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China urged to fast-track blockchain development to keep up with global trends

source-logo  coingeek.com 12 March 2024 03:02, UTC

Authorities in China are urged to improve the infrastructure surrounding blockchain technology to match the pace of digitization.

Dong Jin, a high-ranking National People’s Congress (NPC) member, called on the Chinese government to throw its weight behind blockchain development, eyeing several benefits for the local economy.

Jin’s comments came during China’s Two Sessions event, an annual plenary session of the ruling party with the nation’s political elite and industry leaders in attendance. The discussions at the Two Sessions event include areas of economics, security, and geopolitics, as well as emerging technologies.

Jin’s proposal revolves around developing a national blockchain network to improve enterprises’ data-sharing capability. In addition to supporting private entities, he argues that the blockchain network will serve government agencies to maintain clear data-sharing lines without the hassles of red tape.

The suggested national blockchain network will be indispensable in supply chain, finance, transport, shipping, and government services.

In recent years, China’s digital economy has grown in line with the long-term plans of the Chinese Communist Party (CCP), but several issues continue to plague its long-term prospects.

Jin points out the growth of the digital economy has led to the creation of “high-value data” by key industry players. Rather than a shared resource, Jin says the data are housed in “isolated islands” and “icebergs” over cybersecurity risks and industry competition.

To improve interoperability, Jin favors having a central blockchain system to operate as a “cornerstone of trust” for entities seeking to share their data using the blockchain’s
immutability and transparency properties.

Jin’s plans will start with China before rolling out the blockchain network globally to “achieve interconnection with countries,” specifically in trade and finance. Currently, China and other BRICS countries are mulling the prospects of a blockchain-based settlement system to reduce their dependency on the U.S. dollar in international trade.

A national outlook

China has previously rolled out a series of blockchain initiatives to standardize the use of the technology across the board, launching a blockchain center in mid-2023. Located in Beijing, the center seeks to deepen the country’s talent pool by training 500,000 experts in the coming years.

“In terms of talent training, the center will train more than 500,000 high-quality talents in the blockchain field for my country through cooperation with top universities, research institutes, and industry leaders to adapt to the rapid development needs of new forms of digital economy such as Web 3.0,” said Jin in a 2023 statement.

Before the official unveiling of the center, Chinese authorities announced a nationwide public consultation to establish blockchain standards before the end of 2025 while
experimenting with blockchain-based digital identity systems.