Chinese government accelerates the promotion of blockchain technology

The Chinese government has been accelerating the promotion of blockchain technology since 2019. China’s President Xi Jinping commented in Politburo Committee session on blockchain technology trends that blockchain technology is the key in developing the digital economy and propelling social development. However, the government has been combating cryptocurrency trading and mining activities recently.

Last month, the Chinese authority expressed their negative stance on crypto mining, even though over 70% Bitcoin mining services operated in China, it is believed that the leading position of China on Bitcoin mining may be affected. Besides, Weobo has suspended several popular crypto-related content creators on the platform, saying that they violated Weibo guidelines and “relevant laws and regulations.”. “The Chinese government makes it clear that no Chinese version of Elon Musk can exist in the Chinese crypto market.”said Winston Ma, a New York University law school adjunct professor and former China Investment Corporation managing director.

The Chinese government does not allow financial and payment institutions to expand cryptocurrency-related businesses. According to “Wu Shuo Blockchain”, a Chinese blockchain media, several over-the-counter (OTC) and lending companies in the Mainland have recently been under investigations by local financial bureaus, showing that the government obviously aims at achieving the goal of 100% CBDC usage, the supervision of transactions, anti-money laundering, and prevention of illegal economic activities.

Nevertheless, the Chinese government still recognises the technology behind cryptocurrency. It is mentioned in the “Guiding Opinions of the Office of the Central Cyber Security and Informatization Committee of the Ministry of Industry and Information Technology on Accelerating the Promotion of Blockchain Technology Application and Industrial Development” that the mainland government believes the characteristics of blockchain technology, can solve network security issues.

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