- The new blockchain center is part of China’s effort to enhance its blockchain capabilities.
- According to local reports, the Beijing Academy of Blockchain and Edge Computing (BABEC) will lead the vertical.
- The official clearance reportedly paves the way for the development of important core technologies for self-reliance.
A National Blockchain Technology Innovation Center will be established in Beijing soon. According to local reports, the launch has been approved by China’s Ministry of Science and Technology.
The report states that the research center is to be led by the Beijing Academy of Blockchain and Edge Computing (BABEC) – an entity known for developing the Chang’an Chain or ChainMaker blockchain.
This blockchain is already supported by an ecosystem of 50 business corporations, most of which are state-owned, such as China Construction Bank or China Unicom. By publication time, the ChainMaker can execute 240 million transactions per second (TPS), up from 100,000 TPS in 2021.
Blockchain Will Help China’s Digital Sector
According to reports, the official clearance gives the go-ahead to develop critical core blockchain technologies. It would also accelerate industrialization, cultivate top talent, and establish a national blockchain strategic technology force.
President Xi Jinping called for more research and funding for blockchain technology in 2019. Blockchain, according to Xi, will play an “important role in the next round of technological innovation and industrial transformation.”
At the same time, China tightened its grip on mining and trading in the private crypto market. After September 2021, the People’s Bank of China (PBOC) ban stopped the domestic market.
Meanwhile, Xi has stated that blockchain technology can be used in various industries, including infrastructure and finance. To promote its CBDC, 200 digital yuan events have been introduced throughout China between the new year holidays. Among the many blockchain applications in the country is a centrally-backed digital currency.
Administration Keeping a Close Eye on the Private Market
The center will now provide services to improve the nation’s technical innovation capacities in the field of blockchain technology, assisting the country in achieving high levels of technological self-reliance and self-improvement.
The document also emphasizes that the Microchip Research Institute is leading the establishment of the Blockchain National Innovation Center in collaboration with top domestic universities, research institutes, and foundational industry businesses.
The Chinese soccer team Beijing Guoan Football Club recently launched its non-fungible tokens (NFT) collection, which also made headlines.
The Chinese local government also released a “Beijing Urban Sub-Center Metaverse Innovation and Development Action Plan (2022-2024)” last year. Meanwhile, the Beijing Municipal Administration for Market Regulation has emphasized the risks of metaverse investment and non-traditional financial instruments (NFTs) with speculative components.
China and Blockchain Technology
In recent years, China has actively marketed itself as a blockchain nation. China’s government claimed in September 2022 that it accounts for 84% of all blockchain applications filed worldwide. While the actual numbers may be similar, the approval rate is low, with only 19% of all applications approved.
