The potential of blockchain technology has many governments researching how it can be integrated into different processes. China is now embarking on a project to see blockchain technology integrated into businesses and government entities.
An announcement from the Cyberspace Administration of China (CAC) noted that the country was launching an in-house effort to adopt blockchain technology in 15 zones and 164 organizations.
Large-scale integration of blockchain
Through this initiative, China wants to have blockchain technology integrated on a large scale basis across businesses and government agencies in the country. This initiative is spearheaded by the CAC and other government agencies that have required the relevant regulatory bodies to promote the use of blockchain.
The announcement notes that the regulatory bodies will “promote the intensive and balanced layout of blockchain technology infrastructure in the region, form a large-scale production-level cross-chain data exchange support capability, and promote the formation of a multi-party collaborative blockchain industry ecology.”
The integration of blockchain technology will be done through a pilot phase. The notice has picked out the cities, companies, and organizations involved in the pilot phase. The entities involved were selected through recommendations from local and departmental bodies.
Blockchain technology offers efficiency, speed and security, which can be useful for a wide range of processes. China’s blockchain endeavour will focus on taxation, healthcare, manufacturing, energy, sharing government data, court trials, traditional finance markets, education, law enforcement, trade, etc.
Additionally, the regulatory bodies that will have oversight over the pilot phase will be required to advance and promote the pilot phase to ensure the use of blockchain can be rolled out in more cities, businesses and government entities.
The regulators should also provide full reports on how blockchain is “promoting data sharing, optimizing business processes, reducing operating costs, improving collaborative efficiency, and building a trusted system.”
China favours blockchain to crypto
Last year, China imposed a blanket ban on crypto trading and mining. Most exchange firms have already exited China. However, the country’s harsh stance against the crypto space is limited to trading and mining activities.
China has shown a favourable stand on blockchain and non-fungible tokens (NFTs). Recent reports noted that the Blockchain-based Service Network (BSN) was developing an infrastructure to support NFT platforms and applications. BSN is a blockchain project backed by the Chinese government. However, this project focuses on non-crypto blockchain products.
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