China’s Ministry of Science and Technology has approved the construction of the National Blockchain Technology Innovation Center, a significant milestone in the quest to drive the mass adoption of blockchain technology in the region.
According to reports, the institute will establish a research network with nearby institutions, think tanks, and blockchain companies to investigate fundamental blockchain technology. The results of this study will be applied to accelerate China’s digitalization and develop its blockchain sector.
The Microchip Research Institute will oversee the Blockchain National Innovation Center. The centre aims to advance the fundamental and cutting-edge leading core technologies in the blockchain field and lay a solid foundation.
The report claims blockchain technology will be a crucial structural component of China’s new digital infrastructure. The new centre will also concentrate on significant use cases of blockchain technology relating to the national economy and individual livelihoods.
In recent years, China has increased its support for blockchain technology while cracking down on cryptocurrencies, which the government sees as a threat to financial stability.
However, Huang Yiping, a former member of the People’s Bank of China’s Monetary Policy Committee, suggested that the government reassess the long-term feasibility of the country’s ban on cryptocurrency trading. He believes that a ban on cryptocurrencies may prevent the traditional financial industry from capitalizing on the potential advantages of blockchain and tokenization, as regulated financial organizations benefit the most from these technologies.
Along with blockchain research, the creation of a central bank digital currency (CBDC) is one of the Chinese government’s top priorities.
To encourage its use, e-CNY worth millions of dollars, has been distributed throughout the country. However, as of October 2022, total e-CNY transactions had only reached 100 billion yuan ($14 billion).
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