China intensifies efforts to establish comprehensive blockchain network: Here's why
China is escalating its efforts to create a comprehensive blockchain network, despite maintaining a strict policy against cryptocurrencies. The objective of this initiative is to enhance the Chinese government's participation in blockchain-related activities, especially those with an international dimension. This move includes the launch of the "Ultra-Large Scale Blockchain Infrastructure Platform for the Belt and Road Initiative," a development strategy initiated in 2013, aimed at constructing a global infrastructure connecting continents by land and sea.
Conflux Network leads the project
The forthcoming public blockchain platform project is being led by Conflux Network, which recently announced its launch. Operating under the supervision of Conflux Foundation, also called the Shanghai Tree-Graph Blockchain Research Institute, Conflux Network serves as a multichain blockchain system. Updates about the project were shared on X, where it was stated that the platform would "provide the base for developing applications that showcase collaboration across borders." Further details about this initiative will be disclosed in due time.
Growing interest in Web3 and metaverse technology
China's interest in the Web3 sector is not a recent development. The government has demonstrated its readiness to manage the rise of metaverse technology within its borders. In January 2024, a special body was established by the Chinese government, with the task of setting standards for metaverse technology usage in China. This group includes major Chinese tech companies such as Tencent, Baidu, and Ant Group.
China's CBDC trials and crypto trading
China is leading the way in conducting Central Bank Digital Currency (CBDC) trials in Asia, with global banks like Standard Chartered participating. Despite a blanket ban on cryptocurrency-related activities imposed by Beijing in September 2021 due to power shortages, an underground network of crypto traders has managed to keep trading operations active. A December 2023 report by Vietnam-based investment capital firm Kyros Ventures, revealed that stablecoins are particularly popular among Chinese investors, with 33.3% holding these digital currencies.