation will soon release the National Blockchain Standard, by next year.

China’s National Standard for Blockchain

According to a report published by Chuanguan, a local news outlet of China, an official from the China Electronics Standardization Institute, the country is working on to issue a national standard for blockchain next year. During the Fifth China Blockchain Development Competition, which was held in Chengdu, in the Sichuan province, Li Ming, the director of the Blockchain Research Office at the standardization body revealed about the National Standard for Blockchain. According to Ming, the institute has drafted a standard and is in the process of approving it. 

China seeks to boost innovation

China is one of the most technologically advanced countries globally. Following the recent reveal on what the country is working on, it seems that the nation seeks to boost blockchain innovation and application in businesses and government across the nation. Although the country cracks down on the cryptocurrency industry, its latest Five-Year-Plan outlined the development goals. Indeed, with such aims, China puts the potential Blockchain technology on a par with artificial intelligence, data science, and cloud computing.

According to Ming, the standards are basic to an industry that is used as an example of WiFi or Bluetooth. Notably, Ming further explained that without any unified standard, devices from different manufacturers would not be able to connect to the network. Once the standards for the potential technology is set, the body will look into drafting evaluation criteria. Hence, a “benign” ecosystem creation is possible as per Ming.

Aim to export Chinese blockchain and standards

China’s key government projects that include Blockchain Services Network and Xinghuo Chain, follow an open permissioned protocol. It is worthy to note that the project aims to retain some of the benefits of decentralization while maintaining centralized control. On the other hand, China also aims to export its blockchain and standards. We have found that the International Telecommunications Union in China passed a set of blockchain standards for financial applications last year. Those standards were introduced by the PBoC, the China Academy of Information and Communications Technology, and Huawei.

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