China has announced plans to integrate blockchain technology into its national digital infrastructure, aiming to establish a trusted data circulation ecosystem.
China's Digital Strategy
China has proposed utilizing blockchain and smart contracts as part of its new national initiatives, highlighting their importance in the newly released 'Guidelines for the Construction of National Infrastructure'. The goal is to initiate data infrastructure projects by 2029, creating a unified reliable infrastructure for processing digital identifiers and transaction certificates.
China's Stance on Cryptocurrencies
Since 2017, China has taken a clear anti-crypto, pro-blockchain stance. Despite the existence of companies like Bitmain, in 2021, the government banned all crypto-related activities. A recent legal clarification confirmed that holding cryptocurrency is not prohibited for individuals; however, commercial activities involving it remain illegal. Research by Chainalysis indicates growth in Chinese OTC platforms, with nearly $50 billion in transactions in the first two quarters of 2024.
Prospects for Blockchain Implementation
While cryptocurrencies remain popular in China, regulatory measures continue. Hong Kong's recent move to adopt cryptocurrency may prompt a policy shift in the mainland, but this is unlikely at present. Nevertheless, China may reconsider its stance if the changes align with BRICS goals and national objectives.
Implementing blockchain technology in national infrastructure could play a crucial role in China's modernization by ensuring the security and reliability of digital operations. However, the country's stance on cryptocurrencies remains firm despite global changes and its domestic popularity.
