Chinese Government Supports Blockchain Amid Crypto Ban
China is looking to train 500,000 blockchain professionals following the launch of a new national blockchain research center.
The recently inaugurated research center in Beijing is endorsed by the Chinese Ministry of Science and Technology.
It will work closely with universities, tech companies, and other research institutes to further the development of the country’s blockchain and Web3 industries.
Separating Blockchain From Digital Assets
Of course, probably the most well-known application of blockchain technology is digital assets. Yet the Chinese government has taken a tough line of cryptocurrencies and outlawed crypto trading in 2021.
As such, supporting the country’s blockchain sector means delineating the technology from its cryptocurrency use cases.
According to the South China Morning Post, as well as training new blockchain professionals, the center also aims to establish a nationwide blockchain network. This will connect existing blockchains in China and promote cross-chain development.
Examples of Chinese blockchains include ChainMaker, also known as the Chang’An Chain.
ChainMaker is an open-source platform created by the Beijing Academy of Blockchain and Edge Computing. The government-backed research institute is also taking a leading role in the new center.
Among the entities looking to realize the potential of the Chang’An Chain is the State Grid, which hopes to use it to record carbon lifecycle data on-chain.
Meanwhile, Chinese healthcare players are collaborating on the Xiaotong Medical Chain. Built using ChainMaker, the Xiaotong Medical Chain is designed to create trusted data links.
Using the platform, medical institutions, government authorities, and insurers will be able to share information via a verifiable and cryptographically secured channel.
Chinese Digital Asset Firms Seek Refuge in Hong Kong
While the Chinese government emphasizes alternative use cases of blockchain technology, China’s digital asset firms have had to find ways around the country’s crypto ban.
Moreover, the demand for cryptocurrencies remains strong among the Chinese population. And the blanket ban on crypto trading has proved difficult to enforce.
One strategy that has proven effective for some companies is relocating operations from mainland China to Hong Kong.
As opposed to the stance taken by Beijing, Hong Kong has cultivated a hospitable climate for cryptocurrency businesses. And some of the world’s largest crypto firms now have offices there.
For example, companies like Huobi have expanded their presence in the city. And that’s despite being nearly crippled by the 2021 crypto ban. But thanks to Hong Kong’s crypto-friendly policies, Huobi, and its peers have now recovered some of their mojo.
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