Chinese Government Sets Sights on Blockchain Future with New Center

The rush to develop and implement blockchain technology is still on in 2023. China continues its attempts to incorporate cutting-edge blockchain technology into its economy and infrastructure. This article will discuss the latest measures China is taking to establish distributed ledgers.

Beijing Blockchain Technology Center

The Chinese government will establish the National Innovation Center for Blockchain Technology to investigate its possibilities and broaden its use, according to the South China Morning Post.

The center, according to the report, would be situated in Beijing and will bring together local colleges and blockchain-focused analytical companies in a research network. Thus, the work’s outcomes are supposedly scheduled to be employed in the PRC’s future digitization.

Previously, Huang Yiping, a former member of the People’s Bank of China’s (PBOC) monetary policy council, described blockchain technology as helpful for financial institutions. According to him, the country’s authorities should evaluate the long-term implications of cryptocurrency prohibition. Moreover, he contended that a permanent ban on cryptocurrencies restricts users and may result in the loss of significant potential for the traditional banking system.

China will release blockchain-enabled SIM cards

China Telecom and the Conflux Network blockchain are gearing up to transform mobile communications. They’re working on blockchain-enabled SIM cards (BSIM).

A prototype of the new card has already been prepared by the businesses. Indeed. the major purpose is to make Web 3.0 and Metaverse use more accessible for China Telecom subscribers.

The card will be able to handle and store the user’s private keys and digital assets on the blockchain, serving as “a more secure, more efficient, and more compliant entrée into the Metaverse,” according to the commercial.

Functionality of BSIM

Users of BSIM cards will be able to conduct transactions from their mobile devices, exchange assets with friends, and see NFT in a variety of apps. The card will log in to the user to several apps automatically.

China’s cryptocurrency ad blockchain initiatives

Previously, in September 2021, the National Bank of China issued a joint statement with nine government organizations classifying digital asset transactions as unlawful financial operations.

Moreover, China enhanced criminal penalties for unlawful cryptocurrency fundraising in February 2022. Simultaneously, the Shanghai High Court acknowledged bitcoin as a virtual asset having legal economic worth.

However, China has recently positioned itself as a pro-blockchain country. The administration reported in September that the state accounted for 84% of all blockchain applications submitted globally! Unfortunately, the acceptance rate is quite low, with the government accepting just 19% of total applications. Notwithstanding the restriction on the usage of crypto-assets, this demonstrates the excitement and trust of local authorities in the technology.