China Launches National Blockchain, To Accelerate Expansion Of Digital Economy

[sergiorus]

China has unveiled a plan to build a national blockchain network, but the Asian power's planned investment about the technology does not appear to equate to a slackening restrictions on private cryptocurrency trading, which remains banned in mainland China.

The measure was announced in a policy document entitled "Opinions of the CPC Central Committee and the State Council on Developing New Productive Forces." The document was made public by the official Chinese state news agency Xinhua on Friday.

The document made no mention of Bitcoin or other independent cryptocurrencies. Since 2021, Beijing has enacted a blanket ban on all cryptocurrency transactions. The ban extends to foreign cryptocurrency companies who attempt to provide services to people living in mainland China.

China does, however, operate its own sovereign digital currency, the digital yuan. Beijing has recently been encouraging its citizens to increase their use of the digital currency, having recently increased the number of banks authorized to operate digital yuan services from 22 to 30 in August.

China also already invests in blockchain, the technology which enables the existence of cryptocurrencies. China currently has a Blockchain-based Service Network (BSN), a state-backed platform which supports enterprise and government applications but prohibits cryptocurrencies like Bitcoin from operating on its rails.

It is possible, though unconfirmed, that the new system will build on BSN.

The document also called for a more comprehensive integration of the Chinese digital and real economies through the digitalization of the manufacturing industry, the construction of a "national integrated computing power network" and the implementation of the "Eastern Data, Western Computing" project, a mega-infrastructure venture designed to store data generated by China's economically productive and densely populated eastern regions in the less-developed, more sparsely-populated but resource-abundant west of China.

However, officials responsible for the digital transformation are also advised against "abandoning the real economy for the virtual economy, pursuing large-scale and comprehensive development, or creating bubbles."

The two government bodies in charge of implementing and regulating this expanded digitalization will be the Central Financial and Economic Affairs Commission and the National Development and Reform Commission. These two organizations will likely determine how the new blockchain network is integrated into wider Chinese digital infrastructure.

In response to the news, investor interest in China-linked blockchain project Conflux (CFX) has increased, with CFX steadily increasing since Saturday morning and surging to highs of above $0.07 on Sunday. At 8am EDT on Sunday, Conflux was hovering at $0.066, up more than 26% from Saturday's closing price.

CFX is widely seen as the only regulatory-compliant public blockchain in China because it works closely with state-backed corporations, does not sell unregulated tokens within Chinese borders and its founders have close professional and academic ties to the state-run Tsinghua University.



Source: https://finance.yahoo.com/markets/crypto/articles/china-launches-national-blockchain-part-122056332.html

[jossiel]

Is this different from the CBDC that they have planned once before or it's part of this national blockchain project? IIRC it was a couple of years ago. However, with their population this can be implemented easily because of how the government there implement things related to technology.

And citizens have no way to avoid and reject the implementation that's being done to them by the CCP.

This topic in my opinion belongs to the Press section than the Speculation.

[Dave1]

Is this different from the CBDC that they have planned once before or it's part of this national blockchain project? IIRC it was a couple of years ago. However, with their population this can be implemented easily because of how the government there implement things related to technology.

And citizens have no way to avoid and reject the implementation that's being done to them by the CCP.

This topic in my opinion belongs to the Press section than the Speculation.

Or how their government control everything, even once the richest person in China talking about CCP, he suddenly vanished and we didn't see him in months. So it's going to be easy and seamless with their plan to launch national blockchain.

And other thing, I don't know if you guys have seen their AI robots, but it's getting advance like every year, so with AI and blockchain, for sure China will be ahead in this technology and other countries might need to do some catch up, specially USA.

[Agbe]

I don't understand the position of China when it comes to cryptocurrency. If crypto anything that has to do with crypto currency is band then there is no need about things like this. Because of recent I have been seen some moves which the Chinese government is trying to take which is tilting towards the direction of Crypto currency. What is the meaning of launching a national block chain with the sole aim of expanding digital economy. It makes no sense to me because China has to come clear on their stand when it comes to block chain technology.

You can't be talking about block chain technology with mentioning Bitcoin and other crypto currencies, which to me has nothing to do with this news because the news only talks about the so called launching of the block chain technology without been clear about it in details and how this can translate to expanding their digital economy in the real sense

[sergiorus]

Is this different from the CBDC that they have planned once before or it's part of this national blockchain project? IIRC it was a couple of years ago. However, with their population this can be implemented easily because of how the government there implement things related to technology.

It is absolutely different as it implies a very widespread the adoption of the blockchain technology, well beyond just payments or even the financial system

And citizens have no way to avoid and reject the implementation that's being done to them by the CCP.

Citizens in the societies that are going cashless (pretty much all of developed and most of emerging world) cannot reject the cashlessness, what's your point?

This topic in my opinion belongs to the Press section than the Speculation.

It doesn't since there's no mention of Bitcoin there. We can only speculate how such a widespread blockchain adoption of the world's largest economy will affect Bitcoin

[arallmuus]

It makes no sense to me because China has to come clear on their stand when it comes to block chain technology.

They pretty much 'state' their intention if you understand what they are trying to do with this.

They basically value the blockchain technology but despises the pseudonymous that a person can get from crypto which is the reason why they want to launch their own blockchain.

They want to trace all transaction on a single blockchain without anyone hiding behind it thus they want to launch this. Does this defeat the purposes of crypto? Yeah but then again its not even crypto to begin with

It is absolutely different as it implies a very widespread the adoption of the blockchain technology, well beyond just payments or even the financial system

Pretty sure if they managed to launch this, this would go beyond just financial. Imagine having your medical record on blockchain, you could go to any private hospital on the country and doctor would just pull up your medical record from there

[avp2306]

It is absolutely different as it implies a very widespread the adoption of the blockchain technology, well beyond just payments or even the financial system

Pretty sure if they managed to launch this, this would go beyond just financial. Imagine having your medical record on blockchain, you could go to any private hospital on the country and doctor would just pull up your medical record from there

Well I guess it does not do anything on the market, since their plan is actually to strengthen up their digital infrastructure by help of Blockchain.

But also yeah, that scenario you posted might going to happen. Since their plan is maybe to create a centralized information storage, on which they can control all the details or information of people.

Though there are concerns about privacy matters if they implement this, but let see on how they pull the string to succeed with their plans.

[jossiel]

Or how their government control everything, even once the richest person in China talking about CCP, he suddenly vanished and we didn't see him in months. So it's going to be easy and seamless with their plan to launch national blockchain.

And other thing, I don't know if you guys have seen their AI robots, but it's getting advance like every year, so with AI and blockchain, for sure China will be ahead in this technology and other countries might need to do some catch up, specially USA.

They can do anything if they want to, that's why Jack Ma has been for so long when he spoke against them. I've probably seen their robots already and one interesting they have today is also their dominance in the EV market.

It is absolutely different as it implies a very widespread the adoption of the blockchain technology, well beyond just payments or even the financial system

They're open to the technology but their stance towards usecase of it like crypto hasn't change about adopting it.

They don't want to adopt but they want to make their own.

Citizens in the societies that are going cashless (pretty much all of developed and most of emerging world) cannot reject the cashlessness, what's your point?

I was thinking about the time when a bank didn't allow its customers to withdraw their cash. So, it can be the same for that scenario that they can freeze or stop someone from being a part of it.

And that's what I am pointing about the power of CCP to its people.

It doesn't since there's no mention of Bitcoin there. We can only speculate how such a widespread blockchain adoption of the world's largest economy will affect Bitcoin

It's been a day so, I guess you're right.

[ObeyKnock]

Or how their government control everything, even once the richest person in China talking about CCP, he suddenly vanished and we didn't see him in months. So it's going to be easy and seamless with their plan to launch national blockchain.

And other thing, I don't know if you guys have seen their AI robots, but it's getting advance like every year, so with AI and blockchain, for sure China will be ahead in this technology and other countries might need to do some catch up, specially USA.

Overall, after years of promotion through lottery draws, cross border payment pacts, promotion through state banks, etc., it appears eCNY adoption is not "easy and seamless" and PBOC data shows that it still accounts for just ~0.16% of the M0 money supply in China.

So eCNY is far from replacing fiat money in China, where Alipay and WeChat Pay still dominate everyday payments, despite the government now making eCNY interest bearing from January 2026 and other nudges. Often eCNY is used as payment method, after which people quickly convert the eCNY back to fiat in their bank account after making purchases with it. So government control over the financial rails does not imply easy and fast adoption.

[yhiaali3]

In my opinion, Beijing seeks to separate blockchain technology from the financial speculation of cryptocurrencies, as its national plan aims to employ blockchain in supporting real production forces and developing national computing networks and manufacturing industries in a way that serves the real economy.

It is clear that China does not reject the technology itself, but rather it wants to create its own sovereign solutions, and I believe that is why it created and developed the "sovereign digital yuan" to be the alternative under the supervision of the Chinese central bank instead of Bitcoin and cryptocurrencies that are not under its control.

[CryptoBuds]

I don't understand the position of China when it comes to cryptocurrency. If crypto anything that has to do with crypto currency is band then there is no need about things like this. Because of recent I have been seen some moves which the Chinese government is trying to take which is tilting towards the direction of Crypto currency. What is the meaning of launching a national block chain with the sole aim of expanding digital economy. It makes no sense to me because China has to come clear on their stand when it comes to block chain technology.

You can't be talking about block chain technology with mentioning Bitcoin and other crypto currencies, which to me has nothing to do with this news because the news only talks about the so called launching of the block chain technology without been clear about it in details and how this can translate to expanding their digital economy in the real sense

Bitcoin may have been the first real world use of blockchain, but the two aren't the same thing.

Blockchain is the tech, crypto is just an app running on top of it. Crypto needs a blockchain to work, but a blockchain doesn't need crypto.

Blockchain technology has been used to record,  verify and share data across various industries for years.  A lot of businesses have their own private blockchain and no coin is issued to go with them.
So China's stance is not that hard to understand. They are banning crypto related activities, particularly high risk investment and speculation, not blockchain technology itself.

[sergiorus]

In my opinion, Beijing seeks to separate blockchain technology from the financial speculation of cryptocurrencies, as its national plan aims to employ blockchain in supporting real production forces and developing national computing networks and manufacturing industries in a way that serves the real economy.

It is clear that China does not reject the technology itself, but rather it wants to create its own sovereign solutions, and I believe that is why it created and developed the "sovereign digital yuan" to be the alternative under the supervision of the Chinese central bank instead of Bitcoin and cryptocurrencies that are not under its control.

It doesn't matter. Bitcoin has always been a benchmark of the blockchain technology's success.

Even when it was all about altcoins (fundamentally) and Bitcoin seemed forgotten, it would still slowly get repriced upwards.

The world's largest economy adopting the technology for widespread day-to-day civilian operations is metaphorically speaking jewellery becoming a hot fashion trend. Would you want to own some Gold during jewellery becoming a hot fashion trend? Even if nobody mentioned the jewellery is preferred to be of Gold?